Pacsoft USA - The Professional's Choice

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“Pacsoft has helped us alongthe way. The emailing of our PDF statements is fantastic, and the contractors love it.”Landon Garner, OwnerGarner Building Supply

The Professional’s Choice in Retail POS and Inventory Management Software

“Pacsoft’s Optemizer Scibuy has improved

store profit and put money in the bank.”

Dan French, Manager

Baken Park Hardware

“By partnering with Woodware, Pacsoft has created a seamless millworking solution that has saved our staff a significant amount of time, and our customers love it.”Lowell Stutzman, OwnerFarmer’s Building Supplies

USA

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 27 The CriAcal Steps To a Successful Retail Computer InstallaAon 28 Optemizer Return On Investment 29 Pacso&’s Customer Care Program 30 Pacso&’s Value-‐Added Services 32 Optemizer Training 33 MOVE Program 35

How We Do It 37 What Makes Us Different 38 Optemizer Modules 39 Scibuy ScienAfic Buying 40 Target Inventory & Overstock ReducAon 44 OptLumber 48 OptDelivery 50 TrendFinder 51 Q Buster Mobile POS 52 Q Buster Mobile POS In The Field 53 Hardware 54


When You Need Technology Advice For Your Business Speak To a Retail Technology Expert

Founded in 1984

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.

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.

Pacso& Overview

Your Business Partner Meet the PacsoN Team Helping You

With Your Business


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.


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


Your Business Partner: Pacso& In The Community The Melbourne Age 26th January 2012


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.


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.


Your Business Partner How PacsoN’s Core Values Benefit You


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.


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.


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.

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.

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


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.

Accurate stock on hand.

Eliminated double ordering.

Fewer sales lost due to too liDle stock or slow movers.

“Optemizer’s Scibuy has improved store profit, pu^ng money in the bank.”

Dan French, Manager, Baken Park Hardware

Case Study – 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.

They also use the iPads to check pricing and other informaAon, with resulAng increase in profit, and database accuracy.

The ability to review sales & other informaAon using an iPad has resulted in increased profits and database accuracy.

Stockman’s have saved money by avoiding expensive Radio Frequency soluAons.

“I love the freedom of OptMobile!”

DusAn Klanderman, Manager, Stockman’s Farm Supply

Case Study – 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.

Inventory Turns improved from 1.4 to 1.8 Turns.

Significant savings to rent overhead leading to greater contribuAon to profitability.

“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

Case Study – 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.

With Optmobile, Kyle Stutzman has been performing a number of operaAonal tasks from India!

ScienAfic buying immediately improved their inventory investment.

Centralized pricing.

Optemizer’s General Ledger automated the flow of transacAons into one set of books.

“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

Case Study – 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.

Pacso&’s technological advancements have allowed Garner’s to improve their customer’s business experience.

“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

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


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


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


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


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:

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


Year 2006 Newcastle Hardware Industry Average

Turns 4.0 2.0

GMROI 268% 136%

Profit/Sq Foot $80.00 $59.00

GM% 40.2% 39.9%

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


What We Do For You ”To prescribe a cure without proper

diagnosis is malprac6ce”



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.

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) $

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.


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.


PDF/Email Statements and Invoices

Sta

ge

1

Pacsoft Software and After Sales Care Value-Added Programs

Improved Efficiency

OptMobile (iPod/iPad) Remote Store Management

Qbuster (iPod) Mobile Sales Processing & Delivery

Integrated Rental Program Integrated Lumber Features

Loyalty and Gift Card Programs

MOVE Program – Assistance In Organizing Stock

Sta

ge

2

Improved ROI

MOVE Program – Assistance In Counting Stock

MOVE Program – Assistance Understand Order Pts.

Trigger Automatic Ordering

CRM for Serious Customer Relationship Management

Scientific Buying for History- Based Ordering

Sta

ge

3

Increased Cash

Target Inventory Program to Pin-Point Invt. Improvement

Mobile CRM for Sales

Reduce Asset Costs: iTechnology for POS

Get Control of Financial Performance: Integrated GL

Powered by Optemizer and Pacsoft Customer Care

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.


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!


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

Site Survey Project DefiniAon

Training Interview Extract Data

Design and Review of System

Trial Data Conversion

Customer Data Review

Create Sample Dbase

Customer Dbase Approval

ImplementaAon On-‐Site

Hardware Setup On Site Training Go Live Customer

Sign-‐off

Follow Up

New Customer Launch Program

Measure User Progress

MOVE Program On-‐Site

Target Invent.. Program


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.


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


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!


Optemizer Modules

Ø  Accounts receivable – automaAc freight calculaAon and full email capability -‐ PDFMail Ø  Accounts payable – with import cosAng to ensure correct into store cost of inventory Ø  Inventory control – seamless lumber unit(s) and pricing control Ø  Purchase ordering and purchase order worksheet Ø  SciBuy Inventory forecasAng Ø  Fully integrated mulAlevel general ledger (not a third party product) Ø  eCommerce integraAon Ø  Powerful and easy to use point of sale with fully integrated credit card processing,

providing the greatest accuracy at POS Ø  Integrated rental system Ø  Loyalty, gi& cards and CRM Ø  Socket service for mobile devices Ø  User programmable report generator Ø  Emergency backup system – ensures conAnuous POS operaAon Ø  Powerful margin management system Ø  MulA branch system


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?


