Pay-By-Scan: Gain the Competitive Edge for Tomorrow

Mass merchants continue to demand pay-by-scan. This allows suppliers to place more inventory at retail sites to reduce out-of-stocks. Pay-by-scan is similar to consignment sale, but better due to the accuracy of today’s point-of-sale technology. You maintain ownership and control of your goods until sold at the checkout. Once scanned, both the sales report and an invoice are created by their EDI system and sent to you for review and compensation.

Big box retailers like Home Depot, Lowe’s, and Walmart have driven the pay-by-scan technology and are requiring suppliers to make the switch to boost their competitive position. While there are various transaction sets used by the different companies to fulfill a Pay-By-Scan program, combinations of the following EDI transaction sets are commonly used:

  • EDI 810 Invoice
  • Sales Analysis of the 810 Invoice
  • Payment application for Invoices using the EDI 820 document
  • Debit/Credit Memo Processing using the EDI 812 document
  • EDI 852 Product Activity Data
  • Sales Catalog using the EDI 832 document

DCS can help you with the switch by:

  1. Describing pay-by-scan benefits and pitfalls.
  2. Importing point-of-sale data into a database from which sales activity reports can be created by you.
  3. Receiving and printing debit memos that detail the quantity sold, cost, and retail for each store weekly.
  4. Training users and the I.T. staff.

All the responsibility of maintaining the inventory stays in your hands, providing the most control possible. You know what your inventory is at all times and are able to adjust supply and demand gaps as needed.

Direct Store Delivery (DSD) and pay-by-scan are developing a better understanding of your shopper’s behavior. With collaboration from retailers, you are able to make decisions based on the data for time tested success. This drive is beneficial for both parties as it holds the value of the customer’s needs highest.

To be able to partake in the Pay-by-scan model of business, a business needs a fully integrated ERP to EDI system. Data Communication Solutions (DCS) will be able to assist in creating and integrating EDI maps to send and receive the necessary data to successfully implement this dynamic business model.

No sales or profits are lost with a better data flow from your mass merchant customers using EDI formats and pay-by-scan. Contact DCS to assist you in getting the most out of your EDI system. Learn more about the solutions we can provide for you in our case study.