At SPS Commerce, we take a different approach – with results. Our approach ensures that 98% of suppliers are fully digital with retailers within 3 months. No casual onboarding. No “do-it-yourself” integrations. But a proven, outsourced approach where we take everything off your hands.

How does it work?

We always start with the network. SPS Commerce has the largest retail network in the world. Chances are that many of a retailer’s suppliers are already digitally active through our platform. That means: no new customization, just simply connect.

This is followed by active onboarding. Our team – no generic support desk, but supply chain experts – contacts each supplier. We guide them personally, in their language, and coordinate the right digital form of collaboration: EDI, web portal or API. No one-size-fits-all, but a solution that does work. And yes, even the ‘difficult’ suppliers are included.

After 3 months, the job is done. The retailer has a fully digitized supplier base, standard message flows and real-time insight into performance. From that moment on, the retailer can manage delivery reliability, deviations and improvement processes – with data that is correct.

Our philosophy is simple: digitization only works if you make it scalable and supplier-friendly. The power is not in technology alone, but in actually managing adoption. That is exactly where the difference lies.

Retailers who take this approach see their supply chain change from reactive to predictable. They save operational costs, avoid errors and can scale with confidence. And more importantly, they build sustainable partnerships with their suppliers – digital and future-proof.

It’s time to see supply chain digitization not as an IT project, but as a strategic growth tool. And that starts with the right approach. One that really works – for everyone in the chain.

Retailers are investing in portals with the best of intentions. They want a grip on their supply chain, insight into data and faster communication. But by forcing suppliers to log into yet another system, they create a maze of portals, processes and exceptions. Many suppliers supply dozens of retailers – each with their own portal and requirements. For suppliers, what was meant to be efficiency ends up in wasted time, mistakes and frustration.

The reality is that suppliers are not waiting for yet another portal, yet another Excel template, yet another manual. They want one digital way of working that works for all their retail customers — not dozens of separate solutions. This proliferation of portals stands in the way of scalable digitization.

The solution? Think broader than your own supply chain. True supply chain digitization requires interoperability and standardization. Facilitating digital information exchange through a neutral, scalable network in which suppliers integrate once and can then collaborate digitally with all their customers — that’s the way forward.

At SPS Commerce, we see this every day. Suppliers working through our network do not have to adapt every time. They benefit from one uniform way of working, no matter which retailer they do business with. And retailers, in turn, benefit from faster supplier onboarding, fewer errors and higher delivery reliability.

Want to know how we can help you improve your supply chain? Contact us.

Today’s customers are conscientious and want to know more about the products they purchase, especially for health and personal care items.

According to a Forbes article, a recent report by Label Insight found that 94 percent of consumers would be more loyal to brands that practice transparency, while 56 percent claim that brand transparency would make them “loyal for life.”

Read on to learn more about the importance of transparency for building brand trust.

Keep it clean: ethical sourcing and sustainable practices

When consumers demand “clean” products, they’re not just talking about product ingredients. They want to see transparency in the supply chain—from the origins of ingredients to the ethical practices behind them. Key issues include:

• Clean beauty movement: There’s a growing desire to see transparent ingredient lists and “clean” formulations.
• Ethical practices: The conditions under which items are produced matter, including Information about labor practices, animal testing and sourcing.
• Sustainability: Green initiatives are driving demand for eco-friendly products and sustainable practices, including packaging, sourcing and production.

Companies who offer transparency in their sourcing practices boost consumer trust. When brands openly share where and how they source their ingredients, they also demonstrate a commitment to ethical practices.

Brands who can share information about sustainable practices throughout the supply chain also elevate their credibility as conscientious, trustworthy companies.

Provide clear information: safety through traceability

Health and personal care suppliers rely on traceability to ensure product safety and quality, but the complexity of global supply chains makes it challenging to keep track.

To modernize, suppliers are replacing manual processes with digital solutions for everything from tracking raw materials to fulfillment and transportation logistics.

Innovations such as blockchain technology and the Internet of Things provide real-time, end-to-end tracking, allowing every step of the supply chain to be recorded and monitored.

These digital solutions can not only enhance efficiency, visibility and accountability, but also ensure the safety and quality of products and improve the ability to manage recalls.

Be proactive: effective recall management

The way a company manages a recall can make or break consumer trust in their brand.

While a poorly managed recall can damage a reputation, a well-managed recall not only demonstrates a commitment to safety and transparency but also encourages loyalty.

