USA
The Professional’s Choice in Retail POS and Inventory Management Software “Pacsoft has he lped us along the way. The em ailing of our PDF statements is fantastic, and the contract ors love it.”
Landon Garner, Owner Garner Building Supply
improved cibuy has bank.” S r e iz m Opte the “Pacsoft’s and put money in t fi ro p store er g ch, Mana Dan Fren are w rd a rk H Baken Pa
“By partn ering wit h Woodw created a are, Pacs se oft has has save amless millworkin do g solution th time, and ur staff a signific ant amou at our custo n t of m e rs Lowell S love it.” tutzman
Farmer’s B
The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
, Own uilding S er upplies
Pacso& USA -‐ The Professional’s Choice… In Retail POS & Inventory Management So5ware
Why Choose Pacso& To Care For Your Business No part of this publicaAon may be reproduced or transmiDed in any form or by any means, mechanical or electronic, including photocopying and recording, or by any informaAon storage and retrieval system, without permission in wriAng from Pacso&USA. 300 Fore St. Portland Maine 04101.
The Professional’s Choice In Retail So&ware
3
Table Of Contents
Pacso& Overview
5
Meet the Pacso& Team Helping You With Your Business
6
How Pacso&’s Core Values Benefit You
12
Case Studies
16
TesAmonials
21
What We Do For You The CriAcal Steps To a Successful Retail Computer InstallaAon Optemizer Return On Investment Pacso&’s Customer Care Program Pacso&’s Value-‐Added Services Optemizer Training MOVE Program
27 28 29 30 32 33 35
How We Do It What Makes Us Different Optemizer Modules Scibuy ScienAfic Buying Target Inventory & Overstock ReducAon OptLumber OptDelivery TrendFinder Q Buster Mobile POS Q Buster Mobile POS In The Field Hardware
37 38 39 40 44 48 50 51 52 53 54
The Professional’s Choice In Retail So&ware
4
Pacso& Overview When You Need Technology Advice For Your Business Speak To a Retail Technology Expert
Founded in 1984
Proven So&ware and Service For Your Industry
Pacso& successfully services over 2,000 leading Lumber, Hardware and Rural retailers.
Driven To Make You More Successful
Pacso&’s purpose is to “Make Our Customers Money By Improving Their Efficiency & Profit”.
FAMILY BUSINESS
Privately-‐owned company with family business values, founded in high ethical standards. A company with deep roots in the community.
Make Your Business More CompeAAve With The Latest Technology
Pacso& has always been the industry leader that others follow. In 2011, Pacso& lead the industry into the use of mobile technology, with iPads and iPhones. Pacso& was years ahead of the industry in moving to the windows placorm. Based on Microso& SQL server technology, which is ideally suited to the needs of your industry because of it’s reliability.
The Professional’s Choice In Retail So&ware
With almost 30 years of supporGng retail businesses. A team of 35 professionals with more than 10 years service. You always speak to someone who knows what they are talking about.
5
Your Business Partner Meet the PacsoN Team Helping You With Your Business
The Professional’s Choice In Retail So&ware
6
Your Business Partner: Pacso& The Company
Pacso& is a privately owned business employing some 35 people. We specialize in the Lumber and Hardware retail segment and have over 2,000 customers throughout the world.
The company was founded in 1984 by current Chairman and owner Andrew Darbyshire. We were the first company in the world serving the Lumber and Hardware industry to develop a true Windows based system in 1995.
We pride ourselves on our community involvement with a number of charitable organizaAons.
More than half our team have been with the company for between 10 and 20 years. This stability is very important to Pacso& and our clients. We love our customers and treat them like family.
Being the relaAonship company that we are, is key to our ongoing success. Word of mouth is our main source of new business.
Partnering with Pacso& means you benefit from a friendly, personalized approach. We aren’t a large corporaAon managed by accountants and investment bankers looking for a quick buck. We do what we do with a sense of purpose for our customers. We have a strong balance sheet and carry no debt. Unlike most of our larger corporate compeAtors, we are not at the beck and call of venture capitalists, who have built mass via acquisiAons. The Professional’s Choice In Retail So&ware
7
Management You Can Count On
Andrew Darbyshire AM – Chairman and Owner
Andrew Darbyshire founded Pacso& in 1984 when he created Australia's first scanning hardlines POS so&ware. Retailers quickly grasped the value of the Pacso& soluAon in Australia, and in 1994 Andrew expanded sales to the United States. His experience in those market places has allowed him to focus strategically on what technology is producing, and how it will benefit Pacso&'s retail customers in both countries. “I am passionate about having what I call the 3D’s To Success. Delighted Customers, A Dedicated Team and a Devoted Community. You will find that when partnering with Pacso5, this philosophy is the cornerstone of our approach.” In the 2012 Australia Day Honours, he was made a Member of the Order of Australia (the equivalent of the PresidenAal CiAzens Medal), for services to the community as a supporter of research into child related brain condiOons, through contribuOons to special needs children and their families, and to the arts. ad@pacso&.com
Peter Stoops – President USA OperaAons
“I’ve been involved with retail hardlines all my life. At Pacso5, my goal has been to bring more than just standard point of sale soluOons to the industry. Instead, I’ve dedicated the company to help moOvated retailers use our so5ware to make money, using our inventory management programs and our new innovaOons – such as the iPod and iPad apps. Nothing is more important, and both our development and support staffs understand that mission is our highest priority.” pstoops@pacso&usa.com
Georgia Eaton – USA Customer Care Manager
“I started working in a hardware store in 1995, and came on board Pacso5 in 1997 as a recepOonist. From the first day, I developed an appreciaOon for our customers, and for what our so5ware could do for them. I learned it all from the boYom up, and am proud of the extremely high level of capable, knowledgeable assistance my support team gives our hardware and lumberyard users… they are focused on making sure those customers happily get the return on their investment in us.” geaton@pacso&usa.com
The Professional’s Choice In Retail So&ware
8
The Melbourne Age 26th January 2012
The Professional’s Choice In Retail So&ware
9
Your Business Partner: Pacso& In The Community
The Team That’s Working For YOU…
At Pacso& we pride ourselves on the depth and breadth of talent, skills and experience of our staff. A policy of on-‐going educaAon and cross-‐training ensures their experAse is maintained at the uppermost level. This knowledge and experience is passed on directly to our customers. Our combinaAon of people, processes and technology, provide customers with a high caliber of products and services, that allow them to uAlize their informaAon technology resources to achieve a compeAAve advantage. We take the anxiety out of computer technology and enable customers to focus solely on their businesses. We are proud that a large number of our team have been a part of the company for 10 years or more. In these Ames of high and costly staff turnover, we understand the importance of stability. It is most criAcal to the success of our clients.
