Maria Pergolino, Author at SPS Commerce Fri, 07 Nov 2025 22:30:22 +0000 en-US hourly 1 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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