Investor Relations


Park City Group, Inc. Fiscal 2019 First Quarter Earnings Conference Call
Available until December 8, 2018

Replay Dial-In Numbers:
Toll-Free 1-844-512-2921
Toll/International 1-412-317-6671
Available Until: Dec 8, 2018 @ 11:59 P.M. Eastern Time
Replay Pin Number: 132193
 

Park City Group, Inc. is the parent company of ReposiTrak Inc., the world’s only company with a sourcing, compliance management and advanced commerce platform for retailing used by retailers, wholesalers and consumer goods manufacturers to accelerate sales, control risk and improve supply chain efficiencies.

Compliance Management Solutions

ReposiTrak is the industry standard for managing food safety and consumer product compliance, with exclusive endorsements from the Food Marketing Institute (FMI), the Retailer Owned Food Distributors and Associates (ROFDA), and the Global Market Development Center (GMDC). The ReposiTrak compliance management platform can provide visibility from the farm to the fork helping food retailers, foodservice operators, wholesalers and manufacturers to ensure compliance with regulatory requirements, protect their brands, and mitigate the risk of litigation from food bourn illness and costly product recalls.

The ReposiTrak compliance management platform was developed in partnership with Leavitt Partners, a leading global authority on food safety, in response to changes in U.S. food safety regulations due to the Food Safety Modernization Act (FSMA). ReposiTrak’s unique capabilities led it to be selected by the Safe Quality Food Institute (SQFI), to host the industry’s largest audit schema. More recently, the platform’s compliance capabilities have expanded from food safety to a whole host of other attributes for both food and non-food consumer products.

ReposiTrak’s compliance management solution employs a Hub and Spoke business model, whereby ReposiTrak is engaged by a retail or wholesale (Hub), which then compels its suppliers to sign up for the service. ReposiTrak employs a trained group of professionals that help these suppliers (Spokes) become compliant and provides verification to the Hub, for a low monthly cost per Hub/Spoke connection. Given the millions of potential connections within the U.S. food and consumer product supplier chain, management believes there is a $1 billion+ addressable market for this solution alone.

Supply Chain Solutions

Increasing product differentiation and reducing out of stocks are the most difficult problems facing food and consumer products retailers today. On the one hand, consumers are demanding increasingly segmented product attributes and punishing retailers that do not respond accordingly. On the other hand, greater differentiation drives complexity into the supply chain, and results in greater out of stocks. Moreover, brand loyalty is greater than loyalty to any retail venue, and when a retailer doesn’t have the product that a consumer wants, the consumer often takes their business elsewhere.

Managing the supply chain to ensure a wide array of consumer choices while making sure that the appropriate amount of stock is on the shelf from an ever growing menu of products is a complex process that involves forecasting consumer demand correctly, ordering the correct amount of product from a distribution warehouse, getting the right allocation to that warehouse from the manufacturer, manufacturing the correct amount of product, and having accurate demand planning for the manufacturers’ suppliers to support this effort.

ReposiTrak’s supply chain applications assist at each stage of this arduous process so that a retailer has the correct amount of a wide variety of products on the self to keep the consumer coming back and at the same time does not waste precious working-capital on over-stocks. Using PCG’s base-level service, customers can create virtual inventory counts by store and by SKU to diagnose out-of-stocks and overstocked situations. ReposiTrak’s supply chain solutions enable a retailer to increase sales while at the same time lowering inventories, freeing up capital that can be used elsewhere.

ReposiTrak’s supply chain solutions most often employ the same Hub and Spoke business model as its compliance management solution, whereby ReposiTrak is engaged by the Hub, which compels its suppliers to sign up and pay for our services on a recurring basis. Recently, the company has undertaken to converge its supply chain applications and ReposiTrak’s large scale compliance network onto a single platform, with a single user-interface, and a single point of contact for customers, which management believes will drive deeper penetration of the company’s supply chain applications.

MarketPlace: B2B e-commerce Solutions

MarketPlace combines the broad scale of ReposiTrak’s compliance network, with the deep scope of its supply chain capabilities to create a unique platform where buyers on ReposiTrak’s network can find new products from compliant sellers on the network, and sellers can highlight their products to potential new buyers. MarketPlace was successfully commercially launched in fiscal 2017 to complement ReposiTrak compliance capabilities by creating a place where ReposiTrak HUBs could go to find new or replace non-compliant suppliers, and where ReposiTrak compliant suppliers could go to find incremental business.

MarketPlace is different from other on-line catalogues in that it is first and foremost a database of compliant suppliers and the products they sell. A buyer can be sure that the suppliers they find in MarketPlace meet any desired compliance standards they set for doing business. Similarly, a supplier can be assured of the rapid commencement of business because the ecommerce connectivity of MarketPlace means all buyers are already set up to begin doing business with any supplier on the network.

Customer reception to MarketPlace has so far exceeded the company’s expectations, which it attributes to the platform’s unique capabilities and the growing threat to traditional brick-and-mortar retailers from actions such as Amazon’s acquisition of WholeFoods. The latter specifically highlighted the need for the industry to have a B2B e-commerce platform (similar to Amazon, but not Amazon) that would improve their ability to managing supplier relationships, ensure greater product diversity, more efficiently managing inventory, mitigate out of stocks and preserve working capital.

MarketPlace is still in the early stages of commercialization. Management believes that the business model for MarketPlace will be more organic in origination and transactional in nature than its compliance management and supply chain solutions. The company is still working with its customers to develop additional uses for the platform and exploring multiple models for monetizing its capabilities. As such, MarketPlace is not likely to make a material contribution to revenues until fiscal 2019 at the earliest; although management is confident, that its financial impact is likely to be substantial over the long-term.



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