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Supply Chain Management and How It Works for Retail Suppliers 

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Supply chain management is the operational discipline that determines whether a brand can get the right product to a retailer when they need it.  

For founders, operations leads, and supply chain managers at growing consumer brands, this is not a textbook concept. It describes the gap between a signed purchase order and an invoice that actually gets paid.  

Manage it well and you ship on time, meet retailer requirements, and hold onto shelf space. Manage it poorly and the consequences are specific: chargebacks, out-of-stocks, and buyers who start asking whether they can count on you. 

This article explains what supply chain management is, how its core components work from the supplier side, and why a clear process-level understanding is the prerequisite for optimization, software selection, or automation. 

Supply chain management is the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value and synchronizing supply with demand. That is 

, and the standard reference across the industry. 

For suppliers, the working translation runs through five connected functions: 

Each function feeds the next. A miss in planning creates shortfalls in inventory, which produce short shipments, which produce chargebacks. The sequence is predictable, and  nearly every failure starts with data. 

Supply chains are data systems as much as they are logistics systems. The physical movement of goods depends entirely on the accuracy of the information describing those goods. That distinction matters more than most introductory coverage acknowledges, and it explains why some of the most consequential supply chain failures happen in facilities that are fully stocked. 

Why Supply Chain Risk Is Structural Now 

The cost of weak supply chain fundamentals has become harder to ignore. In a 

, the majority of companies understood their supply chain risks only through their first-tier supplier relationships, and risk awareness capabilities actually declined as pandemic-era urgency faded. 

The frequency and financial stakes of disruption reinforce the point. 

 and can cost businesses up to 45 percent of a year's profit over a decade. 

For suppliers, this structural reality sits alongside two additional pressures: tariff volatility that changes the landed cost of inputs with little warning, and retailer compliance programs that have grown more specific about what correct execution looks like. The cost of not understanding your supply chain at the process level has rarely been higher. 

The 5 Core Components of Supply Chain Planning 

Supply chain planning is how a supplier translates incoming demand signals into operational action. The five components below describe the supplier-to-retailer flow, including what breaks when each one fails. 

Demand planning estimates how much of each product a supplier needs to produce or procure across a planning horizon. It draws on historical sales data, retailer forecasts, and market signals, and is the starting point for every downstream decision. Systematic errors here compound through production schedules, procurement volumes, and inventory positions before any physical goods have moved. 

Sourcing identifies the vendors and raw materials required to produce finished goods. Procurement handles the ordering, pricing, and timing of those inputs. For suppliers working across multiple product categories, this includes managing lead times that may extend across continents and keeping item specifications accurate enough that the inventory system places orders correctly. 

Getting inventory levels right means having enough product to fill orders without holding excess stock that ties up working capital. Retailers score suppliers on in-full rates, meaning the percentage of an order that ships complete. Chronic under-inventory is a compliance problem as much as a cash flow problem. 

Order fulfillment covers receipt of a retailer purchase order through pick, pack, ship, advance ship notice (ASN), and invoice. An ASN is an electronic document sent to the retailer before a shipment arrives, telling the receiving team exactly what is on the truck. For suppliers new to retail, 

, including the purchase order acknowledgment (POA), ASN, and invoice, follow a specific sequence that retailers enforce through compliance programs. Late or missing ASNs are among the most common sources of chargebacks for first-time retail suppliers. 

Logistics handles transportation, routing, and delivery to retailer distribution centers or direct to store. Returns, sometimes called reverse logistics, cover unsold or damaged product flowing back from the retailer and the processes for evaluating, restocking, or disposing of it. 

 connects these five functions into an operational sequence, The Supply Chain Source covers the mechanics in detail. 

Why Demand Forecasting Breaks More Often Than It Should 

Of the five components, demand forecasting is both the highest-leverage and the most fragile. A forecast biased in one direction distorts every downstream decision. 

Peloton's experience between 2020 and 2022 illustrates the scale of the risk. During the pandemic, the company expanded production capacity aggressively based on the assumption that elevated demand would hold.  

