Seamless connectivity and collaboration with trading partners

At the core of SPS Commerce lies a powerful network that connects thousands of retailers, suppliers, and logistics providers. For businesses, this means faster and easier onboarding with new partners, simplified compliance with unique requirements, and effortless expansion into new markets. In a world where collaboration is key, SPS Commerce removes the delays and frustrations that often come with managing trading relationships.

Successful supply chains depend on collaboration. SPS Commerce makes it easier for trading partners to share information, coordinate plans, and communicate effectively. This enhanced collaboration drives efficiency in areas like forecasting and inventory management while strengthening relationships across the supply chain. Businesses that collaborate better, perform better.

Automation and compliance efficiency

Manual processes like order management, invoicing, and shipping notifications are time-consuming and prone to errors. SPS Commerce automates these tasks, enabling businesses to work with greater speed and accuracy. This not only saves time and reduces labor costs but also minimizes operational disruptions. As a result, teams can focus on strategic priorities instead of repetitive administrative work.

Retail partners often have complex requirements – ranging from labeling and shipping specifications to EDI formats. SPS Commerce simplifies this process through automated compliance, ensuring that businesses meet expectations without hassle. This minimizes the risk of errors, penalties, and chargebacks while strengthening relationships and building trust with retail partners.

Real-time visibility across the supply chain

Visibility is critical to an effective supply chain. SPS Commerce provides real-time insights into order statuses, inventory levels, and shipping updates. Access to this information allows businesses to plan more effectively, forecast with greater precision, and respond quickly to market changes. The result is an agile, informed organization that stays one step ahead.

Scalable and integrated solutions for growth

As companies grow, so does the complexity of their supply chains. SPS Commerce is built to scale alongside business growth. Whether managing higher transaction volumes, adding new partners, or expanding into international markets, the platform adapts with ease.

Most organizations rely on multiple systems – such as ERP, WMS, or accounting software. SPS Commerce integrates seamlessly with these tools, ensuring data flows automatically across platforms. This reduces IT complexity, eliminates duplicate work, and creates a smooth, unified workflow across the organization. The result is a streamlined operation where technology truly works together.

Ready for the future of retail and logistics

The retail and logistics landscape is evolving rapidly, with new challenges such as omnichannel fulfillment and global logistics emerging every day. SPS Commerce helps businesses not only keep pace but lead the way. With future-ready technology and deep industry expertise, organizations can confidently adapt to new demands and seize emerging opportunities.

More than technology – a trusted partner

SPS Commerce is more than a software provider; it’s a strategic partner dedicated to simplifying supply chain operations. By combining automation, real-time visibility, scalability, and collaboration, SPS Commerce empowers businesses to operate more efficiently, grow faster, and succeed in today’s dynamic retail environment.

Ready to simplify your supply chain?

Contact SPS Commerce today to discover how we can help your business grow and thrive in the world of modern retail.

What is supply chain management?

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

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

The core principles of Supply Chain Management

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

1. Managing supply and demand

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

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

2. Efficiency and speed

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

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

3. Cooperation and transparency

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

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

4. Flexibility and agility

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

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

Trends and challenges in SCM

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

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

The key to a successful supply chain

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

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

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

Step 1: Understand why EDI is important for your business

Every organization has unique needs. EDI is not a “one-size-fits-all” solution, which is why good preparation starts with insight. What do you want to achieve? Perhaps you want to speed up processes, reduce human error, or collaborate more efficiently with trading partners. By clearly defining your goals, you lay a solid foundation for your implementation.

It’s all about identifying opportunities. Perhaps you’ve noticed that invoices are often delayed due to manual processing, or that your current systems struggle to keep track of stock levels. EDI can address these pain points, but only if you have a clear idea of what you want to improve.

Tip: Make a list of your current challenges and determine how EDI can provide a solution. Involve stakeholders from different departments to get a complete picture.

Step 2: Choosing the right technology

The choice of an EDI solution determines the success of your implementation. Technology can be a powerful tool, but only if it fits your processes. A cloud-based solution, for example, offers flexibility and scalability, ideal for companies that want to grow quickly. On the other hand, an integrated solution can work seamlessly with your existing ERP system.

The key lies in compatibility. Your technology must not only fit in with your current systems, but also with your plans for the future. Ask yourself: what will my business look like in five years’ time? Choose a solution that grows with your ambitions.

Step 3: Involve trading partners

EDI is all about collaboration. It connects you not only internally, but also with your trading partners. That is why it is crucial to involve them from the start. What are their expectations? What standards do they use? By asking these questions, you build a solid foundation for joint processes.

A good relationship with your trading partners is essential here. Communication plays a major role, especially when you need to coordinate technical specifications. Think about sharing timelines, test plans, and objectives. The better the cooperation, the smoother your implementation will be.

Step 4: Internal preparation

The real challenge of EDI implementation often lies within your own organization. Are your systems ready for integration? Do your teams understand what is expected of them? EDI is more than a technological change: it is a shift in how your business operates.

Start with training. Employees need to know how to handle EDI processes and what the benefits are. Then comes the testing phase. This is not the time to rush; mistakes made during this phase can cause major problems later on. Make testing a priority and involve everyone who has an impact on the process.

Step 5: Continue monitoring and improving

EDI implementation is not an end point; it is a beginning. Once your systems are operational, the real work begins. Monitor how processes are running and analyze where improvements can be made. Consider speed, error rates, and feedback from your trading partners.

Optimization is an ongoing process. After a few months, you may discover that certain workflows could be more efficient, or that additional automation is needed in a specific department. By continuing to actively improve, you can get the most out of your EDI.

