FMI-The Food Industry Association Working with ReposiTrak to Tackle One of Retail’s Most Serious Challenges
FMI–The Food Industry Association and ReposiTrak Inc. jointly announced today that FMI is endorsing ReposiTrak’s OOS Management Solution to address the grocery industry’s long-term and growing problem of out-of-stocks. FMI brings together a wide range of members across the value chain — from retailers who sell to consumers, to producers who supply the food, as well as the wide-variety of companies providing critical services — to amplify the collective work of the industry. ReposiTrak is the industry leader in solutions for out-of-stock reduction, sourcing, food safety and risk management for the retail supply chain.
FMI, which also partners with ReposiTrak to help implement their traceability compliance programs, is supporting the use of the ReposiTrak OOS Management Solution to help members reduce out-of-stocks by using proven technology and proprietary algorithms that identify out-of-stocks at the store, SKU and route level. The ReposiTrak expert team also works with retailers and suppliers to take actions that address the factors leading to persistent out-of-stocks.
"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," said Mark Baum, FMI’s Senior Vice President Of Industry Relations and Chief Collaboration Officer. "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 age-old problem of out-of-stocks has become more acute for the grocery industry as food retailers struggle to find the right tradeoff between inventory and service levels. Finding the correct balance for retailers has become more critical now in an omnichannel environment where transparency is key. The Supply Chain Benchmarking study revealed that 57 percent of order fill rates are below their target. To correct that problem and avoid out-of-stocks, food retailers need to able to work with their suppliers more closely, collaborating with vendors on up-to-date information on store inventory balances and sales trends.
"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," said ReposiTrak Chairman and CEO Randy Fields. "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."
Some 70 percent of vendors using the ReposiTrak solution realized an average out-of-stocks reduction of 46 percent, working with a dozen retailers across 12,000 stores, involving a mix of categories including dairy, bakery, grocery and general merchandise.
The ReposiTrak Solution 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 Solutions, 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 FMI-The Food Industry Association
As the food industry association, FMI works with and on behalf of the entire industry to advance a safer, healthier and more efficient consumer food supply chain. FMI brings together a wide range of members across the value chain — from retailers that sell to consumers, to producers that supply food and other products, as well as the wide-variety of companies providing critical services — to amplify the collective work of the industry. www.FMI.org
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 has 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.
Randall K. Fields
Chairman & CEO ReposiTrak