Case Study:

A 29 store Supermarket chain determines it can lower store labor by $195,663 per year.

Nexgen Case Study: Retailer discovers new ways to improve their profit margins. Industry: Retail

“Allows us to do something else with the time - l ike verifying and scanning product. Our goal is to save 16 hours a week using the Nexgen program.”Store Director

Objective:Determine if the Nexgen shelf tag program would improve pricing operation and staff productivity.

Approach: 8 week live test managed by innovation Management, LLC and GPC with in depth employee interviews.

Business Benefits: • Improved store compliance

• Tighter corporate control• Improved profitability

Store Results: • Improved accuracy in price signage• Improved quality and look

• Ease of use made job easier• Increased employee productivity

Nexgen Case Study

Grandville Printing Company / Nexgen 4719 Ivanrest Ave. SW Grandville, MI 49468 T 616-724-3368 F 616-534-8239 www.nexgensigns.com

The test was conducted over an eight week period starting in September 2009 and ending November 2009. Innovation Management, LLC an independent market research firm managed the test and engaged in-depth interviews with pricing personnel at three of the chain’s stores in the Midwest.

Before the beginning of the test, Nexgen personnel mapped each of the pilot stores to ensure product and location accuracy. The retailer then uploaded price and product data every week during the trial into the Nexgen Sign Production System. The Nexgen software scrubs the data and flags any discrepancies, such as sale price being higher than regular price in a report that goes back to the retailer.

Next, the Sign Production System software prepared the data for merging with the sign templates based on how the retailer stores wanted to place the signs – by aisle or department for example. The software then generated PDFs of the signs and sent them to the Indigo presses. Grandville did all the scoring and cutting, packaged the signs and delivered them to each of the three test store locations.

A Scalable EffectGPC eliminated the tearing and separation of signs because signage is cut to size in a centralized location. Signage is also boxed according to the layout of the store, creating time savings and accuracy. Hanging the price signs is now faster because there is no need for any lamination or sleeves. Nexgen also improved the aesthetics of the tags through consistent colors and high paper quality. Overall, the retailer management and pricing personnel report that the Nexgen system is well-liked and has not complicated or weakened current processes.

Key Dimension Nexgen Sign Program Likes

Tearing No more tearing or separating as signage is cut to size Eliminated step

Sorting Signage is boxed according to layout of the store Time savings and accuracy

Hanging No change for most; ability to de-sleeving for some Seems faster to hang; no

need for sleeves, no need to

laminate

Aesthetics Consistent colors, paper quality higher No curl, paper is thick, colors

are brighter, better product

descriptions

Other More time to scan and verify, take on other responsibilities More verification keeps stores

in compliance

Nexgen Case Study

Grandville Printing Company / Nexgen 4719 Ivanrest Ave. SW Grandville, MI 49468 T 616-724-3368 F 616-534-8239 www.nexgensigns.com

A Four Month Collaborative ProcessMeetings were conducted to understand the current pricing process and how the Nexgen system would compliment current efforts.

• Interviews were conducted with pricing personnel before the launch of the new system|• Interviews with pricing personnel 4 weeks after the new system was enacted

• Interviews with store management after the new system was enacted• A review of necessary revisions and overall program comments• A value analysis to quantify cost savings and productivity increases

Total Annual Estimated Labor Savings = $195,663/yr.8.65 hrs. x 52 @ $10/hr=$4,498/store/year or 8.65 hrs. x 52 @ $15/hr=$6,747/store/year

Store 1 (6 hours) Store 2 (8 hours) Store 3 (12 hours)

0 3 6 9 12

6

8

12

Hours

Nexgen Case Study

Grandville Printing Company / Nexgen 4719 Ivanrest Ave. SW Grandville, MI 49468 T 616-724-3368 F 616-534-8239 www.nexgensigns.com