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Seasonality, Carryover, and End-of-Life Strategies for Fashion Suppliers 

When a season ends, suppliers and retailers have several ways to manage unsold apparel, footwear, and accessories. The right approach depends on factors such as expected future demand, remaining inventory value, storage costs, brand positioning, and the markets where the goods are sold. 

As a result, end-of-season inventory requires planning. Suppliers can consider several approaches to 

Each option has different implications for recovery, time to sell, brand exposure, operational requirements, and regulatory compliance. 

What Happens to Unsold Apparel After a Season? 

There is no single approach for every product, as there are different strategies depending on the item type. A basic item that sells consistently may have an opportunity to sell in a future season, while a trend-driven style may lose much of its value once the original season ends. 

Suppliers can compare potential exit channels using several factors: 

These categories aren’t mutually exclusive, as a supplier might use different approaches for different products, sizes, locations, or quantities within the same season. 

How Do Brands Choose Between Reorder, Carryover, and Exit? 

One of the first considerations is whether a product is seasonal or core. 

Seasonal products generally have a limited selling window. Demand may decline once the season or trend has passed. Core products, by contrast, are intended to remain relevant across multiple selling periods. 

This distinction can influence what happens to remaining inventory. A core style may be a candidate for carryover or pack-and-hold, while a highly seasonal item may require a markdown, outlet, off-price, resale, donation, or another exit strategy. 

Timing is an important part of your choice. Suppliers can establish sell-through checkpoints during the season to determine whether a product is performing as expected. These checkpoints can inform decisions about whether to continue ordering, carry the product forward, or begin planning an exit. 

For example, a supplier might review sell-through at several points during the season instead of waiting until the season is nearly over. Earlier decisions generally leave more options available because inventory can still move through the original channel or be redirected while there is time to plan another approach. 

Store- and stock-keeping unit (SKU)-level sales and inventory information can help with these decisions. The level and format of information available to suppliers varies by retailer and trading relationship. 

Pack-and-hold is the practice of storing inventory so it can be sold during a future season instead of marking it down immediately. 

The approach is generally more appropriate for products expected to remain relevant, like timeless classics, basic apparel, established styles, and products with consistent historical demand. These types of items tend to be better candidates than highly trend-driven merchandise. 

. For example, Gap has discussed holding selected basic items for future selling periods, while Kohl’s has packed away certain holiday merchandise for a subsequent holiday season. Other retailers have used similar approaches for products with strong sell-through and a clear place in a future assortment. 

Pack-and-hold also creates costs and risks. Inventory must be stored, tracked, and maintained, risking changing demand or a bad fit with the following year’s assortment. The decision generally depends on whether the expected future value of the inventory justifies the cost and risk of holding it. 

Off-price retailers are one potential channel for excess or discontinued inventory. These retailers purchase merchandise at reduced prices and generally sell it below traditional full-price retail. 

Off-price businesses may acquire inventory from several sources, including canceled orders, excess production, closeouts, and other merchandise that a supplier or retailer doesn’t plan to sell through its original channel. 

The channel can provide a relatively quick way to move inventory, but it involves trade-offs. Suppliers generally receive less than they would through a full-price sale, and merchandise may appear alongside products from other brands and retailers. 

Selling to a new trading partner can also create operational requirements. These may include new agreements, electronic data interchange (EDI) connections, routing requirements, labeling, and compliance processes. 

Why Is Inventory Destruction Restricted? 

The treatment of unsold inventory has changed in recent years. 

. The disclosure generated public criticism, and the company subsequently committed to ending the practice and expanding approaches such as reuse, repair, donation, and recycling. 

France’s AGEC law later established restrictions on the destruction of unsold goods. 

Under the ESPR, large companies have been prohibited from destroying unsold apparel, clothing accessories, and footwear as of July 19, 2026. Medium-sized companies will be subject to the prohibition beginning in 2030. 

The regulation’s definition of destruction includes incineration and shredding unsold garments solely for fiber recovery. Reuse, donation, repair, and remanufacturing remain possible alternatives, subject to applicable requirements. 

The regulation also introduces disclosure requirements. Beginning in February 2027, large companies will be required to disclose information about unsold products they discard and the reasons for doing so. 

Specific requirements depend on factors such as company size, product category, and market. Suppliers should consult qualified legal or compliance professionals when determining whether requirements apply to their business. 

