SPS Commerce introduces innovative technology that combines artificial intelligence with streamlined retail supply chain operations

Retail Sales Forecasts and Evolving Consumer Expectations

The National Retail Federation anticipates that retail sales during November and December 2025 will increase by 3.7% to 4.2% compared to 2024, reaching between $1.01 trillion and $1.02 trillion. For context, holiday sales in 2024 grew by 4.3% over the previous year, totaling $976.1 billion.

Shoppers continue to drive strong demand, but their expectations are higher than ever. Many now seek faster delivery, distinctive experiences, and premium packaging, making the shopping process far more complex than a straightforward purchase.

SPS Commerce’s Vision for the Future of Retail Supply Chains

SPS Commerce’s recent product launches highlight a shift in focus from minor efficiency improvements to the ability to adapt rapidly to ongoing disruptions in the retail sector.

Central to SPS’s approach is the conviction that artificial intelligence will soon serve as the backbone of commerce operations. Rather than acting as a separate analytics tool, AI is beginning to manage inventory, forecast demand, and coordinate fulfillment at unprecedented speeds. However, this level of orchestration relies heavily on having clean, standardized, and shared data among all trading partners.

SPS is positioning its network as the essential link that enables AI-powered supply chains. Their new AI-driven fulfillment features are designed to help suppliers boost performance, gain insights more quickly, and connect within what SPS refers to as an agentic supply chain ecosystem.

Industry Collaboration and Data Standardization

The company is also strengthening its industry ties by becoming a founding member of the Commerce Operations Foundation and supporting the launch of the Order Network eXchange (onX).

The goal of onX is to establish a common operational framework for order, inventory, and fulfillment data across commerce and logistics platforms. By facilitating real-time data exchange between ERPs, WMS and OMS systems, third-party logistics providers, and emerging AI solutions, SPS aims to bridge the long-standing divide between sales channels and fulfillment processes—a gap that has historically hindered both transparency and automation.

Omnichannel Retail as the New Standard

As omnichannel retail becomes the norm rather than a strategy, consumers no longer differentiate between online, in-store, marketplace, or drop-ship experiences. They expect prompt and accurate service across all channels. For suppliers, this means managing a wider variety of order types across multiple systems, often with minimal room for mistakes.

“The industry is undergoing rapid change, and keeping pace can be daunting,” said Mike Svatek, Chief Product Officer at SPS Commerce. “With our global reach and access to wholesale and point-of-sale data, we’re uniquely positioned to spot the trends shaping supply chains. We use these insights to develop solutions that help our partners adapt quickly.”

Streamlining Operations with Automation

SPS’s newest automation tools are aimed at eliminating operational bottlenecks. Many companies still process purchase orders via email, leading to delays and manual intervention.

The introduction of PDF order automation transforms these documents into transactions ready for ERP systems, enabling partners to respond more swiftly as omnichannel demand grows. Enhanced automation for platforms like SAP S/4HANA and Shopify centralizes orders, inventory, and shipping updates, providing retailers with a unified and accurate overview—even as fulfillment models become more complex.

Enhancing Collaboration and Visibility

The SPS Relationship Center offers a collaborative environment where retailers and suppliers can share product data, compliance standards, and operational expectations, reducing onboarding challenges and accelerating revenue generation. On the manufacturing front, the SPS Manufacturing Suite extends this visibility further upstream, giving companies deeper insights into supplier performance, quality, and reliability as they diversify sourcing and production.

Adapting to the Era of Adaptive Commerce

All these advancements contribute to what SPS calls the adaptive commerce era. With demand patterns shifting more rapidly than traditional planning cycles can accommodate, factors like promotions, regional preferences, and supply chain disruptions can quickly introduce both operational and financial risks.

New features within the SPS Supply Chain Performance Suite are designed to help trading partners react almost instantly. Shared dashboards display key metrics such as fill rates, on-time deliveries, compliance status, and inventory trends, enabling proactive issue resolution. Tools for revenue recovery and billable overages help identify discrepancies that often arise during demand fluctuations, allowing suppliers to protect their margins while maintaining strong retail relationships.