Versatile Systems Inc.
TSX VENTURE : VV
AIM : VVS

Versatile Systems Inc.

July 08, 2008 04:00 ET

Versatile Adds Intelligent Ordering to Mobiquity Route™

New Features address the Six most Common Causes Of Out-Of-Stock Products

SEATTLE, WASHINGTON--(Marketwire - July 8, 2008) - Versatile Systems Inc. (TSX VENTURE:VV)(AIM:VVS) today announced the release of the Intelligent Orders™ feature set for Mobiquity Route™ 4.0, which helps retailers reduce out-of-stock incidents on their shelves. These incidents - or "shelf holes" - frustrate consumers, erode customer loyalty and lose sales for the brand and the retailer.

According to a study done by the Grocery Manufacturer's Association, "Consumers cannot find the product they want 7.4 percent of the time they shop. Forty percent of those shoppers either postpone their purchase or shop elsewhere, putting $6 billion in annual retail sales at risk in the top 25 grocery categories."

"Intelligent Orders™ allows Versatile to offer a clear advantage to users who currently only capture order data, to help them make more intelligent decisions or prevent them from making mistakes," said John Hardy, Chairman and CEO of Versatile.

Interviews with national sales managers of major food distributors uncovered six types of out-of-stock incidents:

1. The sales representative orders items that have been discontinued. This error occurs when the user does not remember or has not received a notification that the item has been discontinued.

Solution: Mobiquity Route™ displays a warning screen when a discontinued item is added to the order. This avoids orders for undeliverable products. If the warehouse still has inventory on hand for that product, the sales person may be given the option to add the product to the order.

2. The sales representative orders quantities inadequate to meet demand. Lacking historical trend data, the user simply underestimates the demand for the product in the coming sales cycle. The warehouse fulfills the order exactly, but a shelf-hole still results.

Solution: Mobiquity Route™ can be configured to display historical data for each product sold at each retail location, allowing the sales representative to better forecast the amount of product to order.

3. The sales representative orders unapproved items. Most major retailers have Approved Product Lists (APL's) dictating which products a distributor can or cannot sell at that location. Violations of the APL can result in fines and returned product.

Solution: Mobiquity Route™ displays a warning when a non-APL product is ordered, keeping it off the order, avoiding fines and saving the cost of shipping the product to and from the retailer.

4. The sales representative fails to order newly approved items. Once a product has been added to an APL it can take up to six weeks for the product to be ordered, often because the sales force is not properly notified of the new product. While this does not result in physically empty shelf space, the effect is the same: The product is not available to the customers, and potential sales are lost.

Solution: Mobiquity Route's™ "New Items" screen displays all newly approved items. This screen features Versatile's new CheckSelect™ feature which allows the user to select multiple items in the list and add them to the order all at once.

5. The sales representative is unaware of upcoming in-store promotions. In-store promotions often result in shelf holes if the sales rep was not notified of the promotion in time to order sufficient quantities for the sale.

Solution: Mobiquity Route's™ "Promotion Items" screen displays items which will soon be placed on sale, allowing the sales representative to order the appropriate quantities.

6. The sales representative orders items that are not in stock at the warehouse. The item is backordered, and the order is shipped without it, causing a shelf hole.

Solution: Mobiquity Route™ provides the warehouse stock-on-hand quantities for each product allowing the sales representative to avoid ordering items that cannot be fulfilled.

Intelligent Orders™ also allows users to search for products by brand, performs APL filtering, which limits the results of a search to products approved for the retailer and displays substitutions for discontinued items.

Mobiquity Route™ 4.0 the full mobile route accounting system is designed for a wide range of Windows Mobile 5 & 6 rugged handheld devices, including (but not limited to) the Intermec CN3, HHP 7900, Motorola MC70 and MC9000 series.

About Versatile

Versatile provides business solutions that enable companies to improve sales, marketing and distribution of their products. Versatile also provides information technology services for the implementation, maintenance and security of mission-critical computer environments. Versatile has the ability to architect solutions involving both proprietary and third party components. For more information visit www.versatile.com.

Forward-Looking Statements

This document may contain forward-looking statements relating to Versatile's operations or to the environment in which it operates, which are based on Versatile's operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or are beyond Versatile's control. A number of important factors including those set forth in other public filings could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Versatile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

(C) 2008 Versatile Systems Inc. All rights reserved.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Versatile Systems Inc.
    John Hardy
    Chairman and CEO
    1-800-262-1633
    International: 001-206-979-6760
    or
    Versatile Systems Inc.
    Fraser Atkinson
    CFO
    1-800-262-1633
    Website: www.versatile.com