When demand normalized as gyms reopened, the company was left with approximately $1.1 billion in unsold inventory at the close of its fiscal fourth quarter of 2022, equivalent to hundreds of thousands of bikes and treadmills warehoused while orders stalled. The 

 shows how a single forecasting assumption, compounded through production commitments and logistics costs, required a structural business reset. 

For suppliers, the lesson is not that forecasting is impossible. It is that forecast reliability degrades at longer planning horizons, and that 

 is practical preparation. The suppliers who manage this well build tighter feedback loops between actual retail sell-through data and their production schedules, rather than relying on historical shipment patterns alone. 

When Supply Chain Failures Are Really Data Failures 

Logistics problems are visible. Data problems are harder to detect, which is part of what makes them more consequential at scale. 

Target's Canadian expansion is the clearest modern example. The company launched more than 130 stores in 2013 alongside a newly implemented enterprise resource planning (ERP) system built to manage inventory and fulfillment for roughly 75,000 stock-keeping units (SKUs). Product data, including weights, dimensions, and location codes, was entered under a rushed timeline and contained widespread inaccuracies across thousands of items. The inventory system launched on corrupted data from the start. 

Distribution centers held full merchandise while store shelves sat empty. The ERP couldn't match supply to demand because the underlying item data was wrong, routing product to incorrect locations and generating inaccurate replenishment orders. 

 one of the greatest supply chain disasters in Canadian retail history. 

 documented a data setup that was rushed and never verified before go-live. Target closed all 133 stores in 2015 with more than $2 billion in operating losses over its two-year run. 

 apply directly to supplier operations: item data accuracy, order data accuracy, and inventory visibility aren't IT concerns to be addressed after launch. They are the foundation every fulfillment decision runs on. 

When Supply Chain Capability Drives Growth 

Supply chain failures are instructive, but the positive case deserves equal attention. 

Liquid Death scaled from a direct-to-consumer startup to more than 113,000 retail doors, reaching an estimated $333 million in retail sales in 2024. The company's 

 was explicitly earmarked for distribution growth and product innovation. The brand's leadership has consistently framed continued retail expansion as an operational execution challenge. Distribution investment and the ability to fulfill large-format retail demand at scale is what converts brand demand into revenue. 

For suppliers, the takeaway is direct: demand without operational capability to fulfill it stays demand. Shelf space requires reliable execution at every replenishment cycle, and supply chain capability is what converts consumer interest into revenue. It is also what determines whether a buyer relationship grows or stalls. 

You Can't Optimize a Process You Haven't Mapped 

Software evaluation, automation, and AI adoption are all legitimate next steps for suppliers working to improve supply chain performance. Each of those investments requires a prerequisite: clarity about how your supply chain actually works at the process level. 

You can't identify what is causing chargebacks without understanding the fulfillment sequence, and you can't improve demand forecasting without knowing where your forecast inputs come from and how quickly they reach your planning team. You can't select software to automate a process that hasn't been defined. 

SPS Commerce operates in the order, data, and fulfillment layer of the retail supply chain, not in procurement, manufacturing, or logistics execution. That scope matters: the complexity in managing retailer order requirements, maintaining EDI connections, and keeping item data accurate across retail accounts is where most suppliers lose margin and buyer trust. 

For suppliers looking to go deeper on retailer-specific supply chain requirements, including EDI, fulfillment compliance, and inventory data standards, 

 offers free educational resources built for that audience. 

What is the difference between supply chain management and logistics?

Logistics is one component of supply chain management, specifically the transportation, warehousing, and physical movement of goods. Supply chain management is the broader discipline that also includes demand planning, sourcing, inventory management, order fulfillment, and returns. 

How does supply chain management affect chargebacks?

Most chargebacks trace back to supply chain execution failures: late or missing advance ship notices (ASNs), incomplete shipments, labeling errors, or routing violations. These are output problems that originate upstream in order management, item data accuracy, and fulfillment processes. 

Why do supply chain failures often produce empty shelves alongside full warehouses?

When item data is inaccurate, inventory systems can't correctly match product to demand. Distribution centers may hold excess stock while stores remain understocked because the system is routing based on incorrect information. Accurate item data is the prerequisite for functional inventory management. 

What should a first-time retail supplier prioritize in supply chain setup?

