How DuraMark Improved Supplier Communications

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On-Demand

How DuraMark Improved Supplier Communications

Has the disruption caused by COVID-19 caused a dramatic increase of pull ins, push outs, or even cancelled orders? Hear from DuraMark and SourceDay during a roundtable discussion on the importance of supplier communication.

What you will hear from our experts:

  1. Expediting updates from suppliers
  2. Focusing on the most critical exceptions
  3. Preventing production impact
  4. Containing cost through communication

6 Day Integration With SourceDay

Hear from DuraMark and SourceDay during a roundtable discussion on the importance of supplier communication.

2 Words to Describe SourceDay

Hear from DuraMark and SourceDay during a roundtable discussion on the importance of supplier communication.

Navigating COVID-19

Hear from DuraMark and SourceDay during a roundtable discussion on the importance of supplier communication.

Supplier Collaboration for NetSuite

Hear from DuraMark and SourceDay during a roundtable discussion on the importance of supplier communication.

Supplier Adoption with SourceDay

Hear from DuraMark and SourceDay during a roundtable discussion on the importance of supplier communication.

Why is NetSuite Important to DuraMark

Hear from DuraMark and SourceDay during a roundtable discussion on the importance of supplier communication.

Complete Webinar

Check out the full length webinar from DuraMark and SourceDay during a roundtable discussion on the importance of supplier communication.

Meet Our Speakers

Eric Douglass

Business Systems Analyst, DuraMark

Eric is the Business Systems Analyst at DuraMark Technologies administering NetSuite and a few other business systems that we leverage along with NetSuite. Eric has a background in software design and financial cloud software development.

Chris Beaschler

Operations Director,
DuraMark

Chis has been the Operations Director at DuraMark for the last 3 years. Chris has a dynamic and impressive background in manufacturing including a stint at Ford Motor Company.

Sarah Moore

CMO,
SourceDay

With over 25 years of enterprise software experience Sarah oversees global marketing for SourceDay, including brand marketing, demand generation, field marketing, partner marketing, events and all digital marketing programs.

Read the Transcript

Sarah: So with that, again I’m Sarah Moore CMO at SourceDay, if I could have our guests introduce themselves.

Chris: Hi, I’m Chris Beaschler. I’m the Director of Operations at DuraMark Technologies. Underneath me is inventory purchasing and our internal process.

Eric: And I’m Eric Douglass I’m the Business Systems Analyst here at DuraMark Technologies. I handle the NetSuite administration for our company as well as any third-party software partners.

Sarah: Super. And so, Chris, why don’t you give us a background on DuraMark?

Chris: DuraMark is a 100% digital decal printer, which just means we can print any decal at any time extremely fast. And we specifically market to durable decals, meaning anything that’s gonna go outside or have a lot of wear and tear on it we wanna be able to have our decals last for a long time in virtually any condition. Kind of our bread and butter is safety decals and branding. Again, we want those decals to last on hard machinery a lot of wear and tear throughout the life of any product that it goes on. Which means we provide a large range in all industries, but specifically construction and agriculture, any type of machinery that is gonna kind of go through a hard life.

We want those customers that take a lot of pride in their name specifically, we wanna show off their name. We want them to stick on their branding decals and know that it’s gonna last through any situation. As you can see on the screen, our motto is innovation that sticks. And you kind of look at that and you say, “Well, you’re a label printing company, how can you have innovation, it’s just you’re making labels.” When you make labels, digitally, how we sell our labels is we’re able to change extremely quickly. And we can provide orders as large as our customers want or as small as we want. Meaning we can make them extremely lean, they don’t have to have a year, a year and a half worth of inventory just to be able to buy it at low costs.

They can also change their branding, they can change their safety decals. Any change that they make is instant which kind of is where our innovation comes into play. We have to be fast for our customers because that’s what we sell. It’s all centered around speed and agility for DuraMark. As quick as our customers wanna change, we wanna change with them.

Sarah: Wow, awesome. So now I’m gonna pause the presentation and we’re gonna roll to our conversation. So, let’s start, Chris, with giving us an understanding of DuraMark’s infrastructure. Can you start by giving us an overview of your supply chain?

Chris: Yeah, it’s pretty unique. As I said, you know we are 100% digital which means we print the majority of our product in-house. But we also wanna provide our customers with their entire label needs. Which means there are some one-off specialty products that we have to outsource and the majority of those products come from screen printers. Screen printers, obviously, aren’t digital printers, they can’t change as quickly as we can, however, that’s still what we sell. And we have to kind of manage through a slower lead time from our suppliers but still hit our marks with our customers.

So maintaining that customer expectation while working with suppliers who just aren’t as fast as us. That’s where a lot of, I guess, communication comes into play, we have to be able to adapt with our suppliers and make sure that they’re able to change as quickly as we can while knowing that’s not really ever gonna happen. So we have to kind of mask the complexity with what they do while also tailoring it to our customers’ needs.

Sarah: Got it. Super. So tell me more about…Eric, now, let’s throw it to you. Tell us more about your back office. DuraMark uses NetSuite’s cloud-based ERP system but can you tell us more about that implementation and what it brings to DuraMark?

