Archive for 2008

Park City Group Identifies $19 Million in Lost Opportunity Sales with Supply Chain Profit Link Opportunity Evaluation for 1,300 Store Supermarket Retailer

SCPL Category Management Service Evaluation of 10 SKUs in One Category Reveals Substantial Lost Sales Opportunities

PARK CITY, Utah–(BUSINESS WIRE)–Park City Group, Inc. (OTCBB:PCYG), developer and marketer of patented computer software and consulting services designed to enable its retail customers to increase sales while reducing inventory and labor costs, announced that a recent Supply Chain Profit Link (SCPL) opportunity evaluation has identified $19.2 million in lost opportunity sales. The SCPL category management service was evaluated in 343 of 1,300 stores of a prominent East Coast supermarket chain.

The $19 million in lost opportunity sales were identified in one category with 10 fresh poultry SKUs in the areas of out-of-stock identification and distribution optimization. For example, one important lost opportunity sales uncovered by Park City Group was an extreme variation in the number of stores carrying specific products – which minimized the chain’s opportunity for branded products to grow premium pricing and margins in those stores. Subsequently, Park City Group developed a Core Item Listing Report and communicated to each distribution center their opportunity gap in both items and dollar value on a store-by-store and day-by-day basis.

Park City Group’s SCPL category management service for perishable and non-perishable products delivers collaborative resources and data-sharing capabilities previously unavailable to retailers and suppliers. SCPL allows retailers and suppliers to view corporate, division, region, store, department, category and item-level product movement down to hourly increments allowing for unprecedented tracking and correction of store- and shelf-level issues. As part of a no charge opportunity evaluation period, Park City Group gathered inventory and sales data provided by the supermarket retailer and performed deep level analysis and provided detailed analytics and item-level visibility.

Randall K. Fields, Chairman and CEO, said that, “We are gratified to have demonstrated more than $19 million in important financial benefits for this supermarket chain utilizing SCPL in just one category and in only 25% of this chain. We look forward to exploring how we can build upon the solid analytic foundation we’ve provided to expand the utilization of SCPL and identify how our other solutions and products can benefit the chain.”

“Not only is the SCPL platform a powerful tool to convert retailers’ data into effective operational actions, it also facilitates and solidifies supplier relationships by providing unparalleled third-party visibility for product movement. SCPL provides a unique value proposition for the supermarket and its vendor. Armed with previously unavailable data, suppliers often provide funding for the program in order to share in the valuable data analysis:

  • The retailer benefits by increased sales and reduced inventory and labor costs.
  • The suppliers’ benefits can include increased sales as well as promotional effectiveness.

As suppliers begin to understand the category from the retailer’s view, they become more focused with store distribution and providing promotions that improve category profitability,” Fields concluded.

Based upon data observations, Park City Group’s Business Analytics Group will conduct bi-weekly collaborative category reviews. The Company will provide solutions to the problems surfaced in the data by creating category-specific presentations for the supermarket’s Category Managers, Merchants, Operators and Suppliers which include performance and trends analytics.

The average supermarket has approximately 180 categories, 50-100 of which are excellent candidates to benefit from the SCPL platform. Last year, Park City Group began to focus its business model on sales of subscription-based products in order to minimize ‘lumpy’ licensed-based sales. The benefits of subscription-based products to Park City Group include:

  • A shorter, less resource intensive sales cycle,
  • A steady and recurring revenue stream, and
  • Allowing retailers the ability to share costs with the supplier.

Park City Group Initiates Supply Chain Profit Link (SCPL) with Prominent Northeast Supermarket Retailer

Retailer and Suppliers Collaborate to Close $47 Million Opportunity Gap Identified by SCPL

PARK CITY, Utah–(BUSINESS WIRE)–Park City Group, Inc. (OTCBB:PCYG), a developer and marketer of patented computer software and consulting services designed to enable its retail customers to increase sales while reducing inventory and labor costs, announced that it has initiated a Supply Chain Profit Link (SCPL) subscription with a 200+ store supermarket retailer for four product categories.

This subscription comes on the heels of a recently completed 60-day opportunity evaluation of the SCPL product by the retailer. During that evaluation, Park City Group identified a $47 million sales opportunity gap, primarily in the areas of distribution, service-levels and out-of-stocks. Over the course of the engagement, Park City Group will create a collaborative environment for suppliers, retail merchants and retail operators to identify and correct specific out-of-stock situations, resulting in substantially increased sales for the retailer and its suppliers. Utilizing the SCPL platform as the foundation for collaboration, the retailer and 19 of its suppliers are now working together to focus on mutual opportunities and to recapture a sizeable piece of that significant sales gap.

