Suppliers often feel overwhelmed with the planning, execution and logistics required for a successful transition that realizes the benefits of a new or upgraded ERP system. Even when the process is well-planned, the sheer quantity of tasks required makes the ERP system change difficult. Additionally, challenges exist outside of the technical risks; different departments each face specific integration issues, which adds organizational complexity to the ERP migration.

It’s a complicated process, which means there’s a lot of risk involved—missing orders, broken connections, loss of important documents or high costs. Unfortunately, some companies can’t stay on their existing ERP if their current system doesn’t meet their needs or the technology is being sunset. Luckily, with the right support, you can ensure the typically heavy lift of an ERP migration is virtually painless.

Challenge 1: Integrations are complex

Whether you’re upgrading your existing ERP system or migrating to a completely new one, transferring all data seamlessly is a massive task that requires meticulous planning. Each department—be it procurement, logistics or finance—has unique needs, making data integrity across systems a challenge. An experienced partner can shoulder the burden, ensuring minimal disruption and safeguarding your critical day-to-day operations.

The new ERP system must be able to integrate with other existing systems (including your WMS and CRM). For larger suppliers, this is a massive project that leaves crucial data and operations vulnerable in the process. With so much at stake, it’s essential to have a partner who not only understands these challenges, but also provides the tools and expertise to ensure seamless integration across all systems.

Challenge 2: Existing processes must be shifted

Any new or upgraded ERP system must align with your current business processes. If it doesn’t, it should boost the efficiency of existing processes across all departments. A decision must be made: either customize the ERP to fit existing processes or adapt processes to fit the ERP’s capabilities.

For many suppliers’ IT departments, both options are daunting and require a lot of manpower. It’s also an easy way for something crucial to fall through the cracks, which can lead to anxiety and frustration as teams navigate these changes.

Challenge 3: ERP management must change

Since migrations or upgrades don’t occur that often, most suppliers are used to their existing ERP management processes. When migrations and upgrades do happen, employees must be extensively trained on the new system, which is a time-consuming and costly endeavor. It can also create stress and resistance among teams as they adapt to new workflows and systems.

Effective communication with a migration partner is critical for managing expectations and minimizing resistance to change. Transparency throughout the project ensures there are no surprises, helping to build trust and keep everyone aligned. This level of collaboration helps ease the emotional burden of change, making the transition smoother for all involved.

Challenge 4: Cost is a major factor

As a supplier, you must be prepared to move all data without sacrificing its integrity, which can be costly. Additionally, the new system must work well with existing systems.

Costs related to purchasing and setting up a new ERP system can add up quickly, especially when it comes to a customized solution. After the initial purchase is complete, you also need to budget for the ongoing or monthly billing for the new system. By partnering with an expert like SPS Commerce, suppliers can manage costs and prevent unexpected financial strain during a big transition.

For suppliers not equipped to handle a large migration in-house, partnering with a migration expert can save time, reduce errors and ultimately lower costs associated with the transition.

How can enterprise suppliers mitigate these challenges?

During an ERP migration, whether it’s an existing system upgrade or the adoption of a new system, suppliers must hire a partner to take care of the strategic aspects. It’s essential to choose a partner that has the knowledge and system expertise that will guarantee the new ERP can scale with your business.

It’s crucial that your partner can minimize disruptions to your day-to-day while integrating with your new ERP system. This partnership allows you to focus on your core business while ensuring a smooth and successful transition.

SPS Commerce helps suppliers seeking the next level of supply chain management within their ERP—without the pain of a system automation. SPS provides a faster, easier and more optimized way for enterprise suppliers to add more seamless supply chain management to your business, giving you the power to move with the speed of demand. As a bonus, we know how important it is for you to get back to business as quickly as possible, so our goal is seamless implementation to minimize your stress.

Why choose SPS Commerce as your ERP migration partner?

At SPS Commerce, we’re proud to have the people, processes and technology to ensure your supply chain management process is as seamless as possible. Plus, we support you through any growth your company may have, since our solutions are 100% scalable. You’ll never outgrow us!

