Demand now swings in sharper, less predictable cycles. Transportation costs fluctuate week to week, and labor availability changes month to month. Yet retailers and suppliers are still expected to deliver precise, reliable execution with almost no margin for error.

Teams aren’t just trying to stay ahead of trends anymore; they’re trying to stay ahead of volatility. In that environment, predictability becomes a strategic asset. And across the market, retailers are already making the shift:

• They’re building more resilient and transparent supply chains designed to withstand disruption — not react to it.
• They’re tightening control and increasing item-level visibility as demand becomes harder to forecast.
• They’re using digital planning tools to stabilize inventory instead of responding to every fluctuation in real time.

In short, retailers aren’t chasing chaos anymore — they’re engineering calm. The shift toward steadier, data-driven operations is clear. Yet even as supply chains become more resilient, one quiet destabilizer remains: constant order changes.

The mid-cycle adjustments, delayed acknowledgments, quantity edits and shipment updates that happen after a truck is already rolling may seem minor on their own, but together they’re costly. They disrupt planning, confuse systems, slow execution and quietly drain cash, undermining the very stability retailers are working to build. And they happen every day, often unnoticed and almost always underestimated.

The data tells the story

When SPS Network Intelligence examined the real movement of orders across the retail network, the pattern became impossible to ignore. The analysis covered 1.2 million purchase orders, 4.8 million associated documents and $9.7 billion in merchandise volume — a scale large enough to reveal where volatility starts, how it spreads and what it ultimately costs.

Across that dataset, one signal cut through: order volatility is far more common, and far more expensive, than most teams realize.

The findings were consistent across categories and order types:

• 6.5% of total merchandise value, or $634 million, was exposed to volatility-related risk. That exposure represents inventory sitting longer, shipments moving inconsistently and cash tied up for days or weeks longer than planned.
• Every 1% reduction in volatility returned $9–10 million in cash flow back into the operation.
• Even categories known for stable, predictable demand — including grocery — showed meaningful volatility, underscoring that this isn’t an issue limited to seasonal or trend-driven businesses.

The operational consequences were equally clear.

Every small change — whether a timing update or a line-level edit — creates a series of downstream ripple effects: delayed shipments, mismatched inventory, extended dwell times and lost sales opportunities. A single mid-cycle adjustment can trigger rework across ERP, WMS, transportation and store systems.

As one retail operations leader put it: “A single delayed PO can freeze a week’s worth of sales and tie up millions in inventory.”

Volatility doesn’t just slow down one order. It compounds across the network, introducing friction at every handoff and silently pulling performance, liquidity and customer experience in the wrong direction.

Explore the complete findings in our on-demand webinar:
Pulling back the curtain on network-level volatility

What order volatility is and how it drives cost

Volatility isn’t just a process issue. It’s a financial one. At its core, order volatility is the variation or fluctuation that occurs throughout a purchase order’s lifecycle: timing updates, quantity edits, line-level changes or shipment corrections. These shifts often seem routine, but they introduce uncertainty at every step. And uncertainty creates rework, delays and added cost.

Volatility can originate from multiple touchpoints:

• Timing updates that adjust acknowledgment or ship-by dates
• Quantity changes made after the PO is issued
• Line-level edits affecting individual SKUs
• Shipment corrections made after goods have already left the warehouse

Each update triggers a downstream chain reaction. A single header-level change may force multiple revisions across ERP, WMS, carrier or 3PL systems. That rework absorbs time, slows decision-making and reduces the predictability of both shipments and inventory placement. SPS Network Intelligence found that even minor fluctuations compound as they move through the network, lengthening cycle times and increasing operational strain.

How volatility impacts financial performance

The financial impact is equally clear. When orders change mid-cycle, inventory spends more time in transition, tying up cash and extending the cash conversion cycle. Carrying costs — often 20–30% of inventory value — rise as goods sit idle or move inconsistently. Teams lean on expedited transportation to recover lost time. Missed windows introduce penalties, deductions and lost sales opportunities. The ripple effect touches every KPI:

• Delayed orders
• Higher fees
• Reduced operational efficiency
• Lower OTIF
• Narrower margins and tighter cash flow

Across $9.7 billion in analyzed order volume, SPS identified more than $600 million in merchandise value exposed to volatility risk. The pattern is direct: the more an order changes, the more value is put at risk.

This is why predictability matters more now than ever. In a market defined by thin margins, tight schedules and unpredictable demand, stability isn’t just operational efficiency — it’s liquidity, profitability and resilience.

How leaders are fighting back

Volatility has become a direct threat to profitability, especially as margins shrink and demand grows more erratic. What used to be minor exceptions now trigger downstream delays, stranded inventory and costly last-minute workarounds.

The retailers making progress have one advantage: earlier visibility into when, where and why orders are changing. With that clarity, they plan better, react faster and prevent issues before they spread.

Predictability strengthens execution by improving visibility across the PO lifecycle, reducing shipment mismatches, sharpening cash-flow accuracy and enabling clearer retailer–supplier communication. Unpredictable orders do the opposite — slowing goods midstream, weakening forecasts and compounding cost across the network.

