It's time to examine how scan-based trading solves your shrink reduction problems through better communication and analytics.
Overcoming Common Challenges to Scan-Based Trading
There are many challenges that have prevented broader adoption of scan based trading. Learn how to overcome them with the right partner.
When adopting scan-based trading (SBT), retailers face a critical choice. The retailer can either try to set up a direct pay-on-scan relationship with its vendors or establish a relationship with an experienced third-party provider to facilitate the relationship.
Here are some of the common challenges to implementing and expanding scan-based trading, and how iControl can help you overcome these challenges and turn them into opportunities.
Exchanging Information Is Difficult
iControl simplified data exchange for several Scan-Based Trading suppliers at a national grocer, providing superior transparency and accountability.
It’s hard for retailers and suppliers to exchange data. Too many businesses spend too many labor hours sending and receiving data on spreadsheets or raw files. iControl’s cutting-edge data exchange processes can import and export data in different formats seamlessly. And, our web portal provides a simple, user-friendly way to share data in the same format between both supplier and retailer.
Challenges In Implementation
With iControl, a major regional convenience store chain brought a key greeting cards vendor to Scan-Based Trading. The relationship was set up and ready to go in less than six weeks from the day the contract was signed.
Setting up a successful SBT arrangement can be tough. iControl has experience in implementing Scan-Based Trading relationships for thousands of retail vendors across dozens of categories. iControl understands what difficulties can arise, and has an established track record of bringing key players together to build momentum. Implementing a successful relationship doesn’t have to be a struggle.
A leading drugstore chain has relied on iControl to process pricing submissions from thousands of newspaper vendors for over eight years.
One of the most important factors in Scan-Based Trading is setting costs and promotions for products properly. Managing and monitoring costs for hundreds of items on a daily basis can be a difficult task. With iControl, setting a cost or promotion is a straightforward, automatic process - there’s no need to email a file to a category manager, buyer or pricebook supervisor. Instead, the retailer and supplier can manage their pricebook through iControl’s web portal. When the inevitable pricebook differences arise, iControl provides automatic reporting to allow supplier and retailer to resolve issues quickly.
In a staggered rollout for a major convenience store chain, iControl helped a leading propane vendor roll out over 1,000 stores across a six-month period.
Bringing a direct-to-store program onto SBT often involves a buy-back of retailer inventory by the supplier. To maximize liquidity during a buy-back, many retailers and suppliers choose to pursue a staggered SBT rollout, with stores moving to SBT on a rolling schedule. This requires careful timing and coordination, and iControl has a proven process that makes a staggered rollout a win for both supplier and retailer.
How can you overcome common challenges to scan-based trading? Start with the right partner with the right solution. Click here to read more about picking the perfect SBT partner for your company.