The people: our experts lead the way. You’ll receive access to a dedicated team of experts that leads the process, insulates you from the complexities of varying trading partner requirements and minimizes testing. However, it doesn’t end there; our comprehensive training, service and 24/7 support ensures you’re never left troubleshooting on your own.

The processes: we’ve been proven successful, time and again. At SPS Commerce, we’ve used our years of experience to create our proven process and gain a deep understanding of retail requirements and system expertise. We streamline the entire order-to-fulfillment process, allowing enterprise suppliers to operate more efficiently across all fulfillment models and order channels.

The technology: solutions built for success. Our market-leading technology, expansive network and the tools we use to ensure your data meets your partners’ unique needs have been refined over more than 20 years, carefully structured to be capable of supporting all sales channels efficiently and effectively.

Looking for a partner to support your upcoming ERP migration? Get started today.

SPS: First off—Kevin, can you tell us more about RF-SMART? Who are you, what do you do and how do you do it?

Gaul: Sure thing! For more than 40 years, RF-SMART has been a leading supply chain software and hardware provider, offering tools from Warehouse Management System (WMS) and shipping software, to label printing and automation. As a Built for NetSuite solution, we’ve helped 2,000+ customers of all sizes around the world improve accuracy, productivity and visibility across their inventory operations.

SPS: Why do you think SPS Commerce and RF-SMART are a good match?

Finders: Both SPS Commerce and RF-SMART are obsessed with customers. We have a common goal of making the order-to-cash process as seamless as possible for our customers. And on top of that, we’re both Built for NetSuite solutions, which makes our collaboration easier.

Gaul: Agreed: being “crazy for our customers” is one of our core values. Each of us has a long track record of demonstrable expertise and customer satisfaction in providing top-tier supply chain solutions in our respective spaces.

SPS: Who will this partnership benefit?

Gaul: If you’re a parcel shipper and you own NetSuite, this partnership can benefit you. Even if you’re not currently shipping B2B or participating in drop ship programs today, these are still wonderful growth avenues many of our joint customers are taking advantage of. And when we make it so easy, it’s definitely worth considering for anyone looking to increase efficiency and meet increased order volumes.

SPS: What supplier issues might the partnership solve for customers?

Finders: It removes the need for manual data entry between multiple systems, so suppliers can seamlessly meet retail requirements while running their business in the most efficient manner possible.

Gaul: That’s right. Doing business with big-box retailers requires heavy vendor compliance processes. Too often, those are performed manually by subject-matter experts. Our partnership makes this a fully automated process that is lightning fast and requires virtually no training to execute.

SPS: How does this partnership help customers achieve more automation in their daily processes? More specifically, what steps within the order lifecycle are influenced or affected most by this new partnership?

Finders: So, with this solution customers can automate the ASN, or Advance Ship Notice [EDI document 856]. This shipment information is crucial because it communicates to a supplier’s trading partner what is being shipped and when, so that the retailer can receive the product in their warehouse, store or DC in the most efficient way possible. By streamlining the ASN process with SPS and RF-SMART, customers don’t have to enter shipment information manually from one system into another. This allows them to focus on running their business and letting their full-service partners handle the rest.

Gaul: I would add that we work closely with the decision-makers up front to do all of the configuration so that when it comes time to ship a package, no one has to ask questions. RF-SMART guides the user through the shipping process, completely decision-free, then hands the data off to SPS to generate the fully compliant ASN and send it off to the right trading partner. The whole process is meant to ensure smooth delivery to your customer with no chargebacks.

SPS: Can you talk a little more about how integration through NetSuite reduces manual labor and how both your companies play a role in that?

Finders: Yes, definitely. When suppliers leverage NetSuite to complete their entire order-to-cash process within their ERP system, they can run their business way more efficiently. Our NetSuite system automation solution lets suppliers import sales orders from trading partners, create item fulfillments and send invoices, while SPS handles communicating EDI requirements on the supplier’s behalf. The addition of the RF-SMART solution to assist with picking, packing and shipping makes everything even more efficient. It allows employees to do their jobs without having to enter tedious shipment information into NetSuite. Once an item is picked, packed and shipped, RF-SMART communicates necessary shipment details to NetSuite and SPS, which allows for the ASN to be automatically generated and sent to the trading partner. At the end of the day, this partnership sets customers up to get an “A” with their trading partners.

