Inventory Management Archives - SPS Commerce Tue, 28 Oct 2025 14:43:12 +0000 en-EUR hourly 1 How SPS Commerce Helps Companies to Understand Seasonal Buying Trends https://www.spscommerce.com/eur/blog/how-sps-commerce-helps-companies-to-understand-seasonal-buying-trends/ Tue, 28 Oct 2025 14:43:12 +0000 https://www.spscommerce.com/?p=760043 Seasonal buying trends offer business valuable insights into consumer behavior and preferences during specific times of the year. Understanding these patterns, from Halloween costumes to pre-holiday shopping sprees, can help companies optimize their strategies and maximize sales. SPS Commerce is a leader in retail supply chain solutions that empowers businesses to effectively uncover, analyze, and leverage seasonal buying trends. Here’s how:

1. Data-Driven Insights for Better Decision Making

SPS Commerce provides advanced analytics tools that transform raw data into actionable insights. This helps companies into their decision making processes as they can dive into different sorts of data. Here are a few examples:

  • Discover demand patterns: Analyze transactional data from trading partners to identify seasonal spikes for specific products.
  • Regional trends: Tailor strategies based on location-specific buying behavior, such as increased demand for fall apparel in colder regions.
  • Predictive capabilities: Use historical data to forecast future seasonal trends and make smarter inventory and marketing decisions.

2. Omni-Channel Visibility

With the rise of eCommerce and hybrid shopping behaviors, it’s crucial to understand consumer activity across different channels. A clear visibility on your supply chain is the key to success. Here is how SPS Commerce can help:

  • Unified data view: SPS Commerce integrates data from online marketplaces, brick-and-mortar stores, and wholesale channels.
  • Channel performance: Pinpoint where seasonal purchases are happening to refine your campaign strategies.

3. Collaborative Data Sharing to Stay Ahead

SPS Commerce fosters collaboration by connecting retailers, suppliers, and distributors through its retail network. This collaboration is a win-win situation where organizations are a step ahead of competition. How can this be achieved:

  • Real-time insights: Share and access seasonal buying data directly from trading partners to more accurately forecast demand.
  • Supply chain alignment: Coordinate production schedules and inventory levels to efficiently meet seasonal demand.

4. Inventory Management for Seasonal Peaks

Seasonal buying trends often cause unpredictable demand spikes. We can’t stress enough the importance of stock visibility, and if you want to go deeper on the topic, we already wrote blog posts about inventory management. Here are two example on how SPS Commerce helps businesses stay prepared.

  • Automated replenishment: Ensure you never run out of popular seasonal products, such as Halloween costumes or holiday decorations.
  • Turnover analysis: Track how well seasonal products perform to make data-driven decisions for future inventory planning.

5. Impactful Seasonal Promotions

Seasonal campaigns can make or break your Q4 revenue goals. SPS Commerce’s data-driven insights ensure your promotions are successful.

  • Product popularity: Identify top-performing products during the fall season and concentrate your promotional efforts on them.
  • Campaign tracking: Analyze the impact of seasonal promotions to refine your strategy during peak buying periods.

6. Enhanced Forecasting for Future Trends

Accurate forecasting is crucial for preparing for seasonal demands. SPS Commerce uses predictive analytics, combining all available insights, to help businesses stay ahead.

  • Early trend identification: Discover emerging consumer preferences, like trending Halloween costumes or fall-flavored beverages.
  • Demand forecasting: Use October buying data to optimize inventory for the holiday rush.

7. Retail Network Connectivity

SPS Commerce’s vast network of retailers and suppliers provides valuable insights into seasonal buying patterns. It is our biggest strength and is undeniably a competitive advantage.

  • Benchmarking: Compare your seasonal performance against industry standards to identify growth opportunities.
  • Collaborative planning: Work with trading partners to align strategies for seasonal peaks.

8. Real-Time Reporting and Alerts

Staying agile during seasonal peaks is critical. SPS Commerce provides real-time data to support quick and informed decision-making.

  • Demand spikes: Receive alerts for sudden changes in seasonal demand to avoid stockouts or overstocking.
  • Campaign performance: Monitor the success of your seasonal strategies in real time and adjust as needed.

9. Seamless Integration with Existing Systems

SPS Commerce integrates with ERP, POS, and eCommerce platforms, allowing businesses to easily track seasonal trends without overhauling their systems. Your organization can benefit from all insights, without even changing habits or systems, allowing:

  • Streamlined workflows: Consolidate seasonal data analysis into your existing processes.
  • Enhanced usability: Make seasonal insights more accessible across teams for better collaboration.

