But a significant shift is changing how companies track and identify products throughout the supply chain. 2D barcodes are emerging as the next standard, and they pack dramatically more information into a compact square format. While a UCC-128 shipping label might hold 48 characters of data, a 2D barcode can store thousands of characters, including serial numbers, batch codes, expiration dates and much more.

Major retailers are preparing for 2D barcode adoption, and new industry standards will require point-of-sale systems to accept 2D barcodes globally by the end of 2027. This means businesses across the supply chain must understand how 2D barcodes work and prepare their operations for the transition.

Why 2D barcodes are replacing traditional barcodes

The push toward 2D barcodes comes directly from consumer demand. According to recent research by industry standards body GS1, 77% of shoppers say product information is important when making purchases, and 62% are willing to spend more on products that offer detailed information. Additionally, 79% are more likely to purchase products with scannable codes that provide extra product details via smartphone.

The information consumers want most includes nutrition facts, materials and ingredients, safety information, country of origin, allergen warnings and recall alerts—far more than a traditional 1D barcode can hold.

Consumer pressure has accelerated industry adoption. The transition is already underway, with 2D barcode technology being tested in 48 countries that represent 88% of the world’s GDP. Major retailers are preparing for 2D barcode adoption, and new industry standards will require point-of-sale systems to accept 2D barcodes globally by 2027 under the GS1 Sunrise 2027 initiative.

What are 2D barcodes?

A 2D barcode stores information in two dimensions—both horizontally and vertically.

In contrast, a 1D barcode stores information horizontally.

The most common types of 2D barcodes include:

QR codes are square, pixelated codes you scan with your smartphone. Originally developed in Japan for tracking automotive parts, they’re now everywhere from restaurant menus to marketing materials.

Data matrix codes are smaller, more compact squares often used in manufacturing and healthcare. You might see these on prescription bottles or electronic components.

PDF417 codes are rectangular barcodes that look like tiny bricks stacked on top of each other. These are commonly used on driver’s licenses and shipping labels.

So, is a QR code a 2D barcode? Absolutely! QR codes are the most recognizable type, but they’re just one variety of advanced barcode technology.

How do 2D barcodes work?

2D barcodes work by encoding information in patterns of dark and light squares, rectangles or dots arranged in a grid. Instead of reading information linearly from left to right like traditional barcodes, scanners read 2D codes in multiple directions.

Here’s what happens when you scan a 2D barcode:

1. Pattern recognition: The scanner’s camera or laser identifies the finder patterns (those larger squares in the corners of QR codes, for example) to understand the code’s orientation and size.
2. Data extraction: The scanner reads the arrangement of dark and light modules across the entire code, converting the visual pattern into digital information.
3. Error correction: Most 2D barcodes include built-in error correction, meaning they can still be read even if part of the code is damaged or obscured.
4. Information output: The scanner processes the data and presents it in a readable format, whether that’s a website URL, product details or other encoded information.

How much data can a 2D barcode hold? It varies by type:

• QR codes can store up to 4,296 alphanumeric characters.
• Data Matrix codes can hold up to 2,335 alphanumeric characters.
• PDF417 codes can store up to 1,850 alphanumeric characters.

The massive capacity difference explains why 2D barcodes can include detailed information like batch numbers, expiration dates, serial numbers and even complete product descriptions.

Creating and scanning 2D barcodes

How to create 2D barcodes

Businesses have several options for generating 2D barcodes, depending on their volume needs and technical requirements.

For small-scale needs, online generators offer a simple solution. Search for “QR code generator” or “2D barcode generator,” enter your information (text, URL, contact details) and download the resulting image.

For office integration, creating 2D barcodes in Excel is possible through add-ins or formulas that generate QR codes.

For enterprise operations, businesses choose between dedicated barcode software for bulk creation or integrated solutions that connect with existing supply chain systems. Many companies prefer platforms that generate compliant barcodes and integrate data with trading partners.

How to scan 2D barcodes

Many small businesses begin by using mobile phones to scan barcodes. On an iPhone, open the Camera app and point it at the barcode. A notification will appear at the top of the screen. Tap it to view the information. Most Android phones offer a similar experience.