This article is for general informational purposes only and does not constitute legal or compliance advice. Brands should consult qualified counsel or compliance specialists to determine how the ESPR, France’s AGEC law, or other applicable regulations affect their products and markets.

How Can Brands Build an End-of-Life Strategy? 

A formal planning department isn’t required to establish a repeatable process. Businesses can start by answering a few practical questions before and during each season. 

Considering these questions early can give suppliers more options. Waiting until the end of a season can limit available channels and reduce the opportunity to choose the most appropriate use for remaining inventory. 

What Is the Difference Between Carryover and Pack-and-Hold Inventory? 

Carryover refers to core product that is intentionally sold across multiple seasons. Pack-and-hold is a more specific inventory-management decision in which merchandise is stored for a future selling period instead of being marked down or otherwise exited at the end of the current season. 

Is Off-Price Retail a Good Option for Excess Apparel Inventory? 

Off-price can be an appropriate channel for some excess inventory, particularly when a supplier needs to move merchandise relatively quickly. However, it generally involves lower recovery than selling through a full-price channel and can have different brand and operational implications. 

Suppliers should compare the economics with other available options before making a decision. 

What Counts as “Destruction” Under the EU’s New Rules? 

Under the ESPR, destruction can include more than incineration. The rules also cover certain forms of physical alteration, including shredding unsold garments solely for fiber recovery. 

Reuse, donation, repair, and remanufacturing remain potential alternatives, subject to applicable requirements. 

Managing end-of-season inventory requires suppliers to balance expected demand, inventory value, timing, storage costs, available sales channels, and regulatory requirements. 

A core style with consistent demand may be appropriate for carryover or pack-and-hold, while a seasonal or trend-driven product may require a different approach. Establishing decision points before inventory becomes excess gives suppliers more time to evaluate their options and understand the potential consequences of each one. 

For more on managing inventory across the retail season, check out 

Omnichannel Fashion, and What Wholesale, Dropship, and Marketplace Models Require 

A retailer invitation to join its marketplace or launch a dropship program can create a new sales opportunity, while also introducing operational requirements that may not be obvious at first. For fashion suppliers, those requirements can be especially significant because size and color combinations increase stock-keeping unit (SKU) counts, fit affects returns, and trend cycles can shorten already-tight fulfillment timelines. 

The differences in each model affect how a supplier manages inventory, orders, fulfillment, returns, and customer service. 

Traditional wholesale to a retailer’s ecommerce site is the baseline many suppliers already understand. The retailer buys and owns the inventory, owns the customer relationship, and sets the price. The supplier provides accurate item information and delivers inventory according to the retailer’s requirements. 

Other ecommerce models shift one or more of those responsibilities. 

For many fashion suppliers, dropship is one of the first models that introduces a significant operational change. 

What Does Dropship Require From a Supplier? 

In dropship, the retailer continues to merchandise and sell the product on its own site, but the supplier owns the inventory and ships individual consumer orders directly. The supplier must follow the retailer’s requirements for turnaround times, packaging, and other fulfillment standards. 

Wholesale typically involves purchase orders delivered in batches. Dropship generates individual consumer orders, and each order requires the appropriate shipping and invoice documentation. The retailer also relies on the supplier’s inventory feed to determine whether a particular size and color combination is available. 

Fashion makes inventory accuracy particularly important, as a single style can have 

. An aggregate inventory count may look healthy while one specific combination is already out of stock. If the retailer’s system still shows that item as available, the supplier may face a canceled order, a service-level penalty, or both. 

Suppliers that manage dropship effectively connect order-level EDI with real-time inventory synchronization. When a sale occurs in one channel, the available inventory can be updated across other channels. This helps the supplier maintain a consistent view of inventory as orders move through different sales channels. 

What Changes When a Retailer Operates a Marketplace? 

Retailer marketplaces introduce another change: the supplier typically becomes the seller of record. Instead of the retailer purchasing the inventory through a traditional wholesale model, the supplier sells its products through the retailer’s website, usually pays a commission, and may control pricing and fulfillment. 

