Scanned based trading in retail is where a supplier supplies product to a shop based on sales of the product in the shop. The POS software in the retail shop feeds sales to the supplier and the supplier triggers a top-up order based on settings agreed with the retailer.
Scanned based trading is a time saver for retailers. This is useful in today’s retail settings where retailers are time-poor.
With popular items being out of stock too often, scanned based trading can help retailers to not be out of stock of items they need.
Our Tower Systems POS software has the data feed necessary to supply suppliers with sales per store, thereby feeding into suppliers ready themselves to engage in scanned based trading with local small business retailers.
In some scanned based trading models, retailers only pay for inventory they sell.
- Reduced inventory costs: Retailers don’t have to tie up capital in inventory that might not sell.
- Lower financial risk: They are not stuck with unsold or expired products.
- Increased product variety: Retailers can experiment with new products without significant upfront investment.
- Reduced shrink (loss of inventory): While the exact split of shrink liability is negotiated, SBT can reduce losses from operational errors as suppliers have more incentive to manage their inventory effectively.
- Improved cash flow: Payments are made only when sales occur.
These are just some of the benefits that POS software facilitates scanned based trading has delivered from our experiences in retail.
While the benefits for retailers are clear, scan-based trading offers significant advantages to suppliers, fostering a closer and more aligned relationship.
Suppliers gain real-time visibility into sales data, enabling more accurate forecasting, optimised production, and efficient inventory management. This direct insight allows them to better understand consumer demand and tailor their offerings accordingly, ultimately leading to increased sales and reduced waste from overproduction.
By taking on the inventory risk, suppliers often secure broader distribution channels as retailers become more willing to stock a wider variety of their products, even new or niche items. This collaborative approach, where both parties benefit from shared data and aligned incentives, transforms the traditional buyer-seller dynamic into a more strategic partnership focused on mutual growth and efficiency.
Retailers love scanned based trading because of less out of stocks, increased revenue and time saves.
Suppliers love scanned based trading because of increased sales and more value from retailer relationships.
Recent Comments