In 1996, the concept of Scan-based trading (SBT) was formally defined when the Grocery Manufacturers of America (GMA) convened a task force of its members to participate in a Scan-based Trading test with HEB Stores in San Antonio, Texas. The participants included major retailer suppliers such as Anheuser-Busch, Coca-Cola, Nabisco, Frito-Lay and Pepsi-Cola. While the test showed that SBT could provide significant operational cost savings for both suppliers and HEB, it is noteworthy that none of those major manufactures have any significant SBT relationships with retailers today1. A recent study also shows that in order for an SBT relationship to be beneficial for all parties, business practices must improve and information systems’ capabilities must be expanded2. The fact that the major suppliers of product to retailers that participated in the SBT test have not as of 2005 expanded their SBT relationships, points strongly to the conclusion that most retailers have not as yet improved their systems capabilities to an acceptable level.

In 1999, the Magazine Industry began studying the effects that SBT could potentially have on the three major distribution channel members, publishers, national distributors and wholesalers. The Magazine Publishers of America (MPA) contracted with Mercer Management Consulting Group to perform that study.