10. Strategic Partner Collaboration

Finally, SPS Commerce fosters collaboration between trading partners to align seasonal strategies effectively.

  • Coordinate promotions: Work with suppliers and retailers to optimize seasonal campaigns and inventory planning.
  • Share insights: Leverage data from the SPS Commerce network to gain a competitive edge.

Conclusion

Seasonal buying trends present businesses with incredible opportunities for businesses to connect with their customers, boost sales, and refine their strategies. SPS Commerce provides the tools, insights, and partnerships needed to analyze trends effectively and succeed during key shopping periods.

Whether it’s predicting demand for Halloween costumes or preparing for the holiday shopping surge, SPS Commerce empowers businesses to make smarter, data-driven decisions. Are you ready to unlock the power of seasonal buying trends? Let SPS Commerce be your trusted partner.

 

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How real-time data improves inventory management https://www.spscommerce.com/eur/blog/how-real-time-data-improves-inventory-management/ Thu, 21 Aug 2025 13:36:05 +0000 https://www.spscommerce.com/?p=753377 In today’s fast-paced retail and supply chain environment, effective inventory management involves much more than simply counting stock or predicting demand. The advent of real-time data has transformed the way businesses manage inventory, offering unparalleled visibility, accuracy and agility. Read on to find out how real-time data can revolutionize your inventory processes!

What is real-time data in inventory management?

Real-time data refers to information that is updated and available immediately as events occur. In inventory management, this means having real-time visibility of stock levels, sales, shipments and other key metrics. This data is often collected through technologies such as Internet of Things (IoT) devices, barcode scanners, RFID tags and integrated software systems.

Having real-time data can be a struggle for supply chain professionals, who might overlook this aspect of their processes. However, overlooking these data can leave behind even the best in the market.

The benefits of real-time data for inventory management

Real-time data provides many benefits, not only to inventory management, but also throughout the whole supply chain. Analyzing supply chain data puts organizations on the path of success. Let’s have a look at 6 key points:

  1. Improved accuracy: Traditional inventory management systems often rely on periodic stock counts or batch updates, which can lead to errors or outdated information. Real-time data ensures that inventory levels are always accurate, minimizing issues such as overstocking or running out of stock.
  2. Enhanced demand forecasting: Real-time data provides insight into customer buying patterns, seasonal trends and market conditions. This enables businesses to make more informed decisions about stock levels, ensuring they can meet demand without holding excessive inventory.
  3. Optimized stock levels: With real-time insights, businesses can avoid the pitfalls of overstocking or understocking. They can swiftly identify slow-moving items and adapt their purchasing decisions and promotional strategies accordingly.
  4. Faster decision-making: Real-time data enables managers to make quick, informed decisions. For instance, if a product sells faster than anticipated, businesses can immediately reorder or allocate stock from other locations.
  5. Streamlined operations: Integrating real-time data with inventory management software enables businesses to automate processes such as reordering, inventory audits and reporting. This reduces manual effort and enhances operational efficiency.
  6. Better customer experience: Customers expect products to be available when and where they need them. Real-time data allows businesses to provide customers with accurate stock information, ensuring a seamless shopping experience.

Applications of real-time data in inventory management

Analyzing supply chain data is the first step to success. Let’s now look at how you can leverage these data and take some actions:

  • Automated reordering: Real-time data can trigger automatic purchase orders when stock levels hit predefined thresholds.
  • Dynamic pricing: Businesses can adjust prices based on real-time demand and inventory levels.
  • Warehouse optimization: Tracking inventory movement in real time enables businesses to optimize warehouse layouts and improve picking efficiency.
  • Multi-channel syncing: Real-time data ensures consistent inventory levels across online stores, physical stores and third-party marketplaces.

Technologies Driving Real-Time Inventory Management

Several technologies enable businesses to harness the power of real-time data. Combining those technologies will improve your chances of success:

  • IoT devices: Sensors and connected devices track stock levels and movement within warehouses.
  • RFID tags: These provide instant updates on inventory as products move through the supply chain.
  • Cloud-based software: Platforms such as ERP systems integrate data from multiple sources to provide a centralized view of inventory.
  • AI and machine learning: These tools analyze real-time data to predict demand and optimize inventory processes.

