PARK CITY, Utah, Jul 21, 2008 (BUSINESS WIRE) — Park City Group, Inc. (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 enhanced its ActionManager® labor technology system for an existing home improvement specialty retailer customer.

The national retailer is a long time user of the ActionManager labor management solution and had very specific requirements to be met in order to seamlessly migrate its business to a new technology infrastructure. The retailer required that the integration for all systems be ready simultaneously. Park City Group’s application consulting team upgraded and migrated its application and unique business rules to the retailer’s new technology platform. The Park City Group team successfully completed upgrades, systems testing and migration support for the customer in less than 45 days - without any impact to the customer’s information technology team.

Park City Group’s ActionManager tools have been used to schedule labor in hundreds of stores of this leading home improvement retailer.

Randall K. Fields, Chairman and CEO, said that, “Our ActionManager labor management solution has been a valuable tool, allowing this retailer to reduce costs and streamline and speed labor-related administrative processes. The need to transition to a new operating system was one of those unique opportunities for our technical staff to show how really good they are. 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).

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.

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.