Leading organizations counter volatility by focusing on a few core habits:

• They benchmark how often orders change and what it costs.
• They connect POs, acknowledgements, ASNs and shipments into a clear real-time view.
• They create shared accountability with suppliers to address issues early rather than react late.

These behaviors are part of a broader journey toward operational maturity. Most retailers progress through four stages of predictability, moving from reactive processes to more stable, data-driven execution. Each stage builds greater visibility, reduces variance and strengthens financial performance — especially in high-volatility environments.

Organizations that reach predictive maturity consistently see 12–18% better on-time delivery and 20–30% faster acknowledgment cycles, leading to fewer surprises, faster turns and stronger liquidity.

Predictability doesn’t remove problems — it reveals them early enough to stay in control.

The bottom line

Order volatility is the quiet force undermining even the best-built supply chains. Small changes ripple into delays, deductions and trapped cash — costing far more than most teams realize.

Leaders who take volatility seriously are already seeing the difference: fewer surprises, stronger turns, higher OTIF and more confident planning.

In a market defined by tight margins and unstable demand, predictability pays off — every single time.

Learn more with the predictability pays off analysis

Explore the research, data, and frameworks behind these findings in our new analysis,
Predictability pays off: How retail and supply chain leaders turn order volatility into a competitive advantage.

Companies like LVMH are embedding AI across their entire operations, while fast fashion players use it to accelerate everything from forecasting to logistics. Every day more brands are turning to AI to optimize production planning, predict equipment maintenance and streamline fulfillment processes.

As we’re seeing across thousands of supply chains in our network, AI isn’t just about gaining a competitive advantage anymore; today it’s table stakes.

According to Gartner’s 2025 Supply Chain Symposium, 74% of CEOs believe AI will have the most significant impact on their businesses over the next three years. But it’s critical to understand: your AI is only as good as the data you’re feeding it.

What’s working with AI today?

Every day we’re hearing about new uses of AI in the marketplace:

• Generative AI for scenario planning: Cutting edge retailers are using AI to run “what if” scenarios—simulating demand spikes, supplier issues and logistics constraints through digital twins. Instead of being stuck in reactive mode, they’re testing their responses before disruptions hit.
• Turning waste into wins: Companies are applying AI to optimize returns, cut packaging waste and forecast more precisely to avoid overproduction. Traditional cost centers of waste management and sustainability are becoming margin protection tools.
• Connected automation: From smart warehouses to exception automation, retailers are using AI to reduce manual work and simplify operations. Gartner calls out “connected supply chains” and workflow automation as must-haves for 2025.

How’s your data? A reality check

When it comes to where we see AI working in supply chains, the companies winning with AI aren’t the ones with the fanciest algorithms—they’re the ones with the cleanest, most standardized trading partner data.

And here’s why:

• Your AI may build beautiful supplier disruption models, but if the lead time data is inconsistent, its recommendations are worthless when real problems hit.
• Optimizing returns with AI should work, but without accurate item data from trading partners, AI can’t tell the difference between defects and customer preferences.
• While your customers expect flawless execution, your AI can only deliver if your partner data is consistently accurate across every single relationship.

What do you need for a better data foundation?

Across our retail supply chain network, we see that the companies who successfully apply AI are using standardized, real-time partner data. Without it, AI can’t deliver.

The foundations required for AI implementations include:

• Clean EDI data: AI systems need consistent product info, order acknowledgments and shipment notifications. When this varies across trading partners, your AI models produce unreliable outputs.
• Standardized communications: Exception automation requires partners to communicate disruptions in standard formats. Manual, inconsistent communications break AI workflows every time.
• Real-time visibility: AI lives on current information. You need up-to-the-minute partner feeds, but across diverse trading relationships, most companies can’t maintain them.

When AI ideals meet reality

While new technology is always part of the discussion in modern business, what we’re hearing about AI usage across customers is consistent: Companies start excited about the possibilities of what AI can do for them but quickly realize it won’t work without first standardizing their data.

The dilemma:

• The most sophisticated AI fails if trading partners can’t feed it accurate, timely information.
• Manual exception handling is getting replaced by automated workflows, but only when the underlying data triggers actually work.

Where are we heading?

The future of supply chains may actually be written by AI.

We’re moving toward autonomous systems that respond to disruptions without human intervention: connected ecosystems, with AI orchestrating workflows across all trading partners, and sustainable applications optimizing resource usage.

But how well this works (or not) will depend on if there’s standardized, reliable partner data.

Build your foundation now

The companies who’ll win with AI understand that AI transformation begins with better data. They’re investing in standardized trading partner data formats, real-time partner performance visibility and automated workflows that eliminate manual errors.

AI has incredible potential to transform retail supply chains. But you must have a foundation of clean, standardized and real-time supplier data.

Want to see how leading retailers are preparing their supply chains for the future? Explore our latest insights.

But a significant shift is changing how companies track and identify products throughout the supply chain. 2D barcodes are emerging as the next standard, and they pack dramatically more information into a compact square format. While a UCC-128 shipping label might hold 48 characters of data, a 2D barcode can store thousands of characters, including serial numbers, batch codes, expiration dates and much more.

