DemandTec Teams with SAP to Enhance Revenue and Profit for Retailers

DemandTec Brings Consumer Demand Management Capabilities to SAP® for Retail Solution Portfolio

Chicago, Ill. – Retail Systems 2005 Conference & EXPO – May 24, 2005 – DemandTec today announced it is working with SAP to address retail industry demands for both top–line and bottom–line growth by aligning DemandTec's Consumer Demand Management (CDM) solution for price optimization with the SAP® for Retail solution portfolio. The new consumer demand management capabilities will leverage the SAP NetWeaver™ integration and application platform to bring key strengths to SAP's comprehensive industry solution offerings for retailers. The announcement was made at Retail Systems 2005 Conference & EXPO held in Chicago, Illinois, May 24–26.

DemandTec will work closely with SAP to provide an integrated retail merchandising optimization solution that enables retailers to achieve profit–, revenue–, and volume–maximizing targets. Retailers will benefit from the capabilities of DemandTec's sophisticated CDM science and intuitive user interface and SAP retail software's centralized master data, clean transaction history, ability to execute price and promotion plans, and enhanced analytics. Retailers can rely on accurate data to plan, execute, and measure the performance of merchandising programs. SAP for Retail solutions are powered by SAP NetWeaver, the integration and application platform that helps companies leverage existing IT investments and evolve the business processes having the greatest impact on success.

This offering will enable retailers to strategically plan and execute optimal pricing strategies throughout the product lifecycle – new items, everydaypriced items, promoted items, and markdowns – based on a holistic and actionable understanding of consumer demand. SAP NetWeaver™ Enterprise Portal will bring together the business process that span both SAP and DemandTec applications. Users will gain a personalized, single view to all of their information resources and tasks. The solution will use an interface with SAP's enterprise management software that expedites set–up and manages the data movements between SAP and DemandTec applications. Through the interface, DemandTec receives the requisite data and once the right price and promotion tactics are determined DemandTec sends them to SAP solutions, which is the system of record and seamlessly transfers this information to the point of sale. Integration with DemandTec's Consumer Demand Management (CDM) applications is facilitated by the DemandTec CDM Platform™ and DemandTec OpenLink™. DemandTec OpenLink™ provides data integration and enhancement services used to import retail data, cleanse and enhance the data for demand modeling.

"As retailers face growing complexity and volatility within their industry, SAP and its partners are focusing on driving simplicity across retail organizations," said Jim McMurray, senior vice president, Retail, SAP America. "DemandTec will address core fundamentals of retail – merchandising optimization – to simplify processes and enable insightful decision–making that drives top–line and bottom–line growth and reduces workforce expenses."

About DemandTec
DemandTec's Consumer Demand Management software helps retailers and consumer products manufacturers strategically plan, optimize, and execute demand–driven merchandising and marketing programs based on a quantified understanding of consumer demand. Retailers have ranked DemandTec #1 in Strategic Value, Customer Satisfaction, and Quality of Service among the top 50 retail software vendors in the 2004 RIS Leaderboard survey. DemandTec customers include B&Q, Best Buy, Brookshire Grocery Company, Duane Reade, H–E–B Grocery Co., Longs Drugs, Monoprix, RadioShack, and Safeway. DemandTec software is provided via the IBM On Demand program. For more information, please visit www.demandtec.com

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