Gaul: That’s a great detailed explanation. Together, RF-SMART and SPS, as Built for Netsuite solutions, not only drastically reduce or otherwise eliminate the manual processes surrounding shipments involving EDI transactions, but they also do it in a way that frees up your most valuable team members to focus on more value-added activities. We find that the people working in NetSuite are often highly trusted resources for a business. Instead of having them work on manual, redundant back-office tasks, they might be better used for other, more valuable tasks.

SPS: What do you hope customers gain from this partnership?

Gaul: The joint customers shared by RF-SMART and SPS enjoy relationships with us as technology partners who take extreme ownership of solutions to supply chain problems. Our goal is to make their processes easier so they have time back in their day to focus on the parts of their business that are most strategic to them.

Finders: Yes, exactly. We want to reduce manual data and streamline their processes through automation. The end goal is for them to meet all their omnichannel market requirements and increased order volumes with ease and efficiency. Our partnership is just one more step toward that goal.

Thanks to Kevin Gaul and Siobhan Finders for their input on this new NetSuite collaboration. To learn more, visit our site or talk with one of our solution experts.

Our integrated platform provides turnkey EDI services, workflow automation and at-a-glance visibility into your order-to-cash process. The joint solution from SPS Commerce and QuickBooks delivers automated omni-channel order management.

Seamless integration for effortless operations

Say goodbye to the hassle of juggling multiple systems and manual data entry by automating repetitive tasks that consume valuable time. Our solution combines the retail cloud services of SPS Commerce with QuickBooks’ accounting software, providing seamless synchronization of your order data. This cost-effective integration eliminates errors and ensures accurate financial reporting, so you can focus your time on growing your business and delivering exceptional customer experiences instead of on tedious administrative tasks.

Scale your business with confidence

As your business grows, our solution grows with you. Our collaboration with QuickBooks is designed to adapt to your changing needs, whether you’re moving into new sales channels, dealing with increased order volumes or expanding your supply chain operations. You can confidently scale your business without worrying about outgrowing your software.

Dedicated support every step of the way

We understand that implementing new software can be overwhelming. That’s why we have a dedicated QuickBooks customer success team, ready to guide you through the initial process and provide ongoing support. SPS is a full-service EDI provider, which means we handle setup, testing, map changes and everything in between, so you can get back to your business priorities.

SPS Commerce, together with QuickBooks, offers a comprehensive EDI solution that has the potential to transform your supply chain operations. With seamless integration, automated processes, scalability and dedicated support, our solution empowers you to focus on what matters most: delivering exceptional products and experiences to your customers. Embrace the power of streamlined operations with SPS Commerce and QuickBooks, and unlock the potential of your business today.

To learn more about our QuickBooks solutions, visit our integrations page or take a look at our official app listing on the QuickBooks app marketplace.

As a leader in the retail industry, SPS Commerce is employing next generation technology to drive the cloud-based solutions of the future. Businesses are shifting to the cloud, where they expect a seamless experience and solutions that work together with minimal complexity. More than one million customers use QuickBooks Online globally, including 30,000 retailers in the United States.

Experience the benefits of QuickBooks EDI solutions

SPS Commerce can now address the needs of those suppliers, brands and retailers that rely on QuickBooks Online. With Integrated Fulfillment for QuickBooks Online, users will experience:

• Efficient collaboration between trading partners;
• Workflow automation;
• Turnkey EDI services;
• At-a-glance visibility into all orders;
• And so much more.

With QuickBooks EDI solutions from SPS Commerce, you can quickly and cost-effectively connect with your retail customers. Easily extend the order fulfillment capabilities in QuickBooks using our QuickBooks EDI integration. Scale your business by leveraging QB EDI and our network of 50,000 subscribing customers.

Learn more about how SPS can help you quickly connect to your retail partners with QuickBooks EDI. 