Challenges in Implementing Real-Time Inventory Management

While the benefits of real-time data are now clear, there are challenges to implementing it:

  • Cost of technology: Investing in IoT devices, software and training can be costly.
  • Data overload: Managing and analyzing large volumes of data requires robust systems and expertise.
  • Integration issues: Real-time data must be seamlessly integrated with existing processes and systems.

This is were SPS Commerce is your best ally. SPS Commerce offers unparalleled connectivity through seamless integration with thousands of solutions, enabling businesses to streamline operations and unlock their full potential. Our extensive network of pre-built connections ensures that retailers, suppliers, and distributors can effortlessly integrate with the platforms they rely on, from ERP systems to e-commerce marketplaces and shipping solutions.

The Future of Inventory Management

Finally, success is also tied to what lies ahead. As technology continues to evolve, real-time data will become increasingly critical for inventory management. Advancements in AI, blockchain and the Internet of Things (IoT) will further enhance visibility, accuracy and decision-making. Businesses that embrace these innovations will be better placed to meet customer expectations, reduce costs and stimulate growth.

How SPS Commerce can help you

SPS Commerce’s analytics solutions empower businesses with the ability to harness real-time data management, transforming raw data into actionable insights. By leveraging our advanced tools, companies can monitor performance metrics, track key trends, and make informed decisions without delay. As we’ve seen, real-time data management ensures that organizations respond proactively to market shifts, optimize inventory levels, and strengthen supply chain partnerships. With SPS Commerce, businesses gain the clarity and agility needed to improve operational efficiency, enhance customer satisfaction, and drive sustainable growth—all backed by the power of accurate, timely data at their fingertips.

Conclusion

Real-time data is transforming inventory management from a reactive process into a proactive strategy. By leveraging accurate, up-to-the-minute information, businesses can optimize stock levels, improve forecasting and deliver better customer experiences. Whether you are a retailer, distributor or manufacturer, adopting real-time inventory management is not just a competitive advantage — it is a necessity in today’s dynamic market.

With SPS Commerce, businesses can focus on growth, knowing their systems work together harmoniously to support efficiency, collaboration, and scalability in today’s fast-paced digital economy. Contact us today to make to first step toward success!

 

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Seeing clearly in a complex beauty market https://www.spscommerce.com/eur/blog/seeing-clearly-in-a-complex-beauty-market/ Thu, 19 Jun 2025 18:57:44 +0000 https://www.spscommerce.com/blog/seeing-clearly-in-a-complex-market/ Your latest lip kit is flying off the virtual shelves on Amazon but sitting stagnant at Target. Your holiday palette sold out in two days in California, but didn’t move at all in Florida. Your next product launch? Still stuck in customs.

Welcome to the beauty industry in 2025, where trends move faster, promotions launch around the clock and the margin for error is smaller than ever. Tariff shifts, supply delays and viral media moments creating instant and unplanned demand make it almost impossible to plan ahead. That’s why so many beauty brands are upping their game, looking for more tailored and data-ready solutions.

Because when you’re navigating complexity, clarity becomes a powerful advantage.

Why visibility matters more than ever

In a dynamic category like beauty, understanding what’s working and where it’s working is critical. Whether you’re evaluating a product launch, responding to a supply chain delay or reviewing seasonal performance, having clear, up-to-date data makes it easier to take the correct next steps.

Without that visibility, teams often end up relying on incomplete reports, or occasionally just instinct to make decisions. It’s not a lack of effort. It’s simply hard to stay ahead when the information you need is scattered across systems or buried in spreadsheets.

Brands are finding that when their data is more accessible and aligned, their teams are, too.

More connected data = better decisions at every level

When analysts, planners and decision-makers are all working from the same accurate information, things tend to run more smoothly.

  • Demand planners can react quickly to viral trends and avoid stockouts
  • Sales teams can walk into buyer meetings armed with data on which SKUs are driving margin, and which ones aren’t pulling their weight
  • Leadership teams can spot shifts in the market or shopper behavior and adjust before competitors do

That kind of alignment doesn’t just improve operations. It helps teams feel more in control, even in an unpredictable market.

Better data helps beauty brands move forward with confidence

Making sense of retail data may not be glamorous, but in the beauty industry, it’s essential. The good news? It’s becoming more achievable.

With the right tools and processes in place, more beauty brands are finding ways to cut through the noise, uncover meaningful insights and make proactive decisions.

Brands that are outperforming right now have something in common: they know what’s happening in their business at every level. They’re monitoring SKU-level performance by region. They’re adjusting launch plans based on real-time sell-through. They’re showing up to line reviews with data that tells a clear story.

