Today’s supplier must be equipped to handle it all: manage orders, keep track of inventory levels and maintain partner relationships — with limited support and never enough time in the day. Success means owning everything from order management to inventory monitoring while continuing to keep customers happy and grow your brand. And it's not just true for suppliers — your trading partners also can't afford to let inaccurate data slow them down or hold them back either.

The common challenges

When asked about the specific challenges they commonly faced last year, suppliers revealed several pain points. While the specifics look different in each industry, we've identified three main issues:

• Order management

  • When suppliers have orders coming in from multiple channels, all with different specifications, it can feel impossible to keep track of day-to-day operations. You must meet the order demands of each trading partner (via different channels and through multiple fulfillment methods) where each scenario presents its own requirements to follow and challenges to overcome. Getting ahead of the curve? Forget about it — all you have time for is the bare minimum.

• Supply chain relationship management

  • It’s not just vendor and retailer relationships that are at risk when errors are made. Brands are in a unique position where they need to manage relationships both downstream with retailers and upstream with manufacturers. Full visibility into a company’s supply chain process leads to clearer communication across all partners — and all the way to the end consumer — maintaining an efficient supply chain and creating a successful customer experience.

• Inaccurate data

  • Suppliers rely on data from trading partners to make informed decisions — from inventory adjustments and pricing to future assortment planning. When decisions are made with incomplete or inaccurate data, it can negatively impact both your business and your relationships with your retailers.

The simplest solutions

While challenges like these can be very frustrating for suppliers, there are methods of improving your existing supply chain. It all starts with accurate data that can be turned into actionable insights to optimize relationships with trading partners and end-consumers.

By understanding where more visibility is needed, supply chain data can begin to work for suppliers. Data can be used to:

• Eliminate overstock with better inventory and order management.

  • The ability to identify trends within the supply chain can inform inventory and stock processes, leading to more effective cost-savings practices.

• Make more confident business decisions with more insight into existing processes.

  • By gaining a deeper understanding of the supply chain, suppliers can make strategic decisions to grow their business, eliminating guesswork and ensuring informed moves.

• Strengthen collaboration within the organization and with trading partners on both ends of the supply chain.

  • Both upstream and downstream relationships can be affected by the level of accurate communication between each trading partner. With the correct workflows and processes in place, collaboration is strengthened between partners.

A deeper dive into why data matters

To gain a clearer understanding of data’s significant role in the supply chain, SPS Commerce and Supply Chain Dive surveyed 150 supply chain executives in the United States. This survey highlighted common supplier challenges over the past year and evaluated preparedness for facing these challenges in the next year. The survey responses indicated:

• Disruptions suppliers faced over the past year.

• Common challenges, like handling returns.

• The role data and technology play in helping brands become more agile and resilient.

Learn more about the challenges suppliers are facing and the solutions that accurate data brings.