Major retailers are preparing for 2D barcode adoption, and new industry standards will require point-of-sale systems to accept 2D barcodes globally by the end of 2027. This means businesses across the supply chain must understand how 2D barcodes work and prepare their operations for the transition.

Why 2D barcodes are replacing traditional barcodes

The push toward 2D barcodes comes directly from consumer demand. According to recent research by industry standards body GS1, 77% of shoppers say product information is important when making purchases, and 62% are willing to spend more on products that offer detailed information. Additionally, 79% are more likely to purchase products with scannable codes that provide extra product details via smartphone.

The information consumers want most includes nutrition facts, materials and ingredients, safety information, country of origin, allergen warnings and recall alerts—far more than a traditional 1D barcode can hold.

Consumer pressure has accelerated industry adoption. The transition is already underway, with 2D barcode technology being tested in 48 countries that represent 88% of the world’s GDP. Major retailers are preparing for 2D barcode adoption, and new industry standards will require point-of-sale systems to accept 2D barcodes globally by 2027 under the GS1 Sunrise 2027 initiative.

What are 2D barcodes?

A 2D barcode stores information in two dimensions—both horizontally and vertically.

In contrast, a 1D barcode stores information horizontally.

The most common types of 2D barcodes include:

QR codes are square, pixelated codes you scan with your smartphone. Originally developed in Japan for tracking automotive parts, they’re now everywhere from restaurant menus to marketing materials.

Data matrix codes are smaller, more compact squares often used in manufacturing and healthcare. You might see these on prescription bottles or electronic components.

PDF417 codes are rectangular barcodes that look like tiny bricks stacked on top of each other. These are commonly used on driver’s licenses and shipping labels.

So, is a QR code a 2D barcode? Absolutely! QR codes are the most recognizable type, but they’re just one variety of advanced barcode technology.

How do 2D barcodes work?

2D barcodes work by encoding information in patterns of dark and light squares, rectangles or dots arranged in a grid. Instead of reading information linearly from left to right like traditional barcodes, scanners read 2D codes in multiple directions.

Here’s what happens when you scan a 2D barcode:

1. Pattern recognition: The scanner’s camera or laser identifies the finder patterns (those larger squares in the corners of QR codes, for example) to understand the code’s orientation and size.
2. Data extraction: The scanner reads the arrangement of dark and light modules across the entire code, converting the visual pattern into digital information.
3. Error correction: Most 2D barcodes include built-in error correction, meaning they can still be read even if part of the code is damaged or obscured.
4. Information output: The scanner processes the data and presents it in a readable format, whether that’s a website URL, product details or other encoded information.

How much data can a 2D barcode hold? It varies by type:

• QR codes can store up to 4,296 alphanumeric characters.
• Data Matrix codes can hold up to 2,335 alphanumeric characters.
• PDF417 codes can store up to 1,850 alphanumeric characters.

The massive capacity difference explains why 2D barcodes can include detailed information like batch numbers, expiration dates, serial numbers and even complete product descriptions.

Creating and scanning 2D barcodes

How to create 2D barcodes

Businesses have several options for generating 2D barcodes, depending on their volume needs and technical requirements.

For small-scale needs, online generators offer a simple solution. Search for “QR code generator” or “2D barcode generator,” enter your information (text, URL, contact details) and download the resulting image.

For office integration, creating 2D barcodes in Excel is possible through add-ins or formulas that generate QR codes.

For enterprise operations, businesses choose between dedicated barcode software for bulk creation or integrated solutions that connect with existing supply chain systems. Many companies prefer platforms that generate compliant barcodes and integrate data with trading partners.

How to scan 2D barcodes

Many small businesses begin by using mobile phones to scan barcodes. On an iPhone, open the Camera app and point it at the barcode. A notification will appear at the top of the screen. Tap it to view the information. Most Android phones offer a similar experience.

As a business grows, receiving processes often become more complex. At that point, companies typically move to tablets or dedicated scanners. These devices may be handheld or mounted and are built to handle higher volumes. They also connect directly to ERP or WMS systems, making it easier to manage inventory at scale.

Most modern scanners can read both 1D and 2D barcodes. If you’re using older equipment, look for “2D imaging” or “area imaging” capabilities. Laser-only scanners may not support 2D codes.

Scanner compatibility and technical questions

One of the most common questions businesses ask is: can a 2D barcode scanner read 1D barcodes? The short answer is yes, almost always.

Modern 2D scanners use imaging technology (essentially tiny cameras) that can capture and decode both 1D and 2D barcodes. This means businesses can upgrade to 2D scanning equipment without losing the ability to read traditional UPC codes and other 1D formats.

However, the reverse isn’t true. Traditional 1D laser scanners can’t read 2D barcodes because they only scan in one direction. If you’re still using older laser scanning equipment, you’ll need to upgrade to 2D imaging scanners to read the new barcode formats.

When evaluating scanner upgrades, consider:

• Imaging vs. laser technology: 2D scanners use cameras, 1D scanners use lasers.
• Reading distance and angle: 2D scanners are generally more flexible about positioning.
• Durability requirements: Industrial environments may need ruggedized 2D scanners.