These brands haven’t just added an analytics tool. They’ve adopted a culture of visibility, and it’s changing how they plan, react and grow.

Ready to take care of your brand’s data? Learn how SPS Analytics helps beauty suppliers turn data chaos into clarity. Download our quick overview or schedule a demo.

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The cost of inefficiency: how siloed food supply chain data holds you back  https://www.spscommerce.com/eur/blog/cost-of-inefficiency/ Tue, 27 May 2025 00:56:26 +0000 https://www.spscommerce.com/blog/cost-of-inefficiency/ The journey from farm to fork is complex, with food supply chain issues ranging from weather impacts and tariff restrictions to production facility specialization and storage and transport of perishable goods. At every step of the process, inefficiencies or poor information flows raise the risk of costly delays and hamper compliance efforts.

The challenges multiply when critical information is siloed throughout the supply chain.

Successful brands are upgrading information flow with modern technology solutions to streamline operations, maximize efficiency and support scalable growth and compliance.

Why are information silos problematic for supply chains?

When information is restricted between supplier partners or departments, it creates significant pain points, including:

  • Operational inefficiencies: Manual processes (like decentralized order management across different channels that require manual data entry or system integrations not tailored to your unique needs) are both time-consuming and prone to errors. Outdated practices make it difficult for suppliers to scale or adapt quickly to changes in consumer demand.
  • Poor data flow: Limited visibility into inventory levels, product movement and demand forecasts blocks proactive decision-making. When there’s not a timely flow of data across systems, suppliers struggle to make informed choices about production and distribution.
  • Costly delays: Shipping errors, inventory shortages and communication breakdowns can result in delays that impact product quality, food freshness and customer satisfaction. This can not only lead to lost revenue, but damage brand reputation.
  • Compliance challenges: Delays in meeting trading partner requirements – or adapting to changes – can sacrifice revenue and damage relationships. In addition, swift recall compliance requires end-to-end visibility into your supply chain.
  • Financial impact: Siloed supply chains lose you money. Outdated practices, wasted resources and missed opportunities increase operational costs and reduce profitability.

How can technology improve supply chain efficiency?

Modern technology solutions support a seamless, efficient supply chain. Upgrades offer key benefits, including:

  • Process automation: An automated solution like SPS Commerce Fulfillment streamlines order processing, reduces human errors, supports business growth and improves customer satisfaction. It also enhances efficiency via seamless integration with your ERP and can be customized to fit your unique business needs.
  • Improved collaboration: Product data solutions like SPS Assortment can help you keep up with trading partner requirements and update your information without tracking and executing changes by hand.  You’re able to provide the product details trading partners and consumers expect without the hassle of manual processes.
  • Enhanced data flow: When you centralize your data, you can scale processes to work with bigger amounts of data between more users and enable more types of analysis. Timely, accurate data also leads to better forecasting, inventory management and decision-making.

Why traceability is important for food supply chains

While the FSMA 204 compliance deadline may be delayed until 2028, traceability is always top of mind in the food industry. It’s essential for regulatory compliance, food safety and quality control. Technology solutions enable traceability with:

What’s the right supply chain technology for your business?

While your future success may rely on incorporating new technology, it’s crucial to choose the right technology that adds value to your business. Factors to consider include:

  • Scalability: Does the solution grow with your business?  A future-proof supply chain requires technology designed to scale and meet your needs as you grow and evolve.
  • Ease of integration: Can the technology easily integrate with your existing systems? Simplify the update process with solutions that seamlessly connect with your current technology, such as ERP, accounting or inventory systems, and who provide expert assistance to help with the implementation.
  • ROI: Will your investment result in improved efficiency and reduced costs? Successful brands have found that automation tools deliver measurable savings and performance improvements.

Why it’s crucial to move from data silos to connected partners

The costs of siloed supply chains escalate as brands grow. When profit margins are already slim, it’s critical for food and beverage suppliers to rise to the challenge of updating the flow of information with more efficient technology.

Today’s system automation solutions can streamline operations, reduce costs and simplify regulatory compliance, allowing you to build a more modern, collaborative supply chain network.

SPS Commerce is ready to be your partner in building efficient processes for a more agile and transparent supply chain. Connect with our team of experts for the people, processes and technology you need to begin your transformation.

