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How Scan-Based Trading Improves Supply Chain Visibility
Learn more about how SBT is helping improve supply chain visibility for retailers and suppliers in the food and beverage industry.
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 significant increases in supply chain visibility—especially alcohol suppliers. Let’s take a look at why:
Increased Sales For Retailers
Firstly, SBT 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 suppliers.
Improved Supply Chain Visibility For Suppliers
With SBT, suppliers 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. Improved supply chain visibility also drives accountability, as discrepancies in data can be quickly identified and solved.
Busy suppliers 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, suppliers 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, suppliers and, ultimately, end customers. SBT systems allow suppliers to implement more agile warehousing strategies by stocking goods based on operational, sales, and product data. Suppliers can align resources across the value chain to reduce financial risk and operational overheads.
Better Relationships Between Stakeholders
Since trading partners are constantly sharing information, improved supply chain visibility enables everyone to stay in the information loop. This means no more disagreements between receiving staff and drivers during deliveries. Inventory and pricing are agreed upon 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.
Improve Supply Chain Visibility 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.