The Professional’s Choice In Retail So&ware
10
You Are One of Many Partners…
Over 2,000 customers around the globe have come to rely on Pacso&'s leading edge technologies to deliver strategic soluAons, that are both open and flexible, resulAng in efficient and profitable business management. Today, we conAnue to take customers to the forefront of their markets by using superior technology to power every element of their business. Pacso&'s pro-‐acAve customer service approach ensures that demands are met and exceeded, and reinforces our customers knowledge that they are Pacso&'s number one priority.
The Professional’s Choice In Retail So&ware
11
Your Business Partner How PacsoN’s Core Values Benefit You
The Professional’s Choice In Retail So&ware
12
Your Business Deserves a Partner Dedicated to Improving Your Product and Service Offerings…
Our purpose at Pacso&: To improve our customer's efficiency and profit. It's a simple purpose and we take it very seriously.
In today's ever-‐changing business environment, you need to be on top of your game. You need to have an edge that keeps your business efficient and profitable. Pacso&’s Optemizer is that edge.
When you select Pacso&’s Optemizer as your preferred Inventory Management System, you select a company with nearly three decades of experience and the soluAons to take your business to another level. These are the first steps to increasing your efficiency and profit.
In line with our purpose, Pacso& recognizes the cuong edge benefits of the Apple iOS strategy and has developed numerous powerful apps for the iPad, iPod and iPhone to empower our customers. The reasons for choosing the iOS placorm are: stability, ease of so&ware update management, and the low cost of devices. In addiAon, it is the only mobile placorm that can be adapted to the retail environment with scanning, which is achieved by the use of a specifically designed accessory that turns the device into a professional retail scanner.
In a recent survey of retail so&ware providers, Do It Best CorporaAon’s customers rated Pacso& the #1 provider. The Professional’s Choice In Retail So&ware
13
Your Business Deserves a Partner with Mutually Beneficial Goals…
At Pacso& our primary goal is to provide sophisAcated technology soluAons that save our clients Ame and money, from implementaAon through to ongoing operaAon.
We have grown our business over three decades by providing soluAons that not only deliver basic efficiencies, but give our clients the power to beDer understand their business, their customers and their future.
Pacso&'s ability to adapt to the ever-‐changing economic environment, and our understanding of the mechanics of business make our technologies the best in their class.
To ensure that customers are at the forefront of the technology revoluAon, Pacso& provides the seamless backup and customer care required to power business systems.
At Pacso& we have a solid standing and conAnue to grow as an organizaAon, and as an industry leader. Our vision is to elevate and broaden the posiAon of Pacso&; we will achieve this vision by working closely with our clients and partners.
The Professional’s Choice In Retail So&ware
14
Your Business Deserves a Focused Partner…
At Pacso& we take great pride in ensuring complete customer saAsfacAon by providing the highest level of professional service, and cost effecAve system soluAons for all levels of the retail and wholesale markets. Our five core values, success, teamwork, stability, competence and integrity, reflect Pacso&'s commitment to being the best, and allows us to offer our customers the pinnacle of results-‐ driven aDenAon. Success Teamwork Stability Competence Responsibility We promote company-‐wide pride in our work, seong a benchmark for success and creaAng an environment where feedback is crucial in the success of each soluAon we provide.
Our pro-‐acAve and supporAve approach to teamwork results in consistently high customer raAngs. Our clear oral communicaAon diminishes the uncertainty and isolaAon that may stem from non-‐verbal interacAon.
The Professional’s Choice In Retail So&ware
At Pacso& we promote an enthusiasAc and disciplined approach to our work, allowing our staff to remain focused on their tasks. This approach, combined with our sound financial situaAon, results in high staff retenAon rates and stability.
15
We apply lateral thinking to the development of soluAons and tackle challenges rather than problems. This guarantees the highest level of creaAvity and competence in all situaAons.
Taking ownership and accountability for acAons generates a healthy level of self-‐ respect, moAvaAng individuals to keep their word. At Pacso& we take responsibility for every facet of our work, from implemenAng to supporAng your technology.
Case Study – Baken Park Hardware “Optemizer’s Scibuy has improved store profit, pu^ng money in the bank.”
Dan French, Manager, Baken Park Hardware
StaGsGcs
Improving Inventory Investment
Improvements
Hardware Hank Pacso& 10 users LocaAon: Baken Park SD Implemented 1998
Dan worked with Pacso& to understand the so&ware’s capabiliAes for Inventory Management. He learned that the ScienAfic Buying program was already saving and analyzing 2 years of sales history and that it was acAvely predicAng order quanAAes for almost every item in the store.
Inventory turnover increased from 1 to 2.5.
The Professional’s Choice In Retail So&ware
Accurate stock on hand.
Eliminated double ordering.
Fewer sales lost due to too liDle stock or slow movers.
16
Case Study – Stockman’s Farm Supply
“I love the freedom of OptMobile!”
DusAn Klanderman, Manager, Stockman’s Farm Supply
StaGsGcs
OptMobile Technology
Improvements
Pacso& 23 users 2 stores branched Implemented 2010
The staff at Stockman’s use the iPads to gather all the on-‐hand informaAon for their products, scanning with a Bluetooth device, and uploading on-‐hands to their servers in real-‐Ame.