In order to reach the consumer, both Callaway and PGA Tour Superstore had to collaborate to figure out what the consumer is looking for and also what makes the consumer happy.

“Engaging the customer and giving the customer an experience when they come into the store is extremely important,” Peitsch said. “Creating trust is a big part of what we have to do to be successful as a retailer.”

The successful collaboration between Callaway and PGA Tour Superstore has led to both companies working together in order to create compelling content for various social media platforms, such as Instagram, Facebook, Twitter and YouTube.

“We’re constantly working together to make cooperative content and creative tools.” Arnett said.

With the evolution of the game of golf and the emergence of new-age golf superstars, such as Jordan Spieth, Jason Day and Rory Mcllroy, the need for compelling content is at an all-time high.

“Social media has really exploded with this new generation of players,” Peitsch said. “This is where the world is going now and our customer is so passionate about the game that they want to know what each player is using.”

Having the ability to create compelling content as well as the ability to really figure out what the needs, wants and desires each individual customer has are what have helped Callaway continue its reign as the leader in golf performance and innovation for more than 30 years as well as allow PGA Tour Superstore to set a plan to double the amount of brick and mortar stores across the United States.

For more information on SPS In:fluence events, check out the PAST SESSIONS page here. Make sure to join in with the conversation on Twitter by using the hashtag #SPSInfluence.

Want to add a million dollars to your bottom line, without making any drastic changes? Traditionally there are two ways to add to your bottom line, increase sales and reduce expenses.  Increasing sales could mean raise prices, take on new products or open a new store. Many companies have infrastructure in place for using supply chain automation to address the “reduction of costs”. Using this automation, you could see dramatic improvements to your bottom line.

Supply chain experts estimate retail organizations spend an average of $120 – $150 per purchase order managing inventory errors, missing paperwork, paying fraudulent or incorrect invoices, inventory delays through manual receiving processes, inadequate visibility, incorrect pricing and payment terms.

If your organization sends 100,000 purchase orders per year, that’s $12 – $15 million lost due to these errors. If you could save just $10 per purchase order, just by using one new accounting procedure, that’s worth $1 million.

But if you could eliminate even half of those $120 errors, you’re looking at as much as $6 million in savings.

Enter the Three-Way Match

The three-way match is an accounting procedure that applies 1) the buyer’s PO to 2) the supplier’s invoice, and 3) the inventory receiving sheets delivered to the buyer’s warehouse. Together, the comparison of these three documents can prevent payments to incorrect and fraudulent invoices, as well as substantiate valid invoices for immediate payment.

For most retailers, 70% of all invoices pass the three-way match without any problem. When used in an automated Accounts Payable system, the three-way match process will pass and pay the invoices without human intervention.

It’s the other 30% that cause problems. Based on our own research and observations, these discrepancies usually deal with price, quantity and payment terms — 15% of the issues are related to price, 12% to quantities, and 3% to payment terms.

An efficient way to solve these discrepancies is through advance visibility of potential terms or price issues using the EDI Purchase Order Acknowledgements (POAs) and through receiving automation on the buying side and fulfillment validation on the selling system using the EDI Advanced Ship Notifications (ASNs).

One of our retail customers told us they used to have 15 full-time employees who managed their invoices for their stores and warehouses. Once they began automating their system and adopting the three-way match, they reduced their accounts payable staff to five employees and grew their business by 7% year-over-year.

All in all, this saved over half a million dollars per year just by reducing staff and eliminating documentation errors. Let’s look at how this happened:

The POA — Purchase Order Acknowledgement — does several things:

It can reconcile discrepancies. Suppliers can confirm products, quantities, and prices before the first case is even shipped. This eliminates almost 15% of mismatches related to pricing.

• It helps close out purchase orders much more quickly, which makes the supply chain more nimble.
• It helps the retailer know when they can expect their orders to arrive, can make more accurate sales forecasts and can determine if alternate product sourcing is needed.

The ASN — Advanced Shipping Notification — performs similar functions:

It lets the retailer know when the orders will arrive. This lets retailers plan for resources and equipment needed for receiving.

