Federal Manufacturing

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Case Study

7 min read

Federal Manufacturing

Federal Manufacturing Uses Dynamic Scorecards to Improve Supplier Performance

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I like that vendors can see what we think about their on-time delivery and other factors. When you’re being graded, you try harder to get that grade up.

Mary Buhr, Buyer at Federal

Operating in the Dark With Outdated Processes

Since 1946, Federal Manufacturing has been a leading filling systems supplier for free-flowing liquids. Managing hundreds of purchase orders daily, each containing up to 400 parts, Federal struggled to track part arrivals. Their procurement team operated in the dark, aware that their CloudSuite Industrial – Syteline ERP contained inaccurate information. They knew they needed to find a way to modernize operations and move away from managing POs manually through emails, spreadsheets, and sticky notes.

SourceDay is more than just a PO management system; it’s a supplier management system as well.

Mary Buhr
Buyer at Federal

Single Source of Truth for Suppliers

After

  • Easy-to-access data in one place, in real time.
  • Supplier scorecards held suppliers accountable.
  • 100% accurate PO data in the CSI ERP system.

BEFORE

  • Frequent late deliveries and a limited purchase order visibility.
  • Inefficient PO processes led to incorrect invoices.
  • Time wasted managing suppliers and tracking down late orders.
filler machines

BENEFITS

Centralized Data & Notifications Improve Efficiency

In the hopes of finding a more transparent way of tracking orders, Federal chose to adopt SourceDay. In doing so, buyers could easily make order updates, request updated pricing, and send notifications to suppliers. With clear visibility into each supplier’s open POs, Federal buyers spent a lot less time tracking down updates from suppliers. SourceDay even sends a daily recap email to suppliers, showing every line item that’s late until those orders have shipped. 

Thanks to notifications from SourceDay and a transparent dashboard, buyers and suppliers were empowered to collaborate on order changes and stay in constant communication.

SOLUTIONS

Supplier Scorecarding Inspires Change 

SourceDay’s dynamic scorecarding features allow both buyers and suppliers to monitor performance. While buyers set the criteria by which their suppliers are graded, suppliers can access their scorecards 24/7 and monitor their ratings in real time, allowing Federal’s suppliers to proactively make adjustments. 

“I like that vendors can see what we think about their on-time delivery and other factors. When you’re being graded, you try harder to get that grade up.” — Mary Buhr, Buyer at Federal

Likewise, the team at Federal can keep close watch on a particular supplier’s performance or look at overall performance across their entire supplier base, reviewing items like responsiveness, acknowledgement rates, and on-time delivery.

RESULTS

Buyers & Suppliers Meet Their Commitments

After adopting SourceDay, Federal noticed significant improvement in supply chain performance. On the supplier side, they saw a steady improvement in the key areas measured by the supplier scorecard, particularly in on-time delivery. 

Federal also saw a marked improvement in their ability to meet their own customers’ demands, which was their ultimate goal in adopting SourceDay. With a more transparent, reliable supply chain, they became better equipped to hit their customer commitments.

Who We Are

SourceDay

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.

Federal Manufacturing

Founded in 1946, Federal Manufacturing has been a leading filling systems supplier for free-flowing liquid products including milk, iced-teas, juices, paint, agricultural chemicals, and more. In 2012, Federal was acquired by the ProMach family of companies. Today, Federal and Pacific fillers are the cornerstone filling system brands in ProMach’s Filling Solutions Division. ProMach and the Federal and Pacific teams are committed to developing quality filling and capping equipment that will provide decades of dependable service.

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