Prescient Applied Intelligence Media Kit
Company Information:
Prescient Applied Intelligence
1247 Ward Avenue, Suite 200
West Chester, PA 19380
Phone: 610-719-1600
Website: www.prescient.com
Media Kit Contents:
Executive Bios - Jane Hoffer, CEO
FY07 Financial Information
Product Information - Vendor Managed Inventory, Scan Based Trading, Store Level
Replenishment, Visibility & Analytics™ Business Intelligence
Company Overview:
Prescient Applied Intelligence provides innovative software solutions and services that enable
retailers and suppliers to work collaboratively as strategic partners to improve sales, efficiencies,
and customer service. Our tailored solutions capture, manage, and share critical data, giving
companies the power to make better and more informed decisions. Our offerings include Vendor
Managed Inventory, Store Level Replenishment, Scan Based Trading, and Visibility & Analytics™
business intelligence solution, which are all powered by our Demand Signal Repository (DSR).
The comprehensive commerce data, aggregated by the DSR, brings greater visibility throughout
the supply chain enabling businesses to forecast with more accuracy, reduce stock-outs and
shrink, and improve performance at the store shelf.
With over two decades of experience, our industry specialization and proven track record of
successful implementations are what make us the true shelf improvement experts.
Our Solutions:
Prescient is the only company to provide robust, collaborative supply chain solutions for both
retailers and suppliers that increase sales and improve operational efficiencies such as shelf
replenishment and shrink reduction.
•
•
Our solutions include Vendor Managed Inventory, Store Level Replenishment, Scan
Based Trading and Visibility & Analytics™ business intelligence solution, which are all
powered by our Demand Signal Repository.
Prescient provides the comprehensive information that matters most to retailers and
suppliers, which can be used to analyze and improve shrink, performance, customer
demand, shelf productivity, delivery, and inventory levels.
Interview Request:
To request an interview with Prescient, please contact Allison & Partners at 202.223.9260.
www.prescient.com
Jane Hoffer, President & CEO
Jane Hoffer is president and chief executive officer of Prescient Applied Intelligence
(OTCBB: PPID). She is responsible for directing the long-term vision of the company and
its commitment to remaining a competitive force in a rapidly changing marketplace.
Prior to Prescient Applied Intelligence, Hoffer was president and CEO of Prescient Systems
for eight years, evolving the company into a premier provider of retailer-centric planning
solutions for the consumer products market. In 2004, Hoffer led Prescient Systems
through a merger with viaLink, a provider of advanced commerce for the retail supply
chain, and created Prescient Applied Intelligence. Hoffer has also held key management
positions at IBM and Lucas-Bear. During her tenure at Lucas-Bear, Hoffer led a
management buyout in December 1996 to form Prescient Systems.
Hoffer has been named a Woman of Distinction by The National Association of Women
Business Owners, a finalist in Ernst & Young's Entrepreneur of the Year® award program,
an Entrepreneur of the Year from the Philadelphia Chamber of Commerce, as well as one
of the Best 50 Women in Pennsylvania and Philadelphia's Top 40 Businesspersons under
40. Hoffer also currently serves on the Board of Trustees of the Albert Einstein Healthcare
Network, where she is an active member of both the strategic planning committee and
physician services board. Hoffer is a summa cum laude graduate of Texas A&M University,
holding a bachelor's of science degree in electrical engineering.
www.prescient.com
For more information contact:
Jane Hoffer
Chief Executive Officer
Prescient Applied Intelligence
610-719-1600 x 308
jhoffer@prescient.com
FOR IMMEDIATE RELEASE
Prescient Applied Intelligence Reports Fourth Quarter and
Full Year 2007 Results
Company Achieves First Full Year of Profitability, Resulting in a Substantial Increase
in its Cash Position, and the Removal of the Going Concern Qualification by its
Independent Auditors
Focus on Client Base and New Product Launches Positions Company for Growth
West Chester, Penn. – March 12, 2008 – Prescient Applied Intelligence, Inc. (OTCBB:
PPID), a leading provider of supply chain and advanced commerce solutions for retailers and
suppliers, today reported financial results for the fourth quarter and full year ended December
31, 2007.
