What is supply chain management?

Supply Chain Management refers to the oversight and coordination of all activities involved in moving products from raw materials to end users. This includes planning, purchasing, manufacturing, logistics, and distribution. At SPS Commerce, we view SCM as more than just a logistical function – it’s a strategic process that fosters collaboration between businesses and their trading partners.

The ultimate goal of SCM? Delivering value to the customer. By streamlining operations, businesses can reduce costs, improve efficiency, and create more responsive and customer-centric supply chains.

The core principles of Supply Chain Management

To build a successful supply chain, businesses need to embrace several foundational principles:

1. Managing supply and demand

An effective supply chain starts with understanding and predicting customer needs. Leveraging data and analytics is key to optimizing inventory levels, minimizing waste, and ensuring products are available when they’re needed.

For example, predictive analytics can help businesses anticipate seasonal demand fluctuations, identify trends, and make informed decisions about stock replenishment.

2. Efficiency and speed

Efficiency goes beyond cost savings. It’s about eliminating bottlenecks, reducing lead times, and ensuring products are delivered faster and more reliably.

Companies that prioritize process improvements – such as automating workflows or optimizing transportation routes – can achieve significant reductions in delivery times while keeping costs under control.

3. Cooperation and transparency

Strong relationships with trading partners are the foundation of successful supply chains. Transparent communication and collaboration enable companies to share insights, address challenges proactively, and align their goals.

Technologies like Electronic Data Interchange (EDI) facilitate seamless data sharing and reduce the risk of errors, enabling smoother transactions and stronger partnerships.

4. Flexibility and agility

In today’s fast-changing world, agility is essential. An agile supply chain allows businesses to adapt quickly to disruptions, such as natural disasters, pandemics, or shifts in consumer preferences.

By implementing adaptive strategies – such as diversifying suppliers or investing in scalable technology – companies can remain resilient in the face of uncertainty.

Trends and challenges in SCM

The world of SCM is constantly evolving, driven by technological advancements and shifting consumer expectations. Here are some key trends shaping the industry:

• Sustainability: Environmental concerns are driving businesses to adopt green initiatives, from eco-friendly packaging to carbon reduction strategies. Sustainable practices not only benefit the planet but also appeal to eco-conscious consumers.
• Risk management: Disruptions like pandemics, geopolitical tensions, and cyber threats have highlighted the importance of proactive risk management. Businesses are investing in contingency plans, diversifying suppliers, and leveraging technology to mitigate risks.
• Data-first strategies: The rise of big data and advanced analytics is transforming SCM. Companies are using data-driven insights to optimize operations, predict demands, and enhance decision-making.

The key to a successful supply chain

Supply Chain Management is more than just moving goods; it is a strategic process that drives business success in a competitive marketplace. By embracing the fundamentals of SCM – such as efficiency, transparency, and agility – and leveraging technology, companies can build resilient and customer-focused supply chains.

At SPS Commerce we specialize in helping businesses optimize their supply chains through innovative solutions and collaborative partnerships. Whether you’re looking to streamline operations, improve inventory management, or embrace sustainable practices, we’re here to help.

Ready to take your supply chain to the next step? Contact us today to learn more about how SPS Commerce can support your business goals.

With an electronic data interchange (EDI) solution, you can electronically transmit documents such as orders, inventory updates, shipping notices and invoices. This not only eliminates time-consuming data-entry tasks and automates your order processes but also helps you support more clients and more retailers without adding operational strain.

But what about your customers who aren’t set up to use EDI?

If you’re like many suppliers and 3PLs, you work with a mix of retailers and clients who still send orders by PDFs, spreadsheets, emails and attachments.

Managing orders from non-EDI customers can be a step backwards into the inefficiencies of manual workflows. You have higher operational costs and an extra layer of difficulty when it comes to scaling and growing your business. Manual entry slows down receiving, creates downstream errors and adds cost to every order you handle.

There’s a better way.

SPS Commerce PDF Order Automation is the key to seamlessly processing non-EDI orders across your entire network, reducing effort, eliminating errors and enabling faster, more reliable fulfillment.

Navigating non-EDI order hassles

Once you’ve experienced smooth EDI order processing, the challenges of handling non-EDI orders feel even more painful, especially in a warehouse environment where every minute matters:

• High operational costs: Manually entering orders into your system costs you both time and resources, driving up cost per order and slowing down the floor, especially during peak volume.
• Errors and delays: The fallout of mis-keyed data for your business can be picking mistakes, incorrect shipments, chargebacks, damaged client trust and missed SLAs.
• Limited scalability: The more your business grows, the more manually processed PDFs and emails simply cannot keep pace with client onboarding or seasonal volume spikes.

