Hormel Foods, LLC Selects iControl's Retail Analytics Solution.
How Scan-Based Trading Improves Any Supply Chain
Do scan-based trading systems only hold advantages for retailers? Learn more about how SBT is helping improve the entire supply chain.
When it comes to supply chain management, scan-based trading (SBT) systems offer many answers to operational transparency. Through data integration, SBT informs everything from delivery logistics to promotional strategies. While some argue that the benefits to SBT are skewed in favor of retailers, the truth is that anyone using the technology can gain significantly from it—especially alcohol distributors. Let’s take a look at why:
Increased Sales For Retailers
Scan-based trading improves logistics between trading partners. Because goods remain the property of the supplier until scanned at the point of sale, retailers have to worry less about product “ownership”. Their focus shifts from inventory oversight to product merchandising and improving sales. Better in-store marketing and promotions mean improved sales figures, which, in turn, means more business for their distributors.
Improved Visibility For Distributors
With SBT, distributors are able to safeguard their operations from many risk factors. For example, visibility down to SKU-level reduces shrinkage, while providing an accurate view of product sales. This informs replenishments for individual stores across networks, while reducing the cost of managing large delivery fleets. Visibility also means accountability, discrepancies in data on as theft on either side can be quickly identified.
More Efficient Logistics
Busy distributors can reduce the time spent on deliveries by eliminating backdoor receiving processes. Since shipments are aligned with product movements at the shelf-level, they can orchestrate deliveries according to the needs of every store. By removing the administrative burden from retailers, distributors position themselves as valuable partners who can be trusted to keep stock flowing optimally.
Reduced Warehousing Costs
The longer an item is kept in storage, the more it costs retailers, distributors and, ultimately, end customers. SBT systems allow distributors to implement more agile warehousing strategies by stocking goods based on operational, sales, and product data. Distributors can align resources across the value chain to reduce financial risk and operational overheads.
Forging Better Relationships Between Stakeholders
Since trading partners are constantly sharing information, everyone stays in the information loop. This means no more disagreements between receiving staff and drivers during deliveries. Inventory and pricing are agreed on and authorized prior to deliveries, so any discrepancies can be resolved on the spot. The entire relationship between trading partners shifts from a reactive to a proactive one. With both parties making clear operational and financial gains, working more collaboratively results in a win-win situation.
Build A Robust Value Chain With iControl
Implementing data sharing across a complex network of different players can be difficult. Thankfully, third-party B2B payment service providers can make the adoption of scan-based systems seamless for all key stakeholders. iControl is leading the way in helping supply chains match the demands of modern markets with technology that connects people. Our solutions are designed to reduce operational overheads, so you can focus on running a high performing value chain. To learn more, contact us today.