“Our strategy of increasing revenues from our base of clients helped to offset the loss of a
significant client during 2007. These increases, together with continued focus on our operating
expenses, resulted in our first full year of profitability. We have been profitable for five
consecutive quarters and have dramatically improved our cash position, resulting in the removal
of the going concern opinion from our auditors,” said Jane Hoffer, president and CEO of
Prescient. “Our financial condition positions us to increase shareholder value, while continuing to
bring innovative and value added solutions to our retailer and supplier clients,” continued Hoffer.
“In 2007 we launched two new products – Visibility & Analytics, a business intelligence tool, and
Store Level Replenishment, a store ordering solution – and announced the availability of
Prescient 8.0 for supply chain planning. This innovation, along with our recognition by Consumer
Goods Technology, for the fifth consecutive year, as one of the top 10 Supply Chain Planning
providers positions us well as we head into 2008,” added Hoffer.
HIGHLIGHTS – Fourth Quarter 2007
Revenues
Total revenues were $2 million for the fourth quarter of 2007, which represented a decrease of
18% compared to the third quarter of 2007 and a decrease of 19% over the fourth quarter of
2006. The prior quarter and comparable quarter in 2006 included non-recurring revenue
resulting from the loss of a significant client during 2007.
Operating Expenses
Total operating expenses in the fourth quarter 2007 were $1.8 million, including $0.1 million of
depreciation and amortization. Operating expenses decreased $0.5 million or 22% compared to
the same period in 2006 and decreased by 11% from the third quarter of 2007.
Income
f Operating income for the fourth quarter of 2007 was $0.2 million representing a 24%
increase over the same period in 2006.
f The net loss applicable to common stockholders for the 2007 fourth quarter was $0.2
million (Q307: $0.7 million), or $(0.01) per share (Q307: $(0.02) per share) representing
a 70% improvement from the third quarter 2007.
HIGHLIGHTS – Year ending December 31, 2007
Revenues
f Total revenues were $9.4 million in 2007, which represented a 2% increase from 2006.
f Subscription revenues in 2007 were $5.8 million, which represented an increase of less
than a 1% from 2006.
f License revenues were $0.6 million in 2007 and 2006; maintenance revenues were $1.6
million in 2007 and 2006; and services revenues in 2007 were $1.4 million, which
represented an increase of 17% from 2006.
Operating Expenses
Total operating expenses in 2007 were $8.1 million as compared to $10.4 million in 2006, a 22%
decrease year over year.
Income
f The Company reported operating income of $1.3 million for the year ended December
31, 2007 as compared to an operating loss of $1.1 million for the year ended December
31, 2006.
f The net loss applicable to common stockholders reported for 2007 was $1.2 million
(2006: $4.3 million), or $(0.04) per share (2006: $(0.11) per share). The net loss
applicable to common stockholders for 2007 includes a deemed dividend to the Series E
Preferred stockholders of $1.2 million and accumulated undeclared dividends to the
Series E Preferred stockholders of $1 million.
Cash & Cash Equivalents
Cash provided by operations was $2 million during the year ended December 31, 2007 as
compared to $0.1 million provided in 2006. Cash and cash equivalents were $2.6 million as of
December 31, 2007, up from $1.0 million at December 31, 2006.