Eric: Yeah, so we’ve been NetSuite customers for actually about 10 years now. We really weren’t leveraging NetSuite to its fullest extent and so probably four years ago we were really just using NetSuite for its financial capabilities. We, you know, have the full OfficeSuite, but we really were only using the financial side of things. And then every one of our business processes before that was very, very old school. We had, you know, Excel spreadsheets, Job Jackets, Word documents, you know, we were literally…people were walking around with the Job Jacket, trying to figure out where something should be in our manufacturing process.

And then my predecessor basically took NetSuite realized that we had untapped potential, and really helped facilitate NetSuite to become our, you know, main ERP. We tailor our business processes around NetSuite. NetSuite was able to adapt with us, gave us the customization that we really needed because we do run such a unique business. And NetSuite provided that infrastructure that we could use to this day. And you know, with the last four years if we really look back, I really think our business in terms of efficiency processes, waste management, all that has just increased tenfold. Because we finally used you know, that cloud ERP what it was really meant to be, instead of just using it for what we thought we needed it for.

Sarah: So it’s played a critical role in driving a lot of growth for the business and maximizing…

Eric: Absolutely.

Sarah: …productivity, but also profitability, right? At the end of the day, don’t wanna be wasting time and money on tactical or unnecessary things. And so was that the vision for the business stakeholders like your executive team and…because it’s a significant change in how you do business, right? It takes time and focus. So those are usually decisions that are made at the top. Was that what drove the NetSuite decision?

Eric: In terms of like using it for what it’s needed for like the change in four years I really don’t think so. I think the person who was in my position realized…like he was a younger guy, he realized what it could be used for. And you know, everyone in the executive departments they just didn’t know, quite frankly, what it can be used for. And so it took someone coming in and saying “Hey, let’s try this” and, you know, obviously, a lot of decisions are made from the executives. But bringing the ability to come to light that we really can leverage this for things that we didn’t even think were possible when we originally bought it that was kind of just like a ground-up mentality. You know, someone came in, dug into it, and kind of owned the software, as opposed to beforehand, no one really owned it other than the finance department.

Sarah: And it’s interesting how quickly that new normal is really appreciated, right? Because those executives have to be super appreciative. Because the chaos you described that so many businesses manage is expensive. And now that you’re running on NetSuite, and you’ve sort of organized yourselves and become more efficient internally that’s an awesome transformation story.

Eric: Yeah, absolutely.

Sarah: So, one of the things I wanted…You mentioned this, but I wanna just kinda shine a light on it. NetSuite is a native cloud-based ERP why is that important to DuraMark?

Eric: It’s really important because we grow so quickly, we need something that can grow with us. Not having a cloud-based ERP just isn’t really something that we can handle. We can’t handle having our own servers and needing, you know, people to come in and do updates and updates ourselves. We need a scalable platform that we can use that, you know, provides great security, provides great scalability, provides great agility for our business because that’s what DuraMark is we’re all three of those things. And, you know, anytime we look for a partner in any business asset, we’re looking for someone who can cover those three categories with us because that reciprocation is key in making our business work quickly.

Chris: I’ll also echo that, you know, it’s huge to have that real-time aspect of NetSuite to make sure everybody has the information as quickly as possible. To make sure everybody is communicating on the same page and looking at the same thing at the same time. So the whole live aspect of NetSuite is incredible.

Sarah: And then once you have it, it’s hard to imagine going back, right? It’s hard to imagine doing things the old way.

Chris: Yeah, there’s been a lot of times…Yeah, there’s a lot of times, you know we’ll be talking internally and we’ll think about what we did, you know, six months, a year ago, you know, four years ago, before NetSuite. And you look back at what we were doing, and you kind of look at it, you say, “How the heck were we even getting stuff out the door you know?” That’s how quickly we change and you look back at it, you know, every six months, and you’re like, “I don’t even know how we were surviving without this one feature.”

Sarah: Yeah, that’s awesome. And that is the benefit of cloud, is that as NetSuite makes investments and advances their products, you get the benefit of it automatically just baked into the platform. Okay, so I love this story started out with that kind of chaos, you’ve now streamlined and modernized your internal operations, gotten visibility, improved communications internally. So the next natural step would be to take that modernization outside. Because all of that only operates as well…NetSuite only operates as well as the data that lives inside of it, right. And a good chunk of that data lives with your suppliers outside the organization.

So, it made sense for you, guys, to shift your focus to modernizing supplier collaboration. So Chris, could you talk about that a little bit more and share what your executive mandate was for…or vision for SourceDay?

Chris: I’ll kind of take a step back and look at it from, you know, what we were doing before, you know, without NetSuite, and then what we were doing kind of, we’ll say six months ago with our suppliers. I think those two storylines are extremely similar. We were working in a very primitive environment,

you know, before NetSuite we were carrying around Job Jackets and walking them throughout the building, you know. Somebody sets one down and it slips behind a desk, who knows what’s gonna happen with that job? Where, you know, NetSuite obviously cleaned that up very quickly.

And I think that’s kind of the same story that we have with our suppliers. Before it was a lot of manual communication, a lot of back and forth through emails where if you send out you know, 100 emails and one of them doesn’t get responded to, it’s really hard to target “Oh, yeah, shoot, that’s the one I have to go back to.” And SourceDay kind of takes that communication, centralizes it in one place, and makes it extremely easy to use. You’re kind of going from a primitive process to a more modern system.

And I think that’s kind of what the executives wanted at DuraMark it was, hey, our communication is kind of…I’ll call it heroic right now but it’s like unneeded heroic effort to get one little thing done and that’s communicating back and forth with a supplier.

