ReposiTrak Inc., the industry leader in solutions for out-of-stock replenishment, sourcing, food safety and risk management for the retail supply chain, now reports that 70 percent of vendors using its Out-Of-Stock (OOS) Management reporting solution for improved direct-store delivery have reduced their OOS by an average of 46 percent. These reductions involve 25,000 stock keeping units (SKUs) and occurred across numerous retailers with more than 12,175 stores. The system is being used by nearly 200 supplier-retailer combinations in numerous categories including center store grocery, dairy, bakery, frozen and general merchandise.
ReposiTrak OOS Management identifies opportunities for retailers to work with their suppliers to maintain on-the-shelf inventory. As Amazon expands home delivery of groceries, OOS has taken on a critical importance for food retailers needing to reduce the risk of customer defection when shoppers don’t find desired items in the store. A 2018 IHL study found that when Amazon Prime members come across an empty store shelf, they are 52 percent more likely than other customers to buy the missing item online.
As retailers adopt home delivery and store pickup, out-of-stocks are looming as an even larger problem since an out-of-stock for delivery or pickup requires an in-store picker to text or call the customer about a product substitution. Additional steps in the fulfillment process are annoying to the consumer and negatively impact the productivity of the picker.
The software-as-a service, cloud-based OOS Management solution takes point-of-sale (POS) data from the retailer to provide actionable reports for store-shelf management and replenishment to reduce out-of-stocks. ReposiTrak’s proprietary algorithms, developed on the basis of more than 15 years of experience in working in the retail supply chain, analyze the POS data to generate these reports. The analysis pinpoints where the vendor should act to make improvements at the store-level, item-level and route-level to optimize inventory. Finally, a team of ReposiTrak experts follow up with the suppliers to take action based on the reports. The combination of both store-SKU data and the support of ReposiTrak’s staff analysts are the key ingredients to success.
“Retailers and suppliers using our solution are seeing success in reducing out-of-stocks because, unlike other vendors, we pair technology with supplier follow-up,” said ReposiTrak Chairman and CEO Randy Fields. “Along with sophisticated algorithms for analysis, we do the follow-up with the suppliers that’s so critical to success in reducing out-of-stocks. Category managers are so busy that most don’t have the time to reach out to the supplier. Our team of experts takes the information from the OOS reports and then contacts the suppliers on behalf of the retailer to take corrective action and address inventory issues in a retailer’s store.”
The ReposiTrak Platform drives growth and supports all supply and demand chain activities for retailers, manufacturers, and their trading partners, consisting of three product families; Compliance & Risk Management, Supply Chain Solution, and MarketPlace Sourcing and B2B Commerce. Delivered via one technology platform, all the applications are mutually reinforcing and work synergistically to create value and positive impact across the entire enterprise.
About Park City Group and ReposiTrak®
Park City Group (NASDAQ: PCYG) is a Software-as-a-Service (“SaaS”) provider that brings visibility to the consumer goods supply chain through its ReposiTrak, Inc. subsidiary. ReposiTrak is The Speed Retail Platform, with three product families; Compliance & Risk Management, Supply Chain Solutions and MarketPlace Sourcing and B2B Commerce. The platform provides retailers and suppliers with a robust solution suite to help enhance operational control and increase sales, while enabling them to protect their brands, reduce risk and remain in compliance with regulatory requirements. More information is available at www.parkcitygroup.com and at www.repositrak.com.