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.

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