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Smart moves: key inventory management strategies  https://www.spscommerce.com/eur/blog/smart-moves-key-inventory-management-strategies/ Thu, 15 May 2025 14:00:37 +0000 https://www.spscommerce.com/?p=735710 In today’s fast-paced marketplaces, customers expect to get the products they want, when and where they want them.

To successfully meet demand, suppliers need effective strategies to keep and move inventory quickly as well as modern technology that maximizes supply chain efficiency.

Is your inventory management up to speed?

Effective inventory management ensures that the right products are available at the right time and in the right quantities. For suppliers, this reduces carrying costs, minimizes stockouts and improves customer satisfaction.

But if you’re not keeping up with demand, you’re risking both profit and relationships. Consider the following strategies to practice better inventory management.

Decentralize your inventory

A key tactic for strategic inventory warehousing is decentralizing inventory. Instead of storing all inventory in one central warehouse, a decentralized approach spreads it across various locations, often based on geographic distribution of customers.

Decentralization is especially helpful for:

  • Companies with a large geographic footprint: Businesses operating across a wide area with diverse customer bases can have inventory distributed across regions.
  • eCommerce retailers with multiple fulfillment centers: Online retailers can deliver products from warehouses closest to the customer’s location.

The benefits to suppliers include:

  • Reduced lead times and faster delivery: When stock is closer to customers, businesses can fulfill orders quickly and manage high demand in specific areas.
  • Improved service levels: Closer proximity to customers enables suppliers to respond more quickly to demand fluctuations and avoid stockouts.
  • Risk mitigation: Supply chain disruption effects are reduced—if one location is disrupted, other locations can still fulfill orders, minimizing impact on overall sales.
  • Enhanced flexibility: Decentralized inventory allows suppliers to adapt to regional demand variations and customize inventory levels based on local preferences.

Use micro fulfillment centers

Another warehousing strategy to consider is the use of micro fulfillment centers (MFCs).

A MFC is a small, automated warehouse that stores and ships online orders. MFCs are often located near customers to reduce delivery times and costs.

The benefits of MFCs for suppliers include:

  • Proximity to customers: Strategically locating near urban centers reduces delivery distance and time, enabling faster order fulfillment and delivery.
  • Automation: Using technologies such as robotic picking and conveyor belt systems streamlines order processing, reduces labor costs and increases order accuracy.
  • Scalability: MFCs can be scaled up or down based on demand. During peak seasons, additional MFCs can be activated to handle increased order volumes.
  • Cost efficiency: Reducing the need for large, centralized warehouses and long-distance transportation can lower overall supply chain costs.

Maximize inventory delivery

Today’s consumers expect fast and reliable delivery with every product purchase. Key strategies for suppliers to enhance delivery speed include:

  • Efficient warehousing: Ensure warehouses are well-organized and equipped with technology to streamline the picking, packing and shipping processes, including a fulfillment solution that upgrades manual EDI processes.
  • Advanced logistics: Use advanced logistics solutions, such as route optimization software and transportation management systems (TMS), to help optimize delivery routes, reduce fuel consumption and minimize delivery times.
  • 3PL collaboration: Partner with third-party logistics (3PL) provider for expertise, infrastructure and resources that can help suppliers meet delivery expectations.
  • Last-mile delivery innovations: Consider innovations such as drones, autonomous vehicles and crowd-sourced delivery services to improve last-mile delivery efficiency.

Optimize efficiency with technology

Using technology that provides real-time information enables suppliers to make informed inventory decisions. Solutions to consider include:

  • Demand forecasting: An analytics solution enables accurate demand forecasting to allow suppliers to predict future sales and adjust inventory levels accordingly.
  • Real-time inventory tracking: Technologies like RFID and IoT sensors can improve inventory visibility and accuracy and provide up-to-date information on stock levels.
  • Automated replenishment: Replenishment systems trigger orders when inventory levels fall below a set threshold to ensure continuous supply and reduce stockouts.
  • Inventory optimization: Techniques such as ABC analysis and just-in-time (JIT) inventory prioritize high-demand products and reduce excess inventory, while centralized fulfillment operations give better visibility into demand.

Best practices and better technology keep your inventory on the move

When you take stock of your current inventory management strategies, embrace new tactics and integrate key technology, you can improve your supply chain efficiency to meet customer demands and maximize your sales and profits.

SPS Commerce is ready to support you with the tools and expertise needed to simplify your day-to-day operations, unleash the power of data insights and grow your business.

To learn more about how to improve your business processes and drive your business success, contact us to begin the process.