Key strategies for a proactive recall include:

• Develop a process: Plan a clear and efficient recall process to ensure that any issues can be addressed swiftly and effectively.
• Communicate openly: Provide all necessary information and updates openly and honestly, including detailed information about the recall process and what consumers need to do.
• Be visible: Use multiple channels to reach consumers, including social media, email and company websites.

Being proactive not only mitigates the risks of immediate harm to your reputation but also reinforces consumer confidence that they can trust your products in the future.

Authentic transparency builds success

In an era where consumers demand access to complete product information, transparency in the supply chain is not just a nice-to-have; it’s essential. Brands that can provide clear, detailed and honest information will be the ones that thrive.

By prioritizing ethical sourcing, embracing digital traceability and implementing proactive recall management strategies, you can build and maintain consumer trust.

SPS Commerce is ready to be your partner in building a more robust and transparent supply chain, with our team of experts offering the people, processes and technology to not only make you more efficient, but support trust in your brand to maximize your success.

1. Digital transformation accelerates industry-wide

The food and food service distribution industry is rapidly evolving as companies adopt digital solutions to improve operations and gain a competitive edge. Large distributors are leading the charge, while small and mid-sized players are rapidly closing the gap. This transformation focuses on upgrading core business systems, including ERP, inventory and order management systems.

However, the true opportunity lies in integrating supplier data with these systems. Forward-thinking distributors recognize that robust data exchange is essential for real-time updates and accurate information flow throughout the supply chain. This integration empowers distributors to communicate more effectively with customers and suppliers, streamlining processes like placing orders, managing inventory and tracking deliveries.

2. Traceability demands intensify across the supply chain

Traceability and transparency initiatives are key priorities, driven by heightened consumer awareness and stringent regulatory requirements like FSMA 204. Digital technologies are at the forefront of this transformation, enhancing visibility throughout the supply chain. Food distributors are rapidly adopting these tools to meet compliance standards and consumer expectations.

For instance, Gordon Foods overcame traceability and compliance challenges by automating data exchange across its network of over 500 suppliers. This strategic move improved FSMA preparedness and yielded significant operational benefits. The company improved inventory management, reduced lead times and gained better insights into pricing and margins.

As the 2026 FSMA 204 deadline approaches, distributors must prioritize the implementation of robust traceability systems. These efforts are not just about compliance. They’re reshaping operations, enhancing efficiency and building consumer trust in an era where food safety and transparency are paramount.

3. Data analytics reshape supplier relationships

Data analytics and predictive modeling are revolutionizing how food and food service distributors manage their supplier relationships. Distributors can leverage advanced analytics to answer critical questions like “Who are my most important suppliers?” “How are my suppliers performing” and “How should I work with suppliers differently?”

Distributors are leveraging this data to enhance their services and work more effectively with suppliers. Predictive analytics can forecast potential supply chain disruptions, supporting proactive planning with key suppliers on mitigation strategies.

By harnessing the power of data, distributors are not just making existing processes more efficient, but fundamentally reimagining their supplier relationships for greater mutual benefit.

4. Customer expectations reshape service standards

Rising customer expectations force food distributors to elevate their service offerings. The demand for faster, more flexible delivery is intensifying, with customers expecting shorter delivery windows and the ability to accommodate urgent orders.

Seamless digital ordering experiences, proactive communication with real-time order tracking and consistent on-time delivery are standard expectations rather than differentiators. Distributors are also expected to offer flexible order quantities without excessive premiums, as they balance minimum order requirements with the need to accommodate smaller, urgent orders.

For example, Shamrock Foods faced delays and poor fill rates with specialty items from small suppliers. To address this, they implemented a solution to efficiently share order, shipping and invoice data with 350 suppliers, many with limited technical capabilities. This initiative resulted in normalized inventory levels and improved pricing accuracy, empowering them to offer the flexible, reliable service that customers now demand.

Ready to transform your distribution business for the challenges and opportunities ahead? Contact our team for more insights on navigating this changing terrain and positioning your business for long-term success.

But what are the actual cost savings we’re talking about?

In our experience, automated order processing cost savings are a multi-million-dollar opportunity for many organizations. While your competitors may still be burning resources on manual processes, automation gives you the operational edge to reinvest those savings into growth, better pricing or enhanced customer service.

Improve visibility with speedier data flow

Replacing manual order processes with an automated EDI solution enables quicker data flow, so you’re aware of any order issues sooner.

