Tech Could Prevent Stock-outs, Permanent Customer Loss

Q: What makes Scanntech unique and how do its services improve clients’ operations?

A: Scanntech is a technology company that focuses on the retail sector. We create platforms that enable collaboration between consumer goods manufacturers and retailers, improving operational efficiency. Our platforms manage pricing, inventory, promotions, and other supply chain processes. Scanntech leverages technology to provide intelligence and optimization across the retail value chain.

We initially focused on point-of-sale (POS) technology, developing both software and hardware solutions for retail. As the company expanded into Argentina and later Brazil, it shifted its focus. Scanntech realized the immense value of the data flowing through its systems. Long before it became a widely recognized concept, the company understood that data is priceless and began developing technologies to harness this data for actionable insights.

Q: What technologies does Scanntech use to process and analyze its 12 billion annual transactions?

A: Scanntech employs advanced technologies, including AI, ML, and natural language processing (NLP). We have a dedicated team of over 400 professionals, including developers, statisticians, and mathematicians, who focus on applying these technologies to our data.

Our approach starts with data harmonization. When working with data from hundreds of different retailers, each with unique merchandising structures, the first step is to clean, categorize, and harmonize the information. This foundational process ensures that the algorithms we apply later produce valuable insights. Without clean and enriched data, even the most sophisticated AI models would struggle to deliver meaningful results.

Q: How do Scanntech’s data insights benefit its retail clients?

A: One powerful example is pricing optimization. Using our ticket-level data, we can identify which products are more price-sensitive (elastic) and which are less so (inelastic). For elastic products, we advise retailers to remain competitive by lowering prices. Our algorithms can even predict the increase in units sold at different price points. On the other hand, for inelastic products — where price changes do not significantly impact sales — we recommend increasing prices to improve margins.

Q: How does the economic climate influence consumer behavior and retail strategies, especially for hard discount retailers?

A: Economic conditions play a significant role in shaping consumer behavior. In times of economic uncertainty and rising prices, consumers often seek more affordable options. While discretionary spending on items like appliances, dining out, and travel typically decreases, essential goods — such as groceries — remain in demand.

Discount retailers thrive in these conditions by offering lower prices and white-label products, which reinforce their value proposition. This dual strategy resonates strongly with budget-conscious consumers. For example, discounters like Aldi have built their success on this approach, with private-label products accounting for 70%-80% of their sales.

Q: How does Scanntech help retailers navigate these challenges and opportunities?

A: Scanntech’s mission is to empower retailers with data-driven insights that improve decision-making and operational efficiency. By leveraging our platform, retailers can identify opportunities to optimize pricing, manage inventory more effectively, and enhance promotional strategies. In a competitive and margin-sensitive industry like retail, even small gains in efficiency can significantly impact overall performance.

Q: How does Scanntech contribute to enhancing supply chain visibility and helping clients respond proactively to disruptions or changes in demand?

A: We typically start by analyzing what happens after the sale. From there, we help retailers with pricing, assortment, and promotions — essentially the marketing and commercial strategies that customers see. We have discovered that one of the greatest challenges in the value chain lies in the supply chain because it has a very big impact on operational efficiency and, consequently, on a company's costs and overall results. However, it is also an area riddled with recurring issues, particularly stockouts.

In regions like Latin America, and Mexico specifically, stockouts are an even greater challenge due to logistical complexities. Transporting products from manufacturers to warehouses and then to stores can be quite difficult. Studies have shown that stockouts do not just result in lost sales at that moment — they also lead to long-term customer dissatisfaction. To address this, we offer our clients a stock management module that specializes in “on-shelf availability” and “sell-through rates.” Our platform analyzes historical sales data and market trends to predict the sales potential of each product in each store.

Q: What other trends are you observing in the retail sector?

A: One trend that continues to gain momentum is omnichannel retailing. Consumers are highly informed, and their shopping journey is increasingly unified. The modern customer seeks convenience, the best prices, and a wide assortment, whether they are shopping in-store or online. Retailers now compete not only with direct competitors but also with players in different sectors. What is interesting is that these competitors often also act as partners. Marketplaces are hosting retailers’ stores and last-mile delivery companies are working with retailers while also running their own distribution centers. The retail ecosystem is becoming more interconnected, making collaboration essential.

Q: What are your expectations for Mexico’s retail and e-commerce markets?

A: Mexico has significant potential. While Brazil is larger in terms of population and geographic size, Mexico’s retail market is more consolidated and modern. The growth of e-commerce and retail in the country is remarkable, and the sector will continue to evolve rapidly, offering immense opportunities for businesses like ours.

Q: What are Scanntech’s objectives for 2025?

A: Our primary goal for 2025 is to consolidate our expansion in Latin America. We already have a strong foothold in Brazil, where over 90% of retailers use our platform. Now, we are focusing on expanding in Mexico, Colombia, and Peru. We have been operational in Mexico for just four or five months, but we are already in advanced discussions with several retailers.

Our expectation is that Mexico will quickly become our second-largest market, possibly rivaling Brazil in the near future due to its market size and importance.

Scanntech creates platforms that enable collaboration between consumer goods manufacturers and retailers. Its platforms manage pricing, inventory, promotions, and other supply chain processes.