As a business grows, receiving processes often become more complex. At that point, companies typically move to tablets or dedicated scanners. These devices may be handheld or mounted and are built to handle higher volumes. They also connect directly to ERP or WMS systems, making it easier to manage inventory at scale.

Most modern scanners can read both 1D and 2D barcodes. If you’re using older equipment, look for “2D imaging” or “area imaging” capabilities. Laser-only scanners may not support 2D codes.

Scanner compatibility and technical questions

One of the most common questions businesses ask is: can a 2D barcode scanner read 1D barcodes? The short answer is yes, almost always.

Modern 2D scanners use imaging technology (essentially tiny cameras) that can capture and decode both 1D and 2D barcodes. This means businesses can upgrade to 2D scanning equipment without losing the ability to read traditional UPC codes and other 1D formats.

However, the reverse isn’t true. Traditional 1D laser scanners can’t read 2D barcodes because they only scan in one direction. If you’re still using older laser scanning equipment, you’ll need to upgrade to 2D imaging scanners to read the new barcode formats.

When evaluating scanner upgrades, consider:

• Imaging vs. laser technology: 2D scanners use cameras, 1D scanners use lasers.
• Reading distance and angle: 2D scanners are generally more flexible about positioning.
• Durability requirements: Industrial environments may need ruggedized 2D scanners.

Benefits of 2D barcode technology

2D barcodes provide several key benefits:

• Enhanced traceability: Batch numbers and expiration dates encoded in the barcode improve recall response and inventory management.
• Supply chain transparency: 2D barcodes track detailed product information from manufacturer to consumer.
• Consumer engagement: Shoppers scan products with their phones to access detailed information, reviews, recipes or promotional content from the same checkout barcode.
• Operational efficiency: A single scan captures pricing, promotional details and inventory data, reducing checkout errors and speeding up transactions.
• Regulatory compliance: Pharmaceutical and food industries increasingly require detailed product tracking that 1D barcodes can’t support.
• Better product authentication: 2D barcodes combat counterfeiting and build brand trust through verified information.

The transition to 2D barcodes won’t happen overnight. Businesses need to upgrade point-of-sale systems, update packaging processes and get their supply chain partners ready. But the benefits, from improved food safety to better customer experiences, are expected to drive rapid adoption across retail chains.

Common applications and use cases

2D barcodes are already transforming operations across industries:

Retail and consumer goods: Companies authenticate products, share ingredient information and run promotional campaigns that connect physical products to digital experiences. 2D barcodes on shipping labels consolidate shipment details, item information and receiving instructions into a single scan, providing complete supply chain visibility from warehouse to store.

Healthcare and pharmaceuticals: Medication tracking creates full traceability from manufacturer to bedside, reducing medication errors and meeting regulatory compliance requirements. Healthcare providers can track batch numbers and expiration dates throughout the entire supply chain.

Manufacturing and automotive: Quality control systems track parts throughout complex supply chains and rapidly identify defective components. Production data, batch numbers and quality control information travel with products from manufacturing through distribution, creating complete visibility into the production process.

Food and beverage: Lot tracking systems enable rapid response to contamination issues and provide consumers with detailed sourcing information. Companies can trace products from farm to table, improving food safety and meeting transparency demands.

Electronics and technology: Manufacturers embed serial number tracking, warranty information and anti-counterfeiting measures directly into product labeling. This creates visibility into product authenticity and ownership throughout the device lifecycle.

The future of 2D barcodes

2D barcodes are more than just a technical upgrade. They open the door to entirely new ways for businesses and consumers to interact with products. As scanning technology advances, expect to see:

• Dynamic content: Barcodes that link to real-time information like pricing, availability, or promotional offers
• Personalized experiences: Product scans that deliver different messages or offers based on the user, time, or location
• IoT integration: Barcodes that connect physical products to smart systems for reordering, maintenance, or usage tracking
• Enhanced security: Built-in authentication features that make counterfeiting much more difficult
• Sustainability tracking: Lifecycle data that helps consumers make environmentally responsible choices

2D barcode technology is already in use, and early adopters are seeing strong returns. As momentum builds, businesses that prepare now will be better positioned to take full advantage of what’s ahead.

Getting started with 2D barcodes

The simplest approach involves starting small by creating a 2D barcode for a business website or contact information to test customer response. The barrier to entry is lower than most expect.