Sarah: The risk that exists that scenario you talked about where you’re you know, carrying Job Jackets around one falls behind the supply cabinet, and then it sort of wait and see what the impact is gonna be, right? And sometimes that impact is really big like it can mean shutting down a production line, it can mean…as you said at the top, your expectations with your customers are really high, right? You pride yourself on being the fastest and meeting those expectations, one miss inside your operations can affect that. Similarly, with your suppliers, one email that doesn’t get acknowledged has a similar potential impact of disrupting production and causing you to miss with a customer.

Chris: Right. And it goes back to really supplier expectations. You know, before if we miss something, our speed and our agility lets us make up for that. Our suppliers, like I said before, just inherently aren’t as fast as us. So making up lost time really hurts in the supply chain world. And we still have to meet those customer expectations.

Sarah: Right, totally. And Eric, you played a central role in this process, right? So I wonder if you wouldn’t mind kind of telling us what your experience was like with the SourceDay implementation.

Eric: Yeah, I mean, it was great. Like I said, the ability for our partners to kind of reciprocate a sense of urgency [inaudible 00:14:59] is always awesome. We wanna make sure when we make a decision, we commit to something, we do it quickly and we get it up and running because we have to. It’s, you know, the part of our business that we have to do. So having that reciprocation on SourceDay side getting implemented, getting integrated so quickly like we did.

And then, you know, SourceDay being adaptable on our backend, you know, having them make kind of changes, fourth and inches. Like we were making changes at the very end of our integration that were in my opinion, very crucial to how we operate on a daily basis. And, you know, the integration team with SourceDay was great, they were able to take our ideas and you know, make them reality with the SourceDay integration, which is always very helpful.

Sarah: And how long did it take from start…from day one?

Eric: Six days?

Sarah: What?

Eric: Six days, yeah.

Sarah: Wow, I bet there are folks on the phone that don’t believe that, but it really was six days. And part of that is NetSuite is a cloud-based application, we’ve already talked about how that means it runs faster, it’s more agile. SourceDay is also cloud. So cloud to cloud integration is just much more lightweight. And, you know, it’s important for us to mention that we’re built for NetSuite certified. So you came to us and we’d already had a prebuilt certified technology so it was kind of plug and play. I mean, in IT land, ERP integration six days is pretty unheard of.

Eric: Yeah. And we…our NetSuite sales rep actually recommended SourceDay to us. And any recommendation coming directly from NetSuite we take it very highly because we wanna make sure the integration is key. And so that was a big part in us making that decision and actually it paid off tenfold.

Sarah: That’s awesome. And so one of the questions or parts of that process starts with the integration, but then we’ve gotta get your internal users trained in using it. And very importantly, we need to get your suppliers up and running. So could you talk about that process a little bit?

Eric: Yeah. The training aspect is very easy. I mean, that was included in the like six-day integration portion of it. I think it was about two one-hour-long training sessions, cover the basis, cover the, you know, more detailed aspects of SourceDay. I will say the purchaser that we had at the time was not the most tech-savvy person in the world, great guy, but just didn’t really understand technology super well. But he took to SourceDay very quickly, learned it super efficiently quickly and was, you know, very onboard, very excited about working with SourceDay and thought it was an easy UI, easy application just to ingest and learn.

And, you know, on the other side of our suppliers, we really didn’t have any pushback of suppliers not wanting to move on to SourceDay. In fact, some suppliers that we thought were going to be very hesitant were the first ones to say like, “Yeah, we’re in, we wanna do this” because of the ease of use and the functionality and just kind of that one single source of truth for communication.

Chris: And I’ll kind of take another step back. Looking at moving to SourceDay, one of our greatest, I guess, question marks was how our suppliers were gonna react to this. We do have some suppliers because the business we’re in like I said before, we do a lot of custom parts that our customers want. We can’t necessarily do in-house so a lot of times our customers will recommend…I’ll say strongly recommend a supplier that they want us to use. So a lot of times those relationships get a little fuzzy is what I’ll say.

So those were the suppliers we were looking at saying, are they really going to wanna use SourceDay? And if they don’t, what does that mean for our partnership with SourceDay? But we found almost the complete opposite. You know, we have all of our suppliers, kinda eager to jump on-board. Once we explained what it was, what it does, you know, our suppliers don’t wanna get, you know, 100 emails from us every day, as much as we don’t wanna send 100 emails out. So it’s actually a really easy sell to the supplier and they picked it up really quickly.

And I will echo Eric’s words with the user interface. I think without it being so seamless the suppliers aren’t gonna wanna do it if it’s hard. It turns out to be very easy, it’s a couple of clicks and you know, you’ve done your entire day’s work.

Sarah: Because it’s expensive for them too, right?

Chris: Exactly.

Sarah: …not just in time but you describe primitive the other day describe the medieval old way, email, phone, fax. It’s not just a lot of work when those things get missed, and they’re late with you, they have all the expenses that you have when you’re late with your customers. So, thank you for sharing that. So, okay, the scenario is we’ve modernized DuraMark’s internal operations, got better communication, more agile, running more quickly. Now we’ve extended that modernization to your supplier collaboration. We’ve got the single source of truth, better visibility, as you described, then COVID-19 hits, right, global pandemic, none of us have seen that in our lifetime. Tell us how COVID’s affected DuraMark’s business?