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How manufacturers can eliminate the stress of frequent change https://www.spscommerce.com/eur/blog/how-manufacturers-can-eliminate-the-stress-of-frequent-change/ Thu, 01 May 2025 09:57:56 +0000 https://www.spscommerce.com/?p=735703 Think of a house of cards. Each piece that you add to the tower plays an extremely important role in supporting the others, but the failure of one always leads to a total collapse. You can view suppliers and their relationship with manufacturing partners in a very similar way.

Suppliers play a major role in the supply chain for manufacturers, providing raw materials and different components necessary for manufacturing. However, there are plenty of challenges that can arise, often affecting their supply chain partners in a detrimental way. When these challenges arise—oops! The house of cards topples, and manufacturers don’t have what they need to make and send out their products on time.

Manufacturers depend on their suppliers’ stability, but frequent changes are the culprit of manufacturing obstacles. Luckily, there are easy ways to identify and mitigate these risks before they become overwhelming.

What’s driving frequent changes

When one supplier can’t hold up their end of the agreement, all other supply chain partners are impacted as the order changes to accommodate adjustments.

There are always changes in the supply chain that are expected, including weather-related issues or global import/export delays that slow down order fulfillment. However, there are several trends that drive increased risk for changes that affect supply chain stability.

Some factors that have increased frequent changes in the supply chain are:

COVID-19: Since 2020, the pandemic has had cascading effects on global supply chains and material availability. Whether it’s a personnel shortage or delayed freight lines, the effect of COVID-19 is still creating obstacles in the supply chain.

Geopolitical conflicts: Conflict creates disruptions that trickle down, affecting material sourcing and transportation routes.

Rapid inflation: As inflation rises, supplier costs and raw material prices increase. Some supply chain partners may need to make decisions that affect their partners upstream or downstream, such as halting production or changing the product materials.

Vendor diversification and collaboration are critical

How can we combat the negative effects of frequent supply chain changes? Vendor diversification and stronger partner collaboration are the answer.

The risk of supply chain changes is simply too important to ignore; if you’re missing a crucial manufacturing component, you can’t produce. Spend time investing in your suppliers to ensure you’re working with reliable, trustworthy partners.

It’s also crucial to diversify your vendors to have effective risk management practices. This way, if one supplier fails, you have a backup option. It can be tempting to wait until you need a new vendor, but by having another one on hand, you’ll have options when you’re missing a critical material for production, saving you the hassle of delays (and not to mention, a lot of money).

Spreading business across multiple suppliers helps manufacturers:

  • Minimize reliance on any single source.
  • Enhance supply chain resilience to better withstand unforeseen challenges.
  • Reduce vulnerability to disruptions.

Strategies for supply chain disruption mitigation

The key to mitigating supply chain disruptions and frequent changes is agility. Being agile in your supply chain processes means you always leave yourself with plenty of options when an alternative solution is needed. Some strategies for agility:

  • Regular assessment and expansion of your supplier base.
  • Implementation of vendor quality measures and monitoring systems.
  • Establishment of contingency plans for quick adaptation to supplier changes.

Additional steps manufacturers can take to enhance supplier collaboration:

Improve your data transparency and timely communication

Enhance visibility into orders and inventory. Leverage technology that can provide real-time data to better communicate with your suppliers and ensure everyone is on the same page. More transparency can also help identify potential issues faster, and you can address them before they escalate into larger problems.

Effective communication channels significantly reduce delays that are caused by misunderstandings or a lack of information.

Automate procurement processes

Automated procurement processes help you avoid reliance on manual methods like paper, email and phone-based updates, which are manual and time-consuming. By introducing automation, you can save time while avoiding delays and errors.

Automated systems ensure that order updates and inventory levels are promptly communicated, allowing faster and more accurate decision-making. Automation can also play a huge role in invoice entry and reconciliation.

Alleviate the stress of frequent changes

It’s a good time to evaluate your existing processes and learn how you can improve your agility and collaboration to strengthen your supply chain. Prioritize vendor diversification and automated procurement to boost your confidence in disruption preparedness. Remember: a resilient supply chain is the key to success.

If you would like to learn more about the possibilities for optimizing your supply chain, please contact us.

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The importance of effective demand planning https://www.spscommerce.com/eur/blog/importance-of-effective-demand-planning/ Tue, 19 Nov 2024 21:35:42 +0000 https://www.spscommerce.com/blog/importance-of-effective-demand-planning/ Just as an orchestra requires each instrument to work harmoniously, effective demand planning is key to a manufacturer’s ability to produce quality products efficiently. Missing one element? Challenges will arise.