Benefits of 2D barcode technology

2D barcodes provide several key benefits:

• Enhanced traceability: Batch numbers and expiration dates encoded in the barcode improve recall response and inventory management.
• Supply chain transparency: 2D barcodes track detailed product information from manufacturer to consumer.
• Consumer engagement: Shoppers scan products with their phones to access detailed information, reviews, recipes or promotional content from the same checkout barcode.
• Operational efficiency: A single scan captures pricing, promotional details and inventory data, reducing checkout errors and speeding up transactions.
• Regulatory compliance: Pharmaceutical and food industries increasingly require detailed product tracking that 1D barcodes can’t support.
• Better product authentication: 2D barcodes combat counterfeiting and build brand trust through verified information.

The transition to 2D barcodes won’t happen overnight. Businesses need to upgrade point-of-sale systems, update packaging processes and get their supply chain partners ready. But the benefits, from improved food safety to better customer experiences, are expected to drive rapid adoption across retail chains.

Common applications and use cases

2D barcodes are already transforming operations across industries:

Retail and consumer goods: Companies authenticate products, share ingredient information and run promotional campaigns that connect physical products to digital experiences. 2D barcodes on shipping labels consolidate shipment details, item information and receiving instructions into a single scan, providing complete supply chain visibility from warehouse to store.

Healthcare and pharmaceuticals: Medication tracking creates full traceability from manufacturer to bedside, reducing medication errors and meeting regulatory compliance requirements. Healthcare providers can track batch numbers and expiration dates throughout the entire supply chain.

Manufacturing and automotive: Quality control systems track parts throughout complex supply chains and rapidly identify defective components. Production data, batch numbers and quality control information travel with products from manufacturing through distribution, creating complete visibility into the production process.

Food and beverage: Lot tracking systems enable rapid response to contamination issues and provide consumers with detailed sourcing information. Companies can trace products from farm to table, improving food safety and meeting transparency demands.

Electronics and technology: Manufacturers embed serial number tracking, warranty information and anti-counterfeiting measures directly into product labeling. This creates visibility into product authenticity and ownership throughout the device lifecycle.

The future of 2D barcodes

2D barcodes are more than just a technical upgrade. They open the door to entirely new ways for businesses and consumers to interact with products. As scanning technology advances, expect to see:

• Dynamic content: Barcodes that link to real-time information like pricing, availability, or promotional offers
• Personalized experiences: Product scans that deliver different messages or offers based on the user, time, or location
• IoT integration: Barcodes that connect physical products to smart systems for reordering, maintenance, or usage tracking
• Enhanced security: Built-in authentication features that make counterfeiting much more difficult
• Sustainability tracking: Lifecycle data that helps consumers make environmentally responsible choices

2D barcode technology is already in use, and early adopters are seeing strong returns. As momentum builds, businesses that prepare now will be better positioned to take full advantage of what’s ahead.

Getting started with 2D barcodes

The simplest approach involves starting small by creating a 2D barcode for a business website or contact information to test customer response. The barrier to entry is lower than most expect.

Begin by examining current barcode scanning equipment and identifying where 2D barcodes could add value. Try testing 2D barcodes with key processes before expanding across your company.

Organizations worldwide are already implementing 2D barcode technology across their supply chains. Understanding how they work and planning for implementation now positions operations for the transition to this new standard in B2B commerce and product identification.

Scanning for what’s next

2D barcodes give you the detailed data you need: batch numbers for recalls, expiration dates for compliance and serial numbers for authentication. But having this data only helps if you can act on it across all your sales channels.

Ready to put your data to work? Omnichannel fulfillment turns improved data into seamless experiences online, in-store and everywhere customers shop.

Welcome to the beauty industry in 2025, where trends move faster, promotions launch around the clock and the margin for error is smaller than ever. Tariff shifts, supply delays and viral media moments creating instant and unplanned demand make it almost impossible to plan ahead. That’s why so many beauty brands are upping their game, looking for more tailored and data-ready solutions.

Because when you’re navigating complexity, clarity becomes a powerful advantage.

Why visibility matters more than ever

In a dynamic category like beauty, understanding what’s working and where it’s working is critical. Whether you’re evaluating a product launch, responding to a supply chain delay or reviewing seasonal performance, having clear, up-to-date data makes it easier to take the correct next steps.

Without that visibility, teams often end up relying on incomplete reports, or occasionally just instinct to make decisions. It’s not a lack of effort. It’s simply hard to stay ahead when the information you need is scattered across systems or buried in spreadsheets.

Brands are finding that when their data is more accessible and aligned, their teams are, too.

More connected data = better decisions at every level

When analysts, planners and decision-makers are all working from the same accurate information, things tend to run more smoothly.

• Demand planners can react quickly to viral trends and avoid stockouts
• Sales teams can walk into buyer meetings armed with data on which SKUs are driving margin, and which ones aren’t pulling their weight
• Leadership teams can spot shifts in the market or shopper behavior and adjust before competitors do

That kind of alignment doesn’t just improve operations. It helps teams feel more in control, even in an unpredictable market.

Better data helps beauty brands move forward with confidence

Making sense of retail data may not be glamorous, but in the beauty industry, it’s essential. The good news? It’s becoming more achievable.

