Auto Supply Chain Achieves Record-Size Data Warehouse at IBM's Teraplex
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IBM and Parts America, a 640-store auto parts supply chain, recently scaled the world's largest active data warehouse on an AS/400 at the IBM Teraplex Integration Center in Rochester, Minn., from 275 gigabytes to 510 gigabytes. This is the first time the midrange computer scaled to over one-half terabyte, proving that the platform is capable of analyzing a greater number of variables in larger quantities of customer data.

Parts America also achieved record load times of 750,000 transactions per hour while running JDA Software Group Inc.?s specialized retail data warehouse application, up from 200,000 transactions per hour, enabling the retailer to speed up its data management and analysis process. Since tests at the AS/400 Teraplex proved successful, Parts America has also sped up its daily transaction processing, which now takes place overnight, down from 36 hours.

Created at a cost of $47 million, the IBM Teraplex Centers allow companies to stress test hardware and software to identify and resolve scalability and functionality issues in a controlled environment before systems go into production on site.

Parts America analyzes its data to manage profit margins by monitoring sales within different product categories. The data warehouse also enables Parts America to examine multiple variables, including pricing, and make and model information, to determine which products sell well together and discover sales patterns that indicate both regional purchasing habits and unexpected seasonal demand.

"We have found that different areas of the country have different auto parts supply needs," said David Copas, vice president of corporate systems for Western Auto, parent company of Parts America. "For instance, we identified greater demand for exhaust equipment in the Northeast -- which can probably be attributed to harsher weather conditions -- so we stock shelves there with more exhaust equipment than other parts of the country.

"These discoveries related to our inventory are especially important in the auto parts segment of retailing, because when customers enter our store, they generally need to solve a specific problem," he continued. "If we don?t have the exact make and model on our shelves, of say, the alternator they need to get their car running, we lose a sale, and the competition makes one. Now that we feel comfortable increasing our data levels, we can examine more variables and determine our inventory needs with even greater precision."

Parts America runs Retail IDEAS (Interactive Data Evaluation Action Support), a JDA multi-platform, client/server data warehouse developed in partnership with Silvon Software, Westmont, Ill., on its AS/400 with 8-way parallel processors, 750 gigabytes of DASD, 10 gigabytes of memory, and with 85 users, to track product sales and store inventory by SKU on a weekly basis.

"One of the most important features of IBM's Teraplex Center is the ability to test Retail IDEAS with a company's actual customer and product data," said Dan Moran, vice president, analytical solutions, JDA. "We worked with Parts America to successfully test at data levels that were significantly greater than the retailer?s current needs, proving that Retail IDEAS performs well and will continue to excel on the AS/400 as Parts America?s data warehouse grows."

Built by IBM, the AS/400 Teraplex Integration Center in Rochester, Minn., and two others in Poughkeepsie, N.Y., for IBM?s S/390 and RS/6000, are intended to help businesses push the limits of their current data warehousing hardware and software, and design future computing configurations. The three Teraplex Integration Centers have a combined storage capacity of 12 terabytes, representing the world's largest, most powerful dedicated integration facility. The Centers, which are a focal point of IBM?s company-wide business intelligence initiative that was unveiled February 26, affirm IBM's commitment to developing scalable systems, including servers, database software, data mining software, storage and database tools, to support the growing number of business intelligence users around the world.

Business Intelligence involves the gathering, management, and analysis of data for the purpose of turning that data into useful information which is then distributed throughout an enterprise and used for strategic decision making. Companies can then make more strategic decisions about which markets to enter, how to select and manage key customer relationships, and how to select and effectively promote products, all in an effort to increase profitability and market share. These practices can also reduce operating costs through more effective financial analysis, risk management, fraud management, distribution and logistics management, and sales analysis.

The Teraplex Integration Centers are open to IBM's customers and business partners for no charge and are equipped for testing of applications and products from multiple IBM divisions and from non-IBM vendors.

Parts America is the parts-only retail division of Western Auto, one of the nation's largest automotive after-market retailer with over 640 company-owned stores and more than 800 independently owned dealers stores in 45 states, Puerto Rico and the U.S. Virgin Islands. Based in Kansas City, Mo., Western Auto is a wholly owned subsidiary of Sears Roebuck & Company.

Headquartered in Phoenix, Ariz., JDA Software Group, Inc. is a $92 million global provider of integrated retail software products and professional services for more than 300 clients worldwide. JDA's solutions address the requirements for the entire retail supply chain: from the corporate level with merchandising, financial, and data warehouse systems; to the distribution level with warehouse management and logistics systems; and finally to the store level with point-of-sale and back-office applications. Founded in 1985, JDA employs approximately 700 associates.

For more information, see http://www.ibm.com/bi