The Complete Guide to Modernized Scan-Based Trading (SBT): How to Leverage Supply Chain Partner Management for Smarter Retail

Fintech’s SBT model reduces financial risk, improves operational efficiency, and fosters stronger collaboration between retailers and suppliers. By shifting inventory ownership to suppliers until products are scanned at the point of sale, both parties benefit from a model designed around shared accountability.

Shifting Inventory Risk Through the SBT Model

The SBT model eliminates the need for retailers to invest in inventory upfront, freeing up capital and protecting cash flow — especially in categories with seasonal demand, unpredictable sales, or high SKU counts. Retailers can preserve liquidity, reduce excess stock, and avoid markdown risks while maintaining greater financial flexibility.

For suppliers, the model provides shelf access without requiring retailers to commit capital upfront. This makes it easier to get new products into stores, test seasonal items, and expand into new categories with lower financial barriers on both sides.

Using Shared Data to Identify and Reduce Shrink

Some retail categories — like bread, greeting cards, propane, dairy, and ice — pose unique challenges. With high SKU counts, unpredictable demand, and intensive labor needs, these items are prone to inventory loss from theft, damage, and mishandling.

Fintech’s SBT hub enhances inventory accountability through shared data transparency. With suppliers retaining ownership until the point of sale, both parties are incentivized to monitor product movement, store execution, and loss patterns closely. Up-to-date visibility into POS, delivery, and inventory data enables faster identification of shrink drivers and more effective corrective actions — even in high-risk categories.

By relying on integrated POS and DSD data, retailers and suppliers can track what’s happening at every location. This transparency enables retailers to pinpoint high-risk stores, quickly identify the causes of shrink, and act on problems before they erode profitability.

Testing New Products and Categories with Lower Exposure

Current sell-through data allows retailers to test new products, seasonal items, and emerging brands without tying up capital. Suppliers gain valuable insights into store-level performance and consumer behavior. This collaborative approach refines SKU assortments, optimizes replenishment, and ensures faster responses to shifting demand — driving stronger category performance and higher sell-through rates.

Automation further streamlines the process. Consolidated KPIs across locations, simplified reconciliation, and automated payment workflows mean both sides pay only for what sells — minimizing administrative overhead and reducing the risk of billing disputes.