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Rocore Moves Away from “Business as Usual”

Rocore Production Floor Rocore Production Floor

Founded in 1984, Rocore began as a supplier of fabricated sub-assemblies used in heavy-duty industrial radiators. Now, they supply a wide variety of heat exchange products and services. Although the company’s products changed over time, their procurement processes stayed the same.

Before adopting SourceDay, Rocore experienced many of the same problems that thousands of other manufactures experience on a daily basis; late or incorrect purchase orders, missed acknowledgments, and inaccurate pricing. Rocore’s procurement team struggled to chase down PO data from vendors, manually update changes to POs in Syteline/CloudSuite Industrial ERP, and meet delivery dates on-time.

We were operating like a lot of manufacturers, making do with the tools and manual processes that have always been used.

Tina Grow, IT Director at Rocore

After a few months using SourceDay, we sat down with Rocore’s IT Director, Tina Grow to learn how their business had changed.

Grow was impressed with the consistency and accuracy that SourceDay brought to Rocore’s entire PO process for both buyers and suppliers. Since SourceDay seamlessly integrates with Syteline/CloudSuite Industrial ERP, purchase orders flow directly to suppliers and every PO modification is automatically updated. In addition to saving Grow countless employee hours, SourceDay’s unified dashboard completely eliminated the frustration of tracking down POs across multiple systems.

Uniting Buyers and Suppliers

Since Rocore pays for the license, its suppliers access SourceDay for free. With SourceDay, Rocore’s suppliers are able to streamline labor-intensive tasks, quickly acknowledge POs, and ultimately, get paid faster. SourceDay provides all the necessary training for Rocore buyers and their vendors, making the transition simple.

I don’t have to train our users, I don’t have to train vendors. It’s a very small footprint on our server…[SourceDay] handles everything.

Grow

Improved Communication with Suppliers

Using SourceDay’s collaboration engine, Rocore’s procurement team has been able to improve communication with its suppliers. Through a single dashboard, buyers and suppliers can hold each other accountable in acknowledging, tracking, and updating purchase orders. With improved communication, Rocore is able to run a leaner and more efficient team with fewer mistakes and late deliveries.

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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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