Begin by examining current barcode scanning equipment and identifying where 2D barcodes could add value. Try testing 2D barcodes with key processes before expanding across your company.

Organizations worldwide are already implementing 2D barcode technology across their supply chains. Understanding how they work and planning for implementation now positions operations for the transition to this new standard in B2B commerce and product identification.

Scanning for what’s next

2D barcodes give you the detailed data you need: batch numbers for recalls, expiration dates for compliance and serial numbers for authentication. But having this data only helps if you can act on it across all your sales channels.

Ready to put your data to work? Omnichannel fulfillment turns improved data into seamless experiences online, in-store and everywhere customers shop.

For suppliers, adapting to seasonal demands helps you meet retailer expectations and capitalize on market opportunities. And when you align more closely with the demands of your retail trading partners, you can strengthen your relationships and optimize profits.

Read on for key strategies for suppliers to better align with retail seasonal demands.

Collect the data

Before you can plan for the future, you need to know where you’ve been. For suppliers, this means gathering complete and accurate sales and inventory information.

Ideally this would be a simple task—but in reality, suppliers face challenges including:

Limited data availability: If your information has been gathered or tracked with manual processes, or sales and inventory data is siloed in different systems, it’s not only difficult to gather complete information, but also an invitation for error. To ensure your data is clean, accessible and reliable, consider integrating your data into a centralized business platform.

Poor internal collaboration: When departments are siloed, forecasts can be derailed by misaligned goals and initiatives. Implementing Sales and Operations Planning (S&OP)—a monthly sync between marketing, production, inventory management and sales—enables you to coordinate all your business areas with shared goals for more effective forecasting.

Incomplete historical data: Having access to less than three years of historical transaction and inventory information—whether from outdated manual processes, rapid growth or changing personnel—may skew analysis due to sporadic or one-off trends rather than insights that are truly seasonal or situational.

Lack of visibility into retailer data: A true alignment with your retail trading partners requires access to their sell-through data. This not only gives you a better understanding of product demand, but also provides insights into seasonal trends by location, product or customer.

Analyze the trends

Once data has been collected and cleansed, demand planning and forecasting can follow.

Demand planning predicts upcoming demand for products, using the information gathered to adjust output, balance inventory levels and ensure you can fulfill your trading partners’ orders on time and in full without stockouts.

Innovative tools like SPS Analytics can help companies clean and apply market data quickly. To accurately predict needed inventory, analysts can use historical data and current trends to understand demand. With these insights, you can improve allocations and orders to match demand, maximize-sell through and stay on top of trends.

Communicate with your retailers

Including your trading partners in the forecasting process enables you to share your understanding of product demands and align with their business goals. This sharing of data-driven insights not only builds trust in your recommendations but also adds value to your partnerships.

To ensure you remain on the same page, it’s crucial to have reliable, timely communications.

Streamlined communications enable close collaboration with your trading partners and boost forecasting accuracy. EDI solutions with real-time communication channels allow you to consolidate and organize your supply chain and stay ahead of shifting demands.

Work your plan

When you’ve developed a clear picture of seasonal demands through solid forecasting, you can determine the necessary materials and equipment to meet your production goals and schedule production to meet your retailers’ needs.

To keep your forecast plans on track:

Coordinate labor and production timelines to ensure timely deliveries of products that meet retailer demands.

Maintain timely communications to ensure you’re sharing accurate information so you can adjust to meet shifting demands with an agile supply chain.

Reap the rewards, and repeat

When you use data-driven insights to forecast demand, collaborate with trading partners to adjust your production and supply plans, and align with shared goals and timely communications, you can look forward to not only better relationships, but maximized sales and profit.

SPS Commerce can support you with the tools and expertise needed to take advantage of this proven formula for successful demand planning that you can repeat in every season.

To learn more about how to implement demand planning into your supply chain, contact us to begin the process.

RFID technology can boost efficiency in product receiving at distribution centers, enhance inventory accuracy and track theft. Though it’s been around for a while, RFID technology has recently advanced, making it cheaper to implement—and an easier, more viable option for companies.

What is RFID?

RFID technology, or radio-frequency identification technology, is a type of wireless communication used to identify a unique object. It offers a way to uniquely pinpoint data about an object, sending that information back to the RFID reader.

