Profitect

Profitect
Private
Industry Software Provider, Retail
Founder David Even Haim, Omer Matityahu
Headquarters Reservoir Place, Suite 286, 1601 Trapelo Rd. Waltham, MA 02451, United States
Area served
 Worldwide
Key people
 Guy Yehiav - CEO & Chairman of the Board; David Even Haim - President and Co-Founder; Omer Matityahu - Co-Founder
Products Profit Amplification Suite, including: Planning and Buying module, Logistics & Warehouse module, Delivery & Receiving module, Inventory module, Point of Sale module
Website www.profitect.com

Profitect, Inc., is a software company located in Waltham, Massachusetts. The software is used throughout the entire retail value chain, in order to identify trends and patterns associated with areas of leaking profit, including shrink, damage, costing errors, waste, process errors, and more.[1] They are able to provide retailers with an automatic, targeted set of instructions in order to reclaim the existing untapped profit opportunities.[1] Their "profit amplification" suite consists of five modules, including procurement, logistics & warehouse, delivery & receiving, inventory, and point of sale.[2]

History

Traditional "profit optimization" tends to include methods of reducing pricing, promotional, and markdown losses.[3] At the time they were founded in 2007, Profitect's techniques were relatively new and innovative, as they instead look to improve profits through cost reduction, by searching and identifying gaps in the retailer's current practices.[2][3] Profitect received its first round of financing, in the form of $3 million, from venture capitalist firm Cedar Fund in 2005.[4][5] In 2009, Profitect announced a second round of financing in the form of $5.5 million, led by both Cedar Fund and Genesis Partners.[5] After hiring CEO Guy Yehiav in 2010, the decision was made to officially enter the U.S. market, and Profitect established its current headquarters in Waltham, Massachusetts.[6]

Profitect opened an office in the United Kingdom in 2011 in order to better serve their expanding number of European clients.[7] Shortly following the addition of the UK office, the company decided to move its research and development operations away from Israel to their Massachusetts headquarters.[8] With this move came the expansion in size of the Waltham office, from 4,000 to 8,000 square feet, in order to "more effectively meet the needs of our growing customer base and [to] bring our research and development team together under one roof", according to CEO Guy Yehiav.[8] Some of Profitect's clients include UK retailers like Morrisons and Marks & Spencer, as well as Yellow Convenient Stores (a subsidiary of Paz Oil Company) of Israel, Woolworths of South Africa, and American retailer Abercrombie & Fitch.[5][9]

References

  1. 1 2 "Profitect Identifies Lost Profits To Reduce Shrinkage". Retrieved 24 April 2012.
  2. 1 2 "Company Overview of Profitect Inc.". Bloomberg. Retrieved 20 April 2012.
  3. 1 2 Anand, Sahir. "Profitect's Profit Amplification: Aims to Plug Retail Profitability Gaps". AberdeenGroup. Retrieved 24 April 2012.
  4. ↑ "Cedar Fund". Retrieved 20 April 2012.
  5. 1 2 3 Vidra, Eze. "Profitect Raises $5.5 Million for Fraud Detection Software". VC Cafe. Retrieved 20 April 2012.
  6. ↑ van der Pool, Lisa. "Patrick's Trip to Israel Pays Dividends". Boston Business Journal. Retrieved 20 April 2012.
  7. ↑ Bessant, Paul. "Profitect Opens UK Office". Retrieved 4/27/12. Check date values in: |access-date= (help)
  8. 1 2 Convey, Eric. "Retail Consultancy Expanding in Waltham". Retrieved 5/8/12. Check date values in: |access-date= (help)
  9. ↑ "Customers". Retrieved 20 April 2012.
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