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SourceDay Expands Executive Team Amid Triple-Digit Growth [Press Release]

Chief Customer Officer, CTO and VP of Product to Build on Strong Market Positioning

AUSTIN, Texas— SourceDay, the direct spend industry’s leading supplier collaboration engine, today announced a major investment in its executive team with the appointment of Jim Hilbert as Chief Customer Officer (CCO), Peter Feldman as Chief Technology Officer (CTO) and Josh Tong as Vice President of Product. These strategic hires will drive SourceDay’s continued growth and expand its strong foundation of customer success. SourceDay is now used by more than 5,000 companies worldwide, driving year-over-year growth of 122%.

We are delighted to bring Jim, Peter and Josh to the SourceDay team. Each of these executives bring skills and experience that our business needs at this exciting time in our history. Our success is a direct result of the quality of our people, and these three hires demonstrate our commitment to be the best as we continue to revolutionize supplier collaboration.”

Tom Kieley, CEO & Co-Founder of SourceDay

As Chief Customer Officer, Hilbert brings three decades of high tech leadership experience to SourceDay, where he is focused on the customer experience and success. Building a predictable revenue model by mentoring and investing in the sales team, Hilbert helps customers apply new technology to business process improvement. Prior to SourceDay, he served as Chief Revenue Officer at Cradlepoint and Aryaka Networks, and has also held senior roles with Armor Cloud Security, Rackspace and EMC Corporation.

With a net retention rate of 112%, it’s clear that SourceDay’s customer experience is top-notch,” commented Hilbert. “I could not be more excited about our momentum and the opportunity we have to build the next great, Austin-based sales and customer success team.”

Feldman joins SourceDay as CTO and will lead the company’s development and technical operations teams. He has more than 25 years’ experience in product development and operations, and most recently served as Chief Operating Officer for Carnegie Technologies. Prior to this, he served in executive roles at M87, AT&T Wi-Fi and Nomadix.

A big part of the SourceDay success story is the company’s commitment to building a great product that solves a real problem in a new way. I can’t wait to take this to the next level by driving even faster innovation,” said Feldman. “I look forward to working closely with every part of the organization to deliver even more value to our customers.”

Tong, SourceDay’s new VP of Product, brings over a decade of experience building customer-centric, category-defining products. He brings expertise in blending customer insights with technology and data science to create innovative new products for customers. In this new role, Tong will be responsible for driving product strategy and execution for the SourceDay product portfolio. He previously held strategic product roles at venture-backed companies including SpareFoot, Shelfbucks, and Tallwave.

SourceDay is uniquely positioned to transform how companies collaborate with suppliers,” said Tong. “The team’s laser focus on solving direct spend challenges has truly set it apart and helped it produce tremendous results. I’m excited to join the team as we build on this foundation by expanding the breadth and depth of the product portfolio.”

About SourceDay

SourceDay is the collaboration engine that brings people, information, and processes together to modernize how companies manage orders with their suppliers, drive collaboration and ship orders on time. From Fortune 100 companies to mid-size manufacturers, thousands of organizations use SourceDay to connect their teams with their suppliers, centralize order data, and drive their businesses forward. Since 2015, SourceDay has helped more than 5,000 companies process more than $20 billion in direct spend, across more than 20,000 POs a day.

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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.