EDI as an engine for growth

Implementing EDI can be a game changer for your organization. Not only does it help you work more efficiently, but it also helps you build better relationships with trading partners and respond more quickly to market changes. By following the five steps outlined in this blog, you can ensure that your organization is ready for success in a digital world.

Would you like to know how SPS Commerce can support you with your EDI implementation? Contact us today for a consultation, free of obligation. Together, we can ensure that your organization is ready for the future!

SPS Commerce started with one bold idea: to change the way retailers and suppliers connect. From a few passionate people to a worldwide leader, SPS has grown by staying true to our values and focusing on helping others to grow too.

Who we are

At SPS Commerce, we are more than just a technology company. We are a team of problem solvers, industry experts, and collaborators united by a shared purpose. We specialize in simplifying supply chain operations, enabling businesses to scale, and helping them adapt to the ever-chainging retail industry.

Our identity is shaped by our core values, which are not just guiding principles but the hearth of everything we do. These values define our culture, drive our actions, and ensure we deliver excellence for our customers, employees, and communities.

Our values: the foundation of SPS Commerce

1. Employees come first: We believe that happy employees create happy customers. Diversity, equity, and inclusion are integral to our culture, and we celebrate the unique perspectives and strengths each individual brings. Relationships built on honesty, trust, and respect empower us to work hard and succeed together.
2. Win today, Win tomorrow: Winning is a learned skill, shaped by the decisions and actions we take every day. Our competitive spirit drives us to be the best in our industry, enabling us to achieve both short-term and long-term objectives. And because winning is fun, we celebrate the journey as much as the results.
3. Obsessed with customers: Customers are at the center of everything we do. We are passionate about understanding their needs, solving their challenges, and driving value for their businesses. As trusted advisors, we are committed to building long-term partnerships that ensure their success.
4. Get after it: Speed matters in today’s fast-paced world, and we approach every challenge with urgency and commitment. Whether it’s solving problems or implementing solutions, we are relentless in getting things done—and getting them done right.
5. Thirst for growth: Growth isn’t just a goal; it’s a necessity for a network business like ours. With growth comes constant change, and we embrace it with courage and adaptability. As we scale, we continue to reinvent ourselves to stay ahead of the curve.
6. Succeed together: Collaboration is the key to unlocking success. We value teamwork and respect differing opinions, knowing that unity and shared goals lead to the best outcomes. Together, we achieve more than we ever could alone.
7. Results matter: Accountability is at the core of how we operate. We hold ourselves and each other to high standards of performance, ensuring we deliver meaningful results while acting with integrity and respect.
8. Lead the way: Leadership is not just a responsibility—it’s an obligation. As individuals and as a company, we confidently guide our customers with disruptive products and innovative solutions that transform the industry.
9. Know more to be more: Curiosity and initiative drive us to continually learn and grow. By staying informed and innovative, we create opportunities for personal development, process improvement, and customer success.
10. Give back: Generosity and caring are fundamental to who we are. Through philanthropy, volunteerism, and active contributions to our communities, we strive to make a positive impact locally and globally.

Becoming a global leader

What started as a local idea quickly grew into something much bigger. As supply chains crossed borders and businesses became more connected, SPS Commerce expanded to meet those needs—bringing our solutions to companies around the world.

Our global presence

Today, SPS Commerce operates in multiple countries, serving thousands of customers worldwide. Our solutions are used by businesses of all sizes, from small retailers to multinational corporations, making us an integral part of the global retail ecosystem.

Our network spans continents, connecting trading partners, retailers, suppliers, and logistics providers to create seamless supply chain experiences. With offices and teams strategically located across the globe, we are uniquely positioned to meet the needs of businesses wherever they operate.

Why being global matters

As a global organization, SPS Commerce enables businesses to navigate the complexities of cross-border trade. Our solutions empower companies to:

• Collaborate Across Borders: Establishing connections between trading partners worldwide.
• Adapt to Local Markets: Providing tailored solutions that address regional challenges.
• Drive Innovation Globally: Leveraging diverse perspectives to develop cutting-edge technology.

Our commitment to customers

While our values shape who we are, they also define how we engage with our customers. At SPS Commerce, every decision we make, every product we develop, and every interaction we have is designed with our customers in mind.

• Understanding Their Needs: We listen closely to our customers to deliver solutions that address their unique challenges.
• Empowering Growth: From improving supply chain efficiency to enhancing collaboration, we enable businesses to scale seamlessly.
• Unmatched Support: Our team is passionate, knowledgeable, and always there to guide our customers, ensuring they feel supported every step of the way.

The future

As SPS Commerce continues to grow, our focus remains the same: creating value for our employees, customers, and communities. The world of retail is evolving rapidly, and we are committed to staying at the forefront – leading with innovation, delivering trusted solutions, and building relationships that stand the test of time.

But our story doesn’t end here – it’s still being written.

In the coming months, we’ll be sharing more about our journey and how we’re helping our customers. Whether you’re a long-time customer, a potential partner, or simply just curious about who we are and what we stand for – there’s more to come.

Ready to transform your supply chain? Contact SPS Commerce today, and our team will follow up to explore how we can work together.

What is Managed EDI?

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

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

What is Full-Service EDI?

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

1. Technology

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

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

2. Trade partner expertise

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

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

3. Design and configuration

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

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

4. Trading partner communication

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

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

5. Testing and launching

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

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

6. Proactive monitoring and analysis

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

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

7. Continued access to resources

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

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

Comparison of Managed and Full-Service EDI

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

Costs

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

Control and Flexibility

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

Support and expertise

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

What fits your business?

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

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

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

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

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

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

What is EDI and how did it originate?

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

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

The benefits of EDI

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

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

How does EDI work?

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

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

EDI in different industries

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

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

How can EDI help your business?

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

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