Associated Grocers, Inc. Selects efficient market services' -ems- ScanLink Service to Improve...

Business Editors

DEERFIELD, Ill.--(BUSINESS WIRE)--March 24, 2003

ems' ScanLink(TM) Service Will Help Network of Independent Retailers

Collaborate with Trading Partners to Substantially Improve

Effectiveness of Promotional Programs, New Item

Introductions and Merchandising Plans

efficient market services, inc., a sister company of Percipient and a leading provider of technology solutions to enhance consumer demand visibility for the retail and CPG industries, today announced that they have signed a three year service agreement with Associated Grocers, Inc., a retailer-owned full service distribution center with 230 retail members and annual sales of almost $500 million.

Under the terms of the agreement, Associated Grocers will license ems' ScanLink(TM) service for use throughout its network of independent retailers.

The ScanLink service will pull and validate daily point-of-sale (POS) data from Associated Grocers' network of retailers. The data is then housed in a centralized database at ems where it's processed and enhanced by using the company's sophisticated data models and algorithms. The "intelligent" consumer demand data (e.g. baseline information etc.) and sophisticated web-based reporting will then be sent back to Associated Grocers' headquarters -- within 24 hours -- to be leveraged throughout its network. With rapid and easy integration across several POS systems, ScanLink will be fully implemented in Associated Grocers' network by the end of 2003.

ScanLink Powers Promotions

Benefiting both its retailers and trading partners, Associated Grocers is expecting many direct business benefits from the ScanLink service, including the substantial improvement of its vendor scan-down promotions. Scan-down promotions are when the retailer offers consumers a discount on a product and once the item is sold through the retail point-of-sale, the retailer is then entitled to receive a promotional credit from the manufacturer supplying that product.

With ScanLink in place, retailers are able to increase the frequency upon which they receive their promotional credits by providing their manufacturers with proof of items sold in a substantially reduced timeframe. This will unleash more marketing dollars for the retailer, and in turn, allow them to increase their weekly promotions. More promotions for the retailer translates into increased sales and a stronger competitive advantage.

Additional benefits from this service include:

-- Increase new item "speed-to-shelf" - issues, or problems with new item introductions can be quickly identified and corrected by category managers and merchandising teams to provide optimal efficiency

-- Improve distribution void management - "holes" in the shelves that cause out-of-stocks or missed sales opportunities for products can be quickly detected and corrected. For example, private label distribution can be closely monitored to maintain expected penetration rates by category, or product

-- Streamline merchandising plan implementation - merchandising managers will now be alerted to inefficiencies in their merchandising plans at the store-level, so corrective action can be taken

"What attracted us to ems is its innovative technology and the company's 10 plus years of experience in the retail and CPG industry," commented Carl Marks, Chief Information Officer (CIO) for Associated Grocers. "With the level of reporting and analysis generated by ScanLink, we are now able to automate many systems to improve labor productivity and efficiency across the board at retail and wholesale. This new service will strengthen our go-to-market strategy to help our retailers compete and stay profitable."

"We're looking forward to working with Associated Grocers to help them improve key areas such as promotions and merchandising," commented Andy Winans, Executive Vice President of Sales and Marketing for efficient market services, inc. "Our sophisticated reporting and analysis will allow Associated Grocers the ability to review programs by vendor, brand, retailer, or ad group. This will be instrumental in helping them improve their systems for optimal ROI."

About ems (www.emsinfo.com): For over 10 years, Deerfield, IL-based ems has been fulfilling demand management and demand information needs of the consumer products retailing industry, building a blue-chip client base of retailers & manufacturers including Kroger, Albertsons, Vons, Pepsi Cola, Kellogg's, General Mills, and more. The company recently launched Percipient, which provides "execution-focused" technology solutions for retailers and their suppliers in the areas of on-shelf availability, merchandising execution and inventory allocation.

The company is committed to providing technology-based solutions to help clients benefit from a complete, timely and accurate view of consumer demand within their merchandising and replenishment processes. The company's state-of-the-art demand measurement and consumer response forecasting techniques enable the alignment of supply with demand for optimal merchandising productivity, supply chain efficiency and bottom-line profitability and return on investment.