• If the supplier scans items as they pack, and uses a barcode inventory system, warehouse shipping staff can scan boxes they unpack and double-check the order against the ASN and POA. Automated receipt of cartons against the ASN by the buyer’s warehouse receiving staff reduces the number of miscounted products. With each party doing their part of supply chain automation, this eliminates the 13% of discrepancies related to quantity.

Finally, by automating purchase orders, invoices, and ASNs, suppliers can close out their invoices much more quickly than if everything is done by hand. One of our supplier customers was able to close out millions of dollars in open invoices by automating their supply chain and helping their retail partners effectively use three-way automated matching.

For suppliers and retailers that want to add hundreds of thousands, or even millions, of dollars to their bottom line, the secret is in automation and adopting the three-way match procedure.

By doing everything in a cloud-based system, and using barcode scanning and even RFID technology, companies are able to find savings and additional revenue with supply chain automation. Want to learn more? Contact SPS Commerce today.

Connect to your partners and streamline your supply chain.

Automate your process through the retail industry’s largest network with EDI.

Contact SPS

This blog post is like a Supply Chain 101 to provide a basic understanding of the members (or trading partners as they are often called), interactions (often called transactions), and diverse systems across the globe that must interact and participate in today’s global supply chains.

To best demonstrate how a supply chain works, let’s use an example of an electronic gadget that is assembled in the U.S. but many of the components are sourced from foreign suppliers.

(1) The Order 

Our Retailer will send an electronic purchase order to the Manufacturer who is the lead coordinator of the supply chain. This is the Supply Chain Manager (SCM) of an “Extended Supply Chain,” in which many of its elements are not owned by the Manufacturer.

(2) Fulfillment Process: Notify all Parties 

The SCM will first check “downstream” for the required stock in a Warehouse nearby to the Retailer. This Warehouse could be under the SCM’s control, managed by a 3PL (third party logistics provider) or under the control of a Distributor. The SCM will next check outbound transportation for the product already being shipped to the retailer’s area.

At whatever point sufficient product is located, the SCM will generate an electronic shipping notice to the Retailer and coordinate with the warehouse and/or Distributor to meet the delivery commitment.

(3) Fulfillment Process: Supplier to Manufacturer

If sufficient product is not available, SCM will now look upstream. The first stop is to check the internal production schedule. If sufficient product is not available, how soon can it be assembled? Are sufficient parts on hand? If not, when will they be available?

The key for the SCM is to forecast correctly and communicate efficiently with its factories or sourcing companies. Inbound transportation has quite a job to coordinate ocean shipping with its many formalities such as customs. It is an exercise in risk management because of such factors as weather, labor, and other issues.

Factories or Sourcing Companies too need solid electronic communications with SCM as well as internal systems to run their factory floor and track their raw materials.

Every entity in this extended supply chain needs solid systems to survive. An absolute requirement is EDI. All these data flows MUST be in machine-readable format. Manufacturing must have an ERP or other manufacturing control system. Inbound and outbound transportation depend on being able to digest status messages from carriers. Usual transportation for the SCM is handled by a 3PL that contract with individual truckers, railroads and ocean carriers. Procurement needs accurate and powerful forecasting tools.

Coming from overseas, the Factory will apply barcode to his product, or depending on the size, at least at the packaging level. The Factory will notify SCM that product has left the factory. Overseas shipments require the intervention of a Customs Broker at loading and unloading. The Customs Broker will send a completion message to SCM. At the port of entry, inbound transportation will receive the product and ship to the manufacturer. Here the product is scanned and received into the manufacturer’s inventory.

(4) Fulfillment Process: Manufacturer to Retailer

After final assembly, the finished goods are barcoded and turned over to outbound transportation for shipping to the Distributor. After the Distributor or Warehouse accepts (scans) incoming goods, the delivery goes to the Retailer.

(5) Payment Process: Retailer Pays Manufacturer

Once the Retailer accepts the goods, the billing process begins (usually based on an electronic invoice and an electronic funds transfer).

This is a basic look at the supply chain.

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Connect to your partners and streamline your supply chain.

Automate your process through the retail industry’s largest network with EDI.

Contact SPS