Suppliers Blog Category - SPS Commerce Mon, 15 Dec 2025 23:10:17 +0000 en-US hourly 1 Predictability pays off: why retail leaders are cracking down on constant order changes https://www.spscommerce.com/blog/combating-purchasing-order-volatility/ Fri, 12 Dec 2025 22:27:16 +0000 https://www.spscommerce.com/?p=761306 Retail used to win on speed, selection and the ability to pivot fast. If you could respond quickly to trends, you stayed ahead. If you could move inventory faster than competitors, you took the lead. But the ground has shifted. Today, the biggest advantage isn’t speed — it’s stability.

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.

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Revitalize your supply chain https://www.spscommerce.com/blog/revitalize-your-supply-chain/ Mon, 01 Dec 2025 15:05:00 +0000 https://www.spscommerce.com/?p=704981

AT A GLANCE

  • Discover how modern tools streamline supply chain processes
  • Learn how automation enhances supply collaboration and agility
  • Explore the benefits of real-time data, cost reduction and efficiency gains
  • Understand how full-service EDI and analytics drive supply chain orchestration

Consumers have more choices than ever, with countless channels to shop from and a steady flow of new products competing for attention. With so much choice and volatility, how do you stay relevant, profitable and ready for what’s next?

According to the 2025 MHI Annual Industry Report, more than half of supply chain leaders plan to increase their investments in innovation, with 60% spending over $1 million and nearly 20% investing more than $10 million to modernize their operations. The focus has shifted toward end-to-end (E2E) supply chain orchestration, bringing together technology, data and talent to create more connected, resilient and efficient networks.

The market is painting a clear picture: Staying ahead requires leveraging technology strategically—not just reacting to change, but orchestrating your entire supply chain for visibility and control.

Where to begin

A good place to start is addressing the biggest friction points in your order management process: manual data entry, disconnected systems and data delays. You may have systems in place to help with elements of your supply chain, but if those don’t communicate with each other, you’re losing valuable time switching between platforms and reconciling data manually.

These gaps in your process present opportunities for greater efficiency. But where should you concentrate your investment? Each business is unique, and it may take some close inspection to identify your biggest opportunities for growth. Keep in mind that automation and AI are only as effective as the data behind them. Clean, connected data is the foundation for accurate insights and truly scalable automation.

Here are some key focus areas for supply chain investment:

Embrace an omnichannel strategy

Today’s shoppers expect a consistent experience across every channel, whether they’re buying online, in-store or through a retail partner. Investing in omnichannel visibility ensures customers can always find what they want, where they want it.

Brands that use integrated systems to manage multiple channels build stronger relationships with both retailers and customers , leading to repeat business and faster fulfillment.

Connect and optimize your systems

Disconnected systems create blind spots. Without shared data across your platforms, you can’t see the full picture of your operations, making it harder to spot trends or respond to disruptions.

The 2025 MHI report highlights that 82% of companies are using or plan to adopt AI technologies, and 91% are using or adopting cloud computing to centralize data and enhance visibility. Centralized, secure data allows for better forecasting, faster response times and smarter business decisions.

Maintain consistent item data

Accurate, comprehensive item data gives consumers the confidence they need to make a purchase in the digital aisle. When product details are missing or inaccurate, consumers lose confidence and will likely turn elsewhere to get what they need. Accurate, up-to-date item data also helps ensure your products are launched online and in stores when your retail partners need them.

Invest the time and resources needed to do a thorough evaluation of your item data. Where is it stored? Who manages and maintains the data? What technology is being used, and could it be improved? Clean, connected data not only improves sales but also strengthens trust across your network.

Manage your inventory

Supply chain agility and inventory challenges remain top concerns for the leaders polled by MHI. Poorly managed inventory leads to lost sales, frustrated customers and damage to your brand. Staying ahead of shifting demand while preventing overstocks and stockouts is a constant challenge.