Nordstrom and Macy’s as Marketplace Examples 

 to expand its assortment beyond what its own buying budget could support. Macy’s also operates a Mirakl marketplace, which 

Macy’s marketplace sellers fulfill their own orders. A 

 reported that 90% of Macy’s marketplace customers cross-shop between Macy’s-owned and marketplace products, while a Macy’s-owned product appeared in 96% of marketplace transactions. Because those figures come from the vendor involved in the marketplace implementation, they should be treated as vendor-reported results rather than independent measurements. 

For suppliers, the more important consideration is how marketplace requirements affect daily operations. The same retailer may operate wholesale, dropship, and marketplace programs, with different requirements and margin structures for each. 

Marketplace sellers must also meet the retailer’s content and performance standards. Failure to meet those standards can affect a seller’s marketplace status. Amazon operates under a similar general model but has its own requirements and enforcement processes, particularly around product identifiers. 

Why Is TikTok Shop a Different Kind of Channel? 

Social commerce, including TikTok Shop, introduces another operating model for fashion suppliers. Instead of relying primarily on retailer merchandising or marketplace search, TikTok Shop uses creator content, affiliate activity, and live shopping to drive demand. 

 with at least $30 million in annual sales increased 97% year over year in 2025, while total transaction volume increased by nearly 80%. TikTok Shop also reported more than 103 billion U.S. searches with ecommerce intent. These figures illustrate the scale of the channel, although any third-party estimates should be treated as directional. 

The operating requirements can change quickly when content drives a sudden increase in demand. Inventory needs to support the resulting order volume, product listings need to remain accurate, and product information about fit can affect the customer’s expectations before the order ships. 

. Results from individual campaigns will vary, but the example illustrates the operational challenge: demand can change quickly when social content gains traction. 

For fashion suppliers, the same disciplines that support dropship can also support social commerce. Accurate item information and timely inventory updates help suppliers respond when demand changes quickly. 

How Do Multiple Ecommerce Models Affect Operations? 

Direct-to-consumer (DTC) used to be viewed as an alternative to wholesale. For many brands, the practical question today is more complicated. A brand may operate a DTC site while also selling through wholesale, dropship, marketplaces, or social commerce. 

That creates an operational challenge because each channel can rely on the same underlying inventory and product information while imposing different requirements. 

A supplier running wholesale, dropship, a marketplace, and TikTok Shop is managing one inventory and content operation across four sets of channel requirements. An inventory or item-data problem in one system can affect orders in another. 

The more channels a supplier adds, the more important it becomes to understand what each model requires before committing to it. 

What Should Suppliers Evaluate Before Adding a Channel? 

The five questions above provide a starting point for evaluating any new ecommerce model: 

One additional question matters: Can the supplier’s current systems support the channel’s requirements? 

For example, a supplier considering dropship or marketplace selling should understand whether its inventory feeds can update across existing channels and whether its systems can generate order-level shipping and invoice documentation without manual entry. 

Connecting real-time inventory feeds and order-level EDI can help suppliers support multiple channels without rebuilding their integrations for each new trading relationship. 

What’s the Difference Between Dropship and a Retailer Marketplace? 

In dropship, the retailer continues to merchandise and sell the product on its own site, while the supplier owns the inventory and ships individual consumer orders according to the retailer’s requirements. 

In a retailer marketplace, the supplier typically becomes the seller of record. The supplier may set its own price, fulfill the order, and pay the retailer a commission. 

Does a Fashion Brand Need to Choose One Ecommerce Model? 

No. A fashion brand can use several ecommerce models at the same time, including wholesale, marketplaces, dropship, and a direct-to-consumer site. 

The important consideration is whether the brand’s inventory, product data, fulfillment, and customer service operations can support the requirements of each channel. 

What Should a Brand Check Before Accepting Its First Dropship or Marketplace Invitation? 

Start with inventory and order management. Determine whether inventory can update across the channels where the brand already sells and whether the business can generate order-level shipping and invoice documentation without relying on manual entry. 

These capabilities can help reduce canceled orders, inventory errors, and service-level issues as the brand adds new channels. 

How Can Suppliers Support a Fashion Omnichannel Strategy? 

Each ecommerce model has different requirements, but they often depend on the same underlying data and fulfillment processes. 

Accurate item data, timely inventory updates, and order-level EDI can help suppliers manage those requirements across channels. 

 connects trading partners and channels through a single fulfillment solution, helping suppliers manage new relationships without rebuilding their underlying integrations for every channel. 

For suppliers evaluating their next ecommerce channel, 

 provides additional resources on fashion supply chain and omnichannel operations. 

