Effective inventory management can be a challenge for both suppliers and retailers. Scan-based trading could be the solution to these headaches.
How to Grow Sales and Profits with Scan-Based Trading as an Independent Retailer
Today’s intricate supply chains result in both untimely and inaccurate information, which can hurt a retailer’s bottom line. Here’s how scan-based trading can help.
Today’s intricate supply chains result in both untimely and inaccurate information, which can hurt a retailer’s bottom line. For independent outlets especially, overall cost reduction can be the difference between profitability and failure.
Competing with larger retailers means taking advantage of every possible opportunity to streamline your supply chain. The need to stay ahead of the competition places data visibility and usability at the center stage for all independent retailers.
Thankfully, Scan-Based Trading (SBT) has built on technological advances in recent years, enabling retailers to make better inventory, logistics, and merchandising decisions, all while streamlining B2B payment systems. Here are four ways independent retailers will grow sales and profits with SBT:
1. Foster better supplier and retailer relationships
Centralized data is key to empowering both suppliers and retailers. Historically, both sat on a wealth of business insights, yet lacked the tools to integrate and use them efficiently.
Scan-based trading creates an ideal environment to address past data integration challenges and paves the way for a better supplier-retailer relationship.
Missing out on revenue due to stock shortages is simply unacceptable for retailers. Scan-based trading systems give you access to real-time data on inventory items that are out of stock or will be out of stock soon. Also, any excess inventory can be identified, marked down, or moved to another outlet.
Suppliers miss out on sales if their business process involves waiting for a retailer to tell them they’re out of stock. With SBT, you can get the supply chain visibility you need –including automated updates on soon-to-be-out-of-stock items, giving vendors ample opportunity to plan, store, and route products more cost-effectively.
2. Make smart decisions with better data and business insights
Centralized data gives retailers and suppliers greater visibility into key touchpoints. Suppliers, for example, can use sales data fed from retailers' POS systems to pick up on trends in product consumption.
These insights can be segmented according to product, outlet location, or other parameters. This allows suppliers to identify successful retailers and merchandising strategies and help under-performing stores improve. This collaborative approach creates a win-win situation for both parties.
Data also informs logistics to map delivery routes more efficiently. Fewer trips and smarter delivery management means less vehicle maintenance and fuel costs for suppliers, and reduced cost of merchandise for retailers.
3. Optimize your resources with automated processes
Labor and time are valuable commodities. Compiling reports manually is a low-value task that eats away at resources. Instead of having business users sift through unstructured inventory and billing data, the SBT system automates reporting so users can derive value immediately.
For every out-of-stock product, a sale is lost. Stock orders and other processes can be automated according to retailer business rules. Retailers are able to configure everything from approvals and orders to payments –avoiding key staff having to repeat time-consuming tasks on a weekly basis.
4. Resolve issues on-the-spot
When digital supply chain data is centrally stored, both retailers and suppliers have access to the same information. This closes loopholes, allows for immediate issue resolutions, and fosters long-standing supply chain partnerships.
For example, if a supplier questions a lack of POS sales (and payment) for a specific UPC, sales, and delivery/credit data can be analyzed at the individual store level –and by day. This granularity helps to not only identify potential causes but also simplifies any corrective measures that need to be taken.
Finding the right SBT solution
Now that you know how scan-based trading can help grow your sales and profits, it’s time to start looking for a solution that fits your business. Looking to learn more about how you can leverage SBT?
iControl’s SBT solution was built to help businesses like yours overcome traditional challenges and retail efficiencies. Contact us to learn more about our industry-leading retail scan-based trading solution.