According to the report, inventory and network optimization technologies are among the top priorities for supply chain leaders, with over 90% adoption expected within five years.

You need real-time metrics and sales data to help inform your inventory decisions. If the logistics of collecting, verifying and displaying this kind of data isn’t within your wheelhouse, consider investing in a tool to help you monitor sales trends.

Real-time insights into sales, demand and replenishment allow you to balance supply with customer needs, minimizing waste and improving margins.

Streamline fulfillment

You’ll also want to consider your fulfillment and warehousing processes as you evaluate potential investments. How complicated are your shipping and warehousing operations? Are orders accurate and on-time?

Complex fulfillment processes can slow growth and increase costs. The MHI report found that the adoption of automation and robotics continues to climb, with 83% of respondents planning to use or expand their use within the next five years.

Automated fulfillment and shipping solutions reduce manual errors and accelerate delivery. Some organizations are turning to micro-fulfillment centers or AI-enabled routing tools to get products closer to customers and shorten lead times.

Automation doesn’t just save money—it helps you build resilience and improve customer satisfaction.

Automate revenue recovery

Revenue recovery automation helps businesses find and fix leaks caused by inaccurate invoices, chargebacks or missed deductions. By auditing transactions and resolving errors automatically, companies protect margins and improve transparency with retail partners. The MHI Report notes that organizations investing in analytics and automation are more likely to report stronger performance and supply chain resilience, proving that small process improvements can have a big impact.

Win back your day!

Win back your day!

Stop struggling with manual processes. Let SPS help you keep your business growing and your partners happy.

Talk to Team SPS

The alternative: doing nothing

If you choose not to invest in your order management and fulfillment processes, what’s the cost?

Without a solid foundation built of efficiency and accuracy, your omnichannel operations will suffer. You will deliver an inconsistent experience to consumers and trading partners that will lead to lower satisfaction, strained relationships and poor brand perception. Inaccurate and incomplete item data can lead consumers to look elsewhere or result in higher return rates. Missing or inaccurate sales and inventory data will lead to missed sales and loss of profit. Lengthy shipping times and underutilized warehouse space can significantly impact your bottom line.

Let’s not forget your most valuable resource: your employees. You want them to be satisfied and productive, but with manual data entry, limited insight and time-consuming processes, employees could become dissatisfied.

In a competitive market, inaction can be the most expensive choice.

Invest in expertise

As the supply chain continues to evolve, you could remain stagnant. Or, you could analyze your business and invest in ways to grow along with your partners and customers.

Chances are, you got into business because you were passionate about your product. It’s likely that you’re not an expert in every aspect of the supply chain. The good news is that you don’t have to be!

Hand the heavy lifting of automation, order management, fulfillment and sales data tracking over to industry experts like SPS Commerce. As you invest in the expertise of reliable technologies, you can focus on innovation, growth and the priorities that matter most to you.

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Overlooked Strategies for Managing Volatility in Modern Retail Supply Chain https://www.spscommerce.com/blog/customers-celebrate-supply-chain-performance/ Fri, 07 Nov 2025 21:47:46 +0000 https://www.spscommerce.com/?p=760393

At this year’s RVCF Conference, industry leaders came together to confront a quiet but costly reality: the retail supply chain’s biggest challenge may not be innovation gaps or technology shortfalls but overlooked fundamentals that keep daily operations in reactive mode.

Moderated by Brandon Pierre, VP of Customer Success at SPS Commerce, and joined by Dr. Gibson (Auburn University), and SPS Commerce customers Andy Sutphin (Sprouts Farmers Market), and Tim Forseth (Sunkist Growers), the session unpacked what’s truly driving volatility, why the “perfect order” remains elusive, and how collaboration, more than control, is emerging as the key to supply chain performance.

