DAYTON, Ohio, May 31, 2006 – Most companies acknowledge significant blind spots in their supply chains and report that the risk factor is growing as complexity increases – consequently, companies will spend more to increase visibility to supply-chain data, according to an AMR Research survey released today on supply-chain risk management (SCRM). Survey results are being presented at the AMR Research Supply Chain Executive Conference in Scottsdale, Ariz.

Decision-makers surveyed across industries indicated they were investing in a variety of approaches and technologies to better identify and manage risk in their supply chains. These include scorecarding, simulation tools, probability techniques, early warning systems, and a variety of information technology tools.

Teradata emphasizes the value of an enterprise data warehouse (EDW), which provides integrated visibility to the demand and supply chains by consolidating enterprise-wide data in a single source, providing consistent and accurate information for analysis and decision-making.

"Our customers who use the Teradata Warehouse for demand- and supply-chain intelligence have shown that an EDW serves as a powerful application-neutral data hub that consolidates and maintains fresh, detailed demand- and supply-chain visibility," said Jerry Hill, director of supply-chain intelligence solutions for Teradata. Hill and Mark Hillman, senior AMR Research analyst, will lead the executive round table presentation of the survey today at the Phoenician Resort.

"The central EDW hub serves many purposes," Hill explained. "Applications on an EDW deliver deeper data visibility and can monitor the supply network for leading indicators of problems, such as degradation of supplier performance, transportation time shifts, and percentage of shipments subject to customs. The EDW is effective as a platform for modeling networks and supply-chain risks. With an EDW, users can readily assess the demand and supply chain to rapidly problem-solve with the most current and accurate information, then make decisions and act with precision."

He also said that an EDW-driven supply chain can significantly reduce the time required for data gathering, and suggests that companies model their EDWs around SCRM.

Highlights of the risk management survey also included these findings:

Awareness of SCRM is increasing – but this is an emerging category 
There is dedicated funding for SCRM initiatives, and spending will rise 
Inventory optimization, business intelligence/analytics tools and data-warehousing tools are high on the investment priority list 
Reliability of supply is consistently the key driver of SCRM initiatives 
Discrete manufacturing industries lag in maturity and spending expectations are high 
Retail is mature in some aspects, but spending intentions are low.

"If firms have not developed supply-chain risk management practices yet, they must—and quickly," said Hillman in a May 2006 article. "Today's supply chains are global, running lean, and highly interconnected. Failure at one node in the supply chain, whether it's a supplier in China or the corner grocery store, can leave a company highly exposed. Said differently, in event of failure, a supply network is only as strong as its weakest link."

AMR Research has also documented significant benefits to companies that implement demand- and supply-chain management improvements. "Companies that have superior supply-chain management techniques have 60 percent better profit margins, 65 percent better Earnings Per Share (EPS), and two-to-three times higher Return on Assets (ROA) than their peers," reported Lora Cecere, research director, AMR Research, in an April 2006 article.

About Teradata Division

Teradata, (www.teradata.com) a division of NCR Corporation (NYSE: NCR), is the global technology leader in enterprise data warehousing, analytic applications and data warehousing services. Organizations around the world rely on the power of Teradata’s award-winning solutions to get a single, integrated view of their business to enhance decision-making, customer relationships and profitability.

About NCR Corporation

NCR Corporation (NYSE: NCR) is a leading global technology company helping businesses build stronger relationships with their customers. NCR’s Teradata® data warehouses and ATMs, retail systems, self service solutions and IT services provide Relationship Technology™ that maximize the value of customer interactions and help organizations create a stronger competitive position. Based in Dayton, Ohio, NCR (www.ncr.com) employs approximately 28,400 people worldwide.

Contact: Mike O’Sullivan, Teradata Division, NCR Corporation
Telephone: (937) 445-7152
E-mail: mike.osullivan@ncr.com