The ability to review sales & other informaAon using an iPad has resulted in increased profits and database accuracy.
They also use the iPads to check pricing and other informaAon, with resulAng increase in profit, and database accuracy.
Stockman’s have saved money by avoiding expensive Radio Frequency soluAons.
The Professional’s Choice In Retail So&ware
17
Case Study – Johnston’s Hardware “In tough economic Omes, if a store’s not ge^ng Inventory Management help from their so5ware provider-‐ like we get from Pacso5 – they are probably at risk of significant loss..”
Marcia Johnston, Owner, Johnston’s Hardware
StaGsGcs
MOVE Program
Improvements
Hardware Hank Pacso& 5 users LocaAon: Sturgis, SD Implemented 1998
Johnston’s and Pacso& partnered in uAlizing and tesAng the pilot MOVE program, the result of which was the seven-‐step process (from item file clean-‐up to counAng on-‐hands, to departmental performance analysis) that takes the retailer fully into Inventory Management.
Average stock on-‐hand reduced for 5 consecuAve years; total cash released, $103,000.
The Professional’s Choice In Retail So&ware
Inventory Turns improved from 1.4 to 1.8 Turns.
Significant savings to rent overhead leading to greater contribuAon to profitability.
18
Case Study – Farmer’s Building Supplies “We are pleased at Pacso5’s ability to be flexible, and to work outside the box. By partnering with Woodware, they created a seamless soluOon that has saved our staff a significant amount of Ome, and our customers love it.”
Lowell Stutzman, Owner, Farmer’s Building Supplies
StaGsGcs
Improved Efficiency
Improvement
Do It Best Pacso& 66 users LocaAon: Grants Pass, OR Implemented 2009 4 sites branched
If Farmer’s old central server went down, or lost its phone connecAons, all their stores were dead in the water. Now by having servers in each store, connected over the internet, Optemizer simply updates when the connecAon is available.
ScienAfic buying immediately improved their inventory investment.
With Optmobile, Kyle Stutzman has been performing a number of operaAonal tasks from India!
The Professional’s Choice In Retail So&ware
19
Centralized pricing.
Optemizer’s General Ledger automated the flow of transacAons into one set of books.
Case Study – Garner Building Supply
“Pacso5 has helped us all along the way. The emailing of PDF statements is fantasOc, and the contractors love it.”
Landon Garner, Owner, Garner Building Supply
StaGsGcs
Quality Support
Improvements
True Value Pacso& 9 users LocaAon: Rogers, AR Implemented 2005
Garner Building Supply chose Pacso& because they idenAfied with Pacso&’s ability to provide one-‐on-‐one support from people who knew them, and the needs of their business, first-‐hand.
Pacso& enhanced Garner’s lumber and contractor sales with Optemizer’s powerful Customer Order and Quotes modules, both of which Ae directly to Purchase Orders for fast processing.
The Professional’s Choice In Retail So&ware
Pacso&’s technological advancements have allowed Garner’s to improve their customer’s business experience.
20
TesAmonial -‐ Drube Supply
“I've used the steps in the MOVE process – from se^ng up the item file to execuOng ScienOfic Buying -‐ to bring control over a number of departments in our store. The process works: if you follow the steps and are diligent in maintaining your item file, automaOc ordering will ‘flex’ the inventories into beYer shape, reducing overstocks and helping to prevent ‘outs’. The staff at Pacso5 have been involved all the way, and work with us to provide help and make changes when necessary. A5er all – why have a computer if you don't use it to opOmize your business's biggest asset?” Thane Ashenhurst Drube Supply 609 16th Street Wheatland,WY82201 307-‐322-‐4808
The Professional’s Choice In Retail So&ware
21
TesAmonial – Goff’s Hardware
“We've been working with Pacso5 since 1998 and the folks at Pacso5 have been very helpful and resourceful in helping us solve any problems we encounter with our system. Support has been Omely and effecOve in emergencies as well as in run-‐of-‐the-‐mill situaOons. The personnel with whom we have worked have been most courteous, understanding and pleasant.” Butch Goff Goff’s Hardware
The Professional’s Choice In Retail So&ware
22
TesAmonial -‐ Johnston's Hardware Hank
“UnOl earlier this year (2006), our 10,000 square foot store's inventories were managed by "the seat of our pants”. Meaning that in most of our day-‐to-‐day buying decisions, we used our experience rather than any automaOc ordering capabiliOes the Pacso5 system had to offer. That changed when we worked with the MOVE program to learn about se^ng up the store for ScienOfic Buying -‐ one department at a Ome.
We established base-‐line performance figures for ‘before and a5er’ purposes, but we can already tell that MOVE has put our inventory into much beYer shape in all the departments involved. It's taken the guesswork out of how much to order of any given item, keeping our inventory levels at the proper place.
The MOVE program puts inventory management easily within the reach of any retailer who wants to make the commitment to it.”
