Teradata

1. Improve Customer Service Levels

Your goal is to provide the highest level of customer service with the lowest inventory investment possible. By understanding demand, you can improve your service levels, especially on the products contributing the most to your bottom line. We average a 39% reduction in store-SKU forecasting error for our current customers, empowering them to make better, faster decisions on accurate, actionable information.

Out-of-stocks and excess inventory are situations that lead to inventory problems. Most Retailers invest a large portion of inventory dollars – up to 55% – in SKUs that contribute less than 5% to sales. By understanding how each SKU contributes to your bottom line, you can easily identify and correct inventory problems-making sure you have enough high-demand items, while reducing or discontinuing merchandise lines not contributing to profitability. Getting the inventory levels right can make the difference between profit and loss.

Promotions can further complicate the balancing act of out-of-stocks and excess inventory, given the uncertainty of the demand the promotion may generate. Underestimating promotional impact can result in out-of-stocks and disgruntled customers; overestimating the impact can result in excess inventory. Both lead to erosion of potential profits. Teradata® DCM provides an accurate forecast for promotions and enables you to choose the best promotion to achieve the desired outcome.

4. Quick Return on Investment

Given the amount of investment dollars tied up in inventory, any inventory improvement has a huge impact on a Retailer's bottom line. One of our customers paid for the solution in one quarter. Now, that's quick! Typical Teradata DCM projects deliver multimillion dollar ROI and payback in less than 12 months after implementation.

Accurately forecasting inventory requirements reduces lost sales due to out-of-stocks, while reducing risk stock. Our customers have experienced increased sales ranging from 2% - 8% and increased inventory turns ranging from 20% - 40% – empowering them to grow their businesses and improve their bottom lines.

A more accurate forecast also results in fewer markdowns – which traditionally can equal up to 20% of sales. Teradata DCM can help reduce these markdowns by 5%-10%.What's more, while shrink of perishable sales typically averages 5% for supermarkets and similar Retailers, in pilots Teradata DCM forecasting has helped Retailers reduce shrink by more than 20%! By making better inventory decisions, Retailers can reduce wasted inventory and increase profit margins.

7. Scalable Performance

Teradata DCM provides the power and scalability to handle the detail data that makes improved customer service levels, optimized inventory and promotions, and accurate forecasting possible. Teradata scales to handle the detail needed for store-SKU forecasting – a must for accuracy. Teradata handles large data volumes easily, so your Teradata DCM solution will grow as you grow – while giving you actionable information that enables faster, better decisions.

8. Recognition of Seasonality

Merchandise generally sells at various rates during the year. Some items are obviously seasonal, such as snow tires and lawn mowers. Other items, such as soap and chewing gum, tend to sell consistently. Even non-seasonal items exhibit rising and falling patterns. Using historical sales data, Teradata DCM helps you create seasonal models for groups of items with similar seasonal patterns.

9. Exception Management

The number of SKUs, stores, and vendors all make Retailing complex. The amount of data and information can be difficult to manage. Our solution proactively alerts you to the issues needing attention so you can quickly turn a potential problem into an opportunity.

10. Web-enabled With Flexibility to Address Business Strategies

Teradata DCM delivers a web-enabled system that facilitates ease of use and administration, so you can quickly assess and forecast inventory needs. Our Automated Replenishment solution provides you with the ability to manage both distribution center and store replenishment by employing user-defined business policies. The replenishment calculations consider your business policies, service levels, forecast error, risk stock, review times, and lead times improving your ability to make the right decisions – quickly and accurately, based on complete information.

Learn More About Teradata DCM

Teradata DCM can drive competitive advantage by providing the most accurate store-SKU and promotional forecasts. That translates directly into significant business benefits: increased sales, increased turns, reduced shrink, reduced markdown, optimized inventory. That, in turn, translates into a fast, significant return on investment.

Contact us today – we'll show you how Teradata DCM can create a unique competitive advantage for your business. For more information about Teradata, contact your Teradata representative.