SPS Commerce

The company operates a network-based SaaS model that connects trading partners in retail and adjacent supply chains. It builds and maintains pre-configured integrations, mappings and compliance workflows for retailers, suppliers, distributors, manufacturers, logistics providers and other partners, then sells access to this network as subscription services. Core products provide order fulfilment automation, product data/assortment management, analytics on sales and inventory, order orchestration, invoicing and deduction management, plus logistics and community onboarding tools.

Value is created by reducing the cost and complexity of building and maintaining individual EDI and data connections, accelerating supplier onboarding, ensuring retailer-specific compliance and improving visibility into supply-chain performance and revenue leakage. The business scales by adding more trading partners and verticals to its network (e.g. Microsoft Dynamics ecosystem, apparel, general merchandise, automotive aftermarket), increasing the utility of the platform for all participants and supporting upsell of related analytics and performance services.

SPS Commerce is a US-based enterprise software provider focused on retail and supply-chain data integration. It offers cloud-based electronic data interchange (EDI), product data management and analytics services that connect retailers, suppliers, distributors, manufacturers, logistics providers and other trading partners to automate orders, invoicing and product information exchange. The platform competes with supply-chain connectivity and ERP/supply-chain suites from vendors such as Oracle, IBM, Infor and others.

The company generates most of its revenue from subscription-based recurring services delivered as multi-tenant SaaS, supplemented by implementation, onboarding, testing, certification and other professional services. Its customers are businesses that need to achieve and maintain EDI and data-compliance with retail trading partners, gain visibility into sales and inventory performance and improve supply-chain execution across channels and verticals including general retail, grocery and the automotive aftermarket.