Outdated workflows are what keep many operations from reaching true supply chain efficiency.

Transforming non-EDI orders with automation

When you manage your EDI processes with SPS Commerce Fulfillment, you already have access to 400+ pre-built system integrations for ERP, OMS, WMS solutions and more.

Our PDF Order Automation uses your existing Fulfillment integrations to map and translate non-EDI orders directly into your EDI workflow. AI-assisted mapping and translation seamlessly integrates your orders into Fulfillment.

With PDF order automation, you can:

• Process all orders through one automated workflow
• Reduce errors and speed up fulfillment
• Handle seasonal or rapid growth without increasing headcount
• Free your CSRs and warehouse teams to focus on strategic and revenue-generating work

As the largest retail network with 4,000+ buying organizations, SPS is uniquely positioned to automate even the most complex, multi-client order channels.

Tackling the accuracy issue: OCR versus AI

You may be wondering how this works or be skeptical about success if you’ve experienced the shortcomings of solutions that claim to automate non-EDI orders with optical character recognition (OCR).

OCR behaves like a scanner: it recognizes characters, not meaning. For 3PLs, where order accuracy determines pick efficiency and shipment correctness, that’s a problem. When an “O” becomes a “0,” your warehouse ends up picking the wrong SKU — and the cost hits your margins.

SPS PDF Order Automation is not OCR. Our solution uses AI, so instead of just reading characters, our system actually understands the structure and meaning of the documents.

Thanks to AI-assisted mapping, our solution also learns how to match the fields in each unique PDF to the fields in your order system.

This proprietary technology extracts data with near-perfect accuracy. This ensures your PDF orders are processed just like EDI orders — precisely, consistently and reliably enough for warehouse execution.

SPS PDF Order Automation delivers the highest level of accuracy and efficiency, eliminating the concerns associated with legacy OCR systems.

Weighing the need: PDF order volume

While PDF Order Automation may seem like an obvious solution for high-volume businesses, it’s also valuable for low order volumes and for warehouses with mixed clients or unpredictable order patterns.

Manual processes for smaller orders still create inefficiencies, errors and unnecessary costs. SPS PDF Order Automation reduces these burdens, providing a scalable foundation that saves time and money now while preparing your business for growth.

Leveling up: now is the time

Automating non-EDI orders isn’t just about saving time—it’s a strategic move that prepares you to move ahead in a competitive market and accelerate your growth. Leading the way with innovative automation helps you better meet customer demands, handle growing order volumes and eliminate costly errors.

Whether you’re an existing SPS customer or just starting your supply chain optimization journey, SPS PDF Order Automation is a reliable, scalable solution that eliminates inefficiencies from your non-EDI workflows and prepares your warehouse for the future.

Non-EDI orders don’t have to slow your business down. Automating these workflows enables you to process orders faster, reduce your costs and focus on your business goals.

Ready to eliminate manual PDF orders? Talk to a rep to see how PDF Order Automation fits into your operations.

That shift is powerful. But it’s also putting new pressure on the retail supply chain. 

What is social commerce?

Social commerce refers to the direct buying and selling of products through social media platforms. It blends social interaction with online shopping, giving consumers a seamless experience from product discovery to purchase—all in one place. 

And while it’s creating massive opportunities for retailers, it also introduces complexity behind the scenes. 

Why social commerce creates supply chain pressure

Social commerce demands speed, accuracy and a unified customer experience across every channel. Here are just a few of the challenges that come with it: 

• Disconnected systems can lead to poor customer experiences. Without strong integration between your sales platforms and back-end systems, it’s easy for orders to fall through the cracks. 

• Inventory must be unified and real-time. If customers see a product is available, it needs to be, no matter where they’re shopping. 

• Timely fulfillment is non-negotiable. Social commerce is driven by impulse purchases. If delivery is slow or inconsistent, that impulse turns into disappointment. 

• You need partners you can count on. Whether you work with 3PLs, manufacturers or suppliers, your trading partners must be aligned and integrated to help you move at the pace your customers expect. 

How SPS Commerce can support your growth

At SPS Commerce, we take the complexity out of modern retail. Our full-service EDI and system integration solutions connect your systems, synchronize inventory and automate communication with trading partners. 

