2014 Readers' Choice Survey: Demand Data Analytics

Download the full 2014 Demand Data Analytics Report

A battle is being waged — between syndicated data providers and downstream data solutions (or demand signal repositories) — for the consumer goods company’s dollars when it comes to demand data analytics. Lora Cecere, founder, Supply Chain Insights, explains the interesting dynamics of this fragmented, but very relevant market, and offers advice to consumer goods executives for overcoming these obstacles.

Can you comment on this list? Is the outcome what you would expect?
Cecere: Nielsen and IRI are battling it out in syndicated data, with each attempting to gain market share in a hotly-contested market. Line-of-business users are still hoping that these syndicated data providers would be successful in offering software and advanced analytics, but neither has delivered a total solution yet. Nielsen leads the pack based on continuity in the market and breadth of solution.

There are a number of strong competitors in the demand signal repository (DSR) market. Can you comment on the core strengths of leaders in this space?
Cecere: In the demand signal repository (DSR) market, Retail Solutions, Inc. (RSI) has taken market share. Line-of-business leaders like the concepts of cloud-based solutions for demand data, and RSI was one of the first solution providers to take advantage of the cloud to drive differentiation. Orchestro (previously Vision Chain) has renamed itself and is driving differentiation through the development of shelf-sensing applications. Retail Velocity (formerly VMT) has also gained recognition and brand presence, and thus, improved in the Readers’ Choice ratings this year.  

How are downstream data initiatives progressing today? What are the main barriers to achieving data-driven goals?
Cecere: Today, point-of-sale (POS) data sharing is available for 60 percent of the North American retailers. While the data comes with differing levels of granularity, nomenclatures and fields, the use of downstream data improves demand sensing and shelf sensing of out of stocks, and improves demand accuracy.

As downstream data has grown in availability, more and more consumer goods companies are investing in solutions for sales account teams. However, we use retail data as the workhorse for the sales account team and syndicated data for marketing.

The harmonization, synchronization and use of multiple demand streams remain as goals for many, but the consumer goods industry is still five to 10 years from realization of this goal.

In my opinion, the biggest barrier is change management of sales and marketing processes as well as the adaptation of supply chain planning solutions to use multiple demand streams (which often requires a reimplementation).

Can you share parting words of advice for executing successful downstream data initiatives?
Cecere: Success in these projects requires leadership, perspiration and a drive toward innovation. Companies with a focused end-to-end leader are making the most progress.