I have some exciting news. This morning, Coupa Software announced Coupa Ventures, and I’m thrilled to share that SourceDay is one of two initial investments made under this new fund.
Here’s what this news means for our partnership with Coupa, the market, and to SourceDay customers.
“Savings as a Service” Just Got Smarter
Today’s announcement strengthens SourceDay and Coupa’s existing partnership, which delivers world-class business spend management solutions to finance, procurement, and operations executives around the world. This investment extends the integration between SourceDay’s supply chain performance solutions and Coupa’s business spend management platform. Together we will offer more strategic, comprehensive solutions to manufacturers, distributors, and consumer brands worldwide.
The investment from Coupa Ventures will deepen our collaboration with Coupa and enable our joint customers to save more money and leverage supplier performance as a competitive edge. We’re honored to expand our relationship with the Coupa ecosystem and build on our work with CoupaLink.
How Will This Investment Improve Business Spend Management?
While it’s certainly true that the COVID-19 pandemic exacerbated weaknesses within global supply chains, it’s also true that direct spend procurement has been plagued by inefficiencies for decades. As the market leader, Coupa has transformed business spend management, and it dominates the procure-to-pay software category. Its solutions have helped companies save billions of dollars on travel, services, office expenditures, and more.
But companies that purchase parts and raw materials still struggle to manage direct spend because it has different requirements than indirect spend. Direct spend purchase orders (POs) determine whether product companies have the parts and materials they need to ship on-time and in-full to customers. However, SourceDay’s data shows that those POs will change more than half of the time. So buyers and suppliers constantly collaborate on acknowledgements, price adjustments, quantity changes, and delivery dates. Most manage these changes in spreadsheets and email today, which can lead to fire drills and make it difficult to predict and prepare for supply chain disruptions. This brute-force direct spend management strategy leads to late deliveries, excess inventory, and higher labor costs. In the worst case scenario, it damages a company’s ability to deliver to customers on-time and in-full, risking revenue and customer relationships. From Chick-fil-A to Peloton, brands in every industry feel the pain of status quo as late and missing parts cause stockouts, expedited freight charges, and lost revenue.
These direct spend challenges are exactly what my co-founder Clint Mcree and I set out to address when we started SourceDay seven years ago. From the very beginning, SourceDay was purpose-built to help buyers and suppliers manage the change inherent to direct spend. Our focus on collaboration, real-time integration to any ERP, and managed services that guarantee supplier adoption are key reasons why more than 10,000 buyers and suppliers use SourceDay to manage direct spend and improve supply chain performance.
What Will This Investment Mean to SourceDay Customers?
This investment will help us build on the CoupaLinkTM integration we announced in August 2020. It will deepen our partnership and accelerate how fast we deliver enhancements to our integrated solutions, giving customers access to the most comprehensive business spend management technology for direct and indirect spend. As a Coupa Ventures portfolio company, SourceDay gains exclusive access to Coupa’s internal product and go-to-market teams. We will also benefit from deeper relationships with its expansive ecosystem of companies addressing the world’s business spend challenges.
It is an honor to be recognized by the world’s leading business spend management company. I know I speak on behalf of the entire SourceDay team when I say we are eager to get to work and accelerate the development of solutions that will continue to transform supply chain performance.
Tom Kieley CEO, SourceDay