« Previous | Next » | All Messages |  PPID Message Board Home | recommend post |  Ignore Poster

PPID News Prescient Applied Intelligence Identifies Key Scan-Based Trading Benefits for Suppliers; Prescient Customer, I&K Distributors, Achieved Increased Sales and Improved Retail-Trading Relationships with Scan-Based Trading

SBT is the process where suppliers maintain ownership of inventory within retailers' warehouses or stores until items are scanned at the point of sale. While this process appears to favor the retailer, suppliers who engage in SBT are finding that they have greater visibility into scan-sales data, which translates into more accurate production planning and inventory management. Suppliers, like I&K Distributors, are seeing results including increased sales, improved inventory visibility and the elimination of billing discrepancies and invoice reconciliation. I&K Distributors views its participation in an SBT initiative as an opportunity to improve its own business processes.

"When we were asked to participate in an SBT program, we made sure that we would benefit from it as well," said Frank Jobson, SBT project manager at I&K Distributors. "We use the daily scan-sales data that we get from the retailer to better understand consumer demand and improve our forecast accuracy. We now know where the 'holes' are on the shelf and have the product to fill them - our ability to deliver based on demand has given us a real competitive advantage."

I&K Distributors has seen other benefits as well, including reduced backroom check-in time at retail locations, more efficient distribution through route optimization and improved communications with its retail partner.

Suppliers realize a number of key benefits by participating in retailers' SBT initiatives including:

-- Improved Retailer Relationships: The greatest competitive advantage for a supplier is increased collaboration and visibility within its retail-trading partner's organization. With partners agreeing on details like item, price, promotion and shrink at the onset of an SBT relationship, suppliers are able to better service accounts and reduce billing and invoice issues.

-- Increased Product Visibility and Availability: Suppliers are often able to obtain more shelf space or product exclusivity than their non-SBT counterparts because SBT makes category management easier for retailers. In addition, suppliers engaged in SBT are able to spend more time on in-store merchandising, which means increased sales.

-- Reduction in Unsaleables: Suppliers are using SBT to lower the costs associated with unsaleables - the discontinued, damaged or out-of-code products that retailers return. SBT provides greater visibility into scan-sales data, allowing suppliers to better understand the root cause of unsaleables, anticipate and reduce obsolescence and improve overall profitability.

-- "No Risk" Scenario for New Product Introductions: SBT allows suppliers to put new products into retail outlets at no risk to the retailer, since the supplier continues to own the inventory until it is scanned at the point of sale. The result is more products on the shelf for the supplier, a better shopping experience for the consumer and increased sales for both the retailer and supplier.

"Suppliers are finding that having access to scan-sales data enables them to greatly improve forecast accuracy, which can result in a two-to-one improvement in perfect orders," said Jane Hoffer, president and CEO of Prescient. "Our SBT offering is just one way in which we help retailers and suppliers work together to maximize their collaboration, shave off excess costs and increase sales. SBT is also a powerful tool to monitor the exact amount of inventory and dollars that are associated with each relationship, which aids in reporting and overall accountability."

Prescient is hosting a panel discussion Webcast on SBT that will explore the benefits to both retailers and suppliers on Wednesday, Aug. 24, 2005, at 11:00 a.m. (ET). To register, please visit http://www.prescient.com.

About Prescient Applied Intelligence

Prescient Applied Intelligence, Inc. enables retail trading partners to align planning and execution with changing market needs to maximize relationships and deliver on the promise of collaborative commerce. The company's retailer-centric and collaborative commerce solutions are designed with the understanding that product demand and business processes are fluid. Prescient's solutions capture information at the point of sale, provide greater visibility into real-time demand, and turn data into actionable information across the entire supply chain. As a result, the company's products and services enable trading partners to compete effectively, increase profitability, and excel in today's retail business climate. Household brand names like Ahold, AutoZone, Coors, Domino's Pizza, Rite Aid, Sara Lee, Schwan's, and Wyeth rely on Prescient. For more information, go to www.prescient.com.

Forward-Looking Statement

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they relate to Prescient Applied Intelligence, Inc. are intended to identify such forward-looking statements. Prescient may from time to time update these publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see "Risk Factors" in Prescient's report on Form 10-KSB filed with the Securities and Exchange Commission and its other filings under the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.