With the right tools and processes in place, more beauty brands are finding ways to cut through the noise, uncover meaningful insights and make proactive decisions.

Brands that are outperforming right now have something in common: they know what’s happening in their business at every level. They’re monitoring SKU-level performance by region. They’re adjusting launch plans based on real-time sell-through. They’re showing up to line reviews with data that tells a clear story.

These brands haven’t just added an analytics tool. They’ve adopted a culture of visibility, and it’s changing how they plan, react and grow.

Ready to take care of your brand’s data? Learn how SPS Analytics helps beauty suppliers turn data chaos into clarity. Download our quick overview or schedule a demo.

It’s an unpredictable retail environment, but one truth stands above all: when you don’t know where to turn, look to your data. At the recent SPS Commerce Analytics User Group (AUG), we heard from both emerging brands and established retail leaders who are leveraging their retail sell-through data and analytics reporting tools to come out strong during unstable market conditions.

The trust challenge

The numbers speak volumes. According to Gartner research, 97% of businesses struggle with supply chain metrics, and 70% lack confidence in their current technology. For suppliers trying to navigate an uncertain future using outdated tools and disparate data, these statistics aren’t just numbers—they represent daily operational challenges impacting their ability to serve retail partners effectively.

“The data is always telling you something.”

– Analytics User Group panelist, VP of collegiate apparel brand.

That insight explains why more suppliers are moving away from portals and spreadsheets and turning toward dynamic analytics solutions that offer practical reporting tools as well as options to integrate with planning systems and BI tools. Starting the week with up-to-date reports highlighting performance metrics and inventory risks offers a head start for tackling the week ahead.

From data to competitive advantage

What separates high-performing suppliers from the rest often comes down to speed: how fast they can turn insights into action. Our AUG participants shared how this plays out in real-world scenarios.

One supplier shared how they revolutionized their inventory approach by combining data sources to create a fast-turn replenishment model. This quick-to-market college sporting apparel brand analyzed sell-through data following game days, along with location data and team schedules for the upcoming weekend’s games, allowing them to replenish key teams’ fan apparel at the exact locations fans would be shopping. This quick-response capability helped them climb from ninth to third position with a key retail partner, growing revenue by 50% in just one year.

For suppliers looking to keep inventory lean while leveraging every opportunity, this example shows how having access to trustworthy data translates directly to measurable results. Suppliers using SPS Analytics consistently outperform industry averages in revenue growth, sell-through and gross margin.

Building your data trust framework

The most successful suppliers use a systematic approach to retail data:

1. Start with reliable inventory tools. Look for solutions that deliver complete, accurate and timely data in one secure location and ease the resource burden on your team.
2. Gain a holistic view of your retail data. Go beyond inventory counts. Analyze omnichannel performance and drill into the “why” behind the numbers.
3. Focus on inventory optimization management. Solutions that offer the option to integrate retail sales and inventory data into your preferred BI tools create process efficiency gains.
4. Use predictive analytics. Forecast demand and adjust before buyers even ask, turning responsiveness into partnership.

Data builds stronger partnerships

The most powerful insight from our AUG discussions wasn’t just about trusting data internally; it was about how trusted data transforms your retail partnerships.

“Leverage data to build trust with your partners.”

– Planning manager of one of the world’s leading footwear brands

By sharing sell-through data, their team aligns more closely with buyers and strengthens collaboration. This approach is especially valuable in categories where retailer trust determines premium shelf space and promotional support.

Transform your retail data into revenue growth

Turn complex retail data into actionable insights that power your success in everything from inventory optimization to sales forecasting to stronger partnerships. The future of retail is uncertain, but trust in your data and strong relationships with your buyers don’t have to be. Be empowered to use your data as your guide and keep moving forward with confidence.

Learn more about SPS Analytics.

Already a customer? Look out for our emails to sign up for the next Small Learning Group session!

The challenges multiply when critical information is siloed throughout the supply chain.

Successful brands are upgrading information flow with modern technology solutions to streamline operations, maximize efficiency and support scalable growth and compliance.

Why are information silos problematic for supply chains?

When information is restricted between supplier partners or departments, it creates significant pain points, including:

• Operational inefficiencies: Manual processes (like decentralized order management across different channels that require manual data entry or system integrations not tailored to your unique needs) are both time-consuming and prone to errors. Outdated practices make it difficult for suppliers to scale or adapt quickly to changes in consumer demand.
• Poor data flow: Limited visibility into inventory levels, product movement and demand forecasts blocks proactive decision-making. When there’s not a timely flow of data across systems, suppliers struggle to make informed choices about production and distribution.
• Costly delays: Shipping errors, inventory shortages and communication breakdowns can result in delays that impact product quality, food freshness and customer satisfaction. This can not only lead to lost revenue, but damage brand reputation.
• Compliance challenges: Delays in meeting trading partner requirements – or adapting to changes – can sacrifice revenue and damage relationships. In addition, swift recall compliance requires end-to-end visibility into your supply chain.
• Financial impact: Siloed supply chains lose you money. Outdated practices, wasted resources and missed opportunities increase operational costs and reduce profitability.

How can technology improve supply chain efficiency?

