Promotions scanner-based

Another approach to coordination is scanner-based promotions. Under this approach, the manufacturer announces special discounts for all units sold at the retailer during specific periods. Iyer and Ye [50] smdy manufacturer costs with and without scanner-based promotions. They show that scanner-based promotions increase the predictability of retail sales for the manufacturer. This is because it becomes profitable for the retailer to schedule retail promotions at times when the manufacturer offers these deals. The associated lift in sales happens at predictable periods determined by the manufacturer, thus improving manufacturer forecasts and decreasing retail order forecast error. This retailer coordination permits manufacturer inventories to be better synchronized with projected retail sales, which decreases costs. 

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P G manages the inventory at the Walmart warehouses), scanner-based promotions (where the manufacturer pays the retailer based on units sold during a particular period). Changes in the coordination agreements impact the entire supply chain. 

Given the information technology in place, many manufacturers today offer scanner-based promotions by which the retailer receives CTedit for the promotion discount for every unit sold. Another option is to limit the allocation to a retailer based on past sales. This is also an effort to limit the amount that the retailer can forward buy. It is unlikely, however, that retailers will accept such schemes for weak brands. 

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