Calculating Costs: Switching to Scan-Based TradingBy Regina Kwon | Posted 2003-03-10 Email Print
Margins are thinning, and competition growing. The supply chain is one place to start cutting costs.
Here, a household goods company that sells $2 billion in products through supermarkets each year learns that five retail partners are adopting SBT, and decides to join them. As a result, the supplier will manage its 500-item inventory at each store, creating invoices only when an item is scanned (i.e., sold).
For this project, the partners will create a shared database to track inventory and sales. The supplier and the retailer must clean the data they collect individually so it can be easily synchronized in the database. They share their information via an intermediary that manages the shared database.