More than 50,000 subscribing customers across the globe rely on us to create streamlined, scalable supply chains. Whether you’re a growing brand or a large retailer, you can count on SPS to help you deliver the right product, to the right place, at the right time. 

Social commerce isn’t slowing down. With the right technology and supply chain strategy, you won’t just keep up, you’ll stay ahead. 

What is Managed EDI?

Managed EDI is a model where an external service provider is responsible for managing some of your EDI activities. This means you don’t have to do everything yourself, but still retain some involvement. Support from the service provider may include:

• Configuration and Settings: Assistance with initial setup and configuration of the EDI system, tailored to your business processes.
• Monitoring and maintenance: Active monitoring of EDI transactions, with support for any disruptions or errors.
• Support and updates: Technical support and regular updates to keep the system secure and current.

What is Full-Service EDI?

Full-Service EDI goes one step further than Managed EDI. In this approach, an external service provider takes full responsibility for all your EDI activities. This means you are completely unburdened, from technology to communication with trading partners. A Full-Service EDI solution consists of seven interrelated components that ensure smooth, secure and efficient data exchange.

1. Technology

Technology is the foundation of any Full-Service EDI solution. This includes the software, hardware and infrastructure required to process EDI transactions. Thanks to advanced systems, you benefit from:

• Reliability: Stable performance and minimal downtime.
• Scalability: Grows effortlessly with your business and number of trading partners.
• Security: Strong security measures to protect sensitive data.

2. Trade partner expertise

A successful EDI implementation depends on effective management of your trading partners. Full-service providers offer in-depth expertise in this area, including:

• Partner onboarding: Connecting new trading partners quickly and efficiently.
• Complaince: Ensuring that all EDI messages meet the specific requirements and standards of each trading partner.

3. Design and configuration

In addition, designing and configuring the solution based on a company’s specific needs is an essential part of Full-Service EDI. This includes:

• Customization: Customize EDI workflows and processes to integrate with your existing systems.
• Optimization: Identify the most efficient ways to send and receive data.

4. Trading partner communication

Communication with trading partners is essential to the smooth operation of EDI. Full-Service EDI solutions provide:

• Automated Messages: Automate the sending and receiving of EDI messages to minimize human error.
• Real-time updates: Instant notifications and updates on the status of EDI transactions.

5. Testing and launching

Before your EDI solution goes live, thorough testing and a well-planned launch is essential. This includes:

• Test scenarios: Thorough testing to ensure that all EDI transactions are processed correctly and error-free.
• Go-live support: Live support to quickly resolve any issues.

6. Proactive monitoring and analysis

A key benefit of Full-Service EDI is the proactive monitoring and analysis of your EDI activities. This ensures:

• Real-time monitoring: Continuous monitoring allows any problems to be identified immediately and resolved quickly.
• Analysis and reporting: Regular reports and in-depth analysis provide valuable insight into the performance and optimization opportunities of your EDI environment.

7. Continued access to resources

Support continues even after implementation. Full-Service EDI service providers provide continued access to knowledge and resources so that your organization continues to perform optimally. This includes:

• Customer support: 24/7 support for questions, incidents or technical problems.
• Training and education: Regular training and updates to keep your team familiar with the latest EDI developments and best practices.

Comparison of Managed and Full-Service EDI

Now that it’s clear what Managed and Full-Service EDI mean, we’ll look at the key differences between the two options. We compare cost, control and flexibility, and level of support and expertise – so you can determine which approach best suits your organization’s needs.

Costs

Managed EDI can seem more economical at first glance, because you only pay for specific services when needed. Full-Service EDI requires a higher investment, but in return you get a total solution with proactive support, less risk of error and more time savings – which often translates into higher efficiency and lower operating costs in the long run.

Control and Flexibility

Managed EDI offers more direct control by outsourcing only parts of your EDI processes. With Full-Service EDI, an experienced partner takes the entire process off your hands. This means less worry, less internal workload and more space to focus on your core business – while relying on a reliable and flexible EDI solution.

Support and expertise

Managed EDI requires some in-house knowledge, as you remain responsible for certain processes yourself. Full-Service EDI, on the other hand, offers continuous support from specialists, allowing you to benefit from extensive expertise without having to have it in-house. This is ideal for companies that want to be unburdened and assured of professional handling.

What fits your business?

Whether you choose Managed or Full-Service EDI, the most important thing is to choose a solution that fits the scale, complexity and requirements of your business. At SPS Commerce, we like to think with you to find the best-fit approach. With our advanced EDI solutions, we help your business operate more efficiently and grow further. If you would like more information, please contact us.

