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Outdated workflows are what keep many operations from reaching true supply chain efficiency.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

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.

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

How does it work?

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

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

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

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

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

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

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

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

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

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

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

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.

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.

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

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

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

Keep it clean: ethical sourcing and sustainable practices

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

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

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

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

Provide clear information: safety through traceability

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

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

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

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

Be proactive: effective recall management

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

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

Key strategies for a proactive recall include:

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

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

Authentic transparency builds success

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

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

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

But challenges like global supply chain complexity, evolving regulations, economic uncertainty and consumer demands for sustainability and transparency require continual adaptability to stay competitive.

Read on for an overview of the issues and key strategies to build a healthy and sustainable supply chain.

What are the obstacles to growing a high-performing food supply chain?

Food and beverage industry suppliers face several key challenges to building a healthy, profitable supply chain.

Global supply chain complexity​:  Global supply chains are vulnerable to disruptions, including:

• Environmental stressors – From heat waves decimating cocoa bean yields to hurricanes flooding peanut fields, food suppliers are at the mercy of environmental factors affecting the availability and cost of raw materials.
• Geopolitical tensions – Conflicts, labor strikes and policy shifts can disrupt key trade routes and impact the global supply chain.
• Transportation issues – Shipping delays from port congestion, accidents or labor disputes can put perishable goods at risk of decreased shelf life or spoilage.

Regulatory compliance​: Complying with regulations in a complex supply chain is a continuing challenge, as regulations continually evolve and can vary by region.

• FSMA 204 – By January 2026, suppliers must comply with the US Food Safety Modernization Act (FSMA), section 204 and provide traceability records for products on the Food Traceability List in the event of a recall.
• EUDR – The European Union Deforestation Regulation (EUDR) requires extensive supply chain traceability, including geolocation data for production areas. Initially set to take effect on Dec. 30, 2024, it was recently postponed for 12 months.
• ESG – Retail trading partners may have required standards for company practices that impact the environment, society and corporate governance (ESG).

Economic uncertainty: Years of high inflation have reduced demand for certain products and made consumers especially wary of price increases. With margins already slim, food and beverage suppliers may struggle to turn a profit as costs rise.

• Tariffs – Food products are especially vulnerable to tariffs because they’re both perishable – unable to be stockpiled – and not easily sourced from alternate producers, especially for products that require specific climates. Import-heavy sectors such as fresh produce have little ability to prepare or respond to tariffs. Even for domestically produced food, key ingredients and packaging materials may be produced elsewhere and subject to import tariffs.
• Shrinkflation – While other industries raise prices, food and beverage companies sensitive to inflation-wary consumers often cut costs through smaller portion sizes or ingredient changes – an increasingly unpopular practice.

Consumer and regulatory demands for sustainability​​: Consumers increasingly demand sustainability, ingredient transparency and reduction of food waste. But challenges include:

• Achieving sustainability targets without increasing costs
• Adapting to shifting environmental regulations across regions
• Minimizing waste while maintaining product quality

Digital transformation obstacles: Suppliers may need to invest in technology upgrades to remain agile and efficient. A common roadblock to improved supply chain agility is difficulty managing and analyzing data. Suppliers need actionable data, but often struggle with:

• Translating data pulled from multiple retailers and channels into a single source
• Analyzing data for clear and actionable insights and accurate demand forecasting
• Using data to improve collaborative planning and trading partner relationships

How to overcome supply chain challenges

Solutions for building a more agile and responsive supply chain in the food and beverage industry include technology adoption, innovation and strategic sourcing strategies.

Technology integration: Modern supply chains integrate technology into order-to-cash processes, along with data analytics for demand forecasting, reporting tools for sustainability and even revenue recovery. Ideally, these systems seamlessly connect to your existing ERP, WMS and TMS tech stack.

• Process automation – Routine tasks such as order processing can be automated with a fulfillment solution  to respond faster to changing conditions, reduce disruptions and improve supply chain resilience.
• Data transparency – Real-time supply chain visibility allows better product tracking to identify potential issues before they lead to spoilage.
• Efficient inventory management – Real-time inventory updates and automated inventory alerts reduce spoilage and stockouts and support just-in-time inventory strategies to optimize storage and reduce waste.
• Data analytics – Access to more complete and accurate retail sales and inventory data enables more informed decision-making, efficient inventory management and accurate demand forecasting for a more transparent and responsive supply chain.
• Demand forecasting – Predictive analytics and data-driven tools can be used to better align production schedules and inventory with consumer demand, mitigating risks of stockouts or overstocks, forecasting trends and potential disruptions.

Technology innovation: Evolving consumer and trading partner demands require specialized tools to meet reporting standards, while other tools offer opportunities to maximize your revenue.

• Reporting tools – Whether your trading partners require emissions data or you want insights to improve sustainability, Optera and SPS Commerce can help you demonstrate your commitment to sustainability.
• Revenue recovery – For suppliers working with top retailers,  automated tools can diagnose and track deductions, analyze revenue recovery and maximize revenue.

Adaptive sourcing strategies: A resilient supply chain can remain agile when necessary. While this may be especially difficult in the food and beverage industry, a single-source supply chain is a known risk, and especially prone to disruptions. It may be worth considering:

• Supplier diversification – In volatile markets, diversify globally to mitigate the impact of regional disruptions while balancing the strengths of various regions.
• Nearshoring – If possible, prioritize local sourcing if it cuts costs and the risks of import tariffs.  Regionalizing production also reduces transportation times and costs, supports regional economies and addresses sustainability goals.
• Timely field insights – Use predictive analytics to identify emerging risks and opportunities more effectively, so you can adjust procurement decisions as disruptions occur without derailing your operations.

Look to knowledgeable partners to navigate challenging times

Building and maintaining a healthy supply chain requires proactive steps to address key issues and mitigate potential risks. Success requires not just efficiency, but resilience and the ability to adapt.

SPS Commerce is ready to help you build a more robust and adaptable supply chain. We provide the people, processes and technology you need to streamline your processes and not only survive challenging times but continue to thrive.

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.