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Enhancing Your EDI Experience with SourceDay

At SourceDay, we are constantly working to enhance the experience of PO management. Because of this, we often get asked how SourceDay, a supplier portal 4.0, and EDI solutions compare. It’s a worthwhile question. Especially since many companies use Electronic Data Interchange to transfer electronic data files between systems without human involvement. 

SourceDay VS. EDI

In terms of supply chain management, EDI is expensive and difficult for suppliers to adopt. EDI requires a significant amount of IT resources to set-up, manage, and support. Additionally, changes to data types, fields, or formats can easily create an error and break EDI transmissions. Because of this, EDI usually gets implemented with top tier or top spend suppliers.

SourceDay, on the other hand, is completely free for suppliers to adopt. Our platform allows for transparent collaboration between buyers and suppliers on PO quantity, price, and delivery dates without any transaction fees. It’s simple to implement, learn, and use. As SourceDay is a cloud-based system, IT resources aren’t necessary. And, if support needs occur we have a dedicated team to walk you through any issues.

How Do SourceDay and EDI Work Together?

SourceDay and EDI work in tangent together. If used alone, EDI is a delivery system for confirmation of purchase orders and invoices. Purchase orders sent via EDI are difficult to expedite, pushout, update, or cancel. Therefore, procurement teams often find themselves reverting back to emails and spreadsheet reports to manage EDI orders. This creates more work. However, when SourceDay and EDI work together, all of these issues can be fixed.

A collaborative experience isn’t available through EDI. However, SourceDay facilitates collaboration between suppliers concerning EDI. Through SourceDay’s platform, users are able to communicate with the supplier on one or multiple EDI orders. Their communication is then captured in an audit log. The audit log allows anyone needing updates or access to pending orders to have full visibility.

SourceDay, EDI, and Procurement Teams

Pairing SourceDay with EDI allows procurement teams to eliminate the need for countless emails and confusing spreadsheets. Additionally, using SourceDay combined with EDI allows procurement teams to score all of their suppliers’ performance. Your suppliers can see their scorecards in SourceDay, regardless if they’re transacting business via EDI formats or in SourceDay itself.  Additionally, SourceDay allows for customers to bring all their suppliers into a single platform, EDI or not.

In short, using the combination of EDI and SourceDay can provide the convenience of transmitting orders and invoices electronically between systems. It also provides a method to easily, manage, track, and collaborate with your supply chain on all purchase orders, making your EDI experience that much more simple.

SourceDay as an EDI Solution

While EDI is a valuable resource, it can leave you with a huge amount of data and no easy way to manage it. With SourceDay, all the EDI data is available on our platform. Buyers and suppliers can communicate through a single dashboard rather than disparate spreadsheets and emails. Plus, procurement teams can score their suppliers’ performance. Above all, SourceDay brings organization and transparency to EDI data.

SourceDay is committed to making your data more accessible and saving you time.

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Drawing the Line Between Direct and Indirect Spend

Why is it important to know the difference between direct spend and indirect spend?

Managing both requires different skillsets and tools. We often tell our customers that direct spend, or direct materials procurement, is about supplier management and performance. But, indirect spend is about managing buyer’s spending behavior.

Direct Spend refers to the money that goes into raw materials and goods, or COGS (Cost of Goods Sold) to create the product.

Indirect Spend is the ‘back office’ purchases for the operations of the business. For example, chairs or whiteboard markers for the office.  

To put it simply, direct spend impacts your customer.

A lack of parts or supplies can shut down your business. Issues in your direct spend procurement can cause stock outages, drive up labor costs, hinder business goals, and impact customers. Real-world examples of this include the recent global descaling of Ford plants or KFC ‘s chicken shortage in the UK last year.

Problems with indirect spend play out differently though. Production is rarely stopped due to incomplete or unreceived purchases. The fact is, you can’t afford to have issues in your direct spend procurement because it impacts your customers and your ability to stay in business.

There are unique problems inherent to direct spend procurement that don’t appear in indirect spend. Understanding the difference between the two types of procurement can help you prioritize the items that should be top of mind in running your business.

Direct Spend vs. Indirect Spend

Direct Spend


  1. Refers to the purchase of any good & services used to create the product

  2. Issues directly impact production and customers

  3. Focuses on changing supplier behavior to meet more commitments

  4. Accustomed to managing changes to POs

Indirect Spend


  1. Impacts day-to-day needs for operating the business

  2. Issues only impact the business internally

  3. Focuses on changing buyer’s spending behavior within an organization

  4. Not accustomed to large volumes of changes to POs

Unlike indirect spend, direct spend systems are designed for managing changes to POs. Because even the smallest unacknowledged change can prevent the customer from receiving their order. Cloud-based, direct spend solutions like SourceDay are built to manage change. Our platform is designed to help buyers and suppliers work collaboratively using real-time information to grow their businesses.

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