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.

Success in the coming months hinges on your peak season readiness. We’ve identified 6 essential tactics to help you thrive during this critical period.

1. Conduct a comprehensive warehouse audit

Start by performing an internal audit of your inbound and outbound workflows. Analyze your receiving, picking and packing processes to understand the mechanics behind each workflow. Identify redundancies and opportunities to optimize order fulfillment processes for warehouse workers.

Use your Warehouse Management System (WMS) to confirm inventory counts and cycle times. Consider implementing barcode scanning to reduce manual entry errors. Verify that all systems and integrations are functioning properly and sharing data as designed, including any systems connected to the WMS such as shopping carts, electronic data interchange (EDI), order management systems, label printing, barcode scanners and systems connected via API.

Don’t forget to audit your warehouse space utilization and address any waste. Keep reverse logistics updated and clear obsolete storage to improve space efficiency for increased volume.

Finally, perform an equipment check (of both tech and operational equipment like forklifts, motorized pickers and ladders). Confirm everything works and that first aid kits, life-saving equipment and safety wear are up to date.

2. Enhance data visibility to drive customer satisfaction

While always important, supply chain visibility is critical during peak season. If not already in place, or if only used seasonally, visibility tools should be implemented and tested for peak season capability.

To enhance supply chain visibility, implement and test internal dashboards that track daily order volumes and shipments. This data allows you to confirm service level agreement compliance and make fast, informed business decisions. For your warehouse customers, establish automated notifications for low stock, order shipments, delivery notices and other crucial inventory activities.

Real-time data access enables more efficient operations and supports proactive decision-making. When integrated with workflow analysis and output data, enhanced visibility positions your business to address surprises and maintain smooth operations during the peak season rush. By leveraging these insights to deliver superior service, you become indispensable to customers, supporting their growth year after year

3. Optimize your workforce for peak performance

Effective labor management is key to handling the surge in order volumes during peak season. During non-peak cycles, use labor analytics software or conduct time studies to track order picking times. This data helps you calculate median fulfillment times and project staffing needs for anticipated peak volumes.

As peak season approaches, establish and strengthen relationships with staffing agencies. Consider securing new contracts to prepare for unanticipated volume changes caused by weather events, transportation capacity issues or unexpected sales.

This is also an ideal time to review and update both customer-facing and internal standard operating procedures (SOPs). Conduct refresher training and recertification programs for your staff. Assess your warehouse team structure to keep each employee in the optimal role for peak season demands. To maintain high productivity levels, also consider implementing a bonus or reward system for excellent attendance during peak season.

4. Gather precise customer volume data

Surprisingly, many 3PLs are uninformed about their customers’ anticipated peak season volumes. This issue is particularly prevalent among 3PLs who haven’t invested heavily in technology, and in turn, lack data flow.

To avoid this pitfall, schedule meetings with your customers well before peak season hits. Use these meetings to obtain final anticipated volume predictions for the upcoming peak period.

5. Secure reliable transportation services

Whether dealing with contractual or steady non-contractual business, securing dependable domestic transportation arrangements is a top priority. This includes drayage, over-the-road (OTR) and final mile delivery services.

Start by nurturing your carrier and broker relationships throughout the year. Managing these relationships during peak season is challenging, and it becomes even more difficult if you haven’t fostered these connections during non-peak periods.

If you own trucks, now is the time to assess their road-worthiness and take necessary measures to minimize service failures. Asset-based 3PLs should consider onboarding additional drivers or leasing extra trucks to cover potential shortages during peak season.

6. Arrange flexible warehouse space

To prepare for unexpected surges in demand, maintain ongoing relationships with commercial real estate brokers who can provide a portfolio of overflow and short-term warehouse space options for peak season. This strategy allows for quick adjustments if capacity becomes an issue.

Use this flexible space for:

• Poor or nonexistent volume forecasts.
• Warehouse labor shortages that create backlogs.
• Transportation capacity constraints causing freight backup on the warehouse floor.
• Unexpected weather events.

