Most product companies understand they have gaps in their supply chain data that hinder their ability to meet critical demand. One of the largest gaps lies between supply and demand planning and a company’s supplier network, making many companies hesitant to adopt supply and demand planning software within their ERP.
SourceDay’s latest partnership with Valogix, an advanced inventory planning software company, now bridges that gap for NetSuite users.
NetSuite holds the necessary data to make intelligent and actionable decisions for manufacturers, distributors, and retailers. Valogix provides advanced intelligence in the supply chain of what companies need based on sales orders, forecasting, inventory, cancellations, etc. and automatically creates a purchase order (PO) within NetSuite to meet demand.
However, if those PO suggestions are not confirmed or properly aligned with suppliers, then NetSuite and Valogix customers can’t trust the intelligence running through their combined solutions. SourceDay extends Valogix outputs to the supplier network to ensure that every PO is confirmed—100% of the time—and all PO updates (such as dates, quantities, price, or shipment information) are communicated and accepted back into NetSuite. Utilizing SourceDay ensures the ERP has all necessary supplier updates in real time and that Valogix is utilizing the most updated PO data.
Between NetSuite, Valogix, and SourceDay, clients can take advantage of best-in-class cloud ERP, advanced demand and supply planning, and supplier collaboration for boosted supplier performance and data accuracy.
I’m sure every industry says they have incredibly unique suppliers and nuances that only they have to overcome. Well, that’s true for our business as well. While we love NetSuite, our systems were basically running blind when it came to our Purchase Orders and Inbound Supply. With a lean supply chain team, we didn’t have time to transcribe all of our phone calls, texts, emails, etc. into NetSuite. Ultimately, we had no way to truly understand the many factors of our inbound supply. The implementation process into NetSuite and (to all of our surprise) our vendors went smoothly with adoption being higher than anticipated. Even though we are only scratching the surface of SourceDay’s benefits, we are so much more confident with our inbound supply, and that’s what ultimately made the most positive impact to our business.
Improving Inventory Turn to Reduce Carrying Costs
On average, SourceDay users see a 35% increase in on-time, in-full purchase order lines from suppliers, which reduces expedite fees, production disruptions, and stock outs. With a more trusted and transparent supply chain—and higher OTIF rates—clients can start to reduce safety stock and achieve “just-in-time” deliveries. SourceDay enables customers to realize a minimum of a half-turn improvement after 12 months.
“Now more than ever, executives are no longer looking at demand/supply planning and procurement as tactical, but instead as highly strategic,” said Colby Young, vice president of SourceDay’s NetSuite business unit. “The supply chain is full of disruption and change. The data tells us that on average, 52% of all supplier purchase orders will have changes made in quantities, dates, and/or price. This much change in critical purchase order data regarding inbound inventory puts the entire supply chain, and ultimately revenue and profitability, at risk. Keeping with the status quo and utilizing manual disparate communication tools such as emails, spreadsheets or phone calls to manage inbound inventory is not a sustainable solution for growth. Partnering with Valogix combines best-in-class, built-for-NetSuite solutions to help our customers scale their businesses while navigating demand/supply changes and mitigating the supplier network bottleneck.”
Winning with Advanced Inventory Planning and Optimization
Valogix ties customer metrics, especially on the supplier side, to reduced costs. With Valogix, customers can return to suppliers to secure reduced costs due to the platform’s enhanced visibility into existing or future orders. Customers have reduced inventory by as much as 40% within 6 months or fewer and have reduced expediting and emergency shipments by more than 35%.
Prior to using Valogix, we managed our demand planning through a series of spreadsheets and we often experienced stockouts or we discovered we were holding months’ worth of inventory, which resulted in us selling at lower costs to free up cash flow and warehouse space. We implemented Valogix three years ago and the results have been phenomenal. We have experienced improved inventory turns, a decrease in days of inventory on hand, and our stock outs have been greatly reduced. Valogix gives us the visibility to notice trends in advance and buy for those trends greatly improving the customer experience. The customer support team is quick to respond and their webinars showcase new functionality that you can implement in a very short time. They have been a great partner to our business.
“What COVID-19 has taught us is that change is constant, unforeseeable, and sometimes very disruptive,” said Richard Vaccaro, CEO of Valogix. “The future is coming fast. Change for change’s sake and the status quo are no longer relevant. In fact, these attitudes are detrimental. Supply chain disruption is real and needs to be addressed with smart, innovative thinking, planning, and intelligent solutions. SourceDay and Valogix provide these much-needed smart solutions and together they make demand and supply planning and execution easier and more reliable.”
“With the enhanced supply chain visibility and communications provided by SourceDay, coupled with the advanced inventory planning provided by Valogix, companies are able to quickly identify and execute strategies for increasing sales and reducing waste created by manual planning processes and lack of visibility to products moving through the supply chain,” said Tom Kieley, CEO of SourceDay.
To learn more about SourceDay and Valogix, request a demo here.
Check out SourceDay’s Proactive PO Management