Understanding the vendor onboarding process starts here
Let’s be honest: Vendor onboarding, also called vendor enablement, is not easy. You’re juggling hundreds of vendors who all work differently, trying to get them to actually change while keeping everyone’s data flowing correctly. Here’s what you need to know to make it work.
Vendor onboarding is difficult to manage yourself
The biggest challenge in vendor onboarding isn’t technology. It’s persuading vendors, suppliers and carriers to change.
Consider this:
You have 250 vendors to onboard to a new EDI requirement.
Some vendors will be ready to go, others will need more convincing and many will need guidance through the process.
Your vendors likely ask themselves: “Why should I have to change?” and “What’s in it for my business?”
Here’s what your team can expect:
750-1,200 attempts
to find the right contact via phone or email (3–5 attempts per trading partner)
2,500–3,000 communications
to gain commitment to the initiative (10–12 communications per trading partner)
175 trading partners (70%)
will have a question or objection regarding timing, technology or cost
100–150 trading partners (40–60%)
will need support in finding the right EDI solution
2,500–3,000 communications
to set up trading partners on requirements (10–12 communications per trading partner)
60 trading partners (25%)
will never have done EDI before and require training to understand the value
For many retailers, the only way to manage this complexity is with the right partner and a clear plan.
Frequently asked questions about vendor onboarding
What is vendor onboarding?
Vendor onboarding is the process by which retailers integrate a new vendor into their operations or change how they work with existing vendors. It includes steps like setting up items, registering the vendor in your systems and establishing an efficient order management process.
Why is vendor onboarding important?
An effective onboarding process helps vendors receive and fill orders correctly, ship on time and in full and provide the data needed for smooth business processes. This structured approach strengthens supplier collaboration and creates a foundation for mutual growth.
How does EDI fit into vendor onboarding?
EDI is often one of the requirements vendors must meet during onboarding, but it is only part of the overall process. Some vendors already have an EDI system in place that can be connected, while others may use a full-service option certified with the retailer. In both cases, SPS tests and certifies the data so it flows consistently into your systems.
Why is vendor onboarding so challenging for retailers?
Managing hundreds or thousands of vendors requires significant time and resources. Many vendors need guidance to understand requirements, and some may be new to data exchange, which makes onboarding complex without a proven approach.
How does SPS onboard so many vendors so fast?
SPS dedicates a team of consultants to each onboarding program and follows a proven campaign strategy perfected over 15 years. This human-led approach makes onboarding faster and more successful.
What happens if my supply chain requirements change?
Vendor onboarding is not a one-time event. SPS continues to support you and your vendors as your business needs evolve, keeping supplier collaboration strong and consistent.
What supply chain metrics can I expect to improve?
Retailers typically see gains in fill rates, order accuracy and shipment timeliness after following a structured onboarding process. Scorecarding and real-time analytics provide insights that allow you to work with vendors on performance improvements.
Does SPS work with all types of vendors?
Yes. Whether vendors are large or small, experienced with EDI or new to electronic trading, SPS provides clear guidance and support to help every vendor meet your requirements.
Can SPS Commerce help us with our RFP process?
Book a consultation so we can understand your goals and requirements. Our team can provide the information and materials you need to move quickly through your process.
A roadmap for successful vendor onboarding
Onboarding vendors at scale requires a structured approach. These seven steps form the foundation of success.
Define your goals:
Set clear objectives for onboarding and align them with your organization’s broader business outcomes.
Segment your suppliers:
Organize vendors by factors such as volume, product line, region or season to prioritize onboarding efforts.
Determine fulfillment models:
Identify which fulfillment options (including ship-to-DC, drop-ship, cross-dock, import and ship-to-store) will be part of your program.
Define information to be shared:
Standardize the exchange of critical data, including inventory, orders, ship notices and invoices.
Staff accordingly:
Assign dedicated internal resources or engage an onboarding partner to manage communications and support.
Use a non-exclusive approach:
Provide vendors with flexibility to use their existing systems or a pre-certified EDI solution.
Ongoing change management:
Track performance with vendor scorecards and continuously improve collaboration.
Want to see how your onboarding process measures up?
Take our five-question Health Vitals quiz.
Bill Gratke, Senior Vice President, Supply Chain, Planning and Reporting
SPS Commerce is the only vendor onboarding provider that actively manages your trading partner relationships with you
Align every vendor to your requirements
The SPS Relationship Management solution combines consulting, enablement and technology to keep every vendor on track as your business evolves.
Whether vendors use their own EDI system or our full-service option, all data is tested and certified to flow the same way to you.
Vendors receive clear guidance and dedicated support to meet your requirements from day one.
You get complete visibility into your orders and invoices, so you can easily manage and optimize your open-to-buy budget.
Offer your vendors a solution they’ll love
With SPS, every vendor, no matter their size or technical expertise, gets a clear and supported path to meet your requirements.
A dedicated consultant who will work with them and make sure they meet your requirements, as well as access to 24/7/365 customer support
Pre-built connections to leading retailers, grocers and distributors, so vendors can meet requirements without extra setup
The freedom to never deal with changing retailer requirements again, ever. SPS takes care of it all for them, behind the scenes
Results you can count on
dedicated supplier onboarding specialists
programs launched to date
%
vendor adoption achieved in as little as 60 days
Drive higher supplier performance
With our Performance Management solution, you can track vendor and carrier performance in real time, identify problems early and work together on improvements.
Get everything done in a shockingly short time
SPS Commerce closes the adoption gap with coordinated outreach and ongoing support, allowing retailers to easily achieve 80%+ vendor compliance in months.
- We dedicate a full team of consultants to onboard your vendors and provide them with 24/7 support
- Our team manages EDI testing and validation with your vendors, making it easier for everyone to meet requirements and stay on track
- Most vendors are onboarded in just 60 days, helping you and your partners reach program goals quickly and with confidence