Dan and Marcia Johnston Johnston's Hardware Hank 2222 JuncAon Avenue Sturgis, SD 57785 605-‐347-‐4031
The Professional’s Choice In Retail So&ware
23
TesAmonial -‐ Laconia Trustworthy Hardware
“When we decided to move away from running our store with an AcOvant system, we looked at a number of companies, including Rocksolid and Transact. In the end, we chose Pacso5 because we really needed a system that was more than just Accounts Receivable and POS – We needed one that would automate our Inventory Management. More importantly, Pacso5 is a company that is prepared to assist us personally in this. That was criOcal to us: a POS company that was willing to establish a hand-‐on relaOonship with us to help us meet our goals.” Pam MarGneau Laconia Trustworthy Hardware 1084 Union Avenue Laconia, NH 03246 603-‐524-‐1601
The Professional’s Choice In Retail So&ware
24
TesAmonial – Newcastle Hardware Hank
“Although I sold Newcastle Hardware in 2008, I can tesOfy that Optemizer's ScienOfic Buying program enabled the store to reach performance goals that far exceeded the industry standards (according to the NaOonal Retail Hardware AssociaOon). Specifically, those measurements were:
Year 2006
Newcastle Hardware Industry Average
Turns
4.0
2.0
268%
136%
Profit/Sq Foot
$80.00
$59.00
GM%
40.2%
39.9%
GMROI
The boYom line is that ScienOfic Buying kept my inventories at opOmum levels -‐ I neither overspent on excess inventory, nor lost sales due to too liYle inventory. The result was a highly flexible inventory investment that was created by understanding the trends in my store's sales history. Not to menOon an inventory that was far more profitable than most retail hardware stores ever enjoy.» Dennis Swanson Ex-‐Owner Newcastle Hardware Hank 307 629 1834 The Professional’s Choice In Retail So&ware
25
TesAmonial – Wilmes Hardware Hank
“There are two primary objecOves for aYending merchandise shows: reviewing new items and ordering basic merchandise at discounted prices. Without the Optemizer Show Report (OSR) it would be impossible to do even an adequate job on either objecOve. The OSR frees up a full day by paring down Ome spent on high SKU-‐count vendors like Valspar, Leviton, and LDR. This Ome savings combined with cash spiff maximizaOon based on prior sales history makes the OSR a definite ‘no-‐brainer’.” Mike Wilmes Wilmes Hardware Hank 605 West 29th Street Sioux City, NE 68776
The Professional’s Choice In Retail So&ware
26
What We Do For You ”To prescribe a cure without proper diagnosis is malprac6ce”
The Professional’s Choice In Retail So&ware
27
The CriAcal Steps To A Successful Retail Computer InstallaAon
Ø First, our Discovery process focuses specifically on your needs – meaning we only move forward if we can provide a quanOfiable soluOon to your issues. Ø Next, we work with you and your staff to Diagnose areas in your business that we can assist with – and each must have a “dollarized” return. Ø The next step is to seek your agreement on the issues and, with your assistance, Design the soluAon, and provide a demonstraAon that will illustrate how Optemizer will address them. Ø Lastly, we Deliver the soluAons, showing you how they will work in your business, with the exact costs and implementaAon issues you need to know about. Ø Moving forward, Pacso& provides a totally flexible soluAon to your installaAon. If you wish to purchase hardware from third parAes we can configure it for you. Ø You will also find that we provide the industry’s highest level of training, both in terms of Ame and quality, to maximize your investment. Training is criAcal in the proper uAlizaAon of any system and is more o&en than not undersold. We also provide training beyond simple so&ware use, MOVE – Maximizing Optemizer Via EducaOon. Ø From the moment your system is commissioned, our people provide world class, personalized, a&er-‐sales Customer Care services. The Professional’s Choice In Retail So&ware
28
Optemizer -‐ Return On Investment Do the CalculaGons for your store
(a) Inventory Value at Cost
$
(b) Sales Last Year
$
(c) Cost of Sales Last Year
$
(d) Gross Margin $ (b-‐c)
$
(e) Gross Margin % ((d/b)*100)
%
(f) Stock Turns (c/a) (g) GMROI (d/a) Now Calculate the addiAonal income with a GMROI of 1.75 *NRHA average for high profit stores
(h) New Stock Turn (c/(d/1.75)) Cash Returned to Owner (a-‐(c/h))
$
Increased Ongoing Margin ((b/100)*3.9)
$
The Professional’s Choice In Retail So&ware
29
Pacso&’s Customer Care Program
At Pacso&, our aim is to provide you with the best Customer Care possible. We will assist you in geong the most out of your so&ware and we will provide this support whenever you need it. We are different from other so&ware companies, whose idea of support extends only as far as geong problems fixed reacAvely. At Pacso& our idea of Customer Care extends much further. Not only are our Customer Care analysts trained to overcome the everyday challenges a user might face with the so&ware, they are also experts at educaAng our customers in how to move deeper in their use of the program. The skills and educaAon we offer means that the typical user moves beyond the simple tasks of transacAons and accounAng, and into the more profitable realms of inventory management and sales analysis. Pacso&'s Customer Care is available 24 hours a day, 7 days a week via a toll-‐ free number.
The Professional’s Choice In Retail So&ware
30
Pacso&’s Customer Care Program – cont..
Ø No addiAonal charge for regular so&ware upgrades and enhancements. Ø 24 X 7 help desk support. Ø Experienced and personalized help desk assistance. All customer care analysts have between 5 and 15 years experience with Pacso&. Ø Always a live person answering the phone, not a machine. Ø Remote upgrades. Ø MOVE: A 7 – step onsite inventory management help. Ø Ongoing, regularly scheduled training online -‐ e-‐training. Ø New Customer Launch Program. Ø Regular helpful Aps via email newsleDers and blogs. Ø We have a unique way of rewarding increased customer experAse in our so&ware, which lowers Pacso& customer care costs. A&er iniAal training, your customer care raAng is level 5. For every 5 addiAonal days of training you purchase, you go up a raAng. Each raAng above 5 aDracts a 5% life discount on your monthly customer care program fee. RaAng 1 aDracts a massive 20% reducAon in your fees. At Pacso&, we have a strong emphasis on helping you get the most from your system. The Professional’s Choice In Retail So&ware
31
Pacso&’s Value-‐Added Services
Pacso& goes beyond simply providing excellent so&ware – we also provide a full, value-‐added package of services to go along with it. We take the iniAaAve to move our customers into parts of the program that have the greatest ability to jusAfy your investment in our product and people. Below is a chart of the three Value Stages we recognize/implement when it comes to maximizing your ROI from Optemizer.