Order fulfillment accuracy, EDI compliance with each retailer's specific requirements, and item data completeness are the three areas that most directly affect chargebacks, in-full rates, and buyer relationships in the early stages of a retail account. Getting these right before adding complexity is the correct sequence. 

Ready to get order fulfillment, EDI compliance, and item data accuracy working before your next retailer relationship goes live? 

 manages the order, data, and EDI layer between a supplier and every retail account they serve, so your team isn't absorbing retailer-by-retailer compliance work as you grow. 

Des barres de recherche aux conversations : comment la qualité des données produit façonne la découvrabilité par l'IA

Les consommateurs achètent différemment aujourd'hui comparé à il y a quelques années seulement. Le e-commerce était autrefois centré sur les barres de recherche. Un acheteur saisissait quelques mots-clés, faisait défiler des pages de produits, comparait les annonces et progressait graduellement vers une décision d'achat.

Aujourd'hui, les consommateurs posent des questions conversationnelles via des grands modèles de langage (LLM), comme :

Même les plateformes propulsées par l'IA conversationnelle changent la façon dont les produits apparaissent lors de la phase de découverte. Les moteurs de recommandation et les assistants d'achat IA influencent quels produits les acheteurs voient en premier et lesquels n'entrent jamais en considération.

Pour les marques, cette évolution va bien au-delà des stratégies de merchandising traditionnelles. La visibilité des produits dépend désormais de la capacité des assistants IA à comprendre, catégoriser et recommander les produits avec confiance. Cette confiance provient de la qualité et de la cohérence des informations circulant à travers les réseaux.

Comment l'IA redéfinit la découverte de produits : des mots-clés aux conversations

Pendant la saison des fêtes 2024, le trafic référé par l'IA vers les sites de vente au détail a augmenté de plus de 1 300 % en glissement annuel. Désormais, les consommateurs interagissent avec les outils d'IA de la même manière qu'ils utilisaient autrefois les moteurs de recherche traditionnels.

Au lieu de comparer manuellement des dizaines de produits, les acheteurs posent des questions directes et examinent un ensemble plus restreint de recommandations sélectionnées. La recherche e-commerce traditionnelle récompensait le volume de visibilité. La découverte conversationnelle compresse le temps consacré à la prise de décision et accélère finalement les ventes.

Les produits manquant d'informations de soutien suffisantes peuvent ne jamais entrer dans l'ensemble de considération. Les systèmes d'IA déterminent la visibilité avant même que les acheteurs ne commencent à comparer les options.

Pourquoi les recommandations de l'IA dépendent des données structurées

Les environnements de recherche e-commerce traditionnels récompensaient souvent l'optimisation des mots-clés et le soutien publicitaire. L'IA conversationnelle introduit des exigences différentes.

Les systèmes de recommandation interprètent l'intention, comparent les attributs et déterminent si suffisamment d'informations existent pour présenter (et recommander) un produit avec confiance.

Prenons un acheteur qui demande : « Quel sac à dos cabine léger pour un voyage d'affaires de deux jours ? »

Un système d'IA doit comprendre le contexte. Il doit évaluer les dimensions, le poids, les matériaux, les cas d'utilisation prévus, les informations de compatibilité et les relations entre catégories.

Les informations produit structurées sont véritablement ce qui influence si les recommandations se produisent ou non. Si les informations produit manquent de détails suffisants, la confiance dans les recommandations s'affaiblit. Historiquement, le e-commerce traditionnel pouvait parfois absorber des annonces plus faibles. De bonnes performances publicitaires ou un historique pouvaient aider les produits à rester visibles.

La découverte conversationnelle réduit le champ de manière plus agressive. Le pool de recommandations devient plus petit. Les enjeux de visibilité deviennent plus importants.

Comment la découvrabilité des produits connecte l'exécution opérationnelle au succès de l'IA

Beaucoup de conversations autour du commerce IA se concentrent sur l'expérience client. L'exécution opérationnelle derrière cette expérience compte tout autant.

La visibilité des produits reflète les systèmes et les flux de travail opérant en coulisses. Les processus d'intégration des produits, la cohérence de la taxonomie, la gouvernance du catalogue et la coordination des partenaires commerciaux influencent tous l'efficacité avec laquelle l'information circule dans les écosystèmes du commerce de détail.

