PDM Business Solutions Uses TDLinx to
Integrate Shipment Data with Consumption
Data and Solves Diverting Problem
for Major CPG Client

Business Challenge
A beverage manufacturer client was struggling with major diverting issues. Several large accounts were suspected of diverting, but proving it with facts and data was difficult and measuring it was even harder.

The Data Problem
Shipments and consumption are not comparable due to complexities tracking shipments into the market place. Major issues such as the ones listed below make the integration of shipment and consumption data extremely difficult:

-Distribution centers and wholesalers are not aligned with syndicated data definitions
-White space (areas not covered by syndicated data)
-Geographic overlap
-Changes in syndicated data definitions
-Changes in distribution center and wholesaler relationships
-Internal manufacturer hierarchies not aligned with the marketplace

The Solution
Since the snack food manufacturer was also a TDLinx client, PDM Business Solutions, Inc. was able to solve these issues by using TDLinx data and providing proven alignment methodologies that truly integrate shipment and consumption data. The TDLinx Coding Structure enables the linking, aggregation and synchronization of disparate data sources allowing systematic alignment of shipment and ACNielsen scanner data. The TDLinx ShipScan Process aligns DC/warehouse-level and store-level shipments to the corresponding ACN Retail Trading Area (RTA), the level at which scanner data is reported. Employing the TDLinx processes along with other proprietary tools, PDM aligned the snack food manufacturer's shipment and consumption data, making the two data sources comparable, and providing the analytical tools to identify and shut down diverting.

This chart shows shipments vs. consumption for a major product pack size over a 52-week period. In this case shipments are consistently and significantly higher than consumption. All indications are that A&P is diverting product to other customers. The snack food manufacturer now has facts and data to support what had previously been a hunch and proceeds to take action to stop diverting.



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This next chart shows shipments vs. consumption for the same product over the 29-week period after the client addressed the issue with this customer. The customer is now purchasing product at levels consistent with their consumption. The diverting issue has been resolved and estimated annual costs of $700,000 associated with this particular customer and brand have been eliminated.




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TDLinx Alliance
One of the most valuable benefits of TDLinx is enabling the ability to align shipments and consumption data. Realizing this important application of TDLinx data is under-utilized, TDLinx has formed an alliance with PDM Business Solutions, Inc. to help you leverage your investment in TDLinx and ACNielsen.

PDM Business Solutions, Inc., specializes in the alignment of shipment and consumption data and is offering free data alignment services for TDLinx clients. These services include alignment of shipment and consumption data, analytical tools and interface of data into your internal systems. All services are 100% outsourced and can be delivered in as little as 4 weeks. This means very little internal resources are required and proof of concept quickly achieved.

Their data alignment methodologies fully integrate shipment and consumption data and when combined with their tools deliver analytical power and insight not available to most CPG companies. Integrated data of this nature will allow you to more effectively manage trade promotion investment, identify and shut down diverting, manage inventory levels and understand and measure your indirect customers.

To learn more about how PDM's approach to data alignment can help you transform your shipment and consumption information into profit, contact Paul MacDonald at 203-240-3358 or visit www.pdmbs.com.