Pacsoft Software and After Sales Care Value-Added Programs
Improved ROI
Increased Cash
MOVE Program – Assistance In Organizing Stock
Scientific Buying for HistoryBased Ordering
OptMobile (iPod/iPad) Remote Store Management
MOVE Program – Assistance In Counting Stock
Target Inventory Program to Pin-Point Invt. Improvement
Qbuster (iPod) Mobile Sales Processing & Delivery
MOVE Program – Assistance Understand Order Pts.
Stage 3
PDF/Email Statements and Invoices
Stage 2
Stage 1
Improved Efficiency
Mobile CRM for Sales
Integrated Rental Program Integrated Lumber Features
Trigger Automatic Ordering
Reduce Asset Costs: iTechnology for POS
Loyalty and Gift Card Programs
CRM for Serious Customer Relationship Management
Get Control of Financial Performance: Integrated GL
Powered by Optemizer and Pacsoft Customer Care
The Professional’s Choice In Retail So&ware
32
Optemizer Training
Training in any computer system is a crucial consideraAon for any company. At Pacso&, we are commiDed to providing the highest possible level of training, ensuring that staff are fully prepared to hit the ground running. Pacso&'s system training is delivered by skilled professionals and supplemented by informaAve tutorials and documentaAon designed to provide effecAve on-‐going help. With Pacso& you have the opAon of training on-‐site or at a Pacso&'s training center. Training on-‐site is best suited for two or more people who are able to parAcipate with limited or no interrupAons. To maximize the success of your training, we provide a pre-‐installaAon quesAonnaire which is completed prior to the training session, which helps us to ascertain exisAng user knowledge of computers, work funcAons, and specific areas of responsibiliAes. The Pacso& Trainer will analyze this informaAon and prepare a customized training program to match each individual's needs. To achieve a maximum return on investment, we recommend that at least one staff member complete the training with the purpose of being the System Administrator responsible for the training and guidance of other staff. We promote ongoing training by providing discount incenAves on our Customer Care program, for the more training you purchase as you get more familiar with the power of your Optemizer system. At Pacso& we want to see you succeed, because ulAmately your success is our success!
The Professional’s Choice In Retail So&ware
33
Optemizer Training – cont..
The chart below steps you through our in-‐depth approach to training and implementaAon, which we handle as a separate, criAcal project for each new customer. Planning
Project DefiniAon
Training Interview
Extract Data
Customer Data Review
Create Sample Dbase
Customer Dbase Approval
On Site Training
Go Live
Customer Sign-‐off
Measure User Progress
MOVE Program On-‐Site
Target Invent.. Program
Site Survey
Design and Review of System Trial Data Conversion
ImplementaAon On-‐Site Hardware Setup
Follow Up New Customer Launch Program
The Professional’s Choice In Retail So&ware
34
MOVE Program
All POS so&ware companies TALK about the value of Inventory Management. But only one company actually DELIVERS IT — right to your retail business! Why Pacso& for Inventory Management (I.M.)? If all you want your POS so&ware to perform is Accounts Receivable, Point of Sale funcAons, or distributor communicaAons, forget about Pacso5. All POS systems can do that stuff, and there are plenty out there that can do it cheaper than Pacso&! You see, Pacso& spends a lot of money to develop – and deliver – Inventory Management programs to our users. We’re more expensive, but you’ll get your investment back (and lots more) by uAlizing our professional, customized implementaAon and so&ware programs for Inventory Management. How is Pacso& Different? Pacso& not only has the best Inventory Management program (ScienAfic Buying, or SciBuy) in the industry, we help our commiDed users implement it – one-‐on-‐one, on-‐site. Pacso& does this through MOVE (Maximizing Optemizer Via EducaOon), a program that assists our users in using our advanced features like SciBuy and AutomaAc Ordering. MOVE creates a plan for each customer, with specific steps and deadlines, that is implemented and monitored both in-‐house and in the field, one-‐on-‐one, with you. Pacso&’s goal is to have all of our customers reaping the benefits of beDer inventory management... it’s what pays for the system, and it’s the biggest return on investment a retailer can take advantage of.
The Professional’s Choice In Retail So&ware
35
MOVE Program – cont..
How does the MOVE program work? We idenAfy 7 criAcal steps to accomplishing good inventory management: Step 1 – Item file clean-‐up/preparaAon. Step 2 – Store preparaAon for counAng on-‐hands. Step 3 – Performing on-‐hand counts. Step 4 -‐ Preparing for ScienAfic Buying. Step 5 – ExecuAng ScienAfic Buying and I.M. Step 6 – Expanding on use of ScienAfic Buying and I.M. Step 7 – ConAnued monitoring of key performance indicators to improve overall store performance. MOVE provides a plan, with one-‐on-‐one assistance – to get through each step and into maximized Inventory Management. What can I really expect from beDer inventory management? Customers who make the commitment to proper inventory management can realize these goals: 1. BeDer allocaAon of your inventory resources, which means: Ø Fewer lost sales due to empty hooks as SciBuy shi&s the inventory investment from slow-‐movers to fast-‐ movers. Ø Less money Aed up in slower moving items. Ø Greatly increased profit structure, fueled by beDer Turns and GMROI. 2. Far less Ame spent ordering, and with far greater accuracy. The Professional’s Choice In Retail So&ware
36
How We Do It
The Professional’s Choice In Retail So&ware
37
What Makes Us Different
Ø Our so&ware comes with a 6-‐month money back guarantee -‐ that's how confident we are that you'll like it -‐ if a&er 6 months you aren’t happy, just return it for credit Ø Providing a robust soluAon installed in over 2,000 sites Ø Our people provide world class personalized customer care service -‐ just ask our customers Ø SciBuy auto forecasAng, ordering and overstock management -‐ the “secret weapon” our compeAtors don’t want you to know about Ø Open to Buy Plus and SVI performance (our secret ingredient) Ø OptLumber – Powerful Lumberyard Inventory and business controls Ø OptView -‐ mobile snapshot of your business on your iphone Ø OptMobile -‐ mobile inventory control – for the iPad and iPhone Ø Mobile POS – Q Buster Ø OptDelivery -‐ mobile delivery management, just like the UPS guy Ø TrendFinder -‐ sophisAcated financial analysis tool Ø MOVE – Maximizing Optemizer Via EducaAon Ø Integrated Loyalty and CRM. Plus mobile CRM, in the league of SalesForce.com Ø A fully scalable system that helps your business grow. One corporate customer operates 30 branches with 85,000 transacAons a month, error free Ø Industry standard so&ware that runs on Microso& SQL Server, uAlizing Crystal reports Ø Providing a “family business” experience for our customers, not a faceless corporaAon, like your big box compeAtors – The same reasons your customers buy from you! The Professional’s Choice In Retail So&ware