By automating orders with your suppliers, you’ll know:

• If your order was received
• If the vendor can fulfill it (completely, partially or not at all)
• If there are any issues with the order details
• When the shipment is on its way to your dock or customer

Visibility into each of these order touchpoints is key. Timely, accurate information is crucial to get your supply chain working like it should.

Reduce inventory with order automation

One of the quickest ways to remove waste from the order management process is with better inventory management. When you know which items are coming in and how they’re selling, you don’t need to carry so much inventory.

Your savings result from:

• Reducing order lead times.
• Increasing fill rates.
• Reducing excess store and warehouse safety stock.
• Providing consistent in-stock levels.

Empower staff by cutting manual processes

Eliminating manual tasks and replacing them with an automated solution frees your staff to focus on more important priorities.

The impact of automation is felt across receiving, planning, expediting, customer service, sales and accounts payable teams, giving them more time back in their day to work on driving business growth.

Your savings:

• Speed up the receiving process by knowing exactly when to expect a shipment and what is being delivered
• Reduce staff time in managing orders by up to 20% through order exception management
• Minimize customer service requests on order status (for drop-ship orders)
• Reduce the number of touch point contacts with suppliers

Optimize open-to-buy budgets

Every time open-to-buy funds are held up in orders that will never (or only partially) be fulfilled, it’s a missed opportunity. Because the money is tied up, buyers can’t use it to grow their category or order from new suppliers, and subsequently sales are lost. And when fill rates drop, you risk having empty shelves and unhappy customers.

With optimized open-to-buy budgets, you can:

• Recover money each year in unused open-to-buy dollars
• Increase customer satisfaction by reducing out-of-stocks

Increase invoice accuracy

Automated data exchange enables retailers and distributors to confirm order details such as pricing, item number accuracy, delivery date and even some insights like potential fill rate—before the order is received.

This saves the accounting team time and eliminates errant payments. As a supplier invoice electronically moves through the payables process, you can automatically validate that the invoice information is accurate and approved.

The result: time savings for staff with efficient scheduling and timely payment of invoices.

Hold vendors accountable

You don’t want to be left wondering if your vendors are doing their part. To keep products moving and customers happy, fill rates must stay high, and ship dates cannot vary.

Solutions like the SPS Commerce Supply Chain Performance Suite are designed to help you be proactive and work more productively with your suppliers.

When you capture and pay attention to performance metrics, retailers can gain a good understanding of which suppliers are solid, collaborative partners, and which are less reliable and need attention. Key metrics to track include:

• On-time and in-full (OTIF) – The percentage of complete orders delivered on time
• Fill rates – How often suppliers fulfill your entire order in one shipment
• Lead times – Consistency in delivery timeframes from order to receipt

Often, just knowing that a buying organization is carefully watching these numbers will improve fill rates and shipping, both of which save a retailer time, money and headaches.

The savings? Mid-market retailers taking advantage of automation through our Supply Chain Performance Suite have seen up to:

• 5% sales lift
• 10% reduction in operating expenses
• 3% margin improvement

Boost supply chain performance, get higher profits

When you invest in the automation of trading partner data, the payoff is not only in dollars and cents, but also the building of more transparent, proactive relationships with trading partners. With the right technology, you can transform your supply chain, scale your growth and reap the rewards every day.

Is there room for improvement in your processes? Take our five-question Supply Chain Health Vitals Checkup and get instant results, resources and more, or reach out to our team for a one-on-one conversation today.

Beyond traditional seasonal peaks

While cornerstone holidays like Thanksgiving and Christmas continue to drive major shopping patterns, today’s grocery landscape is evolving. The familiar rhythm of turkey and stuffing in November, or corned beef and cabbage for St. Patrick’s Day, now shares the calendar with hundreds of micro-seasonal opportunities that reflect our changing relationship with food and community.

The rise of micro-seasons

Unlike the fashion industry’s micro-seasons, which are primarily driven by design trends, grocery micro-seasons tap into consumers’ emotional connection to food and shared experiences. Take Whole Foods’ embrace of #Veganuary. What began as a social media trend has become a full-fledged shopping season, complete with plant-based product launches and cooking demonstrations.

These micro-seasons aren’t just marketing inventions. They reflect how we live and celebrate today. National Ice Cream Day becomes a summer highlight on Instagram, while National Pizza Day turns a regular Friday into a reason for family gathering. Even Dry January has evolved from a post-holiday health kick into a significant retail opportunity for non-alcoholic beverages and wellness products.

What’s driving the change?

