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.

Understanding what’s at stake

For grocers, retailers, distributors and foodservice companies, FSMA 204 means capturing and maintaining detailed data from every supplier. This includes Key Data Elements (KDEs) like lot codes, harvest dates and critical tracking events. While compliance is essential, standardized and accurate data also plays a key role in recall management and daily operations.

Consider a typical scenario: Your suppliers range from large producers with sophisticated systems to small suppliers relying on spreadsheets. When a safety issue arises, your team must quickly trace affected products across your network. Without standardized data, this process can take days instead of hours, putting operational efficiency, customer safety and your reputation at risk.

Poor traceability impacts every aspect of your business. Inconsistent and inaccurate data leads to inventory challenges like overstocking or stockouts, while inefficient recall processes can escalate into costly crises. Most importantly, inadequate traceability undermines consumer confidence and brand loyalty.

The importance of supplier buy-in

Success requires making traceability manageable for suppliers of all sizes. Leading companies are taking practical steps like:

• Implementing uniform processes for recording and reporting traceability data
• Using automation to minimize errors and enable real-time data exchange
• Setting clear expectations and guidelines for accurate traceability data
• Supporting suppliers with training and implementation resources

By automating data capture through standard business documents like purchase orders, ASNs and barcodes, companies can help suppliers maintain consistent data formats while protecting their brand.

SPS Commerce and iFoodDS: A collaborative solution

Recognizing the need for enhanced traceability and supply chain visibility, SPS Commerce has partnered with iFoodDS to expand our retail cloud service offerings. Through integration with iFoodDS Trace Exchange™, we provide a comprehensive solution that supports the largest grocers, retailers, distributors and foodservice companies, along with their supplier networks.

With a high-tech, high-touch approach, our combined solution simplifies data collection and standardizes traceability processes across your trading partner network. Our team works with suppliers of all sizes and technical capabilities to drive successful participation and efficient FSMA 204 compliance.

For more information about how SPS Commerce and iFoodDS can enhance your traceability and supply chain visibility, visit SPS Commerce or iFoodDS.

1. Digital transformation accelerates industry-wide

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

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

2. Traceability demands intensify across the supply chain

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

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

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

3. Data analytics reshape supplier relationships

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

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

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

4. Customer expectations reshape service standards

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

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

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

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

1. Digital transformation gets real

Remember when digital transformation was merely a hot topic in the industry? Now it’s finally happening.

Grocers are making major moves to upgrade their core technology, especially ERP and WMS systems. They’re getting serious about food tracking too, implementing specialized solutions that help manage products made in their facilities. It’s all about staying ahead of FSMA 204 requirements while making recall management more efficient.

2. Traceability takes center stage

Here’s something interesting: amid rising food safety concerns and recent high-profile recalls, major retailers like Walmart, Target and Albertsons aren’t just following the FDA’s traceability rules. They’re going way beyond them. By tracking everything rather than just required items, they’re building stronger safety nets for recalls and staying ready for any future regulatory changes.

3. Private label growth plateaus

The numbers tell an intriguing story about private label products. Sales jumped to $217 billion in 2023, a 6% increase. But unit sales? They only grew by 0.9%. This gap is pushing retailers to rethink how they market and price their store brands.

For grocery suppliers, this trend suggests increased opportunities as grocers may need to expand their supplier networks to balance their private label and name-brand offerings. This could accelerate the pace of supplier onboarding as grocers adjust their product mix.

4. Local sourcing feeds sustainable growth

Sustainability and local sourcing are becoming must-haves, not just nice-to-haves. Despite inflation worries, consumers will pay almost 10% more for sustainable products, while over 75% actively seek local goods.

For example, ALDI has made local produce a cornerstone of their offering. Leading grocers are following suit, strengthening local supplier relationships while monitoring emissions and embracing sustainable practices.

5. Automation gets practical

AI is generating lots of buzz, but let’s look at what’s actually working. When grocers have accurate, standardized data flowing through their systems, they can use AI tools effectively. Leading grocers are turning inventory records into smarter forecasts and automating reorder decisions to reduce waste. The foundation isn’t fancy algorithms. It’s reliable data that grocers can act on with confidence.

6. Privacy considerations emerge

Innovation comes with new challenges. As grocers explore digital price tags and automated personalization, they face growing scrutiny over consumer privacy and pricing transparency. The rapid adoption of technologies like facial recognition has created a complex landscape of state biometric privacy laws and consumer protection concerns.

7. Data sharing drives collaboration

Success in the grocery industry isn’t just about what happens inside your four walls anymore. It’s about how well you share and act on information across your entire supply chain. When retailers share forecasts, promotional calendars and sell-through data, suppliers can respond with production schedules, accurate inventory levels and shipping updates. Better data sharing means better everything, from inventory management to promotional planning.

These trends point to a more connected, efficient and sustainable grocery industry. That’s what 2025 looks like: smarter systems, stronger partnerships and practices that serve both the bottom line and the broader community.

Want to stay ahead of these trends? Talk with our grocery experts today.

Beyond traditional seasonal peaks

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

The rise of micro-seasons

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

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

What’s driving the change?

Several factors fuel this transformation:

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

Impact on grocery operations

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

Must-haves in this new landscape include:

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

The heart of celebration

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