Boost your peak season readiness

Get ahead of the holiday rush. Visit our SPS for 3PLs product page to learn how we can help you implement these strategies to elevate your peak season performance.

This question can be intimidating, leaving you scrambling to understand what EDI is, when you need it and how much it costs.

Feeling overwhelmed? Fear not! This blog will demystify EDI and show how it can be a game-changer for your startup, helping you scale your supply chain as you grow.

What is EDI?

Electronic data interchange, or EDI, is the electronic way to receive orders, manage inventory, communicate shipments and process invoices, replacing the manual methods many emerging brands start with. EDI speeds up getting products on shelves by allowing purchase orders (POs) to be sent electronically.

Order confirmations are also sent electronically, helping buyers understand what will be fulfilled and allow them to plan accordingly. Advanced Shipping Notices (ASNs) inform retailers when and how products will arrive, enabling distribution centers to receive shipments smoothly without manual sorting. This data integration ensures efficient operations, timely replenishments and maximized sales opportunities.

Benefits of EDI for emerging brands

You might think EDI is only for big brands with large supply chains, but that’s not the case. Even if your volume with a retailer is small, EDI is warranted.

By leveraging EDI, your brand can streamline supply chain operations, ensuring your products are always available when retailers and consumers need them. Here are some key benefits:

• Streamlined communication: Better collaboration with your retail and distribution partners enhances communication throughout your supply chain.
• Faster payment: EDI invoicing accelerates payment processing.
• Maximized sales opportunities: An increased ability to seize both existing and new relationships helps boost sales.
• Reduced costs: More efficient operations lower overall expenses.

This efficiency not only improves your workflow but also boosts your brand’s reliability and profitability in a competitive market.

How to get started with EDI

EDI solutions are more accessible than ever for emerging brands, thanks to cloud technology and full-service providers. These providers equip you with all the necessary people, processes and technology so you can confidently say “yes” to EDI—without needing to learn how to code or hire additional staff.

Simply choose a reputable full-service provider like SPS Commerce, who will prescribe the plan you need, configure the solution, validate it and manage any ongoing changes. This allows you to focus on building your brand while they handle the complexities of EDI.

Breaking into the retail market is both exciting and challenging, and EDI isn’t a big, scary thing that will cause you headaches. With the right provider, implementing EDI can simplify your operations and scale your business, allowing you to focus on what’s important—selling the products your consumers love.

At SPS Commerce, many of our retail experts were previously buyers at major retailers. They’ve hosted hundreds of meetings with new suppliers and know firsthand what it takes to impress a busy buyer.

Here is their advice on how to make your next buyer meeting a success.

1. Master your financials

Financial performance is at the heart of every buyer’s decision-making process. Retailers focus on profit margins, market share and how your product will contribute to their bottom line. You must come prepared with compelling financial data demonstrating your product’s success or potential.

If your product has a track record, share specific metrics like market share gains, revenue growth and how it has outperformed competitors. It’s also good to share the markets in which it performs best.

For new products, focus on your company’s history of successful launches of similar items. Show how each performed and how your go-to-market strategy led to financial success in an in-store or online retail environment. Use market insights, trend analysis and competitive data to support your projections. These reports may be available from Nielsen, IRI or other industry research providers.

Your goal is to create a compelling financial story that convinces buyers that your product is a profitable addition to their assortment.

2. Understand the retailer’s process

Buyers appreciate suppliers who demonstrate a thorough understanding of their internal processes. This insight, from timely sample submissions to accurate product information (such as weights, dimensions and packaging details), showcases your competence and readiness.

Before your meeting, familiarize yourself with the retailer’s submission guidelines and requirements. These are usually available online or provided to you by the company in advance. Be clear about what is expected and ensure you meet those requirements.

Be prepared to discuss if you’d consider an exclusive deal for your product and what commitment or level of bulk buy you’d require.

Be sure to highlight your ability to deliver on time, comply with their specifications, provide product images that meet their specifications if needed and navigate their supply chain processes by being EDI-capable.