The Volatility Hidden in Plain Sight

Across more than 4,000 retailers globally, SPS Commerce data reveals that the average order changes six times before it’s fulfilled. Those changes, from adjustments to price, quantity, or ship windows, may look minor in isolation, but together they put more than $600 billion in product, inventory, and shipments at risk annually.

While teams on both sides of the retail relationship feel the impact daily, few organizations are quantifying it. And the problem is getting worse: order acknowledgements with changes have doubled year over year. That’s 1 in 10 from last year, to 1 in 5 today.

Translation: Retail orders have systemic inefficiencies that few companies are tracking — and it’s quietly eroding margins, trust, and supply chain reliability. What looks like small, routine order edits (price, quantity, timing) signals a major coordination breakdown between retailers and suppliers.

The drivers of this volatility are complex but familiar:

  • Price mismatches fueled by tariffs and shifting cost structures
  • Smaller, more frequent retail orders to maintain agility and minimize inventory exposure
  • Fragmented communication between partners slowing real-time visibility

The Decline of the Perfect Order

For over two decades, the industry has pursued the “perfect order,” a transaction with no errors, no exceptions, and no manual intervention. Yet even at its peak, the average perfect order rate hovered around 70%, with some companies struggling to hit 20%.

The reality of today’s retail industry makes perfection an illusion. As customer expectations drive more personalization and just-in-time fulfillment, change itself is now part of the process.

The takeaway: success no longer means eliminating change; it means managing it with precision.

Collaboration in Action: Lessons from Sprouts and Sunkist

A standout example of this kind of flexibility is the partnership between Sprouts Farmers Market and Sunkist Growers, whose collaboration demonstrates the power of proactive, data-driven decision-making.

Their model includes:

  • Weekly data-driven conversations using shared industry sources like IRI and Nielsen
  • Proactive forecasting around demand trends and production capacity
  • Dedicated onboarding support for new suppliers—far beyond the traditional “here’s a packet” approach that fails to take the supplier’s unique business needs into account

Timing and communication make the difference in this partnership. Electronic acknowledgments sent three days in advance can be processed within 15–30 minutes. Same-day changes, however, require a phone call and carry a 50–70% higher error risk.

By using shared, unbiased data and maintaining regular touchpoints, both sides gain visibility and confidence, to adjust without disruption.

Building Resilient Supply Chains: What Works

The session concluded with a set of clear, actionable recommendations and best practices for any retailer/supplier partnership:

1. Plan for disruption, not perfection.
Run scenario-based “what if” simulations. Build redundancy across supply partners. Expect volatility and train for it.

2. Measure the right metrics.
Track where and why changes occur. Differentiate necessary business shifts from process failures. Automate repeatable changes; reserve human attention for true exceptions.

3. Get onboarding right.
Define every SKU variation and pack size up front; it’s much simpler to avoid supply chain complications down the road if both parties are aligned on item data from day one. Set explicit response-time expectations and communication protocols based on urgency.

4. Elevate collaboration as a performance lever.
Share data early and often. Use neutral data sources to create mutual accountability. Establish weekly rhythms between buyer and supplier teams to address small issues before they snowball.

The Bottom Line

The modern retail supply chain doesn’t need perfection, but it does need agility, transparency, and shared accountability. Brandon Pierre summarized this point: “Every change is an opportunity to improve the system if you can see it, measure it, and respond in time.”

By embracing visibility and collaboration, retailers and suppliers can turn volatility into a competitive advantage and finally close the gap between order promise and delivery reality.

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From factory to FYP: how supply chain content is winning online https://www.spscommerce.com/blog/social-impacts-supply-chain-orchestration/ Tue, 07 Oct 2025 22:34:11 +0000 https://www.spscommerce.com/?p=758372 You might think your brand’s supply chain orchestration and logistics is the least exciting part of what you sell, but today’s customers crave an inside peek at companies that bring a unique perspective or share their values.

Pull back the curtain to build trust

While the news may focus on social media backlash against retailers based on customer service issues, politics or polarizing trends, what I’m excited to see in social media is a new brand vulnerability.

