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    Big Northwest Grocer Said Testing System that Sniffs Out Supply Chain Profit Opportunities

    The software system will also analyze sales, stock outs, and shelf optimization practices for profit and cost-cutting targets, said its developer Park City Group.

    Park City Group said the 120-store Northwest division of one the largest grocers in the U.S. will pilot a supply chain profit link (SCPL) opportunity identification program to identify opportunities and cost-savings measures for its perishable and non-perishable categories.

    The vendor would not name the retailer it is working with on the pilot test. Grocers with Northwest operations of that approximate size include Safeway Inc., Supervalu, and The Kroger Co.

    Park City said it developed the program to analyze retail data and provide specific action steps to improve sales opportunities and cost saving measures not previously recognized. Results of these engagements with other retailers have historically uncovered tens of millions of dollars in lost opportunities, including improvements to assortment/store clustering, increased service level, and improvement in distribution voids.

    "Due to the current economic climate and reduced credit availability, there is a heightened interest level within the retail community for SCPL services," said Randall K. Fields, Park City Group's chairman and c.e.o. "Now more than ever, there is a growing need to utilize technology throughout the supply chain to maximize shrinking margins."

    During the 60-90 day pilot opportunity identification period, Park City Group will analyze inventory and sales data provided by the retailer, in the commercial bakery and poultry categories, and perform a detailed analysis using patented technology that results in identification of quantifiable improvement areas.

    Subscription to the ongoing SCPL service builds upon the opportunity identification program and its analytic foundation, providing recommended specific action steps that enable the retailer and its suppliers to capture millions of dollars of missed sales and profits. Across categories, SCPL allows retailers and suppliers to view corporate, division, region, store, department, category and item-level product movement down to hourly increments, according to Park City.

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