The gap between customer expectations and operational reality

Modern consumers expect instant availability, error-free deliveries and real-time updates. But while the front end of retail is becoming increasingly digital and customer-centric, the back end of the operation is often stuck in Excel lists, emails and outdated systems. Order management is rigid, inventory management is based on assumptions, and the customer experience ultimately suffers as a result of this blind spot.

The root of the problem: fragmented information

Many retailers have modern ERP or WMS systems, but these systems are often not or partially integrated with those of suppliers. This creates noise in the ordering process. Stock that is available “on paper” turns out in practice to be delayed, damaged or reserved elsewhere. Orders are incorrectly estimated or adjusted too late, and the customer has to deal with back orders or incorrect delivery times.

The solution is in digitization with suppliers

It is time that we organize supply chain digitization not only within our own walls, but rather extend it to our suppliers. Through EDI integrations or supply chain collaboration platforms, retailers can involve suppliers in the order process in real time. Consider:

• Real-time inventory updates from suppliers in your own system
• Automatic order confirmations and delivery forecasts
• Track & Trace of shipments from the moment of production
• Digital performance monitoring of suppliers

These forms of integration not only provide more control, but also a more proactive approach: deviations are spotted early so that quicker action can be taken.

The bottom line: better customer experience and more efficient operations

Through digitization on the supplier side, retailers not only increase delivery reliability, but also reduce failure costs, returns and excess inventory. Moreover, promises to customers can be based on actual data instead of estimates. And that makes all the difference in a market where customer experience has become the competitive advantage.

In conclusion

Retailers who want to operate in a truly customer-centric way must invest not only in the front end, but also in the back end of their operations – and especially where it is currently least visible: at the supplier. Supply chain digitization does not stop at the front door. Only when we digitally connect the entire chain can we speak of future-proof retail.

What is EDI and how did it originate?

Electronic Data Interchange (EDI) is a standardized method of exchanging business documents between different organizations. Instead of using paper documents or e-mails, EDI allows companies to exchange electronic documents such as orders, invoices and shipping notices automatically and securely.

EDI originated in the 1960s and 1970s as a way for companies to exchange data more efficiently. In the early years, it was mainly large companies and government agencies that used EDI to standardize and automate data exchange. The development of standardized formats, such as ANSI X12 and EDIFACT, allowed EDI to be widely implemented across industries, including retail, manufacturing and logistics. Over the years, EDI has evolved and been refined, making it a reliable and efficient method for managing business processes and improving collaboration between trading partners.

The benefits of EDI

EDI offers numerous benefits for companies that value efficiency and accuracy. Here are some of the key benefits:

• Cost savings: Using EDI eliminates the need for paper documents and manual data entry. This reduces the potential for human error and saves on paper, mail and labor costs. In addition, with EDI, businesses can benefit from faster transactions and improved cash flow.
• Improved accuracy: Manual data entry is error-prone. EDI eliminates these errors through automated data exchange, resulting in higher data accuracy and reliability.
• Faster transactions: EDI allows companies to exchange information more quickly and efficiently. This means orders can be processed faster, invoices can be paid faster and shipping information is readily available. This not only speeds up business processes, but also improves customer satisfaction.
• Better relationships with trading partners: EDI promotes collaboration between trading partners by streamlining communication and improving supply chain visibility. This leads to stronger relationships and better coordination between suppliers, distributors and customers.
• Improved visibility: EDI provides a transparent view of the supply chain dor provide real-time tracking and status updates. This visibility strengthens collaboration and enables informed decision-making across departments.

How does EDI work?

EDI works by translating business documents into a standardized format that can be read by computers. These are the main steps in the EDI process:

• Document preparation: Preparing the business documents such as purchase orders or invoices in a standard format.
• Document translation: Using EDI software to translate the documents into a standardized EDI format.
• Document transmission: Sending the translated documents over a secure network to the trading partner.
• Document receipt and processing: The trading partner receives the EDI documents, translates them back to a readable format, and processes them in their own system.

