Scan Based Trading

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 ecredi@safeway.com.