38
Optemizer Modules
Ø Ø Ø Ø Ø Ø Ø Ø Ø Ø Ø Ø Ø Ø Ø
Accounts receivable – automaAc freight calculaAon and full email capability -‐ PDFMail Accounts payable – with import cosAng to ensure correct into store cost of inventory Inventory control – seamless lumber unit(s) and pricing control Purchase ordering and purchase order worksheet SciBuy Inventory forecasAng Fully integrated mulAlevel general ledger (not a third party product) eCommerce integraAon Powerful and easy to use point of sale with fully integrated credit card processing, providing the greatest accuracy at POS Integrated rental system Loyalty, gi& cards and CRM Socket service for mobile devices User programmable report generator Emergency backup system – ensures conAnuous POS operaAon Powerful margin management system MulA branch system
The Professional’s Choice In Retail So&ware
39
SciBuy ScienAfic Buying
ScienAfic Buying (SciBuy) is a sophisAcated program that uses two years of sales history to forecast orders in a given period, which is something no retailer – no maDer how good that retailer is – can do simply from experience. SciBuy is the heart of Pacso&’s Inventory Management program, because it is capable of balancing inventories in the right places. SciBuy is Pacso&’s own, proprietary program – no other POS system can provide you this kind of Inventory Management ROI. For instance, picture yourself in front of the spray paint display on, say, December 12th, where you see 1 can of Emerald Green. Do you really know how many to buy? Maybe you’ll just get one – but then you might lose a sale. So, you get 6 (price break on a full carton!), but they end up siong on the shelf: money wasted. What’s really the right amount to have?? What you need to know is how the paint has sold historically – i.e. what the best forecast for the demand is on any given week. To do that, you need to know: • Sales history for last year, and for the year before • The trend between those two years for this period: is it up or down, and how much? • Was it on a promoAon, or an unusually large number sold? • What is its velocity code, and what are your stocking rules for each?
The Professional’s Choice In Retail So&ware
40
SciBuy ScienAfic Buying – cont..
SciBuy makes all those calculaAons, and then creates dynamic order points for each and every item – ones that change each week before you order. The result, very simply: ü Fewer lost sales due to too liDle inventory ü Less money wasted in slow-‐moving inventory ü A re-‐balancing of inventory: SciBuy allows the poor sellers to diminish and re-‐invests that cash in inventory where you will make more money ü A much faster means of producing orders: they are accurate, and automaAcally created for each department… no more walking the store with a pad of paper and “guessing” at stock levels MulAply that over all the items in your store, and you’ll see why SciBuy – and Inventory Management as we teach it to our users – is an absolute must in any store where the investment in stock is taken seriously.
The Professional’s Choice In Retail So&ware
41
THE INVENTORY INVESTMENT PROPERLY HOW THE SCIBUY PROCESS RE-ALLOCATES THE The INVENTORY INVESTMENT PROPERLY Understanding Standard Inventory Profile…
11
SciBuy ScienAfic Buying – cont..
In stores that don,t use Scientific Buying Understanding The Standard the Inventory Profile… to provide inventory management,
1 -‐ Understanding The Standard highest levelsInventory of inventory arePinrofile A items, In stores that don,t use Scientific Buying
as theyBuying are always D items are In stores that don’t use ScienAfic to needed. provide inventory to provide inventory management, the management, the highest levels of inventory are in A items, as they high as well, as they have been overhighest levels of inventory are in A items, are always needed. D items are hbought igh as and well, as they over have een over-‐ under-sold thebyears. as they are always needed. D items are bought and under-‐sold over the yBears. items have less inventory value than high as well, as they have been over A,s, and C,s even less, as they are often bought and under-sold over the years. B items have less inventory value than A’s, and C’s even less, as they Aout of stockC items. The resulting curve B ritems have cless inventory thanvalue are o&en “out of stock” items. The esulAng urve is an avalue verage is an average value of the entire inventory. A,s, and C,s even less, as they are often of the enAre inventory.
2 2
Inventory Analysis Inventory Value ($)
Inventory Value ($)
Velocity Ranking
Aout of stockC items. The resulting curve is an average value of the entire inventory. Targeting Excess Inventory…
2 -‐ TargeAng Excess Inventory
To increase inventory producAvity, you have to idenAfy where To increase inventory productivity, you the excess is. If you assume the A’s, B’s, and Excess C’s are Inventory… OK (for now), then Targeting have to identify where the excess is. If the first target is to follow the curve and establish a relaAvely lower assume inventory the A,s, B,s, and C,s are OK inventory-‐holding amount for the you D’s. To increase productivity, you (for now), then the first the target is to is. follow have to identify where excess If the curve and establish a relatively lower you the A,s, B,s, C,s are OK by The resulAng amount of inventory to assume be eliminated is and represented inventory-holding amount for the hashed lines; in most stores this i s 1 0% – 1 5% o f t otal i nventory. (for now), then the first target the is toD,s. follow the curve andamount establish relativelytolower The resulting of ainventory be inventory-holding amount for the D,s. If the average store contains about $350,000 (according to dashed NaAonal eliminated is represented by the Retail Hardware AssociaAon [NRHA] s tudies), t hat r epresents $35,000 lines; in mostamount stores this is 10 - 15% The resulting of inventory to beof in over-‐stock D items.
