Posted on 11/16/2012 8:39:19 PM PST by SquarePants
scan based trading is only going to work in particular situations. It benefits the vendor only so much as it gives an inside track on sales and inventory levels, and likely might get you in a store that you might otherwise not (since the retailer is not making any investment in inventory) but that is a double edged sword since it isn’t sold until...sold. From a manufacturers or distributors perspective that would be rather tenuous IMHO. It’s beneficial to a retailer if they essentially are not having to invest in inventory if there isn’t a buy-back policy (unsold items returned to vendor). Some retailers want more control, for instance larger chains have their own distribution centers. Some suppliers directly supply stores rather than the DC’s though (fresh food for instance). It depends on the product. They are also likely to get a better price buying up front and assuming some of the risk. I can see where there would be some advantages for both sides.
That is a really nice story, Eva.
Takes me back to simpler (and I think better) times, when families did what they could and got by as well as possible and viewed something like a “boughten” shortcake as a wonderful treat and rarity.
(p.s. With apologies to the perfectly fine Twinkies among us, of course!)
Also, the recipe for these things didn’t read like the parts list on Junior’s chemistry set.
You gotta point there.
On the other hand I live near a university town and everybody there avoids beef, sugar, nuts, gluten, fructose, lactose, fractose and craptose...
And somehow they’re still always sick and tired and whinin’ about it.
Oh for the good old days lol...
Our suppliers give retailers promotional costs, on occasion, too. Most of the advantages of SBT are on the retailers’ side. They don’t have to stock perishable items and split the shrink cost with their suppliers. It frees up retailer resources, too. They don’t have to keep inventory or manage orders and deliveries.
I have a feeling the retailers Hostess is doing SBT with will be selling thru the product and still paying them per sale.
And Bimbo, who just might take over these sugary snack names, is one of my biggest SBT customers (along with some others mentioned here).
http://www.freerepublic.com/focus/f-news/2960754/posts
They sound like a logical choice. The product is at their level. I understand Bimbo has its own line of Hispanic themed sweet snacks. They’d probably sell on both sides of the border. Twinquis here we come.
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