EDI in different industries

EDI is used in numerous industries to improve the efficiency and accuracy of business processes. Here are some examples of how EDI is used in different industries

• Retail: In retail, EDI helps manage the complex supply chain. It automates the exchange of purchase orders, shipment notifications and invoices between retailers and suppliers. This leads to faster inventory turnover, better order accuracy and improved customer satisfaction.
• Healthcare: In healthcare, EDI is used to exchange medical claims, patient data and insurance information. This improves data accuracy, reduces claims processing time and provides better patient care through timely and accurate information exchange.
• Manufacturing: In the manufacturing industry, EDI helps streamline processes such as purchasing, production planning and logistics. It ensures seamless exchange of data between manufacturers, suppliers and logistics partners, leading to improved efficiency, reduced costs and faster turnaround time.
• Logistics and transportation: In the logistics sector, EDI enables electronic exchange of transportation documents such as bills of lading, customs declarations and shipping notifications. This speeds up processing time, reduces paperwork and improves shipment traceability.
• Financial services: In financial services, EDI is used to exchange financial documents such as payment instructions, bank statements and reports electronically. This increases the speed and accuracy of financial transactions and reduces the risk of errors.

How can EDI help your business?

If you want to improve the efficiency of your business by implementing electronic data interchange (EDI), it’s time to discover what EDI can do for you. By moving to automated processes, you reduce the risk of errors, speed up your transactions and save costs.

At SPS Commerce, we understand the value of efficient data exchange. That’s why we offer comprehensive EDI solutions designed to support your specific business needs. We make sure you get the full benefits of EDI, from implementation to daily operation. Contact SPS Commerce today and find out how we can help you improve your data exchange.

Reducing the time from dock to dock is a critical part of their competitive edge, brand promise, and a major focus of company initiatives. Managing the growing complexity of shipping data is vital for carriers that want to work with top shippers, and meeting all of a shipper’s requirements can help carriers stand out as a top choice in a competitive field.

In this blog, we’ll unpack some of the far-reaching effects that load tender response times can have and how they can be improved via the introduction of EDI .

Impact 1: Improved communication

The faster and more consistent communication is between a shipper and a carrier, the more efficiently they can work together. Processes like updating a spreadsheet, keeping notes on a whiteboard or manually logging into multiple portals can significantly slow the load tender response times. That added time means some carriers could be passed over for competitors as shippers search for the fastest options. Speeding up the flow of communication between partners can impact the overall health of a carrier’s business.

The EDI 204 (Motor Carrier Load Tender) helps bridge the gap between shipper and carrier by instantly sending clear, consistent details that are essential to the proper intake for goods as they’re transported from location to location. Using the EDI 204 to accelerate load tender response times can eliminate delays from managing the flow of goods with phone calls or faxes and has the added benefit of reducing manual processes across a carrier’s entire operational footprint.

Impact 2: Centralized access

Carrier businesses are often tasked with juggling multiple portals, logins, and passwords for each shipper. As carriers grow their business, they may find that the time it takes to log into each of these systems individually can become unmanageable across a wide network of partners and affect their relationships as response time increases. If a carrier cannot reliably handle the day-to-day logistics of connecting with partner systems, they may find their growth path limited.

However, some load tender EDI solutions, like SPS for 3PLs Transportation Solution, offer the added benefit of bringing all shipper electronic communication together under a single login, cutting down on the time it takes to coalesce requests, reports, data and details from multiple sources. Centralizing access to all shipper portals at once can prove a significant time—and cost—savings for carriers taking on a greater range of trade partners.

Impact 3: Reduced costs

Labor costs are a huge consideration for carriers, and fluctuations in the availability of OTR personnel plus the rising salaries of office-based employees have transportation businesses searching for ways to reduce bottom line expenses. The added communication efficiency afforded by the adoption of load tender EDI can help businesses cut down on extra hours, but the cost savings go beyond right-sizing carrier workforces.

Load tender EDI solutions can also be integrated with TMS software and other applications to automate operations, saving even more time as processes are completed in the background rather than requiring worker time to finish. And with paperless operations, businesses can cut down on office materials and offer more options for centralized data access, trimming dollars that can add up to significant savings over time.

Impact 4: Added visibility

Carriers that want to deliver an outstanding customer experience pay close attention to the expectations they set with their shippers, but without accurate visibility into transportation and receipt times, carrier companies can misjudge essential timeframes and sacrifice longstanding relationships. Carriers seeking to grow their business by trading with top retailers and suppliers need to be able to communicate in real time and deliver key information to partners when it matters most.

Solutions that offer real-time visibility into shipment status allow all stakeholders to check in on progress and handle any issues proactively. In turn, the added efficiency helps with the planning and scheduling of shipments, allowing carriers to maximize space, workforce and timelines—and that added efficiency is just another example of how carriers are using EDI 204 to save on costs across their entire operation.