The four product categories included in the evaluation were commercial bakery, produce (bagged salads), ice cream/novelties and ground beef. Once again, Park City Group has successfully identified tens of millions of dollars in lost opportunity sales through out-of-stock identification and promotion optimization. The SCPL platform also provides the ability to specifically identify significant shrink (or waste) providing important cost savings analysis.

Randall K. Fields, Chairman and CEO, said that, “SCPL provides a unique value proposition for the supermarket and its vendors. Not only is the platform a powerful service to convert retailers’ data into effective operational actions, it also facilitates and solidifies supplier relationships by providing unparalleled third-party visibility for product movement. For example, using SCPL, suppliers are no longer dependent on post-sales inventories to adjust their shipment levels. Since it arms them with previously unavailable data, suppliers often, as in this case, provide funding for the program in order to share in the valuable data analysis. The retailer benefits by increased sales and reduced inventory costs. The suppliers’ benefits can include increased sales as well as promotional effectiveness.

“This subscription is a direct result of our ability to quickly and successfully demonstrate the important and dramatic financial benefits of the SCPL offering by specifically identifying significant lost sales to this supermarket chain. The SCPL service creates a uniquely collaborative environment in which the retailer and its suppliers have an independent third party to verify and analyze the store’s data, identify opportunities and establish goals, and measure on a cumulative basis how the opportunity gap is being closed.”

“SCPL provides a win-win situation for the retailer and the supplier. We are pleased to add these 19 new suppliers to our growing customer base. We look forward to working closely with them and demonstrating how we can assist these suppliers to build upon this opportunity by collaborating with other retailers to realize improved sales, reduce out-of-stocks, and optimize store distribution and promotion initiatives. We will also continue to identify how our other solutions and products can benefit both this chain and its suppliers,” concluded Fields.

This SCPL subscription will initially generate recurring annual revenues in excess of $400,000 to Park City Group. The Company’s products offer retailers and their suppliers the ability to (1) more efficiently manage inventory and labor costs, (2) improve customer service levels, and (3) maximize profitability – giving retailers and suppliers the tools and services with which to improve their respective performance by realizing increased revenues and profits. The SCPL category management tool for perishable and non-perishable products delivers collaborative resources and data-sharing capabilities previously unavailable to retailers and suppliers.

SCPL gathers and analyzes the store’s inventory and sales data, providing detailed analytics and item-level visibility. The retailer and its suppliers now have a highly transparent view of corporate, division, region, store, department, category and item-level product movement down to hourly increments — providing unprecedented tracking and allowing correction of store- and shelf-level issues.

Last year, Park City Group began to focus its business model on sales of subscription-based products in order to minimize “lumpy” licensed-based sales. The benefits of subscription-based products to Park City Group include (1) a shorter, less resource intensive sales cycle, (2) a steady and recurring revenue stream, and (3) allowing retailers the ability to share costs with the supplier. The average supermarket has approximately 50-100 categories which are excellent candidates to benefit from the SCPL platform.

Park City Group Expands ActionManager® with a Division of an International Convenience Store Chain

More Than 600 Locations Utilizing Fully Electronic New Hire Solution

PARK CITY, Utah–(BUSINESS WIRE)–Park City Group, Inc. (OTCBB:PCYG), developer and marketer of patented computer software and consulting services which enable its retail customers to increase sales while reducing inventory and labor costs, today announced it has expanded its existing ActionManager® license agreement with a division of an international convenience store chain. The ActionManager suite of products manages the operational processes for retailers.

In collaboration with the customer, Park City Group’s consulting team developed a fully automated new hire process for the chain’s expanding number of locations. The problem was that historically the hiring process involved a mountain of paperwork at both the store and corporate levels resulting in the shifting back and forth of paperwork and delays in actual hiring. As a result of the collaboration with Park City Group, the chain implemented HRAction, subsequently reducing costs and speeding the administrative processing of new employee hiring. HRAction streamlined the applicant process by integrating a web applicant screening for candidates and allowing for automated rules in intelligent forms that capture mistakes at the point of entry. Additionally, HRAction eliminates paper filing, captures signatures, and files documents in an electronic repository.

“When this convenience store operator first approached us, they wanted to have a fully electronic process for this operational challenge,” said Randall K. Fields, Chairman and CEO. “Convenience stores typically experience high employee turnover and can readily appreciate the value of the ability to reduce and/or eliminate the resulting paperwork. This convenience store chain was planning a major expansion in the number of stores and at the same time wanted a more streamlined and efficient process to handle the large numbers of new hires. The fact that this retailer has successfully utilized our HRAction application, and then significantly expanded the use of the product by deploying it into all of its locations, is the ultimate validation of the value of our solution. The superior ability of our ActionManager suite of products to dramatically improve upon operational processes, including electronic paperwork, time and attendance, labor scheduling and business intelligence, allows us to continue to deliver on our promise to ensure that the retailer has the ‘Right People, Doing the Right Things, At the Right Time.'”

