7 min read
CMD & CMAFH
CMD buyer Jeff Kraus and CMAFH Customer Service Representative Kathy Hamilton share how they work together before and after implementing SourceDay.Download Now
SourceDay makes suppliers responsible for their own orders, so I don’t have to constantly ask for updates to make sure they received the order.
Jeff Kraus, Buyer at CMD
Suppliers to CMD
POs Every Year
Line Items per PO
Miscommunications Put Customer Relationships in Jeopardy
Since 1980, CMD’s buyers have collaborated with their suppliers like most other manufacturers, using emails, phone calls, faxes, and complicated spreadsheets. “We were manually tracking acknowledgments from suppliers and keying each one into our ERP system,” says Jeff Kraus, a buyer at CMD. “We use more than 400 different suppliers, have over 5,000 purchase orders every year that contain 40-50 line items each. We had to dedicate a full-time worker just to keep up.” The back-and-forth emails between CMD and their suppliers led to a disorganized and error-prone PO process resulting in late deliveries and expensive expedite fees. CMD’s relationship with its supplier CMAFH was strained and plagued by poor communication.
Kathy Hamilton, a customer service representative at CMAFH, said, “Sometimes, I would receive a PO with a different price or an odd date, and I’d have to dig through emails to see if I missed something. Other times, POs would come over requesting less than standard lead times, causing consistent expedite requests.” Kraus recognized that the only path forward was to find a solution that could ensure consistency, organization, and a single source of truth for both CMD and CMAFH.
Having everything in one location provides immeasurable value. Within two weeks, I was comfortable using SourceDay and now wish more of my buyers were on it.
Improved Relationships Between Buyers and Suppliers
- Accurate lead times improve on-time delivery.
- Single dashboard to acknowledge and view all PO activity in real-time.
- Access to accurate data speeds up the PO process.
- Poor communication led to inaccurate lead times.
- Acknowledgements had to be tracked and manually inputted into ERP system.
- Manual PO processes led to incorrect pricing, parts, and due dates.
Now, I can see why things are showing up late…SourceDay keeps us more organized and ensures that Jeff and I are always on the same page.
A Portal Suppliers Want to Use
Kraus knew that for SourceDay to work, he needed to convince his suppliers to collaborate on the shared platform. When he told CMAFH about the benefits, they didn’t need more convincing.
With SourceDay, CMAFH is able to streamline labor-intensive tasks, quickly acknowledge POs, and ultimately get paid faster. Plus, SourceDay provides all the necessary training for CMD buyers and their vendors, making the transition simple.
SourceDay reached out to CMAFH and all of the other CMD suppliers to set up their accounts and train them on the software. “When I first opened SourceDay, I was excited,” explains Hamilton. “It was very easy and user-friendly, and I instantly recognized the benefits of having a common solution: automate the PO process and establish a single source of truth using SourceDay.”
CMD & CMAFH Adopt a Modern Way to Communicate
Kraus implemented SourceDay to transform the way CMD’s buyers and CMAFH’s customer service team worked together. With a faster and easier way to communicate, Kraus hoped to curb CMD’s late deliveries and frequent expedite costs. The SourceDay platform enables both buyers and suppliers to communicate in real-time and make changes in one place, keeping all PO-related documents, dates, pricing, changes and communications in a shared location.
Now, Hamilton is able to easily access the “Radar” and “Late” tabs so that she can quickly view when items are nearing (or have passed) their due dates. She can make adjustments on the shared dashboard and automatically notify Kraus. Hamilton estimates she saves at least 1 hour per day using SourceDay.
Buyers & Suppliers Benefit from Shared Accountability
After implementing SourceDay, buyers and suppliers are held accountable for their performance. With all communication concerning PO-related documents, dates, pricing, and changes maintained in a central location, it’s easy to view a complete history of updates. Plus, tools like SourceDay’s Supplier Scorecard make it easy for buyers to assess their suppliers’ performance.
With improved transparency, buyers at CMD and suppliers at CMAFH have reduced PO errors. From incorrect part numbers to pricing differences and delivery date changes, things that used to affect on-time delivery and revenue no longer do. Now, CMD and CMAFH work together more collaboratively and efficiently.
Who We Are
SourceDay is a supply chain performance software that bridges the gap between the ERP and the supplier network, making it easy to manage changes throughout the direct spend lifecycle.
CMD & CMAFH
Founded in 1980, CMD is a technology-driven innovator of machinery for manufacturing plastic bags, pouches, and other products for applications from consumer goods to medical and food. CMD is also a growing supplier of Compressed Natural Gas equipment technology. Within this sector CMD uses CMAFH/Flodyne/Hydradyne (CMAFH) components in their equipment. CMAFH, is a full-service distributor offering complete machine automation and control solutions. Since 1974, CMAFH has been supplying thousands of components to companies like CMD.