Au-delà de l'entrepôt : comment les opérations en réseau construisent un fulfillment résilient

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Si les problèmes d'entrepôt peuvent être une source de perturbation de la supply chain, ils sont également influencés par des événements bien au-delà des quatre murs d'une installation. Les perturbations peuvent commencer en amont avec un retard fournisseur, à mi-parcours avec un problème de capacité transporteur, ou même en aval avec un changement dans les exigences d'un distributeur. Mais le temps que l'impact se manifeste au niveau de l'entrepôt, le problème s'est peut-être déjà propagé à plusieurs partenaires commerciaux.

Gérer la performance à l'intérieur d'un entrepôt est crucial, mais cela seul ne se traduit pas par une supply chain résiliente. Dans de nombreux cas, les résultats d'un entrepôt sont autant façonnés par ce qui se passe entre les installations, les systèmes et les partenaires que par ce qui se passe à l'intérieur.

À mesure que les supply chains sont devenues plus connectées, la résilience dépend moins de la solidité d'un entrepôt individuel et davantage de la fluidité avec laquelle l'information et les décisions circulent à travers le réseau élargi. Lorsque les opérations d'entrepôt, les connexions avec les distributeurs, les relations transporteurs ou les canaux de marketplaces sont gérés de manière isolée, le résultat est souvent un système qui réagit à une perturbation plusieurs fois au lieu d'une seule.

Dans cet article, nous examinerons pourquoi la résilience dépend moins de la performance d'une installation individuelle et davantage de l'efficacité avec laquelle les opérations sont connectées à travers le réseau élargi de la supply chain.

Pourquoi l'entrepôt n'est pas la bonne unité d'analyse

Historiquement, la résilience de la supply chain reposait sur la capacité physique. Si la demande augmentait ou qu'une perturbation survenait, une entreprise pouvait répondre en ajoutant du stock, en augmentant le stock de sécurité ou en étendant la capacité de l'entrepôt.

Cette approche reste pertinente dans certains contextes. Mais elle suppose que la perturbation peut être absorbée au niveau du site. En pratique, bon nombre des perturbations actuelles ne proviennent pas du tout de l'entrepôt.

Chacun de ces événements affecte le fulfillment, mais aucun n'est contenu dans une seule installation. Prenons l'exemple d'un fournisseur expédiant vers plusieurs grands distributeurs. Si Walmart met à jour ses exigences de routage ou d'étiquetage, ce changement ne reste pas isolé. Il nécessite souvent des mises à jour des processus EDI, des instructions d'entrepôt et des systèmes de planification du transport. Si ces systèmes ne sont pas connectés, le fournisseur peut finir par implémenter le même changement plusieurs fois à travers différentes équipes et workflows.

De plus, un entrepôt peut exécuter correctement ses opérations tout en étant affecté par des décisions prises ailleurs dans le réseau. C'est là que les limites de la résilience au niveau de l'entrepôt deviennent visibles. Ajouter du stock ou de la main-d'œuvre dans une installation ne résout pas les problèmes créés par une information fragmentée ou des exigences partenaires déconnectées.

La visibilité est le point de départ de la résilience, pas l'arrivée

La visibilité est un objectif courant dans les investissements technologiques de la supply chain. Les entreprises veulent savoir où se trouve leur stock, si les expéditions avancent comme prévu et quand des perturbations surviennent. Cette visibilité est précieuse, mais l'information seule ne rend pas votre supply chain résiliente.

Le défi est que de nombreuses organisations ont une visibilité sur des systèmes individuels sans avoir de visibilité sur leur réseau élargi. Les systèmes de gestion d'entrepôt, les plateformes de transport, les portails distributeurs et les systèmes fournisseurs peuvent tous fournir des données utiles, mais cette information reste souvent fragmentée. Les équipes peuvent voir une perturbation se produire, sans pour autant disposer d'un moyen coordonné pour y répondre.

La véritable résilience face aux perturbations vient de la transformation de la visibilité en action. Lorsque les données opérationnelles circulent entre les partenaires commerciaux, les organisations peuvent identifier les perturbations plus tôt, s'aligner sur des actions correctives et réduire le délai entre la détection et la réponse. Cela permet ensuite aux entreprises de passer du simple constat de ce qui se passe à la garantie que les bonnes personnes et les bons systèmes puissent agir sur cette information avant que les perturbations ne se propagent davantage.