Companies are inviting customers behind the scenes to share how their products get to the shelves of their favorite stores. It’s driving customer affinity, and with that comes value, both in new customers and repeat purchases. Some examples:

  • Betty Jo’s Ice Cream shares how they have gone from social drops to a pop-up location in their popular video.
  • Kikiz Cosmeticz gained thousands of likes for sharing how they ship their orders.
  • Batch Cookies celebrated their path from a farmers market tent to a new storefront.
  • Bobbie Goods and Fayt racked up over 100K combined views with their warehouse tours.
  • Waterbody shared how they got their skincare line sold at over 100 retail shops.
  • Carpe, with over 25K TikTok followers, posts regularly from their warehouse, not only about their product but their process.

How SupplierWiki makes supply chain fun and useful

SPS Commerce is learning from this approach. At SPS SupplierWiki, we’re leaning into this trend and translating the fascinating, complex world of retail supply chains into bite-sized stories, explainers and tools.

As we dig into the details of retailer relationships, including quick explainers on how planning, compliance, and fulfillment all align, SupplierWiki brings the “how it works” magic into the mainstream.

The big idea: make supply chain the star

Supply chain is no longer something you need to hide behind your marketing, it is marketing.

By showing the behind-the-scenes work that goes into moving products to shelves, brands can spark curiosity and build loyalty. And it doesn’t look like more promotional noise.

Because when customers see what it takes to get their favorite items from the warehouse to the store shelf, they don’t just like the product, they feel part of the journey.

Start to explore and keep informed

Our online knowledge base is free and easy to browse for topics that interest you. Check out the hundreds of resources available at SupplierWiki today.

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How to achieve order automation – even when customers don’t use EDI https://www.spscommerce.com/blog/pdf-order-automation/ Wed, 06 Aug 2025 22:14:32 +0000 https://www.spscommerce.com/?p=751509 Manual entry of PDF orders drains time, slows down fulfillment and increases the risk of costly errors.

With an electronic data interchange (EDI) solution, you can electronically transmit documents such as orders, inventory updates, shipping notices and invoices. This not only eliminates time-consuming data-entry tasks and automates your order processes but also helps you support more clients and more retailers without adding operational strain.

But what about your customers who aren’t set up to use EDI?

If you’re like many suppliers and 3PLs, you work with a mix of retailers and clients who still send orders by PDFs, spreadsheets, emails and attachments.

Managing orders from non-EDI customers can be a step backwards into the inefficiencies of manual workflows. You have higher operational costs and an extra layer of difficulty when it comes to scaling and growing your business. Manual entry slows down receiving, creates downstream errors and adds cost to every order you handle.

There’s a better way.

SPS Commerce PDF Order Automation is the key to seamlessly processing non-EDI orders across your entire network, reducing effort, eliminating errors and enabling faster, more reliable fulfillment.

Navigating non-EDI order hassles

Once you’ve experienced smooth EDI order processing, the challenges of handling non-EDI orders feel even more painful, especially in a warehouse environment where every minute matters:

  • High operational costs: Manually entering orders into your system costs you both time and resources, driving up cost per order and slowing down the floor, especially during peak volume.
  • Errors and delays: The fallout of mis-keyed data for your business can be picking mistakes, incorrect shipments, chargebacks, damaged client trust and missed SLAs.
  • Limited scalability: The more your business grows, the more manually processed PDFs and emails simply cannot keep pace with client onboarding or seasonal volume spikes.

Outdated workflows are what keep many operations from reaching true supply chain efficiency.

Transforming non-EDI orders with automation

When you manage your EDI processes with SPS Commerce Fulfillment, you already have access to 400+ pre-built system integrations for ERP, OMS, WMS solutions and more.