BUSINESS HIGHLIGHTS
f Prescient introduced new positioning -- “Shelf Improvement Experts” -- to more
accurately reflect the solutions we offer to the retail industry:
- solutions for trading partners to collaborate across supply chains and achieve
efficiencies across the chain, while assuring consumer demand is met where it
matters most … at the store shelf.
f Two new product offerings were launched in 2007
- Visibility & Analytics (V&A), a business intelligence tool for analyzing shrink,
sales, and inventory. The solution was adopted by traditional DSD clients as well
as general merchandise and seasonal vendors
- Store Level Replenishment (SLR), a store level ordering solution for direct
store delivery suppliers. We saw enthusiastic adoption by our DSD dairy clients.
f Prescient clients continue to publish their successes
- Pentel, a world leader in the manufacture and sale of writing instruments and art
materials, is using Prescient’s VMI solution to gain greater visibility into inventory
movement and generate more accurate orders. The solution has helped Pentel
cut returns in half.
-
Ranir is a leading private label and contract manufacturer of dental products. The
company uses Prescient’s Sales & Operations Planning solution to generate
enterprise-wide forecasts. Since implementing Prescient, Ranir’s forecast
accuracy has gone from 50 to 95%, fill rates have increased by 10%, and
there is lower on-hand inventory.
“We have systematically executed on the plan we envisioned over three years ago. It began with
a financial turnaround, followed by stabilization in our client base and new product introductions
to expand our solution and the value that we offer prospective and existing clients. We are now
focused on ways to grow our business in 2008 and beyond, building on the solid foundation that
is now in place,” said Jane Hoffer, president and CEO of Prescient.
About Prescient Applied Intelligence:
Prescient, founded in 1985 (OTCBB: PPID), is a leading provider of supply chain and advanced
commerce solutions for retailers and suppliers. 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, Coors, Domino’s Pizza, Meijer, Rite Aid,
Sara Lee, Schwan’s, SUPERVALU, 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,” “if”, “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.
###
PRESCIENT APPLIED INTELLIGENCE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31,
2007
2006
ASSETS
Current assets:
Cash and cash equivalents
Accounts receivable - net of allowance for doubtful accounts
of $43,000 at December 31, 2007 and $135,000 at December 31, 2006
Prepaid and other current assets
Total current assets
Furniture, equipment and leasehold improvements, net
Intangible assets, net
Goodwill
Other assets
Total Assets
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Borrowings under accounts receivable financing arrangement
Current portion note payable
Accounts payable
Accrued expenses
Income taxes payable
Deferred revenues
Total current liabilities
Deferred maintenance - long-term portion
Long term portion note payable, net of discount of $15,889 at December 31, 2007
and $25,422 at December 31, 2006
Stockholders' equity:
Series E Preferred Stock, $.001 par value; 1,660 shares authorized; 1,657
shares issued and outstanding at December 31, 2007 and December 31, 2006
(liquidation value $18,889,955 and $17,893,167 at December 31, 2007
and December 31, 2006, respectively)
Series G Preferred Stock, $.001 par value; 480 shares authorized; 479.9 shares
issued and outstanding at December 31, 2007 and December 31, 2006
(liquidation value $4,798,838 at December 31, 2007 and December 31, 2006)
Common stock, $.001 par value; 400,000,000 shares authorized;
33,600,251 and 33,326,670 shares issued and outstanding at December 31,
2007 and December 31, 2006, respectively
Additional paid-in-capital
Accumulated deficit
Cumulative translation adjustment
Total stockholders' equity
Total liabilities and stockholders' equity
$
2,594,149
$
1,016,568
$
1,437,218
108,624
2,562,410
183,311
1,700,000
17,257,483
50,342
21,753,546
1,236,603
$
$
100,504
3,931,256
200,057
1,300,000
17,257,483
49,342
22,738,138
169,696
163,526
632,648
29,071
1,357,953
2,352,894
$
260,117
106,038
118,314
