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.

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.

But what are the actual cost savings we’re talking about?

In our experience, automated order processing cost savings are a multi-million-dollar opportunity for many organizations. While your competitors may still be burning resources on manual processes, automation gives you the operational edge to reinvest those savings into growth, better pricing or enhanced customer service.

Improve visibility with speedier data flow

Replacing manual order processes with an automated EDI solution enables quicker data flow, so you’re aware of any order issues sooner.

By automating orders with your suppliers, you’ll know:

• If your order was received
• If the vendor can fulfill it (completely, partially or not at all)
• If there are any issues with the order details
• When the shipment is on its way to your dock or customer

Visibility into each of these order touchpoints is key. Timely, accurate information is crucial to get your supply chain working like it should.

Reduce inventory with order automation

One of the quickest ways to remove waste from the order management process is with better inventory management. When you know which items are coming in and how they’re selling, you don’t need to carry so much inventory.

Your savings result from:

• Reducing order lead times.
• Increasing fill rates.
• Reducing excess store and warehouse safety stock.
• Providing consistent in-stock levels.

Empower staff by cutting manual processes

Eliminating manual tasks and replacing them with an automated solution frees your staff to focus on more important priorities.

The impact of automation is felt across receiving, planning, expediting, customer service, sales and accounts payable teams, giving them more time back in their day to work on driving business growth.

Your savings:

• Speed up the receiving process by knowing exactly when to expect a shipment and what is being delivered
• Reduce staff time in managing orders by up to 20% through order exception management
• Minimize customer service requests on order status (for drop-ship orders)
• Reduce the number of touch point contacts with suppliers

Optimize open-to-buy budgets

Every time open-to-buy funds are held up in orders that will never (or only partially) be fulfilled, it’s a missed opportunity. Because the money is tied up, buyers can’t use it to grow their category or order from new suppliers, and subsequently sales are lost. And when fill rates drop, you risk having empty shelves and unhappy customers.

With optimized open-to-buy budgets, you can:

• Recover money each year in unused open-to-buy dollars
• Increase customer satisfaction by reducing out-of-stocks

Increase invoice accuracy

Automated data exchange enables retailers and distributors to confirm order details such as pricing, item number accuracy, delivery date and even some insights like potential fill rate—before the order is received.

This saves the accounting team time and eliminates errant payments. As a supplier invoice electronically moves through the payables process, you can automatically validate that the invoice information is accurate and approved.

The result: time savings for staff with efficient scheduling and timely payment of invoices.

Hold vendors accountable

You don’t want to be left wondering if your vendors are doing their part. To keep products moving and customers happy, fill rates must stay high, and ship dates cannot vary.

Solutions like the SPS Commerce Supply Chain Performance Suite are designed to help you be proactive and work more productively with your suppliers.

When you capture and pay attention to performance metrics, retailers can gain a good understanding of which suppliers are solid, collaborative partners, and which are less reliable and need attention. Key metrics to track include:

• On-time and in-full (OTIF) – The percentage of complete orders delivered on time
• Fill rates – How often suppliers fulfill your entire order in one shipment
• Lead times – Consistency in delivery timeframes from order to receipt

Often, just knowing that a buying organization is carefully watching these numbers will improve fill rates and shipping, both of which save a retailer time, money and headaches.

The savings? Mid-market retailers taking advantage of automation through our Supply Chain Performance Suite have seen up to:

• 5% sales lift
• 10% reduction in operating expenses
• 3% margin improvement

Boost supply chain performance, get higher profits

When you invest in the automation of trading partner data, the payoff is not only in dollars and cents, but also the building of more transparent, proactive relationships with trading partners. With the right technology, you can transform your supply chain, scale your growth and reap the rewards every day.

Is there room for improvement in your processes? Take our five-question Supply Chain Health Vitals Checkup and get instant results, resources and more, or reach out to our team for a one-on-one conversation today.