Chris: Yeah, I think you know, everybody’s been hit with the whole COVID effect, right. It hits the whole supply chain, starting with our customers all the way to our raw materials to our suppliers. So we’ve seen increased lead times, and it’s figuring out how to manage through that. And before if we didn’t have SourceDay, it would have been again, a lot of back and forth communication through emails, a lot of things probably would have been missed. With COVID, your communication is just 10 times as important and it’s already really important. So seamless communication kinda helped us…I’ll say we didn’t get through COVID with no marks, but you know, it definitely allowed us to manage through it.

Sarah: Reset if you needed to, reset your customer expectation, manage, whatever. So have you guys had a part of business slow down, other parts move in, move out, cancellations?

Chris: Well and especially early on our customers, you know, they’re shuffling things all the time, kind of no matter what, they’re moving some builds up, they’re pushing other builds out and that just gets amplified through a COVID situation, right? There was…you know, early on when everybody saw it coming, they then started trying to push production kind of faster, you know, to be able to, you know, maybe stock up inventory or complete orders quicker kind of before COVID kind of hit. So with that, you know, a lot of shuffling going around which means a lot of shuffling internally for the parts that we print, but then again, a lot of shuffling for our suppliers.

Meaning you know, we have to manage POs, some POs get pushed out, other POs get pushed up to today. We need those parts to go out today or, you know, like you said earlier, a line should go down and you know, that’s the last thing we want.

Sarah: Not right now. And if you have a move-in situation, you’ve got revenue that’s at risk, right? If you can’t get that material from your suppliers in time means you can’t ship orders, means you can’t, you know, not only keep your customers happy, but you can’t make the revenue you need to keep the business running. Similarly, with the move-outs and the cancellations, you don’t wanna be buying material that you can get product for right now, right? Cash is king as always especially now. So that’s what we mean when we talk about the visibility and the financial control that that gives you when you have these systems in place, your buyers and your suppliers trained up and using them. It allows for that scenario that you’ve just described.

Chris: Well and you know, kind of what you were alluding to we started working with our…the operations team started working with our finance team, because, you know, like, you said, cash is king. So it’s okay, maybe we’re not gonna buy as many parts, spend less money and get maybe a worse rate, but not have so much cash leave internally. And we actually put in some gates, if you will, in NetSuite and in SourceDay that allows our operations team to communicate with our finance team on our larger purchases. Eric, I don’t know if you wanna talk about the technical side but it was huge on the communication side interdepartmentally.

Eric: Yeah. I mean, finance came in and they’re like, “Hey, we need a way to really lock down our POs and figure out how much money we’re spending.” We wanna limit…like Chris said, we wanna limit possibly the amount of inventory we hold and maybe get a worse price at it but cash flow is important right now. So maybe not getting the best price break, instead of, you know, spending $5,000, maybe spending $1,000 getting a worse rate but owning less inventory is key right now.

So I had to put in certain workloads in NetSuite that allowed for…You know, we didn’t wanna download the full gamut of the PO approval system in NetSuite, because that’s not something we really do on a daily basis. So we just put in some workflows that allow for PO checks with a line item over $1,000. Anything that’s not a dropship PO that’ll go straight to financing, you know, look over to prove that possibly just the quantity if needed. And then send it back to the purchaser and the purchaser can then upload it into SourceDay. And that’s where that whole SourceDay integration is really key because, you know, with the native integration POs flow through to SourceDay which most companies will want. But we wanted to keep a closer eye on what goes into SourceDay and what our suppliers can see.

So being able to ask like a SourceDay approved checkbox that really triggers the integration is really important for us, especially right now where we may wanna make some adjustments to POs after they’re created. And having that kind of bridge in our integration was super helpful on a time like this.

Sarah: And it’s not like your buyers need to do anything to upload that approved PO because the systems are talking, that’s part of the integration, right? As that workflow is executed in NetSuite and finance approves them, they are automatically sent to SourceDay.

Eric: Correct, yeah.

Sarah: And then before we…I wanna poke on this a little bit more but before I do that, I don’t wanna forget to cover and ask you, Eric. How much time have you had to spend as IT…You know, they always I know you’ve described to me wear many, many hats, there’s never enough hours in the day for the work that you do that’s crucial to keep the business running smoothly. How much time have you had to spend supporting SourceDay users or your suppliers, getting them trained, answering questions?

Eric: I mean, none. I mean, I was answering emails, I was on probably two hour-long calls with the SourceDay integration team. We got everything, you know, hammered out during those two calls, everything was good. So in terms of, you know, an added burden to my plate more things I have to manage there’s nothing. I mean, my daily life has changed, you know.

Sarah: And based on what Eric’s talked about, what do you think your life would be like right now, if you didn’t have these tools in place?

Eric: The amount of checks that we would have to put in NetSuite would be far larger. And not only that, just the whole tribal knowledge thing, we would have to rely on our purchaser. You know, maybe there’s not something that we wanna put in NetSuite or maybe, you know, there’s certain…maybe I have developer limitations on certain things that I can’t create in NetSuite when you know, a full stack developer could. You know, things like that, where we would just have to rely on the purchaser and be like, “Hey, can you just keep an eye out for this just not do this.” Instead of having, you know, the system, basically locking them down and keeping them from being able to do which right now they are. So we rely a lot on tribal knowledge.