RFID works via a small computer chip that can store tons of information about a singular product. This chip holds unique information, including item number, inventory information, shelf location, color and price.

Some leaders in the retail industry were early adopters of RFID technology, finding that RFID could be a value add to their supply chain when it came to inventory and sales processes. Until recently, however, RFID technology was too complex and expensive for many retailers to fully get on board.

In recent years, RFID technology has become more accessible for many businesses, with a lower cost and simplified implementation. It’s also become physically easier to work with. A chip and antenna that transmit information make up what is called the RFID inlay, which was previously too large to use on many smaller items. RFID inlays have become smaller, which allows them to be used on an expanded group of products, like individual cosmetics or small grocery items.

How is it used in the retail industry?

RFID technology is mainly used in retail for inventory identification and tracking purposes. The computer chip is often used as a ‘replacement’ for printed barcodes. Here’s how it works:

1. Items are tagged with RFID technology.
2. An RFID reader records the item information.
3. The RFID reader stores the item data for inventory, fulfillment, product recalls and selling.

Why do retailers use RFID?

RFID is used for inventory management, fulfillment, selling and more.

Inventory

The biggest benefit of RFID is its inventory management capabilities. Each time RFID data is scanned, its product location is stored, keeping that information up to date in real time.

Fulfillment

Many retailers have a problem with shipments getting lost or stolen between their distribution center and delivery. With RFID technology, a product’s movement can be tracked at all times.

Omnichannel selling

Any time a retailer or supplier is working with varying sales channels, there’s room for confusion and, eventually, error. RFID supports omnichannel selling and makes it easier for customers to reserve and pick items up in-store. This added layer of a customized shopping experience becomes seamless for both the end consumer and the retailer.

Product recalls & spoilage

No one wants a product recall, but they do happen. RFID technology tracks an item’s lifecycle to the tiniest detail, which makes handling a recall easier.

What are the benefits of implementing RFID?

RFID technology has many benefits to any business that plays a role in the supply chain. It’s a much better way to have an all-encompassing view of the item without adding extra steps to the supply chain process. Some benefits include:

• Better inventory control.
• Improved customer experience.
• Real-time updates to item location.

Why should suppliers care about RFID?

RFID is a technology solution that many suppliers must implement to meet their retailers’ requirements. As retailers in the apparel space move to mandate RFID technology to improve operations, suppliers must implement RFID tags on each item they send to a retailer’s distribution center.

Once you start using RFID technology, it’s a good opportunity to reevaluate the rest of your technology. SPS Commerce is your partner to support inventory accuracy, supply chain efficiency and increased customer satisfaction.

From upgrading their systems to automating manual processes, your customers are digitizing their supply chain. Why not join them and start optimizing yours as well?

What is supply chain digitization?

Supply chain digitization is the process of implementing technologies into different aspects of the supply chain. This could be via automation, data analysis, AI or other implemented technology, and it can serve varying purposes in boosting supply chain efficiency. Ultimately, the goal of supply chain digitization is to create a more agile and customer-centric supply chain that enhances accuracy and minimizes the need for human intervention.

For suppliers, supply chain digitization could start with adopting an EDI solution that simplifies the invoice process and ensures data accuracy and timeliness.

Why should I care about supply chain digitization?

In a 2024 survey conducted by SPS Commerce, suppliers identified significant difficulty in responding to market changes and emerging opportunities. In the same survey, 73% of the respondents noted integrating and adopting new technology as a challenge that was at least moderately impactful to their organizations’ resilience. Adopting new technology (i.e., supply chain digitization) could be the solution to easily overcome many supply chain disruptions.

Another factor to consider is one that’s a little less obvious: talent retention. Supply chain digitization automates previously menial tasks, enabling employees to do fewer time-consuming tasks and instead focus on more valuable work. When employees have the time to do more meaningful work, they’re more likely to stay happy in their positions longer.

What are the benefits of supply chain digitization?

We won’t mince words: If you’re a supplier focused on growth and want to get more done while spending less money, you should care about supply chain digitization. These are just a few of the benefits:

1. Improved efficiency: With streamlined operations, newly automated tasks and fewer errors, your business can move faster and more accurately, leading to increased sales and happier customers.
2. Cost savings: An automated supply chain can help optimize inventory, reduce inaccuracies and result in significant cost savings.
3. Enhanced visibility: Better visibility into processes and analytics allows suppliers to monitor every stage of the process, helping build trust with partners and customers.
4. Better disruption preparedness: When supply chain disruptions happen, a digitized business can be better prepared with faster tools to bounce back quickly.
5. Scalability: A digital solution can scale with your business, automatically meeting new business needs as your company grows.