Modern technology solutions support a seamless, efficient supply chain. Upgrades offer key benefits, including:

• Process automation: An automated solution like SPS Commerce Fulfillment streamlines order processing, reduces human errors, supports business growth and improves customer satisfaction. It also enhances efficiency via seamless integration with your ERP and can be customized to fit your unique business needs.
• Improved collaboration: Product data solutions like SPS Assortment can help you keep up with trading partner requirements and update your information without tracking and executing changes by hand.  You’re able to provide the product details trading partners and consumers expect without the hassle of manual processes.
• Enhanced data flow: When you centralize your data, you can scale processes to work with bigger amounts of data between more users and enable more types of analysis. Timely, accurate data also leads to better forecasting, inventory management and decision-making.

Why traceability is important for food supply chains

While the FSMA 204 compliance deadline may be delayed until 2028, traceability is always top of mind in the food industry. It’s essential for regulatory compliance, food safety and quality control. Technology solutions enable traceability with:

• Data tracking: Automation tools provide accurate tracking of orders, shipments and inventory. When all stakeholders have access to reliable data, it reduces risks and enhances accountability. For optimal visibility for recall preparedness, look for solutions that simplify data collection and standardize traceability processes.
• Swift response: Brands that prioritize traceability can quickly identify the source of quality issues, manage recalls efficiently and build trust with consumers. Businesses can enhance recall readiness with technology that supports accurate documentation.
• Secure record-keeping: Blockchain technology can provide transparency and traceability across the supply chain by creating immutable records of each transaction.

What’s the right supply chain technology for your business?

While your future success may rely on incorporating new technology, it’s crucial to choose the right technology that adds value to your business. Factors to consider include:

• Scalability: Does the solution grow with your business?  A future-proof supply chain requires technology designed to scale and meet your needs as you grow and evolve.
• Ease of integration: Can the technology easily integrate with your existing systems? Simplify the update process with solutions that seamlessly connect with your current technology, such as ERP, accounting or inventory systems, and who provide expert assistance to help with the implementation.
• ROI: Will your investment result in improved efficiency and reduced costs? Successful brands have found that automation tools deliver measurable savings and performance improvements.

Why it’s crucial to move from data silos to connected partners

The costs of siloed supply chains escalate as brands grow. When profit margins are already slim, it’s critical for food and beverage suppliers to rise to the challenge of updating the flow of information with more efficient technology.

Today’s system automation solutions can streamline operations, reduce costs and simplify regulatory compliance, allowing you to build a more modern, collaborative supply chain network.

SPS Commerce is ready to be your partner in building efficient processes for a more agile and transparent supply chain. Connect with our team of experts for the people, processes and technology you need to begin your transformation.

The key to thriving in this environment: build modern connections with more efficient order processes, stronger real-time data analysis and timely insights. When data is seamlessly connected across the supply chain, you can make smarter decisions, reduce waste and respond quickly to market changes.

Recognizing issues: time for a refresh

For enterprise businesses, any inefficiencies are magnified.

• Overproduction and waste: Data that is siloed across different systems and partners can lead to overproduction, markdowns and financial losses. If you don’t have accurate information about product performance, you can also produce more than necessary, resulting in waste. Trying to manage a supply chain with disconnected data means missed opportunities for cost savings that could be achieved through better coordination and visibility.
• Lack of agility: You’re also likely impacted by supply chain disruptions and unpredictability. Without real-time visibility, it’s more challenging to adapt to changes, leading to increased costs and potential compliance issues.

The bottom line: it’s essential to have real-time data and transparency in your supply chain.

Weaving solutions: the digital thread

To address these visibility and waste issues, you need to better manage the “digital thread” of information that connects your data. Consider upgrading your data management with modern, integrated solutions that support agility and provide a comprehensive view of your supply chain.

You can automate your data exchange with a fulfillment solution that connects product, order, ship and invoice data across all partners in real-time, while analytics solutions provide insights and timely reporting to enable you to stay ahead of the curve.

By creating a seamless flow of information, you ensure that everyone in the supply chain has access to the same data, enabling better coordination and decision-making.

Reaping rewards: ahead of the trends

The benefits of building an intentional, connected digital thread include:

• More informed decisions: Real-time data enables you to predict demand more accurately and make informed decisions about how to manage inventory. It helps drive your speed to market, reduce operational costs and stay compliant with changing trade policies to ensure smooth operations.
• Reduced waste: With accurate data and better forecasting, you can produce just the right number of products, minimize excess inventory and reduce environmental impact.
• Faster decisions: With real-time insights, you can respond quickly to market changes, customer demands and potential disruptions to stay competitive.

The overall impact is a more resilient, sustainable and profitable supply chain. You can achieve greater efficiency, reduce costs and meet the growing demand for sustainability.

Supply chain agility: always in style

By recognizing and transforming your digital thread with modern data exchange and analytics tools, you can become more agile, sustainable and profitable.

SPS Commerce is ready to be your partner in building a better supply chain, with our team of experts offering the people, processes and technology to streamline your operations and future-proof your supply chain to maximize your success.

By providing data-driven insights, you enable your retail partners to make more informed decisions about your product line and their inventory. This strategy can both add value to your partnership and strengthen your relationship.