571,311
1,419,972
2,475,752
67,884
30,412
2,228,314
2,296,198
2,394,128
2,424,540
16,567,747
16,567,747
4,798,838
4,798,838
33,600
104,754,887
(108,066,026)
18,089,046
$
22,738,138
33,326
103,348,018
(107,886,943)
(7,732)
16,853,254
$
21,753,546
Prescient Applied Intelligence, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the years ended December 31,
2007
Revenue:
Subscription services
Licenses
Maintenance
Professional services
Total revenue
$
Operating expenses:
Customer operations and support
Development
Selling and marketing
General and administrative
Depreciation and amortization
Total operating expenses
Income/(Loss) from operations
2006
5,830,449
595,527
1,592,097
1,385,530
9,403,603
2,653,359
1,154,035
1,807,364
1,978,554
472,231
8,065,543
1,338,060
Other income (expense):
Interest expense
Accrued damages to stockholders
Loss on Tak Settlement
Total other expense
5,792,739
649,081
1,621,330
1,181,075
9,244,225
3,463,293
1,354,044
1,966,846
3,087,015
506,366
10,377,564
(1,133,339)
(265,332)
(265,332)
(121,069)
(45,000)
(1,193,896)
(1,359,965)
$
(2,493,304)
(2,493,304)
(359,477)
(1,325,420)
(74,250)
(4,252,451)
$
(0.11)
Net income/(loss) before provision for income taxes
Provision for income taxes
Net income/(loss)
Deemed Dividend on Series E Preferred Stock
Undeclared Dividend on Series E Preferred Stock
Accrued damages to certain preferred shareholders
Net loss applicable to common stockholders
$
1,072,728
29,071
1,043,657
(1,222,740)
(996,788)
(20,250)
(1,196,121)
Net loss applicable per common share basic and diluted
$
(0.04)
Weighted average common shares outstanding basic and diluted
$
33,398,626
39,942,178
Vendor-Managed Inventory
S O L UT IO N BR IEF
THE VALUE OF VENDOR-MANAGED INVENTORY
All too often, when a trading partner approached its suppliers about starting a
Vendor-Managed Inventory (VMI) program, it was met with some resistance.
Suppliers saw it as the retailer’s attempt to push inventory cost and risk back down the
supply chain … with little benefit to them.
Lately, VMI is gaining in popularity because suppliers see the enormous opportunity it
represents for them. VMI can provide big business benefits, including: Increased sales
(100% or more in certain categories), a 50% reduction in lead time, 20% – 70%
reduction in inventory, and in-stock improvements of 1% - 2%.1 But there are benefits
beyond the tangible as well: successful VMI implementations have helped suppliers get
closer to their key trading partners. And you can’t put a value on that.
Take a moment to assess whether your company should be considering a
VMI solution:
Are your trading partners concerned about their inventory levels? Inventory
turns? Stock outs?
Are your trading partners trying to reduce the costs associated with buying,
invoicing, and tracking goods? Are they pressuring you to take over
replenishment activities?
Are you challenged by poor customer forecasts and surprise orders?
Are your service levels declining?
Prescient Family of Products
Advanced Commerce
Scan Based Trading (SBT)
Scan Based Trade
Promotions
Collaborative Planning
Vendor Managed Inventory
Store Level Replenishment
STAND OUT FROM THE CROWD
Enterprise Planning
If you’re going to survive in today’s retail market, you need to differentiate yourself from
your competitors. If you don’t stand out, you’ll be left out. Let Prescient’s VMI solution
bring value to your trading partner relationships by better managing inventory, increasing
service levels, and ultimately selling more product to the consumer as efficiently as
possible.
Your business will reap the following benefits from our VMI solution suite:
Reduce inventory: A leading consumer goods company decreased inventory
by $50 million … in just one year.
Reduce lead times: By using Prescient’s VMI, Cliffstar, a private label juice
manufacturer, reduced a 10-day lead-time by 2 to 3 days.
Improve in-stock rates: After implementing Prescient, Maurice Sporting
Goods virtually eliminated out of stocks … and increased its order-fill rate
from 85% to 92%.
Improve trading partner relationships: After several years of low marks
from its key trading partner, PaperPak Industries was named “Supplier of the
Year” because of its Prescient VMI program.