Inventory Analysis
Velocity Ranking
Inventory Analysis
Inventory Analysis Inventory Value ($)
Inventory Value ($)
Velocity Ranking
total inventory. eliminated is represented by the dashed in most store stores this is 10 - 15% of Iflines; the average contains about $350,000 (according to NationalVelocity RetailRanking Hardware Association total inventory. [NRHA] studies), that represents $35,000 in over-stock D items.
If the average store contains about $350,000 (according to National Retail Hardware Association (continues on reverse) [NRHA] studies), that represents The Professional’s Choice In Retail So&ware 42 $35,000 in over-stock D items.
3
SciBuy ScienAfic Buying – cont. 3 -‐ The Inventory Management Goal
The fact is that there is only so much inventory a retailer can carry. As a result, the go re-allocate the bad investment made in slow-moving stock, into the better investmen moving stock.
Using our previous NRHA example: consider that most A items have over 5 turns, th items average 2.5, and that DRs have less than 1 turn. That means the re-allocated $3
excess inventory would result in it being made to work at 2.5 turns instead of 1. The increase of sales, at cost, of $52,500 per year. At a gross margin of only 33%, that m an extra revenue of $80,000, or a gross profit of $25,500 per year.
The fact is that there is only so much inventory a retailer can carry. As Inventory Analysis a result, the goal is to re-‐allocate the bad investment made in slow-‐ moving stock, into the beDer investment of faster-‐moving stock. Using our previous NRHA example: consider that most A items have Inventory over 5 turns, that B and C items average 2.5, and that D’s have less Value ($) than 1 turn. That means the re-‐allocated $35,000 in excess inventory would result in it being made to work at 2.5 turns instead of 1. The result is an increase of sales, at cost, of $52,500 per year. At a gross margin of only 33%, that means an extra revenue of $80,000, or a > 5 Turns Avg. 2.5 Turns < 1 Turn gross profit of $25,500 per year. Velocity Ranking ScienAfic Buying accomplishes this by learning, over a period of Scientific Ame, Buying accomplishes this by learning, over a period of ti what sells, when it sells, and how fast it sells. It thus reduces the sells, when it sells, and how fast it sells. It thus reduces the sugges suggested order quanAAes for D items while upping the under-‐ quantities for D items while upping the under-stocked B and C stocked B and C items.
Inventory Management Specialists www.pacsoftusa.com | 800-554-6166 1 Union Wharf, Portland, ME 04101
The Professional’s Choice In Retail So&ware
43
Target Inventory & Overstock ReducAon
Every owner should have an inventory budget; the total value of inventory that meets the owner’s financial capabiliAes and the store’s needs. The quesAon is: How to make sure your stocking level of each item equals that number? The purpose of this program is; 1) provide guidance in seong SciBuy’s parameters so that you have a proper inventory budget, and 2) provide tools to help you quickly reduce items which are overstocked in order to maintain the budget. Similar to the volume and balance controls on a stereo system, Pacso&’s unique SciBuy program allows you to turn the volume up or down and set the balance on desired inventory levels based on historical sales of each item. The system then deduces the Target Inventory for each item, the average on-‐hand value that you would have based on current SciBuy seongs. By giving you the ability to adjust the “volume controls”, you can adjust the total Target Inventory unAl it agrees with your inventory budget. Once you have set the Target Inventory, each item will have a recommended re-‐order point and a maximum on-‐hand quanAty. Based on this maximum amount, the Pacso& Optemizer system helps you idenAfy, by department, which items are overstocked, then helps you clear out the overages.
The Professional’s Choice In Retail So&ware
44
Target Inventory & Overstock ReducAon – cont.. Fast Moving Items
If you want to understand how target inventory works, first look at a faster moving item’s selling & purchasing cycle, where you will see the following:
As the item sells, it reaches the minimum point, and the system suggests the item be purchased. However, as sales conAnue before delivery, the quanAty on hand conAnues to drop to the item’s “Low Point”.
Once the goods arrive, inventory is replenished up to the item’s high point. The cycle starts again and repeats conAnuously. The average, or Target inventory on hand is the average of the item’s Low and High Points. The Professional’s Choice In Retail So&ware
45
Target Inventory & Overstock ReducAon – cont.. Slow Moving Items
With slower moving items, you have a different scenario, and thus receive a different target inventory. Normally these are kept in lower quanAAes and replaced as needed. The sales and purchasing cycle looks like this:
Replenishment
As for fast moving items, inventory levels conAnued to diminish a&er an order is triggered, due to delivery Ames. When replenished, the stock level is back to normal. In the case of an item selling once per year, it is only out of stock during the order cycle. If the order cycle is 4 days, then it is normally out of stock 4/365 of the year, or 1% of the Ame. Thus the average on hand is 99% of the item’s maximum on hand. The Professional’s Choice In Retail So&ware
46
Target Inventory & Overstock ReducAon – cont..
Target Velocity Group Report The Target Velocity Group Report combines the slow and fast moving item’s calculaAons to produce the overall target inventory, and compares that to actual inventory by velocity group, allowing you to make sure the budget meets the target.
Target Departmental Report Use the Target Departmental Analysis Report to pick the first department on which to begin work, because trying to balance the enAre store’s inventory at once would be overwhelming. With this report, you can easily see which department has the most overstock.
Inventory Overstock ReducAon The Inventory Overstock ReducAon program allows you to choose the specific overstocked items which are to be cleared out of inventory.
Once items are chosen for clearance, the overstock quanAty is adjusted out of inventory. The items are put on sale at cost plus in order to recoup the inventory dollars. When sold as clearance items, they are not sold with their original item number, as this would arAficially inflate sales, and thus future SciBuy calculaAons of the item.
