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Teradata Revenue Management Tool Stops Revenue Leaks and Determines True Customer Profitability

Dépèche transmise le 23 juillet 2009 par Business Wire

Teradata Revenue Management Tool Stops Revenue Leaks and Determines True Customer Profitability

MIAMISBURG, Ohio--(BUSINESS WIRE)--“In an economic downturn, it’s critically important that transportation companies focus on stopping the revenue leaks. Pricing and customer value are very difficult areas to manage and are therefore the two primary areas from where profit escapes, often undetected,” said Shaun Connolly, global program director for the transportation industry, Teradata Corporation (NYSE: TDC).

Profit escapes when companies fail for instance, to bill for upgraded or ancillary services such as special product handling or delivery requirements. Customers can appear to be very valuable based on the rates they pay, but further analysis and proper allocation of all the costs can show a far different story. This requires detailed data and a powerful analytic engine.

“For instance, a high volume customer may have negotiated a lower price. But if that customer does a significant portion of its shipping in the last three days of the month, the transportation company may have additional costs for overtime, even additional trucks. Unless those actual costs, based on the detailed data, are properly allocated, the customer’s true profitability is disguised,” Connolly said.

To help transportation companies stop the revenue leaks, Teradata Corporation, the world’s largest company solely focused on data warehousing and enterprise analytics, has created Teradata® Transportation Decisions. The tool is a set of configurable report templates, defined metrics, defined report hierarchies and a report glossary. It is designed to be used together with Teradata Value Analyzer and the business intelligence tools of Teradata’s partners. Teradata Transportation Decisions includes report templates on the profitability of any account, customer, product, or shipment based on detailed information. The templates illuminate specific areas to be addressed that will reduce profit margin erosion.

Teradata Transportation Decisions can:

• Increase profits by determining contracts, concessions and rates with customers
• Attract and retain high-margin customers with specially designed campaigns
• Increase revenue with minimal capacity increase
• Segment customers by profitability, as opposed to revenue or volume
• Increase overall margins significantly by changing the overall customer mix

Teradata Value Analyzer breaks down profitability, revenue and customer expense into multiple dimensions such as time period, weight bracket and service product type. It also validates customer compliance with the contractual commitment for revenue levels, tonnage, and shipments.

“Most transportation companies have plenty of information about revenue, but they can’t easily tie detailed cost data to specific customers or shipments. The result is they are challenged to really know which customers, lanes or shipments are profitable, and therefore, they have difficulty making correct decisions about pricing, promotions or even which customers to service,” Connolly said.

About Teradata

Teradata Corporation (NYSE: TDC) is the world's largest company solely focused on raising intelligence through data warehousing, data warehouse appliances, consulting services and enterprise analytics. Teradata is in more than 60 countries and on the web at www.teradata.com

Teradata is a trademark or registered trademark of Teradata Corporation in the United States and other countries.