What is demand planning?

Demand planning is a process that manufacturers can implement into their supply chain to predict upcoming demand for certain products. Manufacturers use this gathered information to adjust output, balance inventory levels and ensure customers receive their products when they want them.

It involves the orchestration of all resources, schedules and workflows that are necessary for manufacturing products. Each element must operate in harmony to achieve true efficiency.

The key components of demand planning

  • Demand forecasting: Anticipate customer demand to determine the necessary materials and equipment.
  • Scheduled production runs: Coordinate labor and production timelines to ensure timely delivery of products within budget.
  • Data accuracy: Ensure data is accurate to meet constantly moving targets and remain agile in the supply chain.
  • Long-term planning: Begin planning, sometimes up to a year before sales will occur. Often, manufacturers work on a 90-day rolling calendar that accounts for regular “resets.”
  • Retailer resets: Retailers typically finalize their “reset” strategies for planogram teams several months in advance. Be ready for December before September begins.

Demand planning challenges

As with any supply chain process, there are a few challenges that can arise, including inaccurate forecasting and trouble adapting to changes.

Inaccurate forecasting: Poor demand forecasting can lead to either overproduction or stockouts, disrupting the entire supply chain.

Adapting to change: Difficulty in adjusting plans to align with real-time data and market fluctuations complicates the planning process.

Strategies to improve demand planning

As the importance of demand planning becomes more evident, many brands are taking steps to prioritize the process. There are a few strategies that manufacturers can use to improve their demand planning practices.

Data-driven decision making

Relying on accurate sell-through and sell-in data allows brands to evaluate performance across key accounts and product lines. Data accuracy is essential for building trust and guiding strategic decision-making.

Leverage market insights

Access to comprehensive market and industry data helps brands identify growth opportunities and challenges, enabling them to stay ahead of competitors.

Enhance planning and forecasting

Streamlined processes, such as item setup and demand planning, remain crucial as brands move into 2025 and beyond. Developing effective forecasting skills is vital for profitability and operational efficiency.

Optimized data integration

Close collaboration between technology and business development teams is necessary for seamless data integration across internal systems. This alignment allows for quick, informed decisions on inventory management, procurement and replenishment, driving better business outcomes and supporting brand growth.

Get started with better, strategic demand planning

Demand planning is a dynamic and complex process that requires careful orchestration and constant adaptation to succeed. By leveraging data-driven strategies, market insights and effective collaboration, manufacturers can enhance their demand planning capabilities and navigate the challenges of the ever-evolving marketplace.

To learn more about how to implement demand planning into your supply chain, discover the Manufacturing Supply Chain solution from SPS Commerce.

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How to combat production delays with a supply chain solution https://www.spscommerce.com/eur/blog/how-to-combat-production-delays-with-a-supply-chain-solution/ Tue, 19 Nov 2024 18:45:07 +0000 https://www.spscommerce.com/blog/how-to-combat-production-delays-with-a-supply-chain-solution/

No one likes waiting, especially when it comes to getting your products to your customers on time. Unfortunately, production delays are sometimes inevitable. These delays create a ripple effect, disrupting schedules and customer shipments. Missed shipments can affect customers’ deadlines, impacting revenue and their relationships with trading partners. Production delays can stem from too much downtime after an equipment breakdown or a lack of necessary materials, leading to major inefficiencies.

While these delays may be inevitable, there are still steps manufacturers can take to reduce the frequency or effects of production delays. Reducing production delays boosts productivity, customer satisfaction and savings.

What causes delayed production?

When you’re working with many partners within a multi-faceted supply chain, there are always going to be elements that are outside of your control. It’s important to understand how and why unexpected obstacles can cause production delays.

Stockouts

Missing any necessary raw materials? Expect production to halt, which leads to bottlenecks and longer lead times. When you don’t have access to every single material you need, you can’t make your product and will need to reconsider your re-ordering process and lead time.

Supplier delays and supply chain disruptions

Up to 70% of supply chain issues occur pre-shipment. Raw material shortages, transportation issues and late supplier deliveries can all have a ripple effect across all aspects of the supply chain. When this happens, rescheduling production runs can really extend the amount of time to customer delivery.

One beverage supplier uses the example of a four-week window. If they don’t have everything they need to stage and run the line, they miss their production window and are delayed an extra four weeks until their next scheduled run.