Demand Planning
Inventory Planning
Production Planning
Visibility & Analytics
Shrink
Sales
Inventory
Performance Analysis
Prescient
www.prescient.com
Toll Free: 888-610-1800
V EN D O R - MAN AG ED I N V EN TORY SO L UT I O N B R I E F
PRESCIENT’S VENDOR-MANAGED INVENTORY
Vendor-managed inventory is all about retailers giving more responsibility to their suppliers. More responsibility for
understanding consumer demand, generating accurate forecasts, and planning and replenishing inventory. This can be a
daunting task with just one partner. If you’re like most suppliers, you have anywhere from one to 50 trading partners …
each with a different set of requirements.
The Prescient VMI solution has the flexibility and functionality to meet the needs of each of your key trading partners. It is
pre-mapped to the specific requirements of each partner for the transfer of electronic data directly into the Prescient system.
This enables suppliers to analyze retailer-supplied demand information, automatically generate orders for each customer, set
inventory policy at the retailer’s distribution center and monitor on-going inventory levels, determine which items need to be
replenished, and how to ship them most cost-effectively.
And Prescient’s VMI suite can scale to accommodate new trading partners. Our solution delivers real value for suppliers
through fewer out-of-stocks, increased inventory turns, and increased customer satisfaction and loyalty. Best of all, you have
the opportunity to enhance customer relationships … and that’s invaluable.
Get the Details. To find out more about Prescient’s Vendor-Managed Inventory, or any of
Prescient’s solutions, call us at 888-610-1800 or visit us online at www.prescient.com
Prescient
Store Level Replenishment
S O L UT IO N BR IEF
GET ME TO THE SHELF ON TIME
As a consumer goods manufacturer or distributor, you have plenty of things to worry
about – crushing competition, rising transportation costs, exponential SKU proliferation,
ever narrowing margins. But your retailers worry about one thing … out of stocks. Why?
Because stock outs cost retailers four percent in lost sales and immeasurable damage to
customer satisfaction and loyalty.
And guess what? There has been little improvement over the last decade: surveys show
that on average, eight percent of all items are out of stock at a typical supermarket.
Almost half of stock outs are due to inaccurate store level ordering. And because
suppliers are taking on many of the tasks that used to be the retailer’s responsibility, your
trading partners expect you to get the order right and fix the problem.
Here’s the good news: you can improve order accuracy and reduce stock outs with
Prescient’s Store Level Replenishment (SLR) solution. Take a moment to assess
whether your company should be considering SLR:
Do you know what’s causing your stock outs? Do you need to increase shelf
availability of the right products?
Is your product heavily promoted? Do you stock out during promotions
because you underestimated demand? Or end up with excess inventory
because you overestimated demand?
Are you experiencing shrink? Do you need a better way to manage inventory?
Is it getting more expensive to service stores because of rising fuel costs or
emergency shelf-stocking to combat stock outs?
Are you losing business to your competition? Are you adding value to your
trading partner relationships?
Prescient Family of Products
Advanced Commerce
Scan Based Trading (SBT)
Scan Based Trade
Promotions
Collaborative Planning
Vendor Managed Inventory
Store Level Replenishment
Enterprise Planning
Demand Planning
HE WHO GETS TO THE SHELF FIRST WINS
Prescient’s Store Level Replenishment (SLR) solution will increase your effectiveness at
the store shelf and reduce your out of stocks … especially around promotions. How? By
using store-level demand data to create accurate forecasts and spot-on replenishment
plans for regular turn merchandise and promotional products – by item and by store.