À mesure que le commerce conversationnel s'étend, la découvrabilité devient encore plus connectée à la préparation opérationnelle.

Pourquoi la qualité des données des partenaires commerciaux impacte directement la découvrabilité pilotée par l'IA

Les détaillants ne peuvent afficher que les informations qu'ils reçoivent. Lorsque les fournisseurs fournissent des spécifications incomplètes ou des attributs incohérents, ces problèmes se propagent.

Un acheteur peut demander si un produit contient des matériaux sans BPA. Un autre peut rechercher des exigences de dimensionnement compatibles avec les compagnies aériennes. Quelqu'un achetant des produits alimentaires peut prioriser les ingrédients adaptés aux allergies.

Ces questions nécessitent des informations structurées.

Les systèmes d'IA fondent leurs décisions sur des attributs de produits complets, standardisés et accessibles. Les informations manquantes créent des lacunes de découvrabilité. Les produits avec des attributs incomplets peuvent ne jamais apparaître lors des expériences de recommandation car les systèmes d'IA peuvent avoir du mal à connecter les produits à l'intention de l'acheteur.

À mesure que le shopping conversationnel s'étend, la découvrabilité reflète l'efficacité avec laquelle les fournisseurs et les détaillants échangent des informations dans les environnements de partenaires commerciaux.

Pourquoi les détaillants font face à une complexité croissante des catalogues

Les détaillants gèrent souvent des catalogues de produits couvrant des milliers de fournisseurs et de multiples systèmes opérationnels.

Un fournisseur peut livrer des informations très structurées. Un autre peut fournir des spécifications partielles. Les standards de catégories peuvent varier. Les conventions de nommage des attributs peuvent différer.

La complexité du catalogue se compose rapidement.

Les systèmes d'IA fonctionnent mieux lorsque les informations restent structurées et interprétables dans de vastes environnements de produits. Les détaillants gérant des catalogues fragmentés peuvent rencontrer des difficultés pour soutenir le filtrage conversationnel, la précision des recommandations et les expériences de découverte assistées par l'IA. C'est l'une des raisons pour lesquelles la normalisation des produits et l'enrichissement des catalogues deviennent si cruciaux sur le plan opérationnel.

Les entreprises qui standardisent les informations des fournisseurs peuvent être mieux positionnées pour soutenir des expériences d'achat connectées à travers les canaux.

Pourquoi les informations produit structurées comptent davantage dans le commerce IA

Les assistants IA sont désormais capables d'aider à rédiger des descriptions et à générer des maquettes visuelles, mais ce sont les données qui se trouvent discrètement derrière la fiche qui déterminent si le produit est découvert ou non.

Les descriptions aident l'IA à interpréter le contexte et les nuances. Les attributs structurés aident l'IA à évaluer les produits de manière cohérente dans de vastes catalogues.

Ces éléments influencent directement la confiance avec laquelle les systèmes d'IA comparent les produits, filtrent les options et font remonter les recommandations.

Les travaux de l'industrie autour de la transparence des produits, des identifiants standardisés et des opérations de catalogue plus propres renforcent bon nombre des mêmes fondations dont dépendent les expériences d'achat IA. À mesure que la découverte se déplace vers les recommandations assistées par l'IA, les données produit structurées deviennent primordiales. Les systèmes fonctionnent mieux lorsque les données produit sont précises, organisées et cohérentes dans les environnements où elles circulent.

Comment les systèmes PIM permettent un catalogage prêt pour l'IA

Les informations produit existent rarement en un seul endroit. Par exemple, un fournisseur peut conserver des attributs dans un système de planification des ressources d'entreprise (ERP), distribuer des informations dans les portails des détaillants, syndiquer du contenu dans les canaux e-commerce et gérer séparément les annonces sur les places de marché. Cette complexité opérationnelle existait avant même l'arrivée de l'IA conversationnelle.