Chris: [inaudible 00:28:20].

Sarah: Yeah, and also…Go ahead Eric.

Chris: I was gonna say, which then goes back to the whole primitive process, you’re just putting in another primitive process where you’re relying on somebody to kind of make sure that doesn’t happen. Well, when you do that you don’t have a system to stop it from happening, it’s bound to happen.

Sarah: Right. And then you lose or sacrifice the opportunity to have that fine-grained control over the business and manage cash if needed and do all those things and know the processes are all flowing. Knowing who to hold accountable if things go wrong, what priorities need to be worked first, that sort of thing. Okay, so, is there a story maybe you could tell around how the combination of NetSuite and SourceDay have helped keep your teams in sync? I don’t know if there’s like a customer situation where you were able to be a hero with a customer or something like that that you…?

Chris: I think that happens daily, almost. Not even almost, it happens daily. But when I think of SourceDay, two words come to mind and it’s communication and accountability. We’re able to very easily communicate with the suppliers but not only that, they’re able to communicate back to us very easily. Anybody can go in, check where a PO stands, where an order is. If it’s gonna be late we know that early. That’s extremely valuable information to have in any business and I think we’ve hit on that pretty much this entire time.

But the other side of it is really the accountability, you know easily where the ball stands, you know, whose court is it in. Before, you know, there was a lot of times when, you know, the suppliers thought they were waiting on us, we thought we were waiting on the supplier, we weren’t sure kind of where things were. But, you know, it would take like three extra emails to figure it out just on one PO, maybe sometimes one part number, just wasting a lot of time on you know, a very inexpensive part where now…Go ahead.

Sarah: And those situations damage the relationship, right? They break trust, you end up in a he said-she said and it’s not good for anybody.

Chris: And then you’re playing the blame game which is extremely not productive [inaudible 00:31:09] lead anywhere. And at the end of the day, you’re not taking care of the customer. Our number one goal is always take care of the customer, always meet the customers’ expectations. If we’re not getting that done, you know, we’re failing as an operations team, as DuraMark. you know. And SourceDay allows us to know and not only hold our customers accountable but hold ourselves accountable in every situation.

Sarah: That’s awesome. Well, thank you for sharing all of that. I’m gonna shift gears now and you guys are gonna have to sit tight while I do a really brief overview of our business and our quick demo of the product. And nobody came for a sales pitch today so this is really just meant to help ensure our audience understands and has a visual for everything we just talked about.

So I’m gonna start with an image and kind of describing that primitive process the other day you described it as medieval, Eric. So what you see on the screen here is in the dark blue circles, that’s the enterprise. So this would be DuraMark, you see the NetSuite ERP on the left, and then all the stakeholders that we just talked about that depend on the information in NetSuite to do their jobs every day. On the right, you’ve got your suppliers, and most of our customers have at least dozens, hundreds, some have thousands of suppliers that they use to fulfill demand for raw materials in order to produce finished goods.

So as demand comes into NetSuite from your customers as customers place orders and the demand planning part of the product determines it’s time to order raw materials, purchase orders get issued out of NetSuite. And in the old world, your buyers would pick up…as you described Chris, pick up the POs and email them to suppliers. And then the entire lifecycle of that PO was managed over email, phone, and fax just as you guys talked about. And that starts with just the acknowledgment. So our data shows cross our hundreds of customers, thousands of suppliers globally that on average more than a third of PO lines is gonna change in normal times. With COVID we’ve seen that pace of change move up to 61%.

So more than half of the PO lines that come out of NetSuite are likely to change before they’re finally agreed upon. Because suppliers right now may not be able to meet your quantity requirements, your delivery dates, or your pricing. And so that’s the collaboration that has to go back and forth with those primitive processes, what happens is what you just described. Things fall through the cracks, worst-case scenario, you might not be able to meet your customer commitments. It’s expensive to DuraMark and the enterprise, it’s expensive to supplier, it damages relationships.

Which is exactly the problem that SourceDay was designed to solve. We modernize collaboration between these two sides, two parts of the equation through a digital interface that lives in the cloud multi-tenant SaaS solution. That provides prescriptive workflows, automatic notifications, has business rules baked in, to ensure that both sides of this equation are working on the most important problems or exceptions first.

And then rather than require manual updates once POs are agreed upon, SourceDay automatically keeps NetSuite up-to-date in sync in real-time. So that all of those stakeholders on the right from the procurement team, through finance, IT, supply chain, and operations are operating on correct and valid information. And all the suppliers on the right similarly know exactly which orders they need to be working on, what the priorities are, and everyone’s business is running more smoothly.

So before I jump into the product just a quick image for you to orient yourself. SourceDay…sort of the core of our product is a collaboration platform, the green disk in this image. And on top of that sits four products, RFQ collaboration, POE collaboration, AP automation, and quality. That is the layer in our product that integrates with the ERP in this case, it’s NetSuite. But it’s important to note that SourceDay is ERP agnostic, we can integrate with any ERP. And some customers, we integrate with multiple ERPs because of how their operations are structured.

And as the communication happens, we’re storing valuable data that used to live in emails and spreadsheets and phone calls, and tribal knowledge, as Chris talked about, is now stored in a structured way in SourceDay so that it allows the final piece the insights and analytics at the bottom of this picture. I’m gonna show you an example of that in data-driven real-time scorecards today. But there’s a lot of really powerful information and visibility and actionable insights as Chris and Eric have described, that we provide that’s simply not possible with those old primitive or medieval ways of doing business with suppliers.

