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.

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