SPS Commerce, a provider of on-demand, Web-based supply chain management systems for retailers, has acquired Edifice, a company that builds supply chain collaboration technology designed to share store point-of-sale (POS) analytics data within a retailer’s system and to their partners.
Financial details of the deal were not disclosed.
“Supply chain collaboration, powered by POS analytics, is driving the next wave of efficiency in the retail supply chain," says Archie Black, CEO of SPS Commerce. “With this acquisition, SPS gains Edifice's expertise in POS analytics, robust business intelligence solutions and relationships with many of the world's leading suppliers.”
SPS uses web portals to allow these companies to share information around point-of-sale data. This POS sharing will help retailers maintain sufficient levels of in-store merchandise because suppliers can gain more insight into existing inventory levels, consumption patterns, and prepare for demand by stocking up on products just before an expected order is placed.
Some supply chain management systems provide visibility of product volumes to suppliers, but this is a step farther as it provides information around what is actually selling in stores. The hope is that this visibility will lead to retailers and suppliers meeting and collaborating more around product demand and fulfillment.
Robust POS systems can even go as far as to provide information around what products are purchased together – from gloves and hats or antifreeze and ice scrapers around winter to multiple clothing and fashion items bought together after a magazine spread shows an actress with them all on– which can help everyone involved plan a mixture of products to stock and estimate levels in relation to each other and to storage space.