With SLR, you spend less time on business operations and more time on category
management and merchandising. Our solution allows you to:
Identify current and predicted out of stocks at the shelf level
Reduce out of stocks especially during promotions
Increase sales because you have the right product on the shelves
Improve promotion execution and effectiveness
Gain visibility into movement data at the individual store and item level
Inventory Planning
Production Planning
Visibility & Analytics
Shrink
Sales
Inventory
Performance Analysis
Prescient
www.prescient.com
Toll Free: 888-610-1800
S TORE LEV EL R EPL EN I SHM EN T SO L UT I O N B R I E F
PRESCIENT’S STORE LEVEL REPLENISHMENT
Prescient’s Store Level Replenishment solution consists of three major components: a powerful forecasting engine; an
inventory planner; and replenishment ordering logic.
The SLR forecasting engine determines future demand, generates base and promotional forecasts, and detects seasonality
and trends. Prescient has proven forecasting techniques for the consumer goods industry, based on over 20 years of
experience. With predictive analysis capabilities that include calculations for promotional lift, Prescient ensures that your
forecast is accurate … and that your orders will be too.
Prescient’s inventory planner calculates perpetual inventory, determines optimal safety stock, and monitors activity – on a
daily basis – at the store level. Scan sales, deliveries, item counts, inventory policies and shelf capacity are all taken into
consideration. You have an accurate, near real-time view of store inventory, enabling you to respond quickly to
over-performing promotions, potential out of stocks, and planogram compliance.
Prescient’s replenishment ordering logic considers the forecast, inventory levels, and optimal safety stock and automatically
calculates accurate order quantities for each item at each store. The system generates orders for each account in a
specified route or geography. The order can be shared with retail trading partners, and can be used to drive production and
distribution and optimize route efficiencies.
Prescient recognizes that different categories have different challenges, so our SLR solution supports multiple direct store
delivery (DSD) categories, including dairy, bakery, and frozen foods, to name a few. Prescient also has SLR analysts on staff
to assist with program startup. And, Prescient offers flexible deployment and pricing options, so our solution will fit virtually
any organization and any budget.
Remember … he who gets to the shelf first, wins. Get there with Prescient Store Level Replenishment.
Get the Details. To find out more about Prescient’s Store Level Replenishment, or any of
Prescient’s solutions, call us at 888-610-1800 or visit us online at www.prescient.com
Prescient
Scan Based Trading
S O L UT IO N BR IEF
THE NEXT GENERATION OF SCAN BASED TRADING
Scan based trading (SBT) – a commerce model where the supplier owns the inventory
until it scans at the point of sale – has been around for a long time. The first pilot,
sponsored by the Grocery Manufacturers of America in conjunction with several retailers,
was conducted almost 10 years ago. From the beginning SBT brought benefits in the
form of increased sales and the elimination of invoice deductions.
The pace of change is accelerating, and the practices of a decade ago have to evolve if
companies expect to remain strong and profitable. And Prescient’s SBT solution has
done just that. This powerful tool helps retail trading partners drive operational
efficiencies, increase distribution, and extract top-notch performance from their
supply chains.
Take a minute to assess whether your company should be considering SBT:
Are you losing sales because you’re spending too much time checking in, and
not enough time merchandising your products?
How would your ordering and replenishment process change if you had
greater visibility into shelf-level inventory and POS data?
Could you expand distribution if you had a risk-free way to put more product
on your trading partners shelves?
Is your back room costing you margins because of inaccurate counts,
unauthorized deliveries, and the labor needed to staff it?
How much time and resource power do you put into resolving
invoice discrepancies?
How do you currently manage shrink with your trading partners? What
challenges do you have around shrink?
COLLABORATION IS KEY
Operating in an increasingly competitive marketplace, one thing is clear: retailers and
suppliers can no longer afford to go it alone. Prescient’s SBT solution enables
collaboration between trading partners and provides a more efficient way to do business.
Prescient Family of Products
Advanced Commerce
Scan Based Trading (SBT)
Scan Based Trade
Promotions
Collaborative Planning
Vendor Managed Inventory
Store Level Replenishment
Enterprise Planning
Demand Planning
Inventory Planning
Production Planning
Our web-based application provides visibility into store-level product movement, allows
suppliers to spend more time merchandising product, and removes time-consuming
operational drudgery from the retailer-supplier relationship. This way, trading partners
can focus were it matters most – at the store shelf.
