Teradata Demand Chain Management provide you with improved customer service levels, optimized inventory assortments and promotion management, fast ROI, and power and scalability. Learn more about what this newest version of DCM provides businesses. Includes screen shots and solution details. For more information, go to http://www.teradata.com/t/products-and-services/teradata-demand-chain/.
2. Teradata Highlights
• Teradata Corporation – Launched October 1, 2007
> Global Leader in Enterprise Data Warehousing
– EDW/ADW Database Technology
– Analytic Solutions
– Consulting Services
> Positioned in Gartner’s Leaders Quadrant
in data warehousing since 1999
• U.S. publicly-traded software company
> S&P 500 Member
> Listed NYSE: “TDC”
> NYSE Arca Tech 100
• Global presence and world-class customer list
> Nearly 925 customers
> More than 2,400 installations
• 6,400+ associates
3. The Demand Chain
Results Inputs
• Accurate demand forecast • Location Sku: Time Series
• Statistical and user defined Forecasts, Orders, Allocations
replenishment plans • Individual location based
• Actionable allocation plan Demand Pulls Product historical sales, future events
• Inventory strategy, lead times,
trend
How much of each item do I need to
have at each Location and when?
Source Carrier DC Store Consumer
Inputs Product Flows Efficiently End Results
• PO data, Partners, Orders, • Product in the right place at the
ASN’s right time
• Expected ship and arrival (ETA’s) Is the ordered product moving efficiently • Improved sales and turns
• Anticipated events through the supply chain to the Locations, • Customer satisfaction
according to plan and latest trends?
• Merchandise movements
4. The Opportunity
Demand Chain Improvements!
• After 40 years of investment in
technology to address Out-of-Stocks
and improve inventory productivity • Retail Out of Stocks average 7.9% nationally,
over 10% on promoted items
we still have • A typical retailer loses 4% of sales due to OOS
> 8% to 10% OOS, doubling during
promotions
> Redundant and unproductive • Retailers experience OOS rates between 6% and
inventories 10% for non-promoted products
> Returns • For promoted products, OOS rates of 18% to
24% are not uncommon
• In an AMR Research survey, almost 70% of
shoppers surveyed said they would shop for OOS
“ 10% reduction in out-of-stocks is the items at a competitor’s store or website
equivalent of adding a billion-dollar
brand.”
– Jake Barr, Proctor & Gamble
“ Staying in-stock remains the top
revenue opportunity in North America.”
– VP Sales, Top 5 CP Company
5. Teradata Solutions
Demand Chain Management
Financial Customer
Management Demand and Supply Chain Solutions Management
Teradata Demand
Chain Management
Seasonal
Demand
Contribution Profile & Intelligent
Forecasting
Profile Clustering
Promotions Automated Time Phased
Management Replenishment Replenishment
Intelligent Product Capacity
Allocation
Introduction Planning
Teradata Enterprise Data Warehouse
Industry Logical Data Models
6. The Value Of Teradata DCM
• Our extensive experience in implementing
demand and supply chain solutions for leading
global retailers, validate our ability to
> Optimize regular and promotional
store/SKU forecast and order accuracy
> Improve promotional planning, and
> Align inventory investment with
customer demand
• This results in
> Sales increases ranging from 2% - 8%
> Inventory turns increases ranging
from 20% - 40%
> Improved labor productivity and execution
• This delivers a substantial net earnings increase and payback
in less than 12 months after implementation
7. The Solution
Teradata Demand Chain Management
Regular and Replenishment
Item and Allocation Capacity
Promotional
Contribution Point-in-Time and Planning
Demand Forecast Time Phased
DCM Modules DCM Modules DCM Modules DCM Module
• Contribution • Seasonal Profile • Auto and Time • Capacity Planning
• Demand Phased
Outputs Outputs
Forecasting Replenishment
• Ranking of items • Shifting of orders
• Promotions Mgt • Allocation
based on sales to account for
• Intelligent Prod
dollars, sales units Outputs available DC
Intro
and gross margin • Up to 65 week order capacity
dollars Outputs forecast
• Regular and • Multiple time
Promotional sku horizons
location level and • Forecast based
aggregate forecasts allocation with
• Automated various methods
Seasonal Profiles including
• Multiple time contribution
horizons from daily
to 65 weeks
8. The Solution
Teradata Demand Chain Management
• Dynamic ranking of Product performance at any level of the product or location hierarchy
• % Ranking according to contribution to sales units, sales dollars and margin dollars
• As with everything else in DCM, contribution coding is done “bottom-up” at the Store/SKU
level!
