Retailers can expect a growth in sales for the holiday season of 2025, with a predicted increase of 3.7% to 4.2% compared to 2024, totaling between $1.01 trillion and $1.02 trillion. This comes after a 4.3% rise in sales in 2024 to $976.1 billion.
As consumer demand remains high, expectations have also risen with a focus on fast delivery, unique experiences, and quality packaging. It’s no longer just about a simple transaction.
SPS Commerce is looking towards the future of retail supply chains by emphasizing the importance of AI in enhancing operations. By utilizing AI for inventory decisions, demand forecasting, and fulfillment coordination at a rapid pace, SPS believes that standardized and clean data across partners is crucial.
The company aims to position its network as the vital link that enables AI-driven supply chains to thrive. Through new AI-enabled fulfillment capabilities, SPS seeks to improve supplier performance, provide insights quickly, and connect within an agile supply chain ecosystem.
SPS has aligned itself with industry efforts by joining the Commerce Operations Foundation and supporting the launch of the Order Network eXchange (onX). This initiative aims to establish a common operational language for order, inventory, and fulfillment data, bridging the gap between selling platforms and fulfillment execution.
With the rise of omnichannel retail as a baseline expectation, SPS recognizes the importance of adapting to consumer demands for speed and accuracy across all channels. This shift requires suppliers to manage various order types efficiently and accurately in multiple systems.
Mike Svatek, Chief Product Officer at SPS Commerce, acknowledges the challenges of keeping up with the evolving landscape and emphasizes the company’s role in identifying industry trends and designing solutions to navigate changes effectively.
SPS’s latest automation capabilities target streamlining operations by eliminating existing friction points. By converting PDF order documents into ERP-ready transactions and centralizing order management for platforms like SAP S/4HANA and Shopify, the company aims to enhance efficiency for partners.
SPS’s Relationship Center provides a shared space for retailers and suppliers to exchange data, compliance requirements, and operational expectations to reduce onboarding challenges. The Manufacturing Suite extends visibility upstream, offering insights into supplier performance and quality as production diversifies.
In response to the dynamic demand patterns of the adaptive commerce era, SPS has introduced new capabilities within its Supply Chain Performance Suite to facilitate real-time responses. Shared performance dashboards highlight key metrics to address issues promptly and protect margins without straining retail relationships.
The integration of AI and supply chain efficiency in the retail sector by SPS Commerce showcases a forward-looking approach to adapting to the evolving demands of the industry.
