30 Jan ReposiTrak on track to success with its novel OOS Management Solutions
ReposiTrak (Park City Group (NASDAQ: PCYG)), an out-of-specification (OOS) Management Solution which addresses one of the most critical issues of retail management, announced that The Food Industry Association (FMI) is working with the Company to tackle the challenges of out-of-stocks that act as a challenge for the industry’s growth. FMI is an amalgamation of various stakeholders in the retail industry such as retailers, producers and numerous ancillary service providers who add value to the supply chain.
FMI is currently partnering with ReposiTrak to leverage its traceability compliance programs, and is supporting the adoption of Repositrak’s proprietary OOS management solution, a proven technology that uses algorithms to track and monitor out-of-stocks at the store, SKU and route level. The ReposiTrak’s team of experts can pinpoint the factors leading to repeated out-of-stocks, thereby helping Company’s eliminate bottlenecks that hinder effective delivery of service.
Randy Fields, ReposiTrak Chairman and CEO, commented,
“We are honored to work with FMI to focus on this critical issue facing our industry, and thrilled that they recognize the value that our solution brings to the grocery industry. We look forward to helping FMI members by pairing technology with focused vendor follow-up to ensure those suppliers take corrective actions that help manage the critical grocery industry problem of out-of-stocks.”
The Grocery Industry is grappling with striking the right balance between inventory and service levels, the problem is more pronounced as the grocery retailing is now an omnichannel environment where transparency is essential part of the system. According to the Company, a supply chain benchmarking study has revealed a below-satisfactory 57 percent of order fill rates that are primarily due to out-of-stocks and a gap between vendors and suppliers. The need of the hour is a system that provides up-to-date information on store inventory balances and sales trends, a gap, which is being effectively addressed by Repositrak’s OOS Management System.
Mark Baum, FMI’s Senior Vice President of Industry Relations and Chief Collaboration Officer, Stated,
“The FMI 2019 Supply Chain Benchmarking Study showed that most grocery retailers are now missing internal store service-level targets, as reflected by lower on-shelf product availability. Given that grocers need more actionable information to maintain product shelf availability, we’re pleased to support the ReposiTrak solution and work together as it will help our members take steps to improve on-shelf performance.”
The Company states that using the ReposiTrak Solution has resulted in an average out-of-stocks reduction of 46 percent for nearly 70 vendors working. These vendors are serving over a dozen retailers over 12,000 stores, across categories such as dairy, bakery, grocery and general merchandise. The Platform is capable of supporting activities across various supply and demand chain activities for retailers, manufacturers, and their trading partners, in three critical areas namely, Compliance & Risk Management, Supply Chain Solutions, and MarketPlace Sourcing and B2B Commerce. ReposiTrak’s comprehensive technology platform work synergistically to deliver value across the entire value chain.
Park City Group (NASDAQ: PCYG)
Market Cap: $98.71M; Current Share Price: 5.00 USD
Data by YCharts
Inventory Management poses the biggest challenge for the modern age retailers who find themselves at a disadvantage in spite of using the latest that technology has to offer such as s CPFR and RFID,. Poor OOS management not only affects the Company’s profits but also creates negative customer experiences, thereby affecting the brand. According to a report by GMAresearch, OOS levels for fast moving consumer goods average at 8% and result in losses of up to 4% of retail sales. Inventory Management efforts of Companies are affected by bottlenecks such as inefficient data management due to multiple data entry points and lack of synchronization between various systems, resulting in poor inventory accuracy.
The research further states that on an average, 47% of OOS events occur due to erroneous forecasts causing a disconnect between demand and forecast, adversely impacting product availability. Moreover there are other issues such as replenishment delays shipment issues, suboptimal delivery schedules and mismanagement of shelf capacity and replenishment. Another concern is inefficient shelf space management, which instead of demand ends up using product and packaging size as the criteria.
Tracking and maintaining millions of SKU’s across different locations is a challenging proposition for any organization. Use of OOS management solutions have multifold benefits for the Company as well as the customers , starting from the obvious revenue impact, as the report points out, that even a 5% reduction in stock-outs can boost revenues by about $20 million on a base of $10 billion. In addition timely fulfillment of order boosts customer loyalty and repeat orders. The system can also result in optimal inventory management leading to lowered costs and improved cash flow.
Another report points out that according to the Food Marketing Institute (FMI) average transaction size (US $) of $27.34, estimate that 40 percent of the shoppers will encounter at least one OOS, out of which only one out of 10 will contact an employee about the OOS.
ReposiTrak, a wholly-owned subsidiary of Park City Group, is capable of delivering a 30 to 80 percent reduction in out-of-stocks across all direct store delivery category as per the Company. It also acts as the world’s largest marketplace for compliance-vetted suppliers. The Company offers unmatched supply chain visibility by offering solutions that encompass B2B Vendor Connections, Item & Cost Maintenance, Scan-based Trading, Invoicing from POS or Delivery, Vendor Scorecarding, Reporting & Analytics, Out-Of-Stock & Waste Reporting, and Forecasting & Ordering (Store-level & DC).
The Company also acts as a one-stop-shop for compliance and commerce solutions to customers, enabling a 360 degree view of critical supplier information that can reduce risk and improve efficiency. ReposiTrak is one of the most scalable end-to-end B2B commerce and compliance management solution available, as per the Company. In addition to reducing out-of-stocks the Company also helps in lowering inventory expenses, eliminate pricing errors, improve invoice reconciliation and even find new customers. The platform also facilitates the sourcing of new suppliers, who are vetted to ensure compliance to industry compliance standards. Furthermore its enables sourcing of local products, execute seasonal sourcing platforms and streamline supplier onboarding.
Furthermore the Company offers Compliance Management in the form of vetting of suppliers, share documentation within and outside the network of over 342,000 supplier-facility connections. ReposiTrak also offers reports on a company’s compliance status or prepare for a pre-audit or FDA compliance request, and comply with third-party audits.
The Company’s supply chain solutions include supplier and item management for sales and margin growth. ReposiTrak is a pioneer in Scan-based trading (SBT) and Vendor Managed Inventory (VMI) programs.
ReposiTrak has built strategic partnerships with organizations such as the Food Industry Counsel, Berrian Insurance Group, Ralston Creek Capital, and QSPS Consulting as well as enjoys industrial affiliations like GMDC, FMI, SQF and ROFDA. The Company’s clientele include respected brands such as Affiliated Foods Inc, Bristol Farms, Red Diamond, Interfresh, Albertson’s Companies, The Save Mart Companies, Stellar Distributing, Atkins, and Kings to name a few.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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