Les environnements d'achat IA exposent simplement des déconnexions que les organisations ont historiquement pu contourner. Un site web de détaillant peut encore fonctionner lorsqu'un fournisseur indique un produit comme « compatible lave-vaisselle » tandis qu'un autre stocke cette information dans un champ de spécification ou l'omet entièrement. Un acheteur humain peut souvent combler les lacunes. Un système d'IA essayant de comparer les produits de manière cohérente à travers des centaines ou des milliers d'annonces a plus de mal à le faire de manière fiable.

À mesure que les systèmes de recommandation dépendent d'informations structurées, la gouvernance du catalogue devient encore plus importante sur le plan opérationnel. De nombreuses marques utilisent des systèmes de 

 pour centraliser les informations produit, améliorer la cohérence et soutenir les flux de  travail à travers les canaux.

Comment le partage des données produit entre systèmes amplifie les défis

Les fournisseurs distribuent des informations à travers les systèmes des détaillants, les places de marché, les canaux e-commerce, les moteurs de recommandation et les environnements partenaires. Une gestion faible de l'information se compose rapidement.

Une spécification obsolète introduite en amont peut apparaître simultanément dans de multiples expériences en aval. Les systèmes e-commerce traditionnels pouvaient parfois absorber ces incohérences. La découverte conversationnelle change cette dynamique.

À mesure que les acheteurs posent des questions plus spécifiques, les systèmes de recommandation s'appuient plus fortement sur l'information circulant à travers les opérations de la chaîne d'approvisionnement.

Les disciplines opérationnelles façonnent alors la découvrabilité.

À quoi ressemblent des données produit prêtes pour l'IA

Beaucoup de discussions autour de l'optimisation IA se concentrent fortement sur les algorithmes, mais la préparation opérationnelle revient généralement à la discipline du catalogue.

Les catalogues solides prêts pour l'IA partagent souvent plusieurs caractéristiques communes.

Les dimensions, certifications, matériaux, informations de taille et détails de compatibilité aident les systèmes de recommandation à évaluer les produits plus efficacement. Les informations manquantes affaiblissent la confiance.

Les consommateurs posent des questions conversationnelles. Le contenu produit fonctionne mieux lorsqu'il aide à répondre à ces questions naturellement.

Un contexte clair renforce la découvrabilité.

Taxonomie cohérente (catégories et métadonnées)

La catégorisation influence directement la qualité des recommandations. Si les produits apparaissent différemment selon les détaillants, les places de marché et les systèmes internes, la découvrabilité devient plus difficile.

La préparation à l'IA nécessite également une discipline opérationnelle continue. De nombreuses marques gèrent les informations produit à travers les opérations e-commerce, les équipes de merchandising, les flux de travail des fournisseurs et les systèmes de configuration des articles. Sans alignement sur la responsabilité, les incohérences se composeront au fil du temps.

Comment les fournisseurs peuvent améliorer la trouvabilité des produits pour le shopping IA

Les entreprises qui se préparent aux environnements de commerce assisté par l'IA se concentrent sur les fondamentaux opérationnels.

Les expériences d'achat IA récompensent la cohérence. Les informations produit structurées, l'échange de données standardisé et la qualité du catalogue deviennent des éléments de plus en plus importants de la découvrabilité électronique. Les efforts de l'industrie, comme le 

, renforcent encore l'importance croissante des données produit standardisées dans les environnements de commerce modernes.

Construire l'infrastructure produit pour le commerce IA

La découverte par l'IA change la façon dont les produits se font concurrence. Les entreprises positionnées pour gagner auront des fiches plus solides et une infrastructure plus solide derrière elles.

SPS Commerce aide les fournisseurs et les détaillants à gérer la complexité des catalogues grâce au plus grand réseau retail au monde, connectant les systèmes, les partenaires commerciaux et les informations produit à travers l'écosystème. 

 aident à réduire les frictions opérationnelles tout en renforçant la préparation des produits pour des expériences d'achat de plus en plus pilotées par l'IA. À mesure que le commerce évolue des barres de recherche vers les conversations, l'infrastructure de commerce de détail connectée devient elle-même un élément de la découvrabilité.

What Is Supply Chain Theft? Prevention, Detection, and Recovery 

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Cargo theft has become one of the most significant threats facing today's supply chain. What was once viewed as an occasional or localized issue has evolved into a sophisticated 

 that targets goods at every stage of the journey. From freight fraud and fictitious pickups to warehouse theft and cargo diversion, these schemes cost businesses billions of dollars each year and impact suppliers, retailers, carriers, and 3PLs alike. 

