Safeway is in the process of moving forward
with a next generation supply chain management process that uses
point-of-sale (POS) scan data to drive product replenishment, promotion,
and settlement between Safeway and it’s trading partners.
The purpose of this project is to establish
a business process model in which direct store delivery (DSD) suppliers
are paid for their product based on POS scan data within Safeway
retail facilities. Scan Based Trading (SBT) is a process where the
vendor delivers product directly to the store with no store check-in
process, the supplier retains ownership of the inventory until it’s
sold to the Safeway customer and the supplier is compensated based
upon POS scan of the transaction. The point-of-sale of these products
is centralized for both the retailer and supplier.
Scan Based Trading has many joint benefits
for both trading partners. SBT creates improved asset utilization
through the reduction of inventory investment for the retailer.
It also creates sales volume growth through the utilization of consumer
scan data, thereby increasing services levels to the stores. SBT
reduces unnecessary supply chain costs for both trading partners.
Finally, SBT will eliminate labor costs for the supplier and streamline
their distribution process by allowing more timely deliveries.
Through the use of Scan Based Trading, the
business relationship is transformed into a partnership to better
meet the needs of the consumer and to shrink non-valued added costs
in the supply chains. Scan Based will help to shrink those costs
as well as level the retailer and supplier’s playing fields
against dominant market forces.
If your company is interested in exploring
the opportunities a Scan Based Trading relationship will offer,
please contact Safeway via email at email@example.com.