3 ways to (easily) digitize your supply chain

While supply chain digitization sounds like a big process, it’s actually pretty simple! If you’re not ready to adopt a totally new solution, your business can make small but meaningful enhancements to your existing processes to boost efficiency and accuracy. The first changes don’t have to be huge, but you can remain on the lookout for innovations in your process and stay up to date on the benefits that automation technology can bring to your company.

Upgrade your existing system or invest in a new one

We get it—adopting and integrating new technology can be complicated, time-consuming and scary. But little changes can make a massive difference!

You may not be ready for an entirely new system yet, but that doesn’t mean you can’t optimize your existing ERP, CRM or OMS. Newer, updated versions of your existing systems likely include more recent technology like AI or automation, easily alleviating your employees’ heavy lift of daily manual tasks.

Another benefit you may not expect is having your systems connected. Supply chain digitization can be as simple as a fully integrated and connected system. Instead of doing duplicate work, you can sit back and watch your technology stack do the work for you as your OMS, shipping partner, accounting solution and others are all in one place.

However, if you’re currently evaluating your existing ERP system and in the market for a new back-end system or looking for a better, more cost-effective document exchange process, it’s a great opportunity to adopt something totally new.

Automate manual processes

Do you know how much time you and your employees spend each day entering data from invoices and shipping notifications into your system, sometimes doing double the work due to isolated solutions working separately?

One process you can easily digitize is your document exchange. An EDI solution, like SPS Commerce Fulfillment, will enable you to send and receive all documents and data fully electronically, eliminating many manual errors and saving you time.

Suppliers who automate their manual processes not only gain back time in their day but also see increased data accuracy. Customers are happier with more visibility into the supply chain, and employees can focus more on growth-building tasks that benefit the daily operations of your business.

Adopt AI capabilities

AI can feel overwhelming, but it doesn’t have to be. When you integrate AI capabilities into your supply chain, you’re eliminating hours of manual work. Plus, AI can analyze valuable data that enables you to discover new focus areas and processes that could be optimized.

With the help of predictive analytics and demand forecasting, you’ll see valuable returns in no time. Processes that previously took days to complete can now be checked off much faster, leaving plenty of time for tasks that really matter.

Your partner in supply chain digitization

Digitized supply chains enable more insight and visibility for both you and your customers, who will be happy to see that you’re up to date on the latest technology. With technology from SPS Commerce that integrates completely into your ERP systems, suppliers have the opportunity to introduce digitization into your supply chain.

Supply chain digitization doesn’t have to be complicated. To learn more about SPS Commerce Fulfillment, reach out to our team of experts today.

Excess inventory

Excess inventory occurs when a business finds that it has more inventory on hand than is immediately required, necessitating costly storage or majorly discounted pricing.

What causes excess inventory?

While excess inventory can sometimes be spurred by supply chain disruptions, it’s often due to poor forecasting, overproduction or unexpected shifts in customer demand.

Why is excess inventory bad?

When suppliers have too much inventory on hand, cost efficiency immediately takes a hit. There are two main options that suppliers have when they’re faced with excess inventory: sell the extra products at a reduced price to clear up warehouse space quickly (which drives down margins) or store the excess inventory until it’s sold at its regular price (driving up overhead costs). Either way, excess stock prevents a company’s ability to stay agile. Suppliers must look at excess stock as a:

• Waste of money: If they need to get rid of the extra items quickly, they’ll likely have to lower the price significantly to ensure it sells. This pay cut can be extremely painful for a brand, especially if it happens frequently. Ultimately, this pay cut will impact profits as company margins decrease.
• Waste of money and resources: If they choose to keep the extra items in stock, they lose space for other items and carry the cost of storing excess inventory. That excess inventory may sell at full price eventually, but the brand will take a hit when they can’t keep other items in stock, especially if it takes a long time to make the extra room.