Where Theft Happens in the Supply Chain 

To ease understanding, we’ve outlined where and how supply chain theft occurs. From cargo theft to digital data breaches, criminals use a wide range of tactics to steal goods and profit from them. 

Cargo theft occurs on trucks, ports, and the rail system, with 

, according to the Association of American Railroads. Some companies have also reported major losses from pilferage, where small amounts of goods are taken from larger shipments over time. Both types of theft are common, with the average value of each theft rising to 

. While the majority of strategic theft occurs through deception, these physical methods are a part of the supply chain theft landscape. 

Sometimes, criminals steal freight by obtaining inside information about a scheduled pickup. This can be gathered by paying for the data, planting members as warehouse staff, or hacking the data directly. The criminals then arrive at the warehouse in advance of the client to fraudulently take control of the inventory. This type of theft has surged in recent years, from an average of 66 incidents between 2012 and 2022, to 

Another way criminals physically steal goods is with hijacking and GPS jamming. Hijacking occurs by physically taking control of a shipment, and most typically affects ground transportation. Criminals will threaten drivers with weapons and either take control of the truck or physically transfer the goods to their vehicle. 

To prevent stolen goods being tracked, supply chain thieves might use a GPS jammer.  Logistics and transportation carriers are then unable to locate their own shipments, allowing stolen cargo to be moved quite literally under the radar. 

Unfortunately, internal involvement can be a major factor in cargo theft, especially when strategic theft is involved. The fictitious pickups mentioned above often involve inside information about timing and may involve employee impersonation.  

Improper Driver and Vehicle Identification

Theft can occur more easily in warehouses with lax check-in/check-out procedures. Supply chain thieves can be more easily identified if the legitimacy of the driver, carrier, and truck numbers are regularly monitored, detailed, and compared against contracts. This allows staff to ensure the legitimacy of the individuals involved. 

Supply chain thieves most often take advantage of loading and docking areas with negligent surveillance and security protocols. Bad lighting, shadowed corners, improper camera angles, and lack of camera equipment aid and abet supply chain thieves regularly. These vulnerabilities allow straight theft and strategic theft to thrive. 

At the retail level, supply chain theft can occur via shoplifting and tracked via shrinkage. Shoplifting is defined as the act of stealing merchandise from a retail store during business hours, generally by taking items without payment. 

, an accounting term for retail stores, accounts for payment discrepancies between what owners should have from selling vs. how much was actually made. It can also be defined as a loss of inventory that is attributable to employee theft, shoplifting, or cashier errors. 

, this type of theft happens when groups work together to steal large amounts of merchandise and resell it for money, often on Facebook Marketplace, eBay, and with convincingly real online storefronts. Posing real risks to store and customer safety, the inventory can be stolen quickly and destructively. In a recent example of organized retail crime, thieves utilized flash mobs to enter stores and steal merchandise, all at the same time. ORT can also occur with more deceptive practices like stolen credit cards, switched barcodes, and stolen or altered gift cards. 

ORT hurts everyone by raising prices, reducing tax revenue, causing store closures, creating unsafe shopping environments, and even risking people’s health if stolen food or medicine isn’t stored or labeled properly. 

Another common example of theft at the retail level of the supply chain is return fraud. This occurs when customers abuse a return or refund process for financial gain. Common forms include receipt fraud, switch fraud, and non-delivery fraud 

As mentioned above, the sophistication level of supply chain theft increased exponentially over the last several years. The following methods exploit advanced knowledge, relying on deception to trick legitimate shoppers, brokers, and carriers. Supply chain thieves are hacking into digital systems, spoofing information, and using fraudulent digital documents to take control of inventory, often before anyone is the wiser. 

Widely recognized as a growing problem in freight transportation, double brokering scams can result in unpaid carriers, delayed payments, shipment disputes, and costly legal complications.  

These types of scams occur when a fraudulent carrier contracts a load of freight under a specific motor carrier number. Then, they re-broker it to another party without the original shipper or broker’s knowledge. The load is picked up and delivered, but the fraudulent company collects the payment and disappears, leaving the legitimate carrier unpaid.  

