scan-based trading (sbt) or pay-per-scan (pps)
DESCRIPTION
As pressures grow for leaner retail organizations, improved margins and focus on core product mix -- Scan based trading (SBT) is growing fast in popularity as a means to reducing costs and increasing working capital + margins.TRANSCRIPT
SPICE Technology Group brings exciting, next-generation solutions and services to Retailers, Manufacturers & Distributors.
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We reduce our customer’s cost, complexity and time-to-market for new capabilities across sales, customer service, supply chain and back-office business processes.
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“ Our invoice match process is often
flawed with costly discrepancies”
“Our Return to Vendor activity
continues to trend high, wasting
valuable store labour”
“We are operating with restricted cash flow
and low inventory turns is not helping the
challenge”
“Our current direct-store-delivery processes
are delaying goods to the floor and creating
a competitive disadvantage”
Is This Familiar?
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“Shrink remains a challenge for us and
is costing us margin”
“We are often out of stock and losing
sales on high turn SKUs”
Scan based trading (SBT) is a commerce model where the supplier owns the inventory until it scans at the point of sale.
Fastest growing trend within retail supply chain.
Significant financial and operational benefits to retailers.
Within Canada, over 7 major retailers have moved ahead aggressively with SBT in categories that include music, games, DVD, newspaper, magazines, confectionary and seasonal. Over 10 retailers on SBT by 2012 and growing.
What is Scan Based Trading
3 SIMPLIFY - INTEGRATE - ELIMINATE
Traditional Retail vs. SBT
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Scan
Based
Trading
Supplier’s Replenishment Plan
POS Data
Supplier
Direct-Store-Delivery
Store/SKU
POS Data
6
Benefits from SBT
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To Finance
To Operations
To Product
• Shorter Cash-conversion cycle (increase working capital)
• Inventory “off the books” (reduce carrying costs)
• Eliminate invoice processing
• Improved in-store merchandising/plan-o-gram compliance
• Reduced labour cost for receiving/returning
• Shrink reduction
• In-stock improvement
• Sales lift (reduced lost sales)
• Margin gain
To Supplier
• Reduced Safety Stock needs
• Reduced returns
• Faster payment
20%-40% labour reduction
50%-70% reduction in Invoice adjustments
5%-20% lift in sales
40%-60% reduction in Shrink
What do you need for SBT?
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Technology & Data Management– EDI & Reporting
Willingness of vendor (engagement)
Modified head-office & store processes
MAJOR CONSIDERATIONS
How can SPICE help
8 SIMPLIFY - INTEGRATE - ELIMINATE
SBT-IN-A-BOX
Turnkey initiation and execution of SBT program
Operate Initiate
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SPICE
1. SBT Program Development (SBT Playbook)
2. EDI Technology & Supplier Integration
3. Supplier Negotiations
SPICE
1. Change Management (Operations, Finance, LP)
2. Project Management
3. “Value Engineering” – ensuring delivery of SBT business case
RETAILER
Runs SBT Program
Rollout
To find out more …..
Call Us Next Steps
1. One and half hour meeting to learn more.
2. Follow up 1 day free assessment and proposal
Agenda
Learn in more detail what SBT can do for you
We are interested ...
1) Can SBT work for me?
2) How do I get suppliers engaged?
3) What are my expected costs, risks and benefits?
4) How can I get started?
5) How can SPICE help?
www.spiceTG.com
2425 Matheon Blvd. E
Place your logo
8th Floor
Mississauga, ON L4W 5K4