Les opérations cloisonnées vous font réagir tard et de manière répétée

De nombreuses perturbations de la supply chain deviennent plus coûteuses parce que les organisations répondent au même problème plusieurs fois dans différentes parties de l'entreprise.

Un retard d'approvisionnement, par exemple, peut d'abord impacter la planification des stocks. Plus tard, il crée des ajustements de transport. Finalement, il affecte la planification de l'entrepôt, la conformité distributeur et les communications du service client. Lorsque chaque fonction opère de manière indépendante, chaque équipe découvre et réagit au problème séparément.

Cela crée des coûts et des retards inutiles tout en augmentant la probabilité de décisions incohérentes. Une équipe peut accélérer le fret tandis qu'une autre réalloue les stocks, les deux tentant de résoudre le même problème sous-jacent sans contexte partagé.

Les opérations connectées réduisent cette duplication. Lorsque les partenaires et les équipes internes travaillent à partir d'un ensemble commun d'informations, les perturbations peuvent être traitées plus près de leur source. Au lieu de gérer les conséquences en plusieurs points de la supply chain, les organisations peuvent coordonner une réponse une seule fois et minimiser l'impact en aval.

Le passage du coût à la résilience est déjà en cours

Pendant de nombreuses années, les investissements dans la supply chain étaient souvent évalués sous l'angle de l'efficacité des coûts. L'objectif était de réduire les coûts de transport, maximiser l'utilisation des entrepôts et minimiser les frais de stockage.

Cependant, des perturbations plus fréquentes et de plus grande ampleur ont élargi cette perspective. Par exemple, la 

 a révélé à quelle vitesse les supply chains internationales peuvent être contraintes lorsque fournisseurs, fabricants, transporteurs et distributeurs subissent des perturbations simultanément. Les entreprises qui avaient fortement optimisé pour l'efficacité se sont souvent retrouvées en difficulté pour s'adapter lorsque pénuries de stocks, contraintes de main-d'œuvre et évolution de la demande des consommateurs survenaient en même temps.

Les organisations reconnaissent de plus en plus que le réseau le moins coûteux n'est pas toujours le plus résilient. La capacité à s'adapter rapidement aux conditions changeantes du marché, aux exigences des distributeurs, aux pénuries de main-d'œuvre ou aux contraintes de transport est devenue une priorité stratégique.

L'échelle du réseau et la connectivité sont des facteurs clés de différenciation

La performance et la résilience d'un entrepôt ne se limitent pas à un seul nœud ou emplacement. Les plannings de réception dépendent des fournisseurs et des transporteurs, tandis que les expéditions sortantes dépendent des exigences des distributeurs et de la capacité de transport. De plus, la disponibilité des stocks dépend de données précises circulant entre plusieurs systèmes et partenaires commerciaux.

En conséquence, la résilience d'un entrepôt est souvent influencée par la solidité du réseau qui l'entoure. Les entrepôts opérant au sein d'écosystèmes de supply chain fortement connectés ont généralement un meilleur accès aux données d'expédition, aux informations sur les stocks, aux exigences des distributeurs et aux communications avec les partenaires. Cela permet aux équipes d'identifier les problèmes potentiels plus tôt et
d'effectuer des ajustements opérationnels avant que les perturbations n'impactent le fulfillment.

À l'inverse, dans un environnement déconnecté, les équipes d'entrepôt apprennent souvent les changements ou les problèmes tardivement et doivent réagir après que les opérations ont déjà été affectées. Dans un réseau connecté, l'information peut circuler plus rapidement entre les partenaires commerciaux, aidant les entrepôts à ajuster les plans de main-d'œuvre, l'allocation des stocks, les plannings de réception et les priorités de fulfillment avant que les perturbations ne s'aggravent.

En fin de compte, un fulfillment résilient ne se construit pas uniquement par la capacité d'entrepôt ou l'efficacité opérationnelle. Il se construit à travers les connexions qui permettent aux entrepôts, fournisseurs, transporteurs, distributeurs et marketplaces de fonctionner comme un réseau coordonné plutôt qu'un ensemble d'installations indépendantes.

