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The Warehouse implements state-of-art DCM solution


TWL reverses information flow for higher sales and profit on less inventory

Teradata, a division of NCR Corporation, is working with The Warehouse Limited (TWL) to establish New Zealand’s most sophisticated Demand Chain Management (DCM) system as the “Red Shed” giant upgrades its capabilities by implementing the current Teradata DCM 3.2 solution and expanding its existing Teradata Warehouse.

A Teradata DCM customer since 2000, TWL’s system determines the optimum stock and reorder levels for the majority of products the New Zealand retailer sells – taking into account variables such as seasonality and special promotions. The application reverses the flow of information in the traditional supply chain, pulling detailed information about product demand at the stock-keeping unit (SKU) level – up through the chain, potentially back to vendors and manufacturers.

The current upgrade of Teradata’s Web-based DCM solution will continue to help TWL increase sales and decrease inventory and costs by ensuring more accurate forecasting – driving return on investment and improving The Warehouse’s bottom line.

“We have been working with Teradata to optimise our Demand Chain Management since 2000 when we implemented Teradata’s original DCM product, named PROMPT, to great effect,” said TWL’s Retail Analytics Manager Paul Carlisle. “This latest upgrade ensures we remain at the leading edge of DCM and are able to harness its power to reap business benefits throughout the organisation.”

Carlisle said the key objective of the upgrade is to undertake a like-for-like functionality upgrade and take advantage of the added capabilities and increased usability the upgraded application provides. The new platform will have four nodes, over 10 terabytes of capacity, and will provide a platform for growth as TWL continues to increase its use of business intelligence.

A key driver of the upgrade has been the recent growth of TWL’s Supply Chain Product Replenishment team – the main group of DCM users within the organisation. The team has increased significantly in recent months with further growth planned.

“The upgrade to Teradata’s DCM 3.2 will facilitate a significant increase in TWL’s processing performance which will allow the Product Replenishment team to move from using the system primarily for operational processing to being able to focus on driving stock turn and in-store availability that will help us improve our bottom line,” said Carlisle.

Julian Beavis, vice president of Teradata in Australia and New Zealand, said that in addition to the immediate benefits the upgrade will deliver, the new platform will provide a base on which TWL could add future modules to DCM’s Load Builder and Capacity Planner functions – providing integration all the way back to the Distribution Centre.

“We are delighted to continue to work with The Warehouse, that has time and time again proven itself a global leader when it comes to harnessing the power of leading-edge technologies – like Teradata DCM version 3.2 – to provide real business benefit,” said Beavis.

The upgrade is currently underway and is due to be completed this month.


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