So now, let’s shift to a quick demo again tip of the iceberg here. I’m not gonna show you the full breadth of the platform, just wanted everyone to have a clear understanding of how SourceDay works. So my scenario is I’m a buyer at a bike manufacturer this morning and I come into work every day with my coffee. And rather than focus my day around picking up POs out of NetSuite and emailing them out to suppliers and trying to stay on top of it through spreadsheets, I just log into SourceDay. SourceDay has done all that initial work for me, automatically uploaded any new purchase orders, which is what I see here in the pending tab.

So, all of my open POs, in this example, there’s 106, all of them are organized for me and in different buckets. The first one here pending, these are the POs that my suppliers have not yet acknowledged. So in that scenario, I talked about right now I know more than half of my new POs are gonna have some kind of change. This gives me as a buyer a flag that there’s a lot of risk being carried by these open POs because 90% of my open POs the supplier hasn’t yet acknowledged price, quantity, dates. And yet my production team is operating on the understanding that these quantity, dates, and prices are all gonna…like all these parts are gonna come in on these timeframes.

So that’s the open and pending scenario, within that there are higher priorities right. One example of this is the late PO. The thing that is the thorn in any buyers’ side. These are the POs that should have already arrived and they haven’t, they’ve missed their due dates. And what’s cool about this is in this example, there’s eight late POs that would be eight email threads historically that I would have to somehow manage and things in NetSuite that I would somehow have to update manually. SourceDay has taken care of all of that we automatically monitor these due dates and when things aren’t received, and they fall late, we take care of automatic notifications out to the suppliers and managing all that information through this easy to use dashboard. No more emails, no more spreadsheets, it’s all in SourceDay.

And this is one of those ease of use things that Chris and Eric had talked about. So let’s say for an example, I have one of these parts that my operations team has said they really need, these 300 bike chains. If I need to escalate that with my supplier, all I do is select it, I can toggle it to hot, which is how SourceDay flags that please update me these parts ASAP. I mark it as hot. This automatically updates it is hot in my supplier’s SourceDay interface which looks just like the one that I’m sharing with you now. Moves it into my hot bucket. And now that supplier Chromax Metals in this example, knows that they have a bunch of open orders with us but these are the two that are most important.

And I talk about all that data and interaction being captured in one single place, Chris and Eric talked about single source of truth. For every line of every order, we capture the history from when it was issued out of NetSuite through all of the status changes. All of the notes that get captured or communications back and forth between buyers and suppliers are stored in one place. No more he said-she said, no more blame game, it’s all data-driven. And everyone knows what to expect on every line and every order.

So, next I’m gonna show you updates. This is the set of things that my suppliers have responded to. So, scenario here with Chromax I have three updates from this supplier this morning, I have one change or requested change to delivery date. I had a change to quantity order 10 in this case, supplier Chromax is suggesting 25 and a price change. And I happen to know on these water bottles, I’ve got a contracted price of $1.50 so I’m not gonna accept that change. All I have to do is select that part, decide, and tell them no thank you I’ve got contracted price on this so I’m not gonna accept that update.

However, I know these bolts, and these flags that on the bolt, I know I’ve got safety stock here, the supplier has said they can get them to us by the end of the month. So, I’m gonna accept this change and when I do that, I don’t need to send any emails, I don’t need to do any manual updates. SourceDay automatically updates NetSuite the planning, scheduling, production teams at NetSuite are up-to-date because they’re operating on real data and reality in real-time. And I haven’t had to send a single email.

And then this last example, I’m a little puzzled why are they telling me I have to order 25. The supplier is now reminding me we’ve got minimum order quantity. So also scenario that I’m gonna go ahead and be okay with so I’m gonna hit accept on that. And again, SourceDay automatically updates NetSuite, automatically lets the supplier know now in their interface, they’ll see that we have rejected one but accepted two of their changes. They also don’t have to send any email, they don’t have to follow up with me, everybody is on the same page.

So then the last piece I wanna show you is an example of that data-driven insight. And I’ll go back to all of the open orders. And one quick thing that I wanna point out before I show you the scorecard is that many of our customers still have need for a tangible open order report. This is something that classically people in Chris’s world in IT are constantly having to generate open order reports, the buyers are having to run open order reports out of the ERP.

SourceDay takes care of that makes it super easy. All you have to do is export to CSV, open it in Excel. And if you’ve got…in some scenarios right now, our customers have war rooms where operations and sales, and procurement, and production all coming together to work the open order report classic Monday morning meeting. Super easy for the buyer to just run a quick report, print it out, everyone’s got a single source of truth that they’re operating, running that meeting off of. And then any changes that happen can be managed right here in SourceDay, they don’t have to do any manual updates from that. So that’s our all open order report.

And then lastly, I wanna show you the scorecard. So all of these interactions are being managed through SourceDay, all the workflows and notifications. Because we’re capturing all of that data, we can work with customers to determine how they wanna grade suppliers. And this is another case where the he said-she said tribal knowledge thing has been inefficient and inaccurate historically. But now SourceDay is able to provide our customers and their suppliers’ real-time data-driven scorecards that are based on reality, not hearsay. So in this example, Chromax has an overall score of C and that’s because their on-time delivery and their responsiveness has been pretty poor even though they’ve maintained high integrity on pricing and quality. So that nets out to an average score of C. And then if I’m curious about the details behind that, it’s all rolled up here for me within the scorecard.