Identity Theft and Business Impersonation

A growing tactic in strategic cargo theft, criminals use the identities of legitimate carriers, including USDOT numbers and Motor Carrier (MC) numbers, to secure loads under false pretenses. The thieves create professional-looking websites with fraudulent business documentation and similarities to the real thing, making the scam very difficult to detect. Criminals can purchase MCs in bulk and utilize similar business email addresses to communicate with customers and obtain sensitive information. 

Supply chain theft prevention framework showing layered visibility tools such as GPS tracking, geofencing, carrier verification, surveillance, audits, and cargo security controls.

supply chain theft prevention.png

At this point, it might be easy to become overwhelmed at the sheer number of ways criminals can engage in supply chain theft. However, there are a range of methods to combat cargo theft that help legitimate businesses enhance visibility and protect their profits.  

Another powerful way to combat supply chain theft is through pattern recognition. This is a powerful tool without technology, though some of the systems mentioned above can aid in speeding up the process. 

Theft patterns can be found in irregular shipping routes, such as routes outside normal carrier boundaries or pathways. Trends can be spotted in missing or damaged items, or those items disappearing from specific locations or at certain times. Discrepancies can be found between the 

, most commonly identifying supply chain theft when there are discrepancies in amounts or square footage. 

A final way to track and identify cargo thieves is through surveillance. Regular security camera reviews can be of use, as well as scheduled and surprise audits of employees, supply chain partners, and drivers. Assessing efficacy and accuracy regularly can reduce the risk in working with partners that engage in or are more commonly victimized by criminal practices. Additionally, employee behavior monitoring and positive workplace cultures can help identify potential fake employees. 

Suppliers can prevent theft by carefully vetting all transportation partners. Check their references, credentials, and all available reviews. Make sure online information is consistent across all channels to detect fraudulent profiles, as professional-looking websites and email addresses have fooled many people. 

Make sure that you have clear labeling protocols and secure packaging to ensure product and inventory security. This consistency will also allow staff to notice if anything is amiss. Some companies may want to use tamper-evident seals to further assist in resale prevention. 

Another prevention strategy is to train warehouse staff on all theft red flags. Make sure employees know what methods are used to fool well-meaning warehouse staff, and the protocols in place to prevent it. Proper documentation, surveillance, and identity verification are all key. 

Retailers can prevent supply chain theft in a few different ways. One of the most important is to utilize item-level tracking as opposed to case-level or pallet-level tracking. Additionally, back rooms and warehouse areas should be secured and inaccessible without credentials. Retailers can keep an eye on POS data to look for fraud patterns. Noticing any repeating missing items or pallets is helpful for prevention. All retailers should work with law enforcement or Organized Retail Crime task forces when supply chain theft is suspected. 

With most supply chain theft occurring in this sector of the industry, it is imperative that transportation and 3PLs counter the risk with prevention strategies. Background checks should be conducted for warehouse workers, drivers, and anyone accessing shipping information. Training staff to recognize suspicious activity is important, as real employees can be taken advantage of, and planted employees can cause major damage. 

It’s important to ensure all parking areas are secure. Transportation companies should also consider installation of truck security systems, trailer locks, and camera surveillance systems. Transportation companies and 3PLs can also invest in software that allows them to monitor route deviations in real time. 

Despite all our best efforts at prevention, theft can still happen. Here’s what to do if it happens to you. 

As soon as possible, file a police report in the county your business operates in. Depending on the situation and type of theft, you may be asked to file a report in the state where the theft occurred. Lock down all impacted systems or facilities, digital and physical. This is key to prevent further theft in the future. Inform all affected supply chain partners, so that miscommunication doesn’t aid in more theft. 

Next, you should conduct an internal audit of affected areas. Pull all surveillance material, route logs, and access logs as well as any shipping documents. Interview staff and drivers to uncover as much information as possible to prepare for the claims and recovery process. 
 
If theft occurs, industry organizations can help. The 

 provides cargo theft prevention resources and security best practices. 

 helps businesses report theft, coordinate recovery efforts, and connect with law enforcement agencies across North America. 