3. Provide detailed product information

Buyers need to be fully informed about what they’re purchasing. Therefore, it’s crucial to come prepared with detailed product information. They’ll expect you to provide details on everything from the availability of different sizes and colors to production capacities and pricing. This level of detail will make you appear knowledgeable and reliable.

Discuss your production capabilities candidly. Buyers will want to know if you can meet their demand, especially if your product takes off and they need you to scale rapidly. This insight will also help them determine whether they should plan to carry the product across all stores or a subset of locations and what they can expect to set as available inventory online if drop-shipping. Be honest about your current production limitations and how you can scale up if necessary.

Quality is another critical factor. Make sure your product meets the retailer’s quality standards and be prepared to discuss any certifications or compliance with industry regulations. If your product has unique attributes—such as being eco-friendly or locally sourced—highlight these, as they can be key selling points.

4. Leverage samples and visuals

Samples and visuals are powerful tools in a buyer meeting. Bring live samples of your product or ship in advance (and confirm receipt) if the meeting is virtual. The items allow the buyer to see, feel and experience your product firsthand, which can make a significant impact.

In today’s environment, where many meetings still happen virtually, ensure your digital presentations are polished and professional. High-quality images, sharp photography, detailed slides and a straightforward narrative are essential.

5. Be professional and respectful of time

Buyers are busy, and their time is valuable. It’s important to approach the meeting with a clear, concise and focused agenda. While building rapport and a relationship is important, it’s crucial to keep it from overshadowing the business at hand. Every minute of the meeting is precious, so it’s respectful to keep the small talk to a minimum.

Focus on delivering the product information the buyer needs to make a decision. Start with a brief introduction, but quickly transition into the key points: financials, product details and how your offering aligns with the retailer’s needs. Avoid the trap of focusing too much on the relationship aspect; your goal is to communicate the value of your product efficiently and effectively. Their decision isn’t based on likeability. It will be based on how well your product adds value to their category.

Lastly, don’t leave the meeting without identifying how and when the buyer will contact you regarding the next step (or, if they don’t, letting them know when you will follow up), asking for feedback and determining a timeline for further communication.

Conclude the meeting with confidence

Nailing your next buyer meeting takes more than just having a great product—it’s about presenting a compelling business case, understanding the retailer’s needs and their business and demonstrating that you are a reliable and knowledgeable partner ready to do business with them.

By mastering your financials, understanding the retailer’s supply chain processes, providing detailed product information and respecting the buyer’s time, you increase your chances of securing a slot in their planogram or online assortment. Remember, the meeting is your opportunity to show why your product deserves a spot on their shelves—make it count.

SPS helps suppliers be at their very best at every buyer meeting, our experts and products ensure you have the right data and are prepared to dazzle the buyer with your product and its value to their business. Learn more 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.

Our eBook, “Automate Digital Supply Chains with a Modern Cloud ERP Business Platform Featuring Embedded EDI,” is your go-to guide for navigating the complexities of EDI with the help of ERP solutions like Acumatica with embedded EDI from SPS Commerce.

What you’ll learn

This eBook is packed with insights and practical strategies to help suppliers streamline their operations and comply with EDI requirements. Here’s a glimpse of what you can expect:

The essentials of EDI

Dive into the fundamentals. Learn how EDI replaces traditional paper-based processes, reducing time, errors and costs associated with manual data entry. Discover why EDI is essential for your business and how it can transform your operations.

The real impact of EDI on your business

Explore the tangible benefits of embedded EDI within your Acumatica ERP system, from increasing sales opportunities and reducing cycle times to decreasing errors and improving efficiency.

Navigating EDI standards and requirements

EDI compliance can be complex, especially with varying standards from different trading partners. This eBook explains how to handle these differences seamlessly, ensuring you meet the unique requirements of partners like Kroger, Amazon and Walmart.