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.


SciBuy ScienAfic Buying – cont.. 1 -‐ Understanding The Standard Inventory Profile In stores that don’t use ScienAfic Buying to provide inventory management, the highest levels of inventory are in A items, as they are always needed. D items are high as well, as they have been over-‐bought and under-‐sold over the years. B items have less inventory value than A’s, and C’s even less, as they are o&en “out of stock” items. The resulAng curve is an average value of the enAre inventory. 2 -‐ TargeAng Excess Inventory To increase inventory producAvity, you have to idenAfy where the excess is. If you assume the A’s, B’s, and C’s are OK (for now), then the first target is to follow the curve and establish a relaAvely lower inventory-‐holding amount for the D’s. The resulAng amount of inventory to be eliminated is represented by the hashed lines; in most stores this is 10% – 15% of total inventory. If the average store contains about $350,000 (according to NaAonal Retail Hardware AssociaAon [NRHA] studies), that represents $35,000 in over-‐stock D items.


1

2

HOW THE SCIBUY PROCESS RE-ALLOCATES

THE INVENTORY INVESTMENT PROPERLY

Understanding The Standard Inventory Profile…

In stores that don,t use Scientific Buying

to provide inventory management, the

highest levels of inventory are in A items,

as they are always needed. D items are

high as well, as they have been over-

bought and under-sold over the years.

B items have less inventory value than

A,s, and C,s even less, as they are often

Aout of stockC items. The resulting curve

is an average value of the entire inventory.

Targeting Excess Inventory…

To increase inventory productivity, you

have to identify where the excess is. If

you assume the A,s, B,s, and C,s are OK

(for now), then the first target is to follow

the curve and establish a relatively lower

inventory-holding amount for the D,s.

The resulting amount of inventory to be

eliminated is represented by the dashed

lines; in most stores this is 10 - 15% of

total inventory.

If the average store contains about $350,000 (according to National Retail Hardware Association

[NRHA] studies), that represents $35,000 in over-stock D items.

(continues on reverse)

Inventory Value ($)

Velocity Ranking

Inventory Analysis

Inventory Value ($)

Velocity Ranking

Inventory Analysis

1

2

HOW THE SCIBUY PROCESS RE-ALLOCATES

THE INVENTORY INVESTMENT PROPERLY

Understanding The Standard Inventory Profile…

In stores that don,t use Scientific Buying

to provide inventory management, the

highest levels of inventory are in A items,

as they are always needed. D items are

high as well, as they have been over-

bought and under-sold over the years.

B items have less inventory value than

A,s, and C,s even less, as they are often

Aout of stockC items. The resulting curve

is an average value of the entire inventory.

Targeting Excess Inventory…

To increase inventory productivity, you

have to identify where the excess is. If

you assume the A,s, B,s, and C,s are OK

(for now), then the first target is to follow

the curve and establish a relatively lower

inventory-holding amount for the D,s.

The resulting amount of inventory to be

eliminated is represented by the dashed

lines; in most stores this is 10 - 15% of

total inventory.

If the average store contains about $350,000 (according to National Retail Hardware Association

[NRHA] studies), that represents $35,000 in over-stock D items.

(continues on reverse)

Inventory Value ($)

Velocity Ranking

Inventory Analysis

Inventory Value ($)

Velocity Ranking

Inventory Analysis

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 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 over 5 turns, that B and C items average 2.5, and that D’s have less 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 gross profit of $25,500 per year. ScienAfic Buying accomplishes this by learning, over a period of Ame, what sells, when it sells, and how fast it sells. It thus reduces the suggested order quanAAes for D items while upping the under-‐stocked B and C items.


Inventory Management Specialists

www.pacsoftusa.com | 800-554-61661 Union Wharf, Portland, ME 04101

3HOW THE SCIBUY PROCESS RE-ALLOCATES

THE INVENTORY INVESTMENT PROPERLY (continued)

The Inventory Management Goal…

The fact is that there is only so much inventory a retailer can carry. As a result, the goal is to

re-allocate the bad investment made in slow-moving stock, into the better investment of faster-

moving stock.

Using our previous NRHA example: consider that most A items have over 5 turns, that B and C

items average 2.5, and that DRs have less 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 gross profit of $25,500 per year.

Scientific Buying accomplishes this by learning, over a period of time, what sells, when it sells, and how fast it sells. It thus reduces the suggested order

quantities for D items while upping the under-stocked B and C items.

Inventory Value ($)

Velocity Ranking

Inventory Analysis

> 5 Turns Avg. 2.5 Turns < 1 Turn

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.


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.


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:

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.


Replenishment

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.


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.


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.


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  Financial – Cash Management, Liquidity, Profitability, Gearing, Efficiency, Overheads ②  Inventory Management ③  Customers ④  Suppliers ⑤  Salespeople ⑥  Departments ⑦  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


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.

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.


Documents

Pacsoft USA - The Professional's Choice