Businesses that suffer from supply chain theft should contact their insurance providers and legal representatives to file a claim. Some insurance providers have special investigation groups who can help recover stolen goods. 

Building a Theft-Resilient Supply Chain 

The increasing severity of supply chain fraud has led to increased costs in every sector. It’s more important than ever to share the responsibility of better practices across the supply chain. Making proactive investments in people, processes, and technology makes a difference.  

Cargo theft is the unlawful theft or diversion of goods anywhere in the supply chain, including during transportation, warehousing, or delivery. It can involve physical theft, fictitious pickups, carrier impersonation, or fraud schemes that allow criminals to take control of inventory before it reaches its destination. 

Double brokering occurs when a freight load is assigned to another carrier without the shipper's or broker's knowledge or approval. In fraudulent cases, a scammer accepts the load, re-brokers it to a legitimate carrier, collects payment, and disappears, leaving others unpaid and creating costly disputes. 

Shrinkage is the loss of inventory caused by theft, fraud, damage, or other discrepancies between recorded and actual stock levels. Retailers closely monitor shrinkage because it reduces profitability and can signal broader operational issues. 

Organized retail theft (ORT) occurs when individuals or groups coordinate the large-scale theft of merchandise for resale or financial gain. Unlike typical shoplifting, ORT operations are often planned, involve multiple participants, and may use online marketplaces to distribute stolen goods. 

Fictitious pickup fraud occurs when criminals impersonate a legitimate carrier and collect a shipment before the authorized driver arrives. Using stolen credentials, fake documentation, or insider information, they take possession of freight and disappear before the theft is discovered. 

Supply chain theft is difficult to eliminate entirely, but greater visibility can make it easier to identify discrepancies, investigate losses, and respond more quickly when issues occur. SPS Commerce helps retailers and suppliers gain deeper insight into inventory movement, deductions, and shipment performance. 

Integration Tax in Transportation 3PL Operations and How to Reduce It in 2026 

Every transportation third-party logistics provider (3PL) pays an integration tax, whether or not it appears on a budget line. The integration tax is the ongoing cost of onboarding, maintaining, and exception-handling connections across shipper, carrier, warehouse, and finance systems, because every partner speaks a different data language. One shipper sends electronic data interchange (EDI) transactions. Another posts to an application programming interface (API). A third emails PDFs and expects someone to retype them. The tax is the labor, rework, and dispute cost of translating between all of them, every day. 

. Freight margins are tight, shipper portfolios are larger, 

 (SLA) expectations are stricter, and more accounts arrive with special-case requirements. A cost that was tolerable at 20 shippers becomes a 

What Is Integration Tax in Transportation 3PL Operations? 

Integration tax is the recurring operational cost a 3PL incurs to keep data flowing between trading partners that use incompatible formats, systems, and business rules. It includes onboarding hours, mapping changes, exception handling, manual data entry, and billing disputes caused by data mismatches. Unlike a one-time implementation fee, the tax recurs with every new partner, every requirement change, and every exception. 

Where The Tax Shows Up in Transportation Workflows 

, which is why most providers underestimate it. Look for it in 5 places: 

Load tenders and routing instructions arrive as 

, API calls, spreadsheets, or portal entries. Someone, or some brittle script, has to translate each variant into the transportation management system (TMS). 

Each carrier accepts, rejects, and confirms differently. Manual re-tendering after a missed response is integration tax in its purest form. 

 status updates, but every customer defines milestones differently. Mapping "arrived at stop" 12 different ways is recurring work, not setup. 

Documents: BOL, POD, and Appointment Data 

The bill of lading (BOL), the proof of delivery (POD), and appointment confirmations often live in email attachments and driver photos. Matching them to shipments is manual until you make it otherwise. 

Detention, lumper fees, and reweighs are where data mismatches turn into disputes. A charge code that means one thing in your system and another in the shipper's means a short-paid invoice and an hour of reconciliation. 

What Are The Root Causes of High 3PL Integration Costs? 

The tax has technical roots, and naming them is the first step to reducing them: 

EDI variants, APIs, comma-separated values (CSV) files, portals, email, and PDFs all carry the same business intent in incompatible containers. 

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