Construisez la résilience avec le réseau SPS Commerce

 aide les organisations à améliorer leurs performances de fulfillment grâce à des relations connectées entre partenaires commerciaux, une visibilité réseau et une collaboration supply chain évolutive. Fort de plus de 300 000 relations commerciales et de centaines de millions de transactions chaque année, le réseau SPS offre l'échelle et l'intelligence nécessaires pour aider les entreprises à s'adapter à mesure que les conditions de la supply chain évoluent.

A Glossary of Automotive Industry Supply Chain Management Terms 

Automotive industry supply chain management comes with its own vocabulary, and most of it arrives at once. A supplier new to the category hears bill of materials (BOM), just-in-time (JIT), Kanban, original equipment manufacturer (OEM), electronic data interchange (EDI), and advance ship notice (ASN) in the first week, usually in a meeting where everyone else already knows the words. 

Most glossaries answer that with an alphabetical list. That works for a single lookup and not much else, because these terms are not independent. They are checkpoints in one flow that starts with a design and ends with a payment. The terms below are grouped by where they sit in that flow, so the definitions explain each other. 

This group of terms centers around the materials needed for each automotive product. Purchase volumes and production schedules are built from these documents. 

This group answers when parts arrive and how the floor asks for more. Both terms came out of automotive manufacturing, and they work as a pair. 

This group answers whose requirements apply to you. The same part can move through two channels, with different qualification steps and paperwork on each. 

That status drives qualification steps, part numbering, and the way a buyer expects to trade data. 

This group answers how an order reaches you and how a shipment gets checked at the other end. These are the documents 

 read, and the ones that cause chargebacks when the data is wrong. 

What the Flow Looks Like on a Single Order 

In sequence, the terms trace one order through all four stages. 
  

Flowchart showing five stages of the automotive supply chain order flow, connected left to right by arrows: Bill of materials, Purchase order (EDI 850), JIT and Kanban, Ship notice (EDI 856), and Invoice matched.

automotive-supply-chain-order-flow-flowchart.png

Each step leans on the one before it, which is why these terms are worth learning together. 

What Is an OEM, and How Is It Different From Aftermarket? 

OEM stands for original equipment manufacturer, the company that builds the finished vehicle or machine. An OEM part is made by or for that company to its own spec. A part made by a third party for the replacement market is aftermarket. 

What Is the Difference Between an EBOM and an MBOM? 

The engineering bill of materials describes the product as designed, grouped by function. The manufacturing bill of materials describes it as built, grouped by assembly order, including the sub-assemblies needed to ship a finished unit. 

Is Kanban the Same Thing as Just-in-Time Manufacturing? 

No. Just-in-time is the production model, which means making items to meet demand rather than stockpiling them. Kanban is the signaling method that keeps the model running on the floor. Plants adopt Kanban alongside JIT rather than in place of it. 

Which EDI Documents Do Industrial and Automotive Buyers Ask For First? 

The purchase order (850), the advance ship notice (856), and the invoice (810) are the core set. Buyers reconcile all three against each other, so accuracy across the group matters more than any single document. 

Where To Go Deeper on Industrial and Automotive Supply Chain Terms 

Definitions get you through the first meeting. The parts of the flow that get hard in practice, such as EDI compliance and ASN accuracy, take longer. 

 publishes practical education on those topics, written for the people doing the work. If data exchange is the stage you need next, the 

What Is Supply Chain Performance Management (SCPM)?

_________________________________________________________________________________ 

Retailers depend on suppliers to get the right products to the right place at the right time. When that starts to break down, the signs usually show up in the data: orders arriving short, shipments running late, ASNs that do not match what was delivered, or pesky lead times that keep moving in the wrong direction. 

Supply chain performance management (SCPM) puts those signals in one place, so retailers and suppliers can see what is happening and address it earlier. Instead of waiting for a quarterly review or a string of stockouts to confirm there's a problem, teams can track performance as it changes and focus on the areas that need attention. 

At its core, SCPM is about making supplier performance easier to see, discuss, and improve. The better that visibility is, the easier it becomes to keep inventory moving and to prevent small problems from becoming expensive ones. 

What Is Supply Chain Performance Management? 

 defines supply chain management as the function that links a company's major business processes into one working model. That includes coordination with other companies in the chain, from suppliers to intermediaries to distributors.  SCPM tells a retailer whether that coordination is actually happening, shipment by shipment. 