Retailers who are actively engaged in SBT have:
Increased sales by almost $6000/year/store in some categories
Reduced inventory by 10% - 30%
Reduced back room hours and trimmed payroll costs significantly
Suppliers who have embraced SBT have:
Increased sales through expanded distribution
Gained an average of 14 minutes more for merchandising
Increased route efficiency by 60%
Shortened delivery time by 300%
Reduced shrink by over 50%
Visibility & Analytics
Shrink
Sales
Inventory
Performance Analysis
Prescient
www.prescient.com
Toll Free: 888-610-1800
S CA N BASED TRAD I N G SOL U TI ON B R I E F
PRESCIENT’S SCAN BASED TRADING SOLUTION
In an industry where competition is fierce and margins are slim, Prescient’s Scan Based Trading solution eliminates supply chain
inefficiencies and helps retailers and suppliers get product to the store shelves more quickly, efficiently, and profitably.
With SBT, partners agree ahead of time on the structure of their relationship – which items are authorized to be sold, which are
being promoted, and what the selling price is, eliminating discrepancies and long, drawn out reconciliation at the back end
when it’s time to get paid. The Prescient system receives the scan sales data and maintains it in a repository to ensure that
product movement data is available to all members of the trading community.
Shrink control … and its costs … are critical to a successful SBT program. A shrink agreement is crafted at the onset of an SBT
relationship, and can take various forms, based on trading relationships and best practices.
A MEANS TO AN END
But SBT isn’t just a transactional process. It’s a competitive advantage. Sony Pictures Home Entertainment used Prescient’s
SBT solution to expand distribution into the grocery channel. Because Sony owns the inventory, the company was able to place
its product into stores with no risk to grocers. To date, Sony has added 45 stores, tripled its market share in grocery, and
increased sales by 800%.
SBT allows Edy’s/Dreyer’s Grand Ice Cream to leverage its distribution system, so the company can deliver to 12 stores per
route instead of just eight. Because SBT eliminates the need for formal check-in, average delivery time has dropped from one
hour to 18 to 20 minutes. Pre-sales and merchandising personnel now have more time to do their jobs without worrying about
delivery deadlines.
A Midwest retailer uses the insights gathered from SBT point-of-sale data to drive value-added activities that have improved
category performance and resulted in an annual sales lift of almost $6000/store/category. SBT also frees up labor and
empowers the retailer’s trading partners to take specific action based on demand data from Prescient’s SBT application,
resulting in an 11% lift on space adjusted products.
Suppliers who are Prescient subscribers can still conduct SBT with a retailer who is not currently a member of Prescient’s
community of subscribers. The solution enables the retailer to transmit point of sale data directly to Prescient. Suppliers can
access the data and are then able to utilize the strength of the Prescient SBT application to conduct business as they would in
a standard SBT relationship.
Best of all, Prescient’s SBT solution is a subscription-based service, so you can be up and running in no time. Our controlled
hosted environment ensures that our SBT applications and reporting tools are always available.
So put the next generation of SBT to work for you. It can take you where you need to go.
Get the Details. To find out more about Prescient’s Scan Based Trading, or any of
Prescient’s solutions, call us at 888-610-1800 or visit us online at www.prescient.com
Prescient
Visibility & Analytics
S O L UT IO N BR IEF
TOO MUCH INFORMATION
In 1970, Alvin Toffler coined the phrase “information overload” – referring to the fact
that having too much information makes it almost impossible to make a decision. In
the 30 years since Mr. Toffler first made this observation, the amount of available
information has increased exponentially. If you’re like most companies today, you
spend more time gathering data than you do analyzing and acting on it.
Here’s the good news: You can quickly get to the data you need to make those
important business decisions with Prescient’s Visibility & Analytics (V&A) suite. Take a
minute to assess whether your company should be looking at V&A.
