SPS Commerce Fulfillment Delivers an ROI of 372 Percent According to Independent Research Firm Analysis

Study shows how full-service EDI drives productivity gains, delivering $1 million in benefits

Minneapolis, Minnesota, UNITED STATES

MINNEAPOLIS, Jan. 07, 2020 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (Nasdaq: SPSC), a leader in retail cloud services, today announced the release of a new Forrester Consulting Total Economic Impact™ study1 that quantifies the cost savings and business benefits of SPS Commerce Fulfillment, a full-service EDI solution. In the study, Forrester found that Peter Grimm, a leading hat manufacturer, achieved a return on investment (ROI) of 372 percent and business benefits of more than $1 million (present value of cost and benefit estimates given at an interest rate) after using Fulfillment for more than a decade.

“SPS sought to quantify the value of our full-service solution by commissioning Forrester Consulting to perform a third-party ROI analysis with one of our customers,” said Mark O’Leary, chief marketing officer, SPS Commerce. “The results, including a 372 percent ROI from cost reductions, data quality improvements, shortened business cycles and automation, show the power that full-service solutions deliver to high-growth companies. Our solutions provide measurable value, as well as enable companies to offload many supply chain functions and focus more time on their core business.”

The commissioned November 2019 study was conducted by Forrester Consulting on behalf of SPS Commerce and is titled “The Total Economic Impact™ Of SPS Commerce Fulfillment, A Full-Service EDI Solution.” 

In the study, Forrester details several cost savings and business benefits related directly to Peter Grimm’s use of SPS Commerce Fulfillment, including:

  • No internal resources needed for EDI. Peter Grimm avoided hiring full-time staff to manage retailer changes and document processing by opting for a full-service EDI solution. Today, SPS experts monitor and manage the EDI operations on the customer’s behalf, a savings of $255,800/three-year benefit NPV.

    “The service and support that SPS offers is impeccable. Sales and customer service teams are available seven days a week, 24 hours a day, 365 days a year. It’s amazing to know that, if and when there is an issue, they are going to step in and take care of it,” said Trista Shute, Sales and Operations Manager at Peter Grimm.

  • No order entry errors. The supplier avoided labor costs related to manual order entry and the elimination of errors, and thus any direct costs due to these errors across their supply chain, including retailer chargebacks, a savings of $294,756/three-year benefit NPV.

    “Our error liability is $0 with SPS and integration with our ERP system – you’re talking $50-$500 in chargebacks, just at a snap of a finger. We’re getting $0,” said Shute.

  • No staffing needed for 1,000+ retailer changes. Peter Grimm avoided temporary labor by relying on SPS to deploy and test ongoing retailer changes to their EDI requirements, a savings of $460,503/three-year benefit NPV.

  • No drop-ship order delays. The supplier receives up to 300 drop-ship orders on weekends that need to be processed immediately. With SPS Fulfillment, no manual effort is needed, as orders are automatically processed.

    “It would take someone all weekend to come in and enter each of those purchase orders manually, and then produce the advance shipping notices and invoices the next day. Today, with SPS Fulfillment, you come in on Monday and they’re already integrated with our ERP. There’s nothing that you need to do,” said Shute.

Forrester’s interviews and subsequent financial analysis found that Peter Grimm has experienced benefits of $1,000,000 million over three years, with a payback period of less than three months and an ROI of 372 percent.  

Peter Grimm is part of the SPS network of more than 80,000 companies, who can easily connect to one another through EDI, APIs, or other data formats. These connections provide business efficiencies as well as opportunities for growth. “SPS has actually put us in contact with other selling opportunities, giving us leads that have turned into profitable relationships. SPS has helped us grow sales and minimize chargebacks,” add Shute. 

The study is available for download at SPS Commerce.

About SPS Commerce 
SPS Commerce perfects the power of trading partner relationships with the industry's most broadly adopted, retail cloud services platform. As a leader in cloud-based supply chain management solutions, we provide proven integrations and comprehensive retail performance analytics to thousands of customers worldwide. SPS Commerce has achieved 75 consecutive quarters of revenue growth and is headquartered in Minneapolis. For additional information, please contact SPS Commerce at 866-245-8100 or visit www.spscommerce.com.

SPS COMMERCE, SPS, SPS logo, RETAIL UNIVERSE, 1=INFINITY logo, AS THE NETWORK GROWS, SO DOES YOUR OPPORTUNITY, INFINITE RETAIL POWER, RETAIL UNIVERSE are marks of SPS Commerce, Inc. and Registered in the U.S. Patent and Trademark Office. RSX, IN:FLUENCE, and others are further marks of SPS Commerce.

1 The Total Economic Impact™ Of SPS Commerce Fulfillment, A Full-Service EDI Solution, a November 2019 commissioned study conducted by Forrester Consulting on behalf of SPS Commerce

SPS Commerce Public Relations