Where Does SCPM Fit Within Supply Chain Management? 

 is the supply chain field's most widely used process framework. Its most recent update added an "Orchestrate" stage to cover strategy, technology, and performance management.  

Why Does Supply Chain Performance Management Matter Now? 

In 2025,retail supply chains experienced two disruptions at once. NRF and Kantar's 

 points to  U.S. policy shifts and fast-changing tariffs forcing manufacturers and retailers into repeated strategic pivots. On top of that volatility, the same analysis notes a surge in cybercrime targeting logistics and procurement systems, adding a new failure point on top of the usual cargo theft and in-store shrink retailers already track. 

When unit costs and delivery reliability are both under pressure at the same time, the retailers with earlier visibility into which supplier relationships are underperforming are the ones who can act before a stockout or a chargeback dispute happens. That is the practical argument for supply chain performance management: It is not about proving a supplier wrong, but rather is about seeing a problem multiple shipments before it becomes an empty shelf instead of finding out when the shelf is already empty. 

What Metrics Does Supply Chain Performance Management Track? 

Most supplier performance programs focus on a core set of metrics that show whether orders are arriving complete, accurate, and on schedule: 

Looking at these metrics together gives retailers a clearer view of supplier performance and where problems may be developing. 

Turning Performance Metrics Into Action 

Tracking these metrics is only useful if they lead somewhere. When OTIF declines, teams should be able to isolate whether the problem is concentrated by supplier, item, distribution center, carrier, or delivery lane.  

If ASN accuracy drops, teams should be able to determine whether the issue is bad source data, an EDI failure, or a warehouse execution problem.  SCPM gives both trading partners the visibility and process to find the cause, assign ownership, and determine whether the fix worked. 

How Is SCPM Different From a Supplier Scorecard? 

Most retailers already use some form of supplier scorecard. The limitation is often timing: A quarterly scorecard shows what happened, but it may come too late to influence the next shipment. 

SCPM keeps that view current using the order, shipment, and 

 retailers and suppliers already exchange. Instead of relying on past incidents, both sides can work from the same metrics, spot changes in performance, and address issues as they develop. 

That shared visibility is the key difference. A periodic scorecard can feel like a report card. SCPM turns performance data into a shared operating picture that can be used to to improve what happens next. 

What Does Supply Chain Performance Management Look Like in Practice? 

For Burlington, supplier performance problems had a direct operational cost. Incorrect packing, late shipments, damaged goods, and other vendor errors had to be pulled from the normal distribution center flow and handled separately, requiring additional labor, space, and resources. 

 shows what stronger supplier performance visibility can look like in practice. By bringing performance data together, the retailer was better able to identify routing, shipping, and packaging issues and communicate those findings to suppliers. 

Burlington eliminated 63% of problem shipments, reduced distribution center cycle time by more than 40%, improved DC productivity by 14%, and lowered distribution cost per unit by 8%. More importantly, the data gave Burlington and its vendors a clearer view of where problems were occurring so they could address the issues behind them. 

How Do Retailers Build Continuous Supplier Performance Management? 

Tracking supplier performance only matters if teams act on what the data shows. When a metric slips, retailers and suppliers should be able to identify the cause, assign ownership, and determine whether the fix improves performance. 

That requires an ongoing operating rhythm rather than an annual review. Reviewing performance consistently gives both sides a chance to correct problems before they become stockouts, deductions, or larger disruptions. 

Supply Chain Performance Management FAQs 

SCPM stands for supply chain performance management, the ongoing measurement of how well a supplier is executing against agreed metrics like on-time delivery, fill rate, and shipment accuracy. 

How is supply chain performance management different from a vendor scorecard? 

A vendor scorecard is often a static, periodic report. Supply chain performance management is the broader, continuous discipline that a modern scorecard is one output of: the underlying data, the cadence it updates on, and the shared visibility both retailer and supplier have into it. 

Most programs center on a small set of metrics: OTIF, fill rate, ASN accuracy, and lead time. Retailers often add category or supplier-specific metrics on top of that core set. 

Who typically owns supply chain performance management at a retailer? 

Ownership usually sits with operations, merchandising, or vendor compliance leadership, since the metrics touch inventory availability, supplier relationships, and margin protection at once. Larger organizations often build cross-functional review into the process rather than housing it in a single department. 

Turn Supplier Performance Data Into Action 

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