Our PDF Order Automation uses your existing Fulfillment integrations to map and translate non-EDI orders directly into your EDI workflow. AI-assisted mapping and translation seamlessly integrates your orders into Fulfillment.

With PDF order automation, you can:

  • Process all orders through one automated workflow
  • Reduce errors and speed up fulfillment
  • Handle seasonal or rapid growth without increasing headcount
  • Free your CSRs and warehouse teams to focus on strategic and revenue-generating work

As the largest retail network with 4,000+ buying organizations, SPS is uniquely positioned to automate even the most complex, multi-client order channels.

Tackling the accuracy issue: OCR versus AI

You may be wondering how this works or be skeptical about success if you’ve experienced the shortcomings of solutions that claim to automate non-EDI orders with optical character recognition (OCR).

OCR behaves like a scanner: it recognizes characters, not meaning. For 3PLs, where order accuracy determines pick efficiency and shipment correctness, that’s a problem. When an “O” becomes a “0,” your warehouse ends up picking the wrong SKU — and the cost hits your margins.

SPS PDF Order Automation is not OCR. Our solution uses AI, so instead of just reading characters, our system actually understands the structure and meaning of the documents.

Thanks to AI-assisted mapping, our solution also learns how to match the fields in each unique PDF to the fields in your order system.

This proprietary technology extracts data with near-perfect accuracy. This ensures your PDF orders are processed just like EDI orders — precisely, consistently and reliably enough for warehouse execution.

SPS PDF Order Automation delivers the highest level of accuracy and efficiency, eliminating the concerns associated with legacy OCR systems.

Weighing the need: PDF order volume

While PDF Order Automation may seem like an obvious solution for high-volume businesses, it’s also valuable for low order volumes and for warehouses with mixed clients or unpredictable order patterns.

Manual processes for smaller orders still create inefficiencies, errors and unnecessary costs. SPS PDF Order Automation reduces these burdens, providing a scalable foundation that saves time and money now while preparing your business for growth.

Leveling up: now is the time

Automating non-EDI orders isn’t just about saving time—it’s a strategic move that prepares you to move ahead in a competitive market and accelerate your growth. Leading the way with innovative automation helps you better meet customer demands, handle growing order volumes and eliminate costly errors.

Whether you’re an existing SPS customer or just starting your supply chain optimization journey, SPS PDF Order Automation is a reliable, scalable solution that eliminates inefficiencies from your non-EDI workflows and prepares your warehouse for the future.

Non-EDI orders don’t have to slow your business down. Automating these workflows enables you to process orders faster, reduce your costs and focus on your business goals.

Ready to eliminate manual PDF orders? Talk to a rep to see how PDF Order Automation fits into your operations.

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Unlocking the power of SPS Analytics: your data’s best friend https://www.spscommerce.com/blog/unlocking-the-power-of-sps-analytics/ Fri, 11 Jul 2025 19:10:19 +0000 https://www.spscommerce.com/?p=750193

If you’re already using SPS Commerce Analytics, you know how valuable it is to have organized, retailer-specific data at your fingertips. Whether you’re tracking sales performance, evaluating inventory levels or preparing for key line reviews, having the right insights makes all the difference.

But as your business evolves, so might the way you want to access and use your data. For teams looking to expand internal reporting capabilities or unify SPS data with other business metrics, there’s a flexible next step: System Integration.

The SPS Analytics platform

The SPS Analytics platform provides aggregated, omnichannel retail sales data with reporting options to meet the needs of your team. Whether you’re creating ad-hoc reports, using pre-built instant-insights dashboards or taking advantage of automated reports, there are functionalities for all.

From planners to executives, users can independently explore trends, monitor inventory shifts, assess risk and prepare for C-Suite to buyer conversations, all without needing custom queries or outside support. Strong retail analytics software empowers your team to confidently collaborate with trading partners, optimize operations and plan strategically.