Do you know which stores have the highest shrink? How this year’s sales
compare to last? What your in-store stock positions are?
Do you service more than one retailer? Do you service a lot of stores with a
large number of product categories and SKUs?
Do you spend too much time gathering data, and too little time analyzing the
root cause of shrink or sales issues?
Do you know if you’re meeting trading partner expectations regarding
service levels, on time deliveries, overstocks, sales performance and growth?
FROM DATA TO DECISION MAKING
Prescient’s Visibility & Analytics (V&A) suite is a web-based business intelligence tool
that will help improve your performance at store level. It provides a comprehensive
view into your business, gives you a mechanism for reporting and analysis, and
ultimately allows you to you spend less time looking for answers and more time
driving strategic decisions.
Prescient Family of Products
Advanced Commerce
Scan Based Trading (SBT)
Scan Based Trade
Promotions
Collaborative Planning
Vendor Managed Inventory
Store Level Replenishment
Enterprise Planning
Demand Planning
Our flexible, comprehensive, scalable solution helps you keep an eye on what’s
important to your business. It allows you to:
Increase visibility into data where little or none previously existed
Proactively manage your business through improved visibility and
trend analysis
Save time by getting to your data 70% faster
Increase sales by reducing out of stocks
Share information across the entire enterprise
Inventory Planning
Production Planning
Visibility & Analytics
Shrink
Sales
Inventory
Performance Analysis
Prescient
www.prescient.com
Toll Free: 888-610-1800
V ISIB ILITY & AN AL Y TI C S SOL U TI O N B R I E F
PRESCIENT’S VISIBILITY & ANALYTICS
Prescient’s solutions are focused on the store shelf – the place where retailers, suppliers, and consumers intersect.
Collaboration between retailers and suppliers is critical to making sure consumers get what they want, when they want it.
An empty shelf isn’t going to cut it.
Prescient’s V&A suite enhances collaboration between retailers and suppliers through the exchange of information.
Prescient believes that good data is fundamental for effective commerce. Our scan based trading (SBT) application uses
store level movement data as the basis for the retailer-supplier relationship. The timeliness and accuracy of this data is
critical to keeping shelves stocked.
Prescient also provides critical retailer connections – pre-configured maps that satisfy retailer-specific business rules and
requirements. Prescient connects with nine out of 10 of the top grocery retailers, not to mention mass merchandisers and
chain drug stores. It couldn’t be easier to plug into our network, access and analyze data, and make better business decisions.
The V&A suite consists of a foundational data layer and a set of specifically-focused modules, including:
V&A Shrink: Designed specifically for DSD suppliers who are already conducting SBT with Prescient, this
module analyzes shrink trends by partner, store, product, packaging, route, and time period
V&A Sales: Provides insight into trends by store and item, as well as year to date sales compared to
historical performance
V&A Inventory: Provides visibility into in-store stock positions, stock position limits, and product flow
V&A Performance Analysis: A scorecarding module that suppliers can configure to specific retailer
requirements to track performance across service levels, overstocks, on-time shipments, and more
Prescient’s V&A suite is easily configurable to include the data attributes that are most important to your decision-making
process, including geography, product groups, or routes. It comes with a wide variety of standard reports – and it’s also
easy to customize reports to meet your specific needs.
Because you don’t have time to sort through the deluge of daily store-level data, V&A supports exception management
and alerts, based on thresholds set by you and your trading partners. And, you can view alerts online, receive them via
e-mail, or export reports to Excel, PDF, and other portable formats. Best of all, information can be readily shared across
the enterprise, in the format each department prefers.
Overwhelmed by too much information? Get just enough information to make critical business decisions and keep your
shelves stocked ... with Prescient Visibility & Analytics.
Get the Details. To find out more about Prescient’s Visibility & Analytics Suite, or any of
Prescient’s solutions, call us at 888-610-1800 or visit us online at www.prescient.com
Prescient