It always costs money to store goods, even in the correct quantity. In this case, the supplier’s overhead costs are driven way up, limiting their cash flow. Agility is affected when a supplier is forced to make this choice, one way or another, as cash flow is restricted. This causes efficiency and flexibility obstacles.

Low inventory

Low inventory occurs when a supplier’s inventory dips below its normal functioning quantity. Each day that items are sold, inventory naturally dips. When it dips too low, and a supplier cannot meet customer demand, problems arise.

What causes low inventory?

Typically, low inventory is caused by factors outside of the suppliers’ control. Supply chain disruptions, such as shipping delays or freight obstacles, can be caused by a variety of unpredictable issues.

Low inventory can also be caused by breakage and loss, which can occur at any point during the supply chain process. However, suppliers are responsible for low inventory when it’s caused by improper storage loss (i.e., with perishable goods) or poor planning and ordering practices.

Why is low inventory bad?

When suppliers have too little inventory on hand, they miss out on sales and revenue opportunities. In some industries, keeping a lean inventory can keep costs low, but those companies are also taking the risk that they could suddenly run out due to a large influx of orders or a supply chain disruption.

While low inventory could be a relatively small problem that’s easily fixable, it depends on the nature of the business. In some cases, a shortage of even one item can grind the rest of the business to a halt, costing valuable time and money.

Ultimately, low inventory is bad for suppliers because it makes customers unhappy and more likely to take their business elsewhere, sometimes even harming the brand’s reputation.

Why is inventory balance important for suppliers?

Suppliers must have the right amount of inventory in stock to meet customer demand. However, inventory also plays a role in planning purposes. Brands use inventory metrics to know what items to reorder, in which quantities, and when they’ll need the shipment. Without this data or with inaccurate inventory data, suppliers have no way of tracking what’s selling and what’s staying on the shelves.

Some suppliers may rely on their point-of-sale (POS) system to track historical order data. However, this can be misleading as it only tracks what customers are buying—it doesn’t capture trends or detailed item data.

For suppliers, understanding sell-through data is extremely important. Sell-through data tells brands more about how their products are selling, which makes it easy to compare different variables and measure where improvements could be made. For example, if a product is flying off the shelves in one city but is collecting dust in another, the brand needs to know why. Then, they can make informed inventory decisions and communicate changes that need to be made to boost sales across the board.

How can suppliers fix their inventory problems?

Now, more suppliers are investing in automated solutions that help them manage and organize their inventory and item information.

With a solution like SPS Commerce Fulfillment, suppliers can gain access to real-time inventory updates from multiple partners. Inventory Service, built into Fulfillment, ensures that suppliers can streamline their inventory updates, save time and grow their business.

For better data gathering, enter SPS Commerce Analytics, our solution that makes it easy for brands to track inventory and order data. This way, they have more time to work towards growth rather than manually tracking inventory levels.

To learn more, reach out to SPS Commerce today.

Let’s explore five of the warning signs that may indicate you’re ready to switch to a full-service EDI provider.

Sign #1: You’re tired of DIY-ing your EDI.

Many EDI providers offer a great product that makes sending documents between trading partners much easier than the scattered alternative. But when service ends there, that’s where you may start to see problems.

Like any technology, an EDI solution needs to be maintained. New document types are added to the supply chain, trading partners need to be onboarded, and connections need to be tested—nearly every day. And, of course, each trading partner has unique requirements that must be met. If you’re left to do it all yourself, what are you paying for? After all, EDI is complicated and time-consuming, which is why providers like SPS Commerce exist!

Support is a crucial part of the right EDI solution. At SPS Commerce, we encourage our customers to come to us with any issue, which is why we’re available for global 24/7 support. We’re the experts, after all, which means we can solve your problems quickly and efficiently.

At SPS, we love supporting our customers, using our proven technology to give you time back in your day. Our pre-built solution configures and validates data for you, which makes our technology faster and easier to use. Spend more time doing strategic work that grows your business rather than trying to figure out a temporary solution to your most recent EDI challenge.

Sign #2: Your current EDI service is reactive instead of proactive.

With any business technology, you want to be sure that you can trust the solution and support team to quickly respond to any issues or even everyday maintenance needs. Take a second to consider your current EDI solution. Do you feel like you’re often reaching out to your service provider for additional support or about connectivity issues before they even notice?