With the unnecessary items cleared out of inventory, you will have the dollars (and the space!) to properly stock the items which are selling, greatly reducing missed sales because of out-‐of-‐stock condiAons. In addiAon, newly available resources will allow you to expand successful product lines or even add new categories. The Professional’s Choice In Retail So&ware
47
OptLumber
The needs of lumberyards are significantly different than those of hardware stores, and Optemizer – with its OptLumber features -‐ is designed to address those needs specifically. For instance, Optemizer understands that lumberyards need to work with tallies, and mulAple units of measure (UOM): each, board feet, square feet/meters, cubic feet/meters, cubic yards, full units, etc. The successful yard has to be able to buy, receive, or sell all their commodity products in any mix of those UOMS, at any Ame. Optemizer also understands that the busy, transacAon-‐oriented yard needs to streamline how it does business, so it can quickly saAsfy the demanding needs of its contractor base. Sales and delivery processing using GPS and hand-‐held mobile devices (powered by Apple iTechnology) are just one example of how the so&ware addresses this. Highly refined Special Order processing is another. Optemizer also understands that pricing is a criAcal issue. Whether it is customer discounts, or pricing based on market, floor, or bid costs, a successful yard needs to be able to quote and sell in the most flexible ways possible. This is the only way to secure a job profitably for the yard.
The Professional’s Choice In Retail So&ware
48
OptLumber – cont..
Here are some examples of what Optemizer’s OptLumber features can bring to any lumberyard or home center that does a strong business in building material commodiAes, and is eager to please their contractor base: • Complete job tracking, including separate pricing, quote tracking, sales analysis and Accounts Receivable control. • Flexible, detailed quoAng that allows mulAple delivery packages and recalculaAon of expired quotes based on current or market costs. • Automated integraAon of special orders to purchasing, ensuring accurate and Amely fulfillment of your customer's needs. Optemizer's exclusive Customer RelaAonship Management system, is a Aghtly integrated CRM module that provides inside and outside (via Apple iTechnolgy) sales personnel with the informaAon they need to provide the highest level of customer service. MulA-‐locaAon inventory that allows you to purchase, stock and sell material using tradiAonal methods, while giving you the best informaAon available to help you properly manage stock levels. Coupled with Optemizer's strength in managing inventory, our OptLumber features form a powerful one-‐two punch for any building material retailer who wants to improve both his ROI and his customer service.
The Professional’s Choice In Retail So&ware
49
OptDelivery
OptDelivery is an App that runs on the Apple iPod and iPhone, and brings control to your deliveries, allowing you (or your driver) to: ü Collect Signatures for deliveries ü Recall details from invoices for delivery ü Take photos of goods delivered, with GPS coordinates ü Save finished delivery informaAon directly to Optemizer ü View all delivery informaAon at any point
The Professionals Choice In Retail So&ware
50
TrendFinder
TrendFinder is a sophisAcated management dashboard that highlights changes in your business allowing you to keep on top of what is happening.
The Business Overview gives an overview of the performance of the seven key areas in a retail business.
① ② ③ ④ ⑤ ⑥ ⑦
Financial – Cash Management, Liquidity, Profitability, Gearing, Efficiency, Overheads Inventory Management Customers Suppliers Salespeople Departments Branches (where applicable)
At each high level you can idenAfy trends from the data and go to a lower level.
Financial Health Check In simple terms, this is a high level look at the retail business from an overall business perspecAve. It takes a top level look at the business structure, profitability, liquidity, risk, gearing, performance. The predominant source of this informaAon is the general ledger. During this stage, use is made of industry benchmarks to indicate areas of improvement required.
Some illustraAons of typical items idenAfied during this stage: • Could the business structure be changed to minimize the businesses tax liability? • How do our debt collecAon pracAces compare with industry standards? • How can we improve our stock turns? • Could we change the way we fund our business to reduce interest payments? • Are our staffing levels appropriate? The Professional’s Choice In Retail So&ware 51
Q Buster Mobile POS
The Professionals Choice In Retail So&ware
52
Q Buster Mobile POS In The Field Drive increased sales by empowering your customers to be able to order goods directly on their iPhone by simply scanning the barcode of the product they have run out of.
Here’s how it’s done; ① Your customer downloads the Q Buster app from the App store. ② The app connects to your in-‐store Optemizer database via the wireless telephone network. ③ When your customer runs out of required goods or noAces they are geong low on for instance nails, they simply scan the product barcode uAlizing the inbuilt camera in their iPhone and Q Buster allows them to enter the quanAty required. ④ Once they have built their shopping list, they press Place Order. ⑤ Back in your store your Optemizer system alerts you to an incoming order. ⑥ You pick the goods for delivery to site or pickup in store, the customer signs for the delivery using the OptDelivery app.
The result – hassle free and fast ordering for your customers.
The Professionals Choice In Retail So&ware
53
Hardware
Pacso& Installs Only High Quality Systems We will either quote on using HewleD Packard products or Pacso& brand products. All products will be tested prior to being installed. If you select HewleD Packard it means you are dealing with an industry leader in computer hardware. Full 3 year on-‐site warranty for HewleD Packard products is available. We are able to provide Hardware support across Australia. Ten Reasons To Purchase Your Hardware From Pacso&: ① You get less problems because there is only one party responsible for resolving all your technology issues. ② Pacso& is the only company experienced in seong up a network to run Optemizer on. ③ We use only proven components that are compaAble with Optemizer so&ware. ④ The setup and configuraAon of the hardware will meet the demands of Optemizer. ⑤ In the event of a problem you only need to contact Pacso&, instead of trying to remember which company supplied which product. ⑥ Unlike most computer resellers we have a 24 X 7 days per week emergency support line. ⑦ We will sAll be here tomorrow. ⑧ Pacso& tests all hardware prior to shipment and installaAon. ⑨ We have been building and tesAng hardware for over 25 years. ⑩ 100% of clients who have purchased computer hardware from another supplier, experience problems with the setup, configuraAon, components and obtaining support for the Hardware.
The Professional’s Choice In Retail So&ware
54