So all super easy to use, very modern in the interface and the design. That is the reason that Eric doesn’t have to spend any time with his users we take care of all that support for him. It’s the reason his suppliers are happier using this type of interface rather than what they used to have to do. And so those are the core things I wanted to share in the product today. And with that, it’s time to roll to our Q&A. So I’ll stop sharing my screen and we’ll throw it back to Chris and Eric. How did I do guys, did I do okay on that overview?

Chris: The demo was awesome.

Sarah: I almost wanted to invite you in. We hadn’t rehearsed that so I didn’t want to put you on the spot but I wanted to involve you. Next time I’ll involve you in our demo. You can…maybe I’ll have you give it next time.

Chris: There you go.

Sarah: Okay, we’ve already got questions rolling in from our audience. The first one is from a viewer who says they use demand planning within NetSuite. DuraMark, are you guys using demand planning?

Eric: Yes, sort of. We pay for demand planning. We unfortunately only use demand planning for one line item, it’s for the line item ship date, that’s like very crucial for us for demand planning. And we try to do customization where we just added that field ourselves, but it really didn’t work with min maxes, and you know, making sure we’re producing work orders on time. So we do use demand planning but that is one of our goals for 2020 is like we pay for it so let’s leverage it for what it needs or what it can be. So I would say we use it but we’re probably not a great subject matter expert on it because unfortunately, we just use it for very limited functionality.

Sarah: So even in that situation though how does SourceDay improve you know, the overall demand planning for DuraMark? Do we have any effect on that business process?

Eric: Yeah, one of the things that we’ve talked about with your team is that you know, we can set up demand planning to automatically send purchase orders to SourceDay you know, automatically create purchase orders, things along those lines. Where, you know, right now, we don’t wanna stock up our warehouse with a bunch of outsourced products. But in the future, if that needs to happen that’s something that we can turn on and leverage through SourceDay.

Sarah: And you have now because of what I just walked through accurate data, right, that lives in NetSuite from your supplier. So the planning teams and the scheduling teams can do their jobs more precisely and accurately, right? Little less, I guess, messiness thing. Okay, next question is, we add suppliers to our network every year, how does that get managed in getting them kind of integrated into SourceDay?

Chris: I’ll say it’s similar to the beginning stages of onboarding. SourceDay was a great resource for us integrating the suppliers but we haven’t been using SourceDay obviously…we’ve only been using them for the last two months. So we haven’t necessarily had new suppliers but we’ve onboarded our current suppliers. I would envision that it’s very similar. Again, I’ll go back to the user interface how easy it is to understand and implement. I don’t see training as a big deal at all. Now obviously there will need to be training but it’s pretty seamless, it’s maybe an hour of communication back and forth with the supplier.

Eric: It’s close to flipping a switch as you can. I mean, you can integrate all your POs into SourceDay which we have that checkbox we mark things PO for SourceDay prove that sends the PO to SourceDay. You don’t have to use that, you can just send all your PO to SourceDay. And for a supplier that’s not integrated into SourceDay, they won’t get an email for it. And then all you need to do is add that supplier on as a SourceDay supplier, add their email address, they’ll get email addresses, they’ll have a login, all that stuff. So in terms of…you know, if you add a new supplier in NetSuite, you actually know how to do that. That’s something that then transferring that supplier to SourceDay is very simple.

Sarah: Right, and because we do the managed services, you literally send us their contact info, and most customers will…you know, if they have hundreds of suppliers that work will be to prioritize those. So we’ll do the rollout in phases. But that scenario is usually an introduction, you know, where there’s an email invite we provide you, you send it to the supplier, and then we pick up the ball, you know, use your metaphor, Eric, and we carry the ball from there. And then we do…just for the audience’s benefit, we have a lot of…a combination of in-product training where we run monthly supplier webinars to answer their questions and help drive adoption. We’re really clear that your value as DuraMark your value from SourceDay is directly dependent on the fact that your suppliers continue to use SourceDay.

So we’re constantly thinking about product enhancements, but also on the managed services side, we wanna create a great customer experience for those folks as well to represent your business and also ensure you get the value from your investments. So a quick reminder to folks to continue publishing questions if you have them. The next one is what if we need people to see information in SourceDay? So what if there are people…I guess this question is people outside the procurement team need to see information in SourceDay. I don’t actually know Chris, do you guys have just your buyers, or do you have other users also logging into SourceDay?

Eric: We have a view-only license that we’ve purchased as well. So no functionality, in SourceDay you can’t change anything, you can’t make any edits but you have the license to log in and view everything that’s going on in SourceDay. It’s really similar to the supplier side of things, except the supplier also can change things. This user is allowed to see both the supplier and the buyer side just without making any edits.

Sarah: Cool. And which function does that viewer perform for you guys at DuraMark?

Eric: It’s more in terms of like a backup right now. So we use that if the purchaser was out, if someone needed to keep an eye on something, and then they could use the real credentials and log in. But in terms of like, you know, people sharing credentials, we don’t really want to have people passing around a generic password to a software that really only one person should be in so that view-only license is just used for that and probably will be used for the purchaser supervisor at some point.

