Supply Chain Collaboration Nets Measurable Results In Any Economy

by | May 18, 2022 | Data Management, Industry, Suppliers

There’s been a lot of recent news about the challenges in the retail supply chain. Retailers and suppliers are weathering many obstacles including unanticipated spikes in consumer demand, port delays and labor shortages, to name a few.

Here are some of our recommendations about how sharing sell-through data can help retailers and suppliers keep shelves stocked and meet consumer expectations.

Supply Chain Collaboration

The global supply chain has been in a chaotic state for more than two years. It’s no surprise that 76% of executives recently indicated their company faces more frequent supply chain disruptions.

Consumer expectations remain high despite supply chain disruptions

Over 60 percent of U.S. consumers have recently encountered empty shelves. Nearly 48 percent of consumers tried a new brand when their first choice was out of stock.

The right data helps retailers keep shelves stocked

Buyers simply don’t have the time to sift through sales and inventory data for each of their suppliers. By arming their suppliers with sell-through data, buyers can solicit recommendations from suppliers to minimize stockouts and make inventory as productive as possible.

Suppliers can use sell-through data to protect their shelf space

Suppliers can also use sell-through data to their advantage in today’s retail landscape. They can proactively identify potential out-of-stock situations and protect their peg and shelf space by offering alternative products, signage or sizes to their retailers.

Collaboration has tangible advantages

Businesses that leverage sell-through data outperform the competition. According to data from the SPS Commerce network, users of the SPS Analytics solution experience:

  • 68% greater two-year revenue growth
  • 19% higher sell-through volume
  • 12% higher gross margin

Still have questions about sell-through data sharing? Not sure how to start collaborating with trading partners? Check out our website.

SPS Commerce Blog Team