In the first part of our CFO Series, we explored how effective purchase order (PO) lifecycle management can reduce the need and expense of carrying excessive buffer stock. In part 2, we explore another area where a savvy supply chain management strategy can yield broad business benefits – revenue protection.
Uncovering a Blind Spot
It’s hard to imagine another area of business that requires quite the level of agility needed for supply chain management. Everything’s a variable or a dependency, and usually both. And so many of those things are outside our direct control, like supplier delays, material shortages, and production bottlenecks. As if that wasn’t enough of a challenge, even the things we can control – like PO lifecycle management– are often done manually through spreadsheets and emails or even pen and paper. So, on top of a parade of unpredictable external factors, the data making its way into your ERP system may not be (is almost certainly not) accurate.
All of these factors create an environment where risk abounds, and managing that risk demands diligence in order to protect revenue. SourceDay’s AI-powered PO Lifecycle Management platform solves this by centralizing buyer/supplier collaboration, emphasizing data integrity, and de-risking the supply chain.
Here are some key ways that together, this one-two punch not only improves operational efficiency but safeguards revenue.
Effective and Efficient Supplier Collaboration
At the heart of SourceDay is its ability to facilitate better supplier collaboration by meeting buyers and suppliers where they are, which dramatically increases communication and engagement. Real-time communication between buyers and suppliers that doesn’t require altering existing workflows or learning new systems short-circuits the typically inefficient processes that lead to misunderstandings, missed requirements, and missed deadlines. SourceDay centralizes all communication so buyers and suppliers have a single source of truth for updating POs and accepting or rejecting changes. All stakeholders can collaborate in real time via email or through a no-login portal and any changes are instantly communicated and acknowledged by both parties. Reducing the communication lag and ensuring all parties are on the same page helps prevent disruptions that can lead to costly production delays and lost sales opportunities.
Automated, Accurate PO Lifecycle Management
We mentioned earlier how manual PO management is prone to human errors and inefficiencies. A missed line item here or a typo there can result in big financial discrepancies and operational hiccups. Mistakes also mean the data making it into your ERP isn’t accurate. It doesn’t matter how sophisticated your ERP system is, bad data is going to cost you money. Automation, on the other hand, minimizes human error and ensures that POs are processed accurately. With SourceDay, data is written back into the ERP in real time, which means everyone is working with accurate, current information accessible to everyone in one place. With automated alerts and reminders, SourceDay ensures that no PO is overlooked or delayed. Timely processing of orders means that businesses can maintain optimal inventory levels, avoiding both overstocking and stockouts. By keeping inventory in check, companies can better meet customer demand and avoid revenue loss due to unfulfilled orders.
Supplier Performance Tracking
SourceDay provides detailed performance scorecards for suppliers, offering insights into their reliability, timeliness, and quality. Measuring four key metrics, including Acknowledgement Rate, Responsiveness, and On-Time Delivery, you can take proactive measures based on data collected from your ERP to address issues before they escalate. It’s also customizable, and Vendor Scorecard Settings can be adjusted. This proactive approach ensures a more reliable supply chain, which directly translates into consistent product availability and steady revenue streams.
In today’s unpredictable business environment, you can’t control everything, so it’s critical we take full control of the things we can. Protecting revenue should be top of mind for leadership and SourceDay provides the visibility and collaboration needed to manage risk and manage supply chains effectively. By automating and streamlining supplier collaboration and PO management, SourceDay not only helps protect revenue, but a reliable and efficient supply chain directly contributes to higher customer satisfaction. Are you interested in learning more about how your team can protect revenue? Let’s have a conversation.
Up Next
In part 3 of our CFO series, we’ll explore how SourceDay can offload mundane and time-consuming tasks, reducing errors, and making your purchasing team’s jobs easier and more productive.