Sarah: Yep, that’s a scenario that’s really common for us. Another scenario on the viewer licensing side is there might be people in planning or scheduling who don’t wanna have to bug their peers when they need update. They can easily just log in and see what’s going on and see what’s late, what’s pending, what communication has happened on each of those lines.

And then the third really common scenario is finance, who are paying invoices. And you know, when there are…We have an AP automation solution which we didn’t talk about today and most of our NetSuite customers manage AP within NetSuite, so it’s not really relevant here. But it can be very useful to finance to be able to see when there are mismatches, to be able to do some homework on their own to figure out how to resolve them. So another question, was COVID a motivator for deciding on SourceDay?

Chris: I would say no, luckily, we were talking about SourceDay before COVID. I will say it was a huge benefit to have SourceDay kind of right before COVID hit. Without it, you know, I think, you know, again, the communication would have been horrible, it let us manage through it. And luckily, we were already kind of talking to SourceDay pre-COVID and it let us kind of prep for kind of an unexpected global pandemic.

Sarah: And you talked about this a little bit, but there’s a follow-up on this question. Have the suppliers…I mean, in that increase in interaction and change and you’ve talked at the beginning, speed is like supercritical a big part of what makes your business special and unique. Have your suppliers been able to keep up with that, do you feel like they’re rocking and rolling with you as fast as you need them to be?

Chris: Yeah, I’d say so. Now, it kind of goes back to the supply chain aspect that we talked about earlier, where, obviously, all aspects are kind of getting hit. But as far as you know, communication goes, the earlier we know something, the more valuable it’s gonna be. To where sometimes, you know, we have to go back to the customer and work something out for an individual part you know, and then they come back and say, “Oh, no, we need it. And you know, that communication then gets transferred to the supplier pretty easily.

Sarah: Right, for sure. And we’ve seen that across all of our customers, every industry, it’s always been…so far it’s been a combination, and most of them echo what you just said. They really can’t imagine how they would be managing right now if they were stuck in email and spreadsheets, it’s really hard for them to fathom. Okay, final question then I’m gonna…from the audience, and I’ve got one more from you. It sounds like we have some skeptics because we’re coming back to onboarding and training. People are having a hard time believing what we’re sharing. And they wanna know how quickly was your team able to onboard and get fully trained?

Eric: This one is interesting because we actually changed purchasers like very recently. So we not only had to onboard and train our team, but we had to do it again. And the first time, like I said, the guy wasn’t very tech-savvy, great purchaser, great guy. When it comes to computers, you know, he could do the basics. And I think I was on the call for one of the training sessions, and then he had another one-hour training session. So within two hours, he was up and running. Obviously, he had to do some playing around in it to make sure that he was comfortable with things and making sure he understood the process.

Our new purchaser, he’s a little more tech-savvy than the other guy still has his, you know, gaps and his technical knowledge. But he did the one-hour training it might have actually been two hours and you know, was up and running within a couple of days of our last purchaser leaving.

Chris: To the supplier side, from the director [inaudible 00:55:09] perspective, I was shocked at how quickly we were able to get all of our suppliers on-boarded and I thought it was gonna be you know, at least a couple of weeks. And I think we were done in a matter of a week.

Sarah: Wow, all your suppliers in a week. So proof is in the pudding there. I mean, I love that you were able to share that story. And that’s exactly what we aspire to, at our company. And frankly, you know, our team loves hearing this because it’s our mission to provide the kind of value that you guys are sharing and so thank you for that. I love hearing it.

So it’s time to share our poll results with everyone. And the first question was about the changes and what our audience is experiencing and whether it’s similar to what you guys have described and it sounds like it is. 63% said that they are managing move-ins, move-outs, cancellations, more of those changes are move-outs than move-ins, not surprising, right? And then 13% said they’re spending time bringing on new suppliers because in those move-out scenarios, your suppliers might need to move out because they can’t fulfill, but your customers might still be expecting, right.

And that’s the scenario I guess where the question about onboarding new suppliers like how hard is it? Because that’s one of the ways that we’re helping customers proactively manage the disruption. Is if your a supplier ab, either you’re single source even if you’re not, they can’t meet it, you need to go find some other way to. So, second question was, how are you currently collaborating with suppliers? Over half are…57% said email, spreadsheets, phone calls. Only 14% said supplier portals. So, hopefully, we’ve given those folks some inspiration or some ideas about how to make their businesses run smoother and make their lives easier. Third question was…Are you guys surprised by that? 57%?

Chris: Honestly, no. I mean, that’s what we were doing a couple of months ago.

Eric: [inaudible 00:57:21] yeah, two months ago.

Sarah: Yeah, you get it right.

Chris: I’m with you, 100% [inaudible 00:57:25].

Sarah: Totally, poll three and last question. Is your ability to conduct effective business planning directly impacted by the performance of your suppliers? And three-quarters of folks were like kind of said absolutely, 25% said somewhat, and zero said not at all. So this kind of is a bit of a leading question but the whole point here is your business is only as strong as your partners, right, who can help you. So I think that’s a great way to wrap our conversation today, guys. Again, thank you for sharing your story so articulately, you’ve been really fun to talk to and work with. And on behalf of the entire SourceDay company business team, thank you for your business and your partnership.

Eric: Yeah, thank you, guys.

Chris: Yeah, it’s been a pleasure. Thanks, Sarah.

Sarah: Okay, have a great day. Stay safe.

Chris: You too.