This is the difference between proactivity and reactivity. Many EDI service providers are merely reactive, while they should be proactive.

SPS Commerce, for example, constantly monitors our technology to ensure that all our customers’ and their partners’ needs are met. EDI is a dynamic environment. With requirements always changing, we want to make sure that your service stays consistent.

This way, you can rest easy knowing that your technology is as advanced as possible and your EDI documents automatically meet all your trading partners’ parameters.

Sign #3: When you grow, your EDI solution doesn’t grow with you.

Business growth is always the goal, right? So, when new opportunities arise, you want your business to be prepared to handle them. It shouldn’t be painful to get your technology ready. Why should it fall to you to make changes to your EDI solution every time you need more capabilities or newer features?

As your business grows, you’ll start taking on new trading partners and sales channels, increasing the quantity of documents exchanged. If your current EDI system isn’t equipped to handle these sudden increases, you’re out of luck.

Automation makes scaling easier. Streamlining sales channels, shipping partners, accounting solutions and more into one solution allows for less tedious manual tasks and fewer preventable errors. Scalability means your solution can always adjust to your current needs without too much intervention.

SPS Commerce Fulfillment, for example, is scalable thanks to its pre-built connections that are automatically available for your use. We augment solutions within your ERP and provide capabilities within Fulfillment that support and enhance ERP function. While many ERPs can tackle very specific things like business finances, they may not be able to do other tasks like reconciling invoices. These small items can increase efficiency by a ton—and that’s where SPS comes in. We backfill some of those gaps for suppliers looking to do more with their existing ERP and supply chain processes.

Sign #4: You’re a small company that relies on in-house EDI experts.

Many large, enterprise companies have the flexibility and budget to have an in-house team of EDI experts. Small businesses must make the most of their time and budget more carefully. If you’re forced to recruit and staff your own in-house team of EDI experts, you’re wasting valuable time and resources on something that should be built into your EDI solution. It’s just not feasible for small- to mid-size companies!

With SPS, you’ll gain an entire EDI team that you don’t have to pay extra for, filled with some of the best experts in the industry. They’re fully equipped to handle any glitches or errors in the document exchange process and answer any questions you may have.

Get the world-class treatment you deserve with SPS Commerce and our 24/7 global support.

Sign #5: Your monthly bill is too high or uses an unpredictable pricing model.

When the first EDI technology came out, it made sense to charge per unit (in this case, kilo-character, which corresponds to 1,000 characters in a file) in the same way that you may pay for a stamp when you send a document by mail.

While paying per kilo-character sounds good in theory, it doesn’t factor in other charges, like maintenance, support or solution expansion. If your company gets bigger or adds on new trading partners (which, ultimately, are things you should be striving for!), you’re eventually going to see unexpected charges on your bill.

With a predictable pricing model and full-service support from SPS Commerce, you don’t have to worry about how many documents you’re exchanging or what maintenance and support services you’re receiving. You’ll be prepared for your bill each month, making the right EDI solution easier to love.

If any of these problems sound familiar to you, reach out to one of our experts today to see what SPS Commerce can do to replace your existing EDI solution with a full-service partner. We’d love to chat about your company’s needs to see how we can improve your supply chain and enable you to focus on business growth.

In today’s competitive, global supply chain, suppliers continue to face disruptions at various points in their supply chain, including challenges around sourcing products or materials, receiving products from overseas and shipping the products to end consumers. There’s a ton of pressure to ensure materials and inventory arrive at the right time and in the right place so that the brand can be paid and continue serving the needs of their trading partners and consumers.

What can cause a supply chain disruption?

The benefit of having a wide-reaching supply chain is clear: your products and materials are sourced from anywhere you want, which gives you the opportunity to supply products that fit the bill of customer demand. Unfortunately, the disadvantage of having a dynamic supply chain is the variability of so many factors outside of your control.

Supply chain disruptions can be caused by a variety of factors, including:

Procurement obstacles

Difficulty obtaining materials required for production can trickle down into the rest of your supply chain. Often, material procurement challenges stem from another company’s shortages—in some way or another—which is completely out of your control. You’re left to find another vendor or wait until the materials become available again, delaying your output either way.