Park City Group either licenses ActionManager on a per store basis with annual maintenance based upon a percentage of the purchase price or, alternatively, sells it as a hosted subscription service (software as a service).

Park City Group Initiates Supply Chain Profit Link Opportunity Evaluation with Prominent Northeast Supermarket Retailer

SCPL Category Management Toolset Evaluation Commenced in

200+ Store Supermarket in Four Product Categories Involving 15 Suppliers

PARK CITY, Utah – June 12, 2008Park City Group, Inc. (OTCBB: PCYG), developer and marketer of patented computer software and consulting services designed to enable its retail customers to increase sales while reducing inventory and labor costs, announced that a 200+ store supermarket retailer recently began an opportunity evaluation of Supply Chain Profit Link (SCPL) in four product categories.  The average supermarket has approximately 180 categories, 50-100 of which are excellent candidates to benefit from the SCPL platform. Park City Group is gathering inventory and sales data provided by the prominent northeast supermarket retailer and will perform deep level analysis to demonstrate, via detailed analytics and item-level visibility, the proper action steps necessary to enable the chain to capture millions of dollars of increased sales and profits.

Park City Group’s SCPL category management tool for perishable and non-perishable products delivers collaborative resources and data-sharing capabilities previously unavailable to retailers and suppliers.  SCPL allows retailers and suppliers to view corporate, division, region, store, department, category and item-level product movement down to hourly increments allowing for unprecedented tracking and correction of store- and shelf-level issues.

The four product categories included in the evaluation are commercial bakery, produce, ice cream and ground meat.  Park City Group and the retailer jointly determined the category objectives and process for implementing SCPL during the 60-day no charge opportunity evaluation period.  Historically, Park City Group has successfully identified millions of dollars in lost opportunity sales through shrink (or waste) analysis, out-of-stock identification, promotion analysis, and shelf space optimization.

Based upon data observations, Park City Group’s Business Analytics Group will conduct bi-weekly collaborative category reviews and create category-specific presentations for the supermarket’s Category Managers, Merchants, Operators and Suppliers which include performance and trends analytics to provide solutions to the problems surfaced in the data.

Not only is the SCPL platform a powerful tool to convert retailers’ data into effective operational actions, it also facilitates and solidifies supplier relationships by providing unparalleled third-party visibility for product movement.  SCPL provides a unique value proposition for the supermarket and its vendor. Armed with previously unavailable data, suppliers often provide funding for the program in order to share in the valuable data analysis.  The retailer benefits by increased sales and reduced inventory and labor costs.  The suppliers’ benefits can include increased sales as well as promotional effectiveness.

Randall K. Fields, Chairman and CEO, said that, “Our success rate in converting SCPL opportunity evaluations into paid engagements is outstanding.  We are highly confident that by the conclusion of the evaluation we will once again successfully demonstrate important and dramatic financial benefits for this supermarket chain to utilize SCPL.  We can then look forward to their paid subscription for the SCPL category management toolset and the opportunity to build upon the solid analytic foundation made possible by SCPL.  We would also look to expand the utilization of SCPL and identify how our other solutions and products can benefit this chain.”

Last year, Park City Group began to focus its business model on sales of subscription-based products in order to minimize ‘lumpy’ licensed-based sales.  The benefits of subscription-based products to Park City Group include (1) a shorter, less resource intensive sales cycle, (2) a steady and recurring revenue stream, and (3) allows retailers the ability to share costs with the supplier.

Leading Multinational Retailer Expands License Agreement for Fresh Market Manager with Park City Group

Annual Sales in Bakery Department Grew +20% with Improved Margins since Implementing Fresh Market Manager

PARK CITY, Utah–(BUSINESS WIRE)–Park City Group, Inc. (OTCBB:PCYG), developer and marketer of patented computer software and consulting services designed to enable its retail customers to increase sales while reducing inventory and labor costs, today announced that as a result of its customer experiencing ongoing and substantial increases in both sales and profits, a leading international supermarket retailer is expanding its license agreement with Park City Group for its Fresh Market Manager (FMM) product in an Asian-based 70+ store subsidiary with annual sales of over $2 billion.

Fresh Market Manager is a fully integrated management solution that helps grocers to achieve improved economic performance in bakery, deli, food service, meat, seafood, frozen, floral and produce departments. The product is licensed on a per-department and per-store-basis. This new agreement will generate revenues of approximately $200,000+ to Park City Group.

