Customer Solution Case Study
/ Retailers Gain Millions in ROI and Improve Supply-Chain Efficiency with SaaS Solution
“With our BI solution based on SQL Server 2008 R2, customers can increase retail sales…. by up to 4 percent, which translates to millions of dollars in ROI.”
Richard Swan, Chief Technology Officer, Retail Solutions
Retail Solutions, a leading global provider of software-as-a- service (SaaS) products, strives to improve profitability for its major customers, so it implemented an interactive business intelligence (BI) solution based on Microsoft SQL Server 2008 R2 Enterprise. Major suppliers and retailers worldwide use the solution to gain millions of dollars in ROI through increased sales and better supply-chain management. In addition, Retail Solutions is expanding its business 40 percent annually by taking advantage of a Microsoft platform.
This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.Document published February 2013
Business Needs
Based in Mountain View, California, Retail Solutions is a leading provider of software-as-a-service (SaaS) solutions for more than 500 consumer product goods (CPG) suppliers and 70 retailers worldwide. To make strategic business decisions, Retail Solutions knew that its customers needed to do more than just track data—they needed sophisticated analytics tools and the ability to collect and share information across the entire supply-chain network.
Today’s retailers face challenges that include a highly competitive global marketplace and customers who are just as likely to shop from a smartphone as they are to walk into a store. “The whole world has sped up,” says Richard Swan, Chief Technology Officer at Retail Solutions. “Virtually every retailer is looking at the fact that a lot of business is now being transacted on the Internet, and to compete they have to provide the same customer experience and responsiveness in their stores that customers receive online.”
Effectively managing the supply chain is only part of the problem. Retailers and CPG companies need to ensure not only that products are on shelves, but that they are the products customers want. However, gaining actionable insight from huge volumes of raw data can be difficult. Retail Solutions reports that, without its solutions, the average CPG company has a forecasting error rate of 45 percent and a failure rate of 70 percent for new product introduction. To help its customers gain more value from their business data, Retail Solutions wanted to offer a highly scalable environment with interactive, self-service BI tools.
Solution
In 2011, Retail Solutions decided to replace its Oracle platform with Microsoft SQL Server 2008 R2 Enterprise software running on the Windows Server 2008 R2 operating system. To transition from scheduled, fixed reports to a more interactive service, the company required a high-performance solution that could handle a heavier workload. “We needed a distributed environment to ensure that data would be available on time and that we could build cubes for interactive queries,” says Swan. “We didn’t feel that we could achieve those goals cost-effectively with Oracle, so we chose a solution based on SQL Server 2008 R2.”
The solution includes 100 server computers running Microsoft SQL Server 2008 R2 Analysis Services, and web applications running on Internet Information Services 7.0. The company also uses Microsoft SQL Server 2008 R2 Integration Services to connect customer data pulled daily from multiple sources, including point-of-sale locations, merchandiser feedback systems, and supply-chain operations. People can work with the data using familiar tools such as Microsoft Excel software.
Retail Solutions estimates that it loads 1.5 billion records daily and manages nearly 100 terabytes of core data. In total, the company stores approximately half a petabyte of information. To protect customer data, the company is taking advantage of features built into SQL Server 2008 R2 such as role-based access for individual users as well as business groups.
Retail Solutions offers 400 cubes that customers can use to measure supply-chain efficiency and to evaluate the performance of individual stores and products. Customers use a web-based interface from Strategy Companion, a Microsoft partner with a Gold Business Intelligence competency, to connect with SQL Server Analysis Services and create interactive reports. And to help its customers respond faster, Retail Solutions provides services such as automated alerts that notify merchandisers about distribution problems in stores. In addition, Retail Solutions uses a Microsoft SharePoint Server 2010 portal to exchange information with customers.
Benefits
BI solution based on the Microsoft platform, Retail Solutions is increasing customers’ return on investment, improving business insight and profitability, and supporting significant business growth.
Helps Customers Gain Millions in ROI
Retail Solutions customers look for rapid ROI, and now they can easily meet that goal. Instead of relying on basic data tracking and reporting tools, they can use scientific analytics to gain collaborative insights that drive better business decisions and increased sales across all consumer brands. “With our BI solution based on SQL Server 2008 R2, customers can increase retail sales by reducing out-of-stock items, improving promotions, and other methods,” says Swan. “As a result, they can boost sales by up to 4 percent, which translates to millions of dollars in ROI.”
Increases Scalability While Controlling Costs
Retail Solutions customers can start using BI tools quickly with minimal investment in IT infrastructure. “Because we handle everything, including integration and analysis services, customers prefer our SaaS solutions over traditional, on-premises software implementation,” says Swan. “Providing those services on a highly scalable Microsoft platform is also easier and less costly for us as a solution provider because we can support many customers globally on the same infrastructure.”
Improves Actionable Insight
By running its award-winning solutions on a Microsoft platform, Retail Solutions is improving service to its end users and their customers worldwide. “With the Microsoft platform, including SQL Server 2008 R2, we were able to totally transform the level of service we can provide customers,” says Swan. “Instead of just working with static reports, they can use the interactive solution to dive deeply into data and gain insights that improve customer service throughout the supply chain and, ultimately, increase sales.”
Supports 40 Percent Annual Growth
Retail Solutions has found the right solution to support its own business growth. “The flexibility of both the Microsoft platform and Microsoft Services Provider License Agreement has been fantastic for our business model,” says Michael Yofin, VP of Engineering at Retail Solutions. “We’ve expanded by about 40 percent annually in recent years, and the solution is critical for helping us grow.”
This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.Document published February 2013