Lack of transparency and timely communication

Many manufacturers lack visibility into their orders and inventory. Without real-time data and effective communication with partners, production planning becomes a challenge. Timely updates on inventory levels and order status are crucial for avoiding bottlenecks and delays and ensuring smooth operations.

Labor shortages

Since 2020, finding skilled workers to run manufacturing equipment has been a challenge. Production often gets delayed because there aren’t enough staff to operate lines and/or machinery. Without these skilled workers, there’s no one to ensure products are able to be made.

Recently, many companies have reported plenty of job openings they have been trying to fill, further supporting the claim that there is no job shortage but merely a labor shortage.

Equipment malfunctions

Equipment malfunctions are bound to happen, especially when working with aging machinery and maintenance. Even if you have the right parts and personnel, repairs may be easier, but any lapse in production still causes delays. Of course, the sooner these repairs can be made, the better.

Poor planning and forecasting

Demand planning and forecasting isn’t a science—it’s an art. When there’s misalignment between demand forecasting and production capacity, companies may need to juggle their schedules to ensure products go out on time. A lack of planning will always catch up to manufacturers.

What are the effects of delayed production?

Delayed production is more than just an annoying setback. It can be detrimental to a business, especially when they value customer experience and vendor partnerships. It can also have a major impact on your business’s bottom line.

There are many effects of delayed production that you may not realize, including:

  • Increased costs: employee overtime, expedited shipping fees and penalties for missed deadlines.
  • Customer dissatisfaction: loss of business and damaged relationships.
  • Supply chain backlogs: cascading delays that affect the entire production and supply chain.
  • Negative impact on competitiveness: risk of losing market share to more agile competitors.
  • Damaged partner relationships: unhappy vendors may choose to halt business with your company.

How can I combat delayed production effects?

While you can’t predict the future, you can prepare for it. With strategies from your supply chain partner, you can take a few steps that lead you in a more positive direction when the next production delay occurs.

Optimize your supply chain management

Build stronger relationships with reliable suppliers to mitigate the risk of delays. Diversify your supply sources, so you have other options if the delay originates on their end.

Implement predictive maintenance

Integrate new technology for proactive maintenance to reduce equipment downtime. When you can see that equipment will need to be updated soon, you get ahead of any delays.

Stronger workforce training and flexibility

If your workers are cross-trained to adapt to production shifts, you can minimize delays. Promoting flexible employees can help when things start to go in an unexpected direction.

Automate purchasing and procurement processes

Avoid relying on paper, email and phone-based order updates, which are slow and open up room for error. When you have the right visibility into your supply chain, you can assess and pivot quickly.

Ready to get ahead of the next production delay?

By being well-prepared with a plan for procuring and managing materials, you can ensure that you have the supplies they need when you need them. Avoid production disruptions caused by material shortages and keep production costs down by mitigating the need to expedite shipments or make last-second arrangements.

Learn more about Manufacturing Supply Chain solution, the SPS Commerce solution for those involved in the manufacturing supply chain. Plus, read through the rest of the blog series for Manufacturing Supply Chain, with How manufacturers can eliminate the stress of frequent change, The importance of effective demand planning and A comprehensive overview of business manufacturing problems.

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Micro-seasons are reshaping grocery retail https://www.spscommerce.com/eur/blog/micro-seasons-are-reshaping-grocery-retail/ Tue, 19 Nov 2024 17:06:23 +0000 https://www.spscommerce.com/blog/micro-seasons-are-reshaping-grocery-retail/ The aroma of cinnamon-spiced lattes wafts through grocery aisles in August. Heart-shaped chocolate displays appear just as New Year’s resolution shoppers reach for their protein shakes. Welcome to the new era of grocery retail, where every day is a potential food holiday, and traditional seasonal peaks are just the beginning of a year-round celebration of flavors.

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.

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4 supplier collaboration strategies that boost retail brand loyalty https://www.spscommerce.com/eur/blog/4-supplier-collaboration-strategies-boost-loyalty/ Thu, 31 Oct 2024 20:21:26 +0000 https://www.spscommerce.com/blog/4-supplier-collaboration-strategies/ Brand loyalty isn’t what it used to be. Customer expectations are increasing by 30% annually, according to brand researchers. Loyalty hinges on creating emotional connections that bridge the gap between customer expectations and experience. Through these emotional connections, top-performing retailers consistently outpace their competition.

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.

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