When to consider System Integration

As businesses grow, so do data needs. You might be expanding your retail analytics software team, adopting a cloud data warehouse like Snowflake or Databricks or building out internal dashboards in tools like Power BI or Tableau. That’s where System Integration comes in.

System Integration allows you to receive the same retail sales and inventory data you currently access through the platform—but delivered to your own BI environment or cloud data warehouse. This approach gives your internal teams more flexibility to:

  • Combine SPS data with other internal datasets
  • Create custom dashboards and/or visualizations
  • Leverage advanced tools for forecasting, AI modeling and/or business planning
  • Expand data access across departments without needing additional platform licenses

What System Integration is (and isn’t)

It’s important to understand that System Integration is a delivery method that complements the SPS Analytics platform. Here’s what it includes:

  • Full-service data acquisition, cleansing, validation, standardization and delivery
  • Structured, integration-ready data tables
  • Data delivered to your BI environment; no replication or retrieval required
  • The expertise to help ensure the data aligns with your business and retailer metrics

In short: we are your full-service retail data management experts, empowering you to succeed with a stronger data strategy.

Why customers use both

Most customers choose to utilize SPS Analytics while also integrating data into their internal tools. Our retail analytics software platform continues to offer comprehensive omnichannel data visibility and robust reporting capabilities with the convenience of pre-built dashboards. Meanwhile, System Integration supports broader initiatives, such as connecting retail data to supply chain planning, financial modeling or customer segmentation.

This approach supports both everyday execution and long-term strategic planning—without duplicating data management efforts.

A flexible path forward

Whether you’re looking to scale your reporting, unify data sources or bring SPS data into more conversations across your organization, System Integration is designed to support that growth.

It’s the same trusted SPS data—just delivered differently.

Our team is here to help you make sense of retail-specific metrics and ensure the data you receive is accurate, organized and aligned with your needs.

Get more from the data you already trust

You’ve already invested in better data. System Integration helps you take the next step: extending analytics software value across your organization with greater flexibility and fewer manual workarounds.

When you’re ready to explore what System Integration could look like for your team, we’re here to help! Have more questions about SPS Analytics or System Integration? Check out our recent blog post on the importance of strong retail data.

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What is a 2D barcode and how does it work? https://www.spscommerce.com/blog/what-is-a-2d-barcode/ Fri, 20 Jun 2025 18:12:14 +0000 https://www.spscommerce.com/?p=739302 Whether you’re a retailer, distributor, grocer or supplier, you’re probably familiar with traditional barcodes. You’ve likely worked with UPC codes on consumer products and UCC-128 labels on shipping cartons and pallets. These 1D (one-dimensional) barcodes have served commerce well, encoding essential information like product identifiers, quantities and shipping details.

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.

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Seeing clearly in a complex beauty market https://www.spscommerce.com/blog/seeing-clearly-in-a-complex-beauty-market/ Thu, 19 Jun 2025 18:57:44 +0000 https://www.spscommerce.com/?p=739284 Your latest lip kit is flying off the virtual shelves on Amazon but sitting stagnant at Target. Your holiday palette sold out in two days in California, but didn’t move at all in Florida. Your next product launch? Still stuck in customs.

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.

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Retail data is your true north in a shifting supply chain https://www.spscommerce.com/blog/data-is-your-true-north/ Fri, 06 Jun 2025 17:11:24 +0000 https://www.spscommerce.com/?p=738730 Trusted data: Your competitive edge in an uncertain retail landscape

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!

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The cost of inefficiency: how siloed food supply chain data holds you back  https://www.spscommerce.com/blog/cost-of-inefficiency/ Tue, 27 May 2025 00:56:26 +0000 https://www.spscommerce.com/?p=737880 The journey from farm to fork is complex, with food supply chain issues ranging from weather impacts and tariff restrictions to production facility specialization and storage and transport of perishable goods. At every step of the process, inefficiencies or poor information flows raise the risk of costly delays and hamper compliance efforts.

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:

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.

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