As the supply chain grows more complex, load tender response time becomes a critical component of carrier profitability. Driving enhanced efficiency isn’t just a matter of having the right people and processes in place—but having a full-service solution that can help you deliver the requirements, the communications and the tracking that leading businesses need right now.

Want to know more about how SPS can help? See how we help 3rd party logistics companies of every variety deliver incredible customer experiences for everyone in their network.

Faster response times, more training for reps and new customer support channels like chatbots are a few ways carrier businesses have chosen to handle the challenge. Unfortunately, these methods can merely act as a bandage for underlying operational bottlenecks that compromise customer trust. Addressing common inefficiencies at the junctures where shippers interact with carriers can help streamline collaboration and elevate the customer experience beyond the call center.

Here, we’ll unpack how supply chain carriers can improve customer relationships by paying closer attention to operational friction points that can cost them time and money.

#1: Accelerated shipper onboarding

For carriers, speed and agility are core expectations of the business, and they apply to everything from operations to bringing on new customers and partners. Still, many carriers rely on manual, outdated processes that slow down the shipper onboarding process, frustrate clients and hurt the bottom line.

Onboarding is one of the first interactions shippers and carriers have in a working partnership, and a smooth experience sets the tone, builds trust and reduces churn. Plus, a seamless, rapid shipper onboarding process shortens the sales cycle and boosts customer acquisition; carriers that offer faster onboarding stand out. If a shipper has to choose between a carrier that takes months to onboard and one that takes weeks, the decision is easy.

Solutions that automate onboarding can reduce manual data entry, errors and delays — all of which eat up time and devalue the customer experience. Streamlined onboarding makes customers feel prioritized while freeing up internal teams to focus on service delivery rather than administrative firefighting. As carriers evaluate options, they should look to implement fast, repeatable, tech-enabled processes that ensure they can scale partnerships and respond to new opportunities without breaking their workflow.

#2: Consolidated customer portals

Shipper portals give carriers access to new shipment information, documents, invoices, support and more. But as carriers grow, they may find themselves using a variety of disconnected portals across services, regions or business units. That fragmentation can lead to customer experience challenges that hurt both shippers and carriers.

A single, unified portal is easier to maintain and means carriers don’t have to juggle multiple logins, interfaces or support channels. It’s easier for internal and external teams to use and provides a consistent experience, regardless of whether team members are tracking a container or paying invoices. Plus, with a single point of connection, there’s less need for redundant infrastructure and additional support staff, saving the business more money.

As they move forward, carriers should consider adopting a platform that allows them to consolidate access while also enhancing visibility and simplifying operational workflow. Combining efficient data management with other industry-forward benefits like streamlined communication and simplified load acceptance can help carrier businesses further centralize their operations for even greater gains.

#3: Revamped communication

Every shipper has unique needs, data formats, SLAs and integration preferences. While flexibility is valuable, a tangle of shipping requirements can bog down operations and increase costs. On the flip side, ineffectively managing changing requirements can lead to the breakdown of the customer relationship as a whole.

But the pressure of handling the constant demand for information on shipments can’t be ignored. As carriers grow, the manual workarounds and one-off customer setups don’t scale, placing additional demand on internal teams and introducing room for errors. Streamlining how carrier businesses handle the unique requirements of each shipper makes it easier for them to serve more customers without proportionally increasing headcount or cost.

Solutions that automate the communication of critical load data can help growing carriers stay on top of shifting customer requirements without dramatically increasing resources. This means shippers can stay informed about the goods being transported in real time while carriers simplify operational load.

Smoother shipper onboarding, single-point solutions and instant communication can help carriers create a better customer experience as they grow their business.

See how the SPS for 3PLs Transportation Solution helps carriers deliver excellence at every turn with a solution that addresses their toughest operational challenges.

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:

• Data tracking: Automation tools provide accurate tracking of orders, shipments and inventory. When all stakeholders have access to reliable data, it reduces risks and enhances accountability. For optimal visibility for recall preparedness, look for solutions that simplify data collection and standardize traceability processes.
• Swift response: Brands that prioritize traceability can quickly identify the source of quality issues, manage recalls efficiently and build trust with consumers. Businesses can enhance recall readiness with technology that supports accurate documentation.
• Secure record-keeping: Blockchain technology can provide transparency and traceability across the supply chain by creating immutable records of each transaction.

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.

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.