Park City Group successfully identified to the retailer exactly where and how it could positively impact both sales and the bottom line. Among other benefits, Park City Group precisely identified where and when product waste occurred, implemented FMM Production Planning, optimized store-level assortment plans, managed shrink and out-of-stocks, and retrained stores on production standards. During the first year of the program in Bakery, average annual sales of produced items were up over 20% while unsold product (shrink) significantly declined, resulting in a substantial increase in net margins.

Randall K. Fields, Chairman and CEO, said that, “The increased deployment of our Fresh Market Manager by this top-tier retailer is the most recent validation of the value of our fresh item management solution. This retailer has experienced first hand the rapid cost savings/revenue generating benefits of our program and is increasing the number of stores in its chain to use the product. As our software and consulting services continue to deliver on the promise to help all of our retail customers to deliver the ‘right product in the right quantity at the right time’, we look forward to continuing to expand the depth of our Fresh Market Manager program, and to also exploring how our other solutions and products can benefit this retailer.”

“Market trends are driving demand for our products as supermarkets and convenience stores have difficulty competing in commoditized products,” Fields continued. “As a result, they increasingly shift the emphasis to perishables – which have a significantly shorter shelf life – thus creating an increasing requirement to manage those products. The unique combination of software and consulting services provided by Park City Group bridges the human and technical resource gap and converts data into effective operational actions for the retailer. We have a growing track record of delivering dramatic and tangible results to our clients.”

Park City Group’s New Patent Deciphers “Miscellaneous” Rings at Cash Register

Breakthrough Helps Retailers Accurately Measure and Forecast Demand for Perishable Items

PARK CITY, Utah–(BUSINESS WIRE)–Park City Group, Inc. (OTCBB: PCYG), a leading provider of inventory and labor optimization solutions for retailers, today announced the approval of U.S. patent 7,292,991 B2, which is described as a system for “disambiguating point-of-sale data through item indexing.”

The patented software technology provides retailers with visibility into the exact assortment of items sold in general categories, such as bakery, deli or produce. For example, cookies are often rung up by cashiers as “general bakery” or “miscellaneous” items. Park City Group’s new technology automatically converts that general data into precise sales figure for each type of cookie.

“This technology can provide grocers and other retailers with an enormous competitive advantage,” said Randall K. Fields, Park City Group’s chairman and chief executive officer. “It can help retailers reduce spoilage, minimize out-of-stock situations, improve customer satisfaction, and increase profitability.”

He added, “Nobody sells “miscellaneous” items. Stores sell specific types of vegetables, deli meats, doughnuts, cookies, flowers, and other perishable items. In order to procure or prepare the proper quantities of these items, retailers must have a reliable way of forecasting consumer demand. Thanks to our patented technology, retailers now have access to empirical data that can be used to forecast demand.”

Park City Group is incorporating the new technology into its popular Fresh Market Manager and Supply Chain Profit Link product suites that are used by many of the world’s most respected retailers and food suppliers. In addition, the company plans to explore licensing opportunities for the patented technology. Park City Group has an extensive library of intellectual property that it leverages to create new revenue streams.

Park City Group Appoints Business Leader James R. Gillis to Board of Directors

Park City, Utah February 5, 2008: Park City Group, Inc. (OTCBB: PCYG), a leading provider of patented inventory and labor optimization software solutions for retailers, announced today that Mr. James R. Gillis has joined its Board of Directors.

Mr. Gillis is President, Chief Operating Officer and Co-CEO of Source Interlink Companies, Inc., a premier marketing, merchandising and fulfillment company of entertainment products where he has been instrumental in developing annual revenues in excess of $1.9 billion and over 95 business units in the US. While at Source Interlink, Mr. Gillis has also developed and maintained relationships with public equity investors, hedge funds, stock analysts, investment banks and private equity firms, both domestically and internationally, while creating a marketing infrastructure to provide a portfolio of fully integrated products and services in 110,000 locations for more than 1,000 retail chains.
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Park City Group Appoints Noted Innovative Business Leader Richard S. Krause to Board of Directors

Park City, Utah – January –, 2008: Park City Group, Inc. (OTCBB: PCYG), a leading provider of patented inventory and labor optimization software solutions for retailers, announced today that innovative business leader Mr. Richard S. Krause has joined its Board of Directors.

Mr. Krause is a seasoned executive with many years of experience in senior leadership roles with consumer packaged goods manufacturers and marketers such as Procter & Gamble, Newell Rubbermaid and ConAgra Foods. Mr. Krause has over twenty years of experience in leading organizations through significant milestones and inflection points by creating motivated, highly competitive, and winning cultures.
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