> This enables greater precision (and ROI) in inventory investments
> Enables localised assortment
Item
• Solution used to identify importance to the business Contribution
• Automatically picks up Life Cycle changes
DCM Modules
• Contribution
Contribution % Customer Service Level
Outputs
Code Contribution Actual Desired • Ranking of items based
on sales dollars, sales
A Top 60% 79% 99% units and gross margin
dollars
B Next 20% 83% 97%
C Next 15% 95% 95%
D Next 4% 100% 93%
E Bottom 1% 100% 91%
9. The Solution
Teradata Demand Chain Management
• Automatically identifies products and locations that demonstrate similar
seasonal selling patterns without hierarchical dependencies
• Provides a forecast based upon actual consumer
demand, accounting for lost sales due to stock outs Regular and
• Use of multiple algorithms in parallel to drive Promotional
greater forecast accuracy in a bottoms up approach Demand Forecast
• Ability to forecast future promotions based upon DCM Modules
past promotions’ results considering various • Seasonal Profile
• Demand Forecasting
promotional drivers • Promotions Mgt
• Intelligent Prod Intro.
• Simulation capability optimizes forecasts and orders
Outputs
• Provides the ability to intelligently match new SKUs • Regular and
to existing SKUs in order to seed an initial forecast Promotional sku
location level and
for the new SKU aggregate forecasts
• Automated Seasonal
Profiles
• Multiple time horizons
from daily to 65 weeks
10. The Solution
Teradata Demand Chain Management
• Provides both point-in-time and time phased replenishment
• Business policies transform the sales forecasts into replenishment orders, over
multiple time horizons (daily to 65 weeks)
• Time Phased Orders allow for Store-DC Synchronization
Replenishment
• Orders built at store and DC, approve or modify store
and Allocation
orders to DC for execution Point-in-Time and
• User defined service levels, safety stock considers, Time Phased
volatility, popularity, rates of sale, forecast accuracy DCM Modules
• Auto and Time Phased
• Supports a variety of Allocation methods and types Replenishment
including forecast driven • Time Phased
Replenishment
• Integrated Replenishment and Allocation supports Outputs
hold ‘n flow strategy for distribution • Up to 65 week order
forecast
• Multiple time horizons
• Forecast based
allocation with various
methods including
contribution
11. The Solution
Teradata Demand Chain Management
• Calculates DC capacity utilizations and adjustments needed to stay within capacity and support demand
• Each week, corporate roll ups at cube, case and pallet are done for all order forecasts, for all locations,
for a 65 week planning horizon
• Can include the results of a Simulation from the Replenishment module
140,000
130,000 Capacity
Planning
120,000
110,000 DCM Module
• Capacity Planning
100,000
Outputs
Week
• Shifting of orders to
90,000
account for available
DC capacity
80,000
70,000
60,000
50,000
32 33 34 35 36 37 38
Cumulative Shortfall 4,879 25,074 17,433 1,427 0 0
Requirement 58,665 63,275 67,426 75,067 91,073 135,143 80,171
Capacity 92,500 92,500 92,500 92,500 92,500 92,500 74,000
Cases
12. What Is Unique About DCM?
• Provides a forecast based upon actual consumer
demand, accounting for lost sales due to stock outs
• Use of multiple algorithms in parallel to drive
greater forecast accuracy in a bottoms up approach
• Automated Seasonal Profiling identifies products and
locations that demonstrate similar seasonal selling
patterns without hierarchical dependencies
• Ability to forecast future promotions based upon
past promotions’ results
• Dynamic ranking of product performance at any
level of the product or location hierarchy, enables
alignment between inventory investment and return
• Time phased replenishment that provides synchronization of inventory
throughout the supply chain and supports collaboration with vendors
• Integrated Forecasting, Replenishment and Allocation solution
• Scalability which enables a forecast to be calculated for every sku location
weekly or daily and rolled up at any level of product/location
hierarchy...resulting in improved accuracy
13. Teradata DCM Release 4
Dashboard/Workbench
• Improved Usability through coherent navigation –
less clicks
• Change location/category selection without leaving
screen
• View details on Exception or SOQ without leaving
screen
• Provide meaningful information and alerts with
minimal navigation
• Focus alerts on actionable information
• Alerts to tell user what to look at versus simply
dumping information
• Pre-defined layouts, flow and navigation by key roles
• Flexibility for UI configuration
• Maximum flexibility for configuring DCM Customer
specific views
• Role specific views – can be as simple or complex as
desired
• Define multiple pages for different processes/views
• User preference to
> include/exclude portlets
> define same portlet multiple times for different
scopes of data
14. Teradata DCM Release 4
KPI and Contribution Details
• YTD, MTD, Week comparison
• Actual, Plan and Forecast
• Multiple Graph Types
• Configurable Settings
• KPI Metrics by Contribution
• Breakdown by Sales $, Units, GM $
15. Teradata DCM Release 4
Exception Details
• Exception Detail screen allows user to
change the Location/Classification and
Exception Type to view.
• Available for Executives, H.O. and
Store/DC Managers to review Exceptions
at appropriate Location/Classification
level from Exception Portlet in DCM
Workbench.
• Exception Summary panel displays each
Exception Type: # SKU/Locations, trend
arrows and sparklines for selected
Location/Classification
• User has ability to define which Exception
Types to display and including optional
trend arrows and sparklines in Exceptions
Setting screen.
• Ability to drill into the Exception Detail
screen for a specific Exception Type to
display SKU/Location detail grid with
hyperlink to an Exception Popup Graph