Natural disasters

Storms, flooding, earthquakes and other natural disasters can affect the availability of raw materials as well as delay fulfillment and shipping of the items. In severe cases, warehouses and production sites can be destroyed or rendered unusable. When it comes to freight disruptions, road, port or airport closures can lead to extreme delays in fulfillment.

Staffing shortages

Between the high cost of labor and the declining number of people who make up the workforce, staffing shortages can affect almost every part of the supply chain. If a 3PL doesn’t have enough employees working, there can be delays in fulfillment. If a manufacturer doesn’t have enough workers, fewer items are produced. Plus, it’s important to keep track of international staffing disruptions if you’re working on a global scale. Certain holidays require planning ahead so you can still complete transactions with trading partners who may be temporarily delayed or short-staffed.

International conflict and changes

International economic changes (like law changes, currency and tariff fluctuation and geopolitical tensions) have a massive effect on the supply chain. These challenges can arise in any area of the supply chain, including increased difficulty in procuring raw materials, warehouse and storage shortages and skyrocketed costs to conduct business as usual. For example, a change in import or export cost could force a supplier to adopt a completely new partner and strategy for sourcing goods.

How do supply chain disruptions affect suppliers?

Without guarantees that the end-consumer will receive their product when and where they want it, suppliers suffer, especially when the cause of the disruption is out of their control.

To alleviate the impact of supply chain disruptions on their business and keep consumers happy, suppliers need a solid understanding of where the product is in its lifecycle at any given point in time. This could be knowledge that a certain raw material is on backorder or that a product is held up at a specific port. Unfortunately, many suppliers don’t have the supply chain visibility they need, leading to delays, confusion and unhappy customers.

How can suppliers prepare for supply chain disruptions?

With deeper insights, suppliers can gain a better understanding of what’s coming down the line and prepare in advance for the worst-case scenario. SPS Commerce Analytics, for example, helps suppliers analyze sell-through data to make more informed decisions about item forecasting. With the ability to make data-driven decisions like these, suppliers prevent stock outs and avoid other negative impacts of supply chain disruptions.

By adopting a comprehensive solution that provides clear, immediate insight into order status, delays and obstacles, brands can rearrange their processes to ensure their end-consumer isn’t affected. There are a few main considerations for suppliers to keep in mind when it comes to supply chain disruptions:

Preparedness: Increased agility and responsiveness to data insights can improve supply chain preparedness. By closely tracking trends and understanding how other parts of your supply chain function, you can proactively make decisions that will help you down the line. This way, you’re getting ahead of potential obstacles instead of reacting to them as they happen.

Vendor diversification: If you know you need a certain quantity of a raw material, but the last time you placed the order there was a delay due to an ongoing natural disaster, it’s good to have a backup option or give plenty of extra time to the vendor.

Complete communication: When you send and receive EDI documents with immediate, accessible and accurate data, it’s easier to keep an eye on how things are going at each point in the supply chain. Take a closer look at Fulfillment from SPS Commerce—you’ll have increased order visibility and benefit from simplified operations and smoother management of trading partner requirements.

Ready to get the conversation started? Reach out to one of our experts today.

Maintaining the different requirements and remembering when to apply them can be a considerable challenge, especially when you work with multiple retailers or ship products in high volumes.

But there’s good news for SPS Fulfillment for NetSuite users. Did you know that you can customize Auto Pack Rules for your retail customers by leveraging functionality within the SPS Fulfillment for NetSuite solution? Create advance ship notices (ASNs) and process orders more efficiently by automatically applying different packing rules by retailer.

Here are three ways Auto Pack Rules can improve order fulfillment:

Eliminate manual data entry

Fulfillment with System Automation is fully integrated with NetSuite. This means you don’t have to switch between multiple systems when processing orders. Your customers’ packing rules will be automatically populated within your Item Fulfillment record, so you do not need to enter the packing requirements for each customer manually.

Process orders more quickly

Quickly and easily apply pack rules across all of your customers to process more orders in less time. Confidently complete ASNs by populating item information and shipping details. SPS Fulfillment helps you get more time back in your day!

Avoid chargebacks

Never worry whether your shipments comply with your retailers’ latest requirements. We take care of keeping everything up-to-date on your behalf, so you can build trust with customers and avoid non-compliance and chargebacks.

Optimize your Fulfillment process today. Contact our team to get started.