Common EDI transactions explained

Gain a clear understanding of common EDI transactions such as the 810 Invoice, 850 Purchase Order and 856 Advance Ship Notice. This knowledge is crucial for ensuring smooth operations and maintaining good relationships with your trading partners.

Avoiding common EDI mistakes

Implementing EDI can be tricky, and mistakes can be costly. The eBook highlights common pitfalls and provides strategies to avoid them, ensuring your EDI implementation is smooth and successful.

Why download the free eBook?

While this blog gives you a sneak peek, the full eBook offers detailed explanations, practical tips and real-world examples.

• Comprehensive insights
  Get a thorough understanding of EDI and its impact on your business.
• Practical guidance
  Learn actionable strategies to maximize the benefits of EDI.
• Expert Advice
  Benefit from the expertise of industry-leading ERP and EDI providers, Acumatica and SPS Commerce.

Don’t miss the opportunity to simplify your EDI integrations and transform your business operations. Download the full eBook today and realize the full potential of embedded EDI with Acumatica and SPS Commerce.

Download the full eBook here

Embrace the mCommerce revolution

Mobile commerce (mCommerce) now accounts for 60 percent of all eCommerce sales. As more consumers use mobile devices for online shopping, 3PLs must adapt their strategies to meet these evolving expectations.

Strategies for omnichannel success

The ability to support clients across multiple channels is crucial in this new retail environment. Scalability is also key, so 3PLs can grow alongside their clients as they expand into new markets and channels.

Navigate retail complexity

The current retail environment presents significant challenges for 3PLs, particularly those serving multiple clients with diverse requirements. To effectively manage these intricacies, 3PLs should consider integrating their Warehouse Management System (WMS) with other key systems.

Optimize onboarding for long-term success

A smooth customer onboarding experience sets the foundation for a strong partnership. Establish a standardized, agreed-upon approach that involves all stakeholders.

The DIY dilemma: in-house vs. third-party solutions

When building their technology stack, 3PLs must decide whether to develop in-house solutions or partner with a third-party provider. Partnering with a specialized provider enables access to industry-specific knowledge, increased scalability and a successful track record.

Returns may be inevitable, but unnecessary return costs are not. So, how do retail leaders make returns less expensive for themselves, their trading partners and consumers?

Clearer item data can prevent returns

To reduce return costs, it’s essential to understand the reasons customers return online purchases.

Common reasons include:

• Product dissatisfaction
• Incorrect sizing
• Discrepancies between the product and its online description

With mismatched product details being a big driver of returns, getting more detailed with item data can be a big help. This involves collecting and sharing strong product attributes, complete details and pictures. For example, apparel retailers include attributes about fit, showing if an item is true to size or runs big/small to help consumers make a more informed decision.

What you can do to stay ahead

To avoid returns, experts at SPS Commerce have put together some best practices to help your business handle the item data that’s at the core of the challenge.

To start, begin with item quality. Source high-quality ingredients, components and raw materials to ensure high-quality finished products that customers are less likely to return.

When products are ready for sale, ensure your item data is accurate and complete so customers know exactly what they’re buying. Clarity before the sale minimizes the chance that the product won’t meet the customer’s expectations and can reduce returns.

To get that clarity, it’s critical to employ technology to make storing and sharing item data across teams less of a lift. If your brand sells eCommerce products through your own website, ensure that complete and consistent item data is presented across all your products. If you sell through an online retailer or marketplace, ensure all item data requirements are met. It’s best to automate these processes with trusted partners to prevent oversight.

When everything’s running, updating your return management policy and automating the exchange of information about your returns process can also remove some of the headaches. Once implemented, you can create a cohesive global strategy that allows customers to return through their preferred channels and handles the process efficiently to minimize costs.

Seamless data exchanges between buying organizations and their suppliers can streamline the process. Reducing the need for returns by providing clear and accurate item data, automated data sharing and a streamlined returns process not only saves time and money but also improves the consumer experience.

Looking for expert advice on managing the cost of returns? Talk to one of our supply chain experts.