Read on to learn how to prepare for successful line reviews by gathering key data, providing relevant insights and ultimately building stronger collaborative relationships.

Expectations: What do retailers want from a line review?

Retailers have specific expectations when it comes to line reviews, typically including detailed presentations for the next season of products showcasing:

• Comprehensive product knowledge: In-depth understanding of the products, including product features, benefits, differentiators and pricing strategies.
• Profit margin analysis: Manufacturer/supplier costs of goods and the suggested MSRP for consumers.
• Clear data and insights: Overview and evidence of market trends, consumer demand and sales performance.
• Solutions to potential issues: Prepared answers if there are known challenges, such as supply chain disruptions or product performance concerns.
• Understanding of retailer goals: Alignment with retailer objectives such as increasing sales, improving customer satisfaction or optimizing inventory.

Info gathering: What kind of data do you need?

The relevant data you provide can help make a compelling case for retailers to carry your products. Types of data to gather may include:

• Sales data and performance metrics: History of product performance, highlighting top-selling items and growth trends.
• Market trends and competitive analysis: Insights into market trends and how your products stack up against competitors, including retailer marketing plans.
• Inventory and supply chain data: Stats about your ability to meet demand and manage inventory.

If you’re using predictive analytics solutions, you may have access to more key insights, such as sales performance data of current products in specific locations or across trading partners.

Dive into the data: relevant and actionable insights

The key to a successful, strategic line review is interpreting data to generate meaningful insights. Examples of actionable insights include:

• Identify top-performing products: Highlight products that have consistently sold well and explain why they are successful.
• Compare performance across channels: Note if products performed differently at other retailers, sales channels or by region, including top sellers they don’t yet carry.
• Highlight emerging trends: Point out new trends in the market and how your products are positioned to capitalize on them.
• Suggest inventory adjustments: Recommend changes to inventory levels based on sales trends and forecasts.
• Propose marketing strategies: Suggest promotional campaigns or marketing strategies to boost product visibility and sales.

Leveraging data-driven insights enabled licensed imagery apparel company Image One to substantially boost their value and increase the breadth of their product line with trading partners.

Strengthen connections: build your relationships

By providing more value to your trading partners, you can increase engagement, strengthen collaboration and enjoy mutual success. Strengthen your connections with:

• Regular communication: Keep retailers updated on product developments, sales performance and any potential issues.
• Transparency: Be open about challenges and work together to find solutions.
• Flexibility and responsiveness: Be ready to adapt to the retailer’s needs and respond promptly to their requests.

Continue success: collaborate and grow

Preparing for a successful line review requires a data-driven approach, relevant insights and a focus on building collaborative relationships.

By understanding retailer expectations, leveraging data and providing actionable insights, suppliers can turn line reviews into opportunities for growth and success.

SPS Commerce is ready to support you with the tools and expertise needed to not only simplify your day-to-day operations but unleash the power of data insights and grow your business.

To learn more about how to improve your business processes and drive your business success, contact us to begin the process.

Whether it’s fluctuating raw material costs, unexpected disruptions or changing consumer demands, unpredictability can significantly impact efficiency and profitability. To navigate these challenges, manufacturers must find ways to reduce costs and improve resilience.

One effective strategy: modernize operations with technology solutions to enable better visibility, automate processes and improve operational agility. Read on for suggested solutions for manufacturers to tackle supply chain volatility.

Minimize the impact of fluctuating raw material costs

Raw materials costs can be affected by environmental factors, regulatory demands and potential or escalating tariffs. Key strategies to offset rising costs include:

Improve planning accuracy

Effective demand planning is crucial for anticipating changes in raw material costs and avoiding stockouts or overstocks. By accurately forecasting demand, manufacturers can make informed decisions about production schedules, procurement and inventory management. To improve accuracy, manufacturers can look to tools such as predictive analytics and machine learning to analyze historical data, market trends and other relevant factors. Being proactive enables you to adjust procurement strategies, negotiate better contracts with suppliers and optimize production schedules based on anticipated demand.

Enhance inventory visibility

Another critical strategy for managing supply chain volatility is real-time inventory tracking. RFID tags, IoT sensors and cloud-based inventory management systems provide real-time data on inventory status. Enhanced inventory visibility can give insights into stock levels, production rates and supply chain movements, enabling more timely adjustments of inventory levels to reduce the risk of stockouts or excess inventory.

Reduce errors, streamline collaboration with EDI

To take full advantage of modern technology, savvy manufacturers integrate their operations technology with solutions enabling real-time data exchange and automation.

Fewer errors

Electronic Data Interchange (EDI) automates the exchange of business documents with trading partners, such as purchase orders, shipping notices and invoices. By replacing manual data entry with automated processes, EDI not only standardizes processes but also minimizes the risk of human errors.

Speedier processing

In addition to reducing errors, EDI speeds up order processing. Automated data exchange enables faster order creation, approval and fulfillment, which in turn encourages shorter lead times, improved customer satisfaction and increased order accuracy.

Better collaboration

The automated exchange of information possible through EDI enhances communication and coordination between manufacturers and suppliers. This closer collaboration also allows better alignment on production schedules, inventory levels and delivery timelines, and ultimately helps manufacturers build stronger trading partner relationships.