Several factors fuel this transformation:

• Social media influence: The #foodie culture has turned every meal into a potential celebration.
• Cultural diversity: Growing multicultural communities bring new traditions and food holidays to mainstream retail.
• FOMO: Social media creates awareness and excitement around food trends.
• Comfort seeking: In uncertain times, food holidays offer something to look forward to and celebrate.
• Exploration: Consumers increasingly seek new flavors and cooking experiences.

Impact on grocery operations

This micro-seasonal transformation requires retailers to fundamentally rethink their operations and supplier relationships. Traditional seasonal planning no longer suffices when consumers expect everything from heart-shaped chocolates to pumpkin spice products earlier each year. Success now depends on maintaining an ever-expanding product assortment while timing each micro-seasonal launch perfectly.

Must-haves in this new landscape include:

• Real-time data sharing with suppliers to anticipate and meet emerging trends
• Agile supplier partnerships that enable same-season response
• Streamlined processes to set up and launch new products quickly
• Strategic inventory optimization across micro-seasonal peaks

The heart of celebration

At its core, this evolution in grocery retail reflects our changing relationship with food and celebration. Success means more than just stocking shelves with products consumers want. It requires the right mix of cultural awareness, technological capabilities and strong supplier partnerships to turn food holidays into an opportunity for connection and growth.
Ready to strengthen supplier collaboration and stay ahead of the micro-seasonal calendar? Partner with a team that equips you with the insights, tools and support to make every season a success.

So, how can retailers meet rising consumer demands? One effective approach is to create greater alignment with suppliers. We’ve identified four strategies to boost brand loyalty through supplier partnerships.

1. Align customer experience across channels

Today’s customers demand consistent experiences whether they shop online, in-store or through a combination of channels. Industry studies indicate that 73% of consumers purchase items online that they previously only bought in-store, blurring the line between digital and physical retail.

Achieving omnichannel consistency requires retailers and suppliers to work in tandem. By synchronizing product availability across channels, unifying product data and optimizing fulfillment, retailers and suppliers can deliver the frictionless experience customers crave.

2. Predict and prevent stockouts

Nothing frustrates customers more than encountering empty shelves or “out of stock” notifications. According to McKinsey, 70 to 80% of consumers will switch brands or retailers if they encounter stockouts. These inventory gaps often stem from phantom inventory (when systems show products as available, but they’re missing), order mismanagement (errors in processing or fulfilling orders) or delayed shipments to stores or consumers.

Retailers can prevent shortages by partnering with suppliers to share updates on orders and shipments. This collaboration should focus on:

• Enhancing visibility into shipments to distribution centers, stores and customers.
• Establishing clear delivery timelines and performance metrics.
• Joint forecasting to ensure adequate stock levels.
• Developing contingency plans for potential delays or supply chain disruptions.

3. Foster transparency and accountability

Open communication and transparency form the cornerstone of successful retailer-supplier partnerships. By sharing accurate, real-time data on inventory levels, lead times and order fulfillment, both parties can preempt misunderstandings and mitigate costly delays.

Clear accountability measures, such as performance scorecards, empower retailers and suppliers to track progress collaboratively, leading to faster issue resolution and improved performance. When retailers and suppliers operate with openness and mutual trust, they create a more resilient supply chain that strengthens brand loyalty.

Retailers need tools that provide a clear view of what’s happening across the supply chain. These solutions foster better alignment both internally and with suppliers. With enhanced visibility, retailers can:

• Anticipate problems before they occur.
• Minimize disruptions.
• Maximize operational efficiency.
• Optimize costs.
• Enhance customer experience.

4. Meet customers’ sustainability demands

Modern consumers vote with their wallets. Nearly 6 in 10 consumers are willing to change their purchasing habits to reduce their environmental impact, according to the National Retail Federation.

Major retailers are taking note. For example, Walmart’s Project Gigaton initiative aims to reduce or avoid one billion metric tons of greenhouse gases from the global value chain by 2030.

Retailers who partner with sustainability-focused suppliers and transparently share these practices build trust with increasingly conscious consumers. This requires retailers and suppliers to share detailed sustainability data, such as carbon emissions and materials sourcing. By collecting and validating supplier information, retailers can substantiate their sustainability claims and enhance credibility with environmentally conscious consumers.

Build lasting brand loyalty

Loyal customers are the heart of any thriving retail business. They’re repeat buyers, bigger spenders and brand advocates. When you invest in stronger supplier relationships, you’re also investing in customer loyalty. It’s a powerful way to build lasting customer connections.

Ready to transform supplier relationships into a brand loyalty advantage? Explore solutions on our website or get personalized insights from our team.