Maintain an agile supply chain

Operational agility is the ability to quickly and efficiently respond to market changes and disruptions.

In a volatile market, agility is essential to staying competitive and meeting customer demands. But manual processes are often slow, error-prone and inflexible, making it difficult to adapt to changing conditions.

Automating data exchange not only improves operational agility, but also enables manufacturers to:

• Quickly process and analyze large volumes of data, providing real-time insights and enabling rapid decision-making.
• Streamline workflows to respond more quickly to changes in demand, reducing the risk of stockouts or excess inventory.

Build a more stable path to success

While supply chain volatility may be inevitable, manufacturers who embrace technology and automation will be better equipped to navigate supply chain volatility, reduce costs and achieve long-term success.

SPS Commerce is ready to be your partner in building a stronger, more adaptable supply chain. Our experts bring the people, processes and technology to streamline operations, future-proof your supply chain and maximize your success.

To successfully meet demand, suppliers need effective strategies to keep and move inventory quickly as well as modern technology that maximizes supply chain efficiency.

Is your inventory management up to speed?

Effective inventory management ensures that the right products are available at the right time and in the right quantities. For suppliers, this reduces carrying costs, minimizes stockouts and improves customer satisfaction.

But if you’re not keeping up with demand, you’re risking both profit and relationships. Consider the following strategies to practice better inventory management.

Decentralize your inventory

A key tactic for strategic inventory warehousing is decentralizing inventory. Instead of storing all inventory in one central warehouse, a decentralized approach spreads it across various locations, often based on geographic distribution of customers.

Decentralization is especially helpful for:

• Companies with a large geographic footprint: Businesses operating across a wide area with diverse customer bases can have inventory distributed across regions.
• eCommerce retailers with multiple fulfillment centers: Online retailers can deliver products from warehouses closest to the customer’s location.

The benefits to suppliers include:

• Reduced lead times and faster delivery: When stock is closer to customers, businesses can fulfill orders quickly and manage high demand in specific areas.
• Improved service levels: Closer proximity to customers enables suppliers to respond more quickly to demand fluctuations and avoid stockouts.
• Risk mitigation: Supply chain disruption effects are reduced—if one location is disrupted, other locations can still fulfill orders, minimizing impact on overall sales.
• Enhanced flexibility: Decentralized inventory allows suppliers to adapt to regional demand variations and customize inventory levels based on local preferences.

Use micro fulfillment centers

Another warehousing strategy to consider is the use of micro fulfillment centers (MFCs).

A MFC is a small, automated warehouse that stores and ships online orders. MFCs are often located near customers to reduce delivery times and costs.

The benefits of MFCs for suppliers include:

• Proximity to customers: Strategically locating near urban centers reduces delivery distance and time, enabling faster order fulfillment and delivery.
• Automation: Using technologies such as robotic picking and conveyor belt systems streamlines order processing, reduces labor costs and increases order accuracy.
• Scalability: MFCs can be scaled up or down based on demand. During peak seasons, additional MFCs can be activated to handle increased order volumes.
• Cost efficiency: Reducing the need for large, centralized warehouses and long-distance transportation can lower overall supply chain costs.

Maximize inventory delivery

Today’s consumers expect fast and reliable delivery with every product purchase. Key strategies for suppliers to enhance delivery speed include:

• Efficient warehousing: Ensure warehouses are well-organized and equipped with technology to streamline the picking, packing and shipping processes, including a fulfillment solution that upgrades manual EDI processes.
• Advanced logistics: Use advanced logistics solutions, such as route optimization software and transportation management systems (TMS), to help optimize delivery routes, reduce fuel consumption and minimize delivery times.
• 3PL collaboration: Partner with third-party logistics (3PL) provider for expertise, infrastructure and resources that can help suppliers meet delivery expectations.
• Last-mile delivery innovations: Consider innovations such as drones, autonomous vehicles and crowd-sourced delivery services to improve last-mile delivery efficiency.

Optimize efficiency with technology

Using technology that provides real-time information enables suppliers to make informed inventory decisions. Solutions to consider include:

• Demand forecasting: An analytics solution enables accurate demand forecasting to allow suppliers to predict future sales and adjust inventory levels accordingly.
• Real-time inventory tracking: Technologies like RFID and IoT sensors can improve inventory visibility and accuracy and provide up-to-date information on stock levels.
• Automated replenishment: Replenishment systems trigger orders when inventory levels fall below a set threshold to ensure continuous supply and reduce stockouts.
• Inventory optimization: Techniques such as ABC analysis and just-in-time (JIT) inventory prioritize high-demand products and reduce excess inventory, while centralized fulfillment operations give better visibility into demand.

Best practices and better technology keep your inventory on the move

When you take stock of your current inventory management strategies, embrace new tactics and integrate key technology, you can improve your supply chain efficiency to meet customer demands and maximize your sales and profits.

SPS Commerce is ready to support you with the tools and expertise needed to simplify your day-to-day operations, unleash the power of data insights and grow your business.

To learn more about how to improve your business processes and drive your business success, contact us to begin the process.