SourceDay: Superior Shipping Solution
Purchase order management platform accelerating enterprise resource planning and improving on-time deliveries
Alumni Ventures portfolio company SourceDay is helping companies better manage their online supply performance by accelerating enterprise resource planning (ERP) and improving on-time delivery. SourceDay’s order management platform automates order requests by replacing emails, spreadsheets, and phone calls with cloud software alternatives — ultimately allowing companies to better manage changes without disrupting production, planning, or payment.
Optimizing Supplier Performance
Customer demand is continuing to shift away from brick-and-mortar stores. E-commerce sales are projected to reach $5.4 trillion globally by 2022. However, everyday disruptions (late shipments, missed emails, etc.) cause 50% of direct spend (components and parts used to make a company’s products vs. consumable supplies) purchase orders to change, resulting in inaccurate delivery times that upset customers.
SourceDay’s solution connects a company’s ERP system with its suppliers to improve communication and collaboration while delivering insights and analytics. SourceDay’s product offers data on purchase orders requests for quotes and automates accounts payable, eliminating paper-based invoice matching and accelerating invoice processing.
Additional benefits of SourceDay’s platform include:
- More on-time deliveries
- Cash flow optimization
- Reclaimed warehouse space
- Reduced indirect costs through better paper trails and audits
Significant Market Opportunity and High-Value Team
SourceDay generates its revenue from platform subscription fees for certain products and a transaction volume fee based on the customer’s ERP size/spend volume. There is also a future opportunity for SourceDay to capture supplier side spend and potentially generate data insights. With the market for supply chain management software projected to exceed $37 billion by 2027, SourceDay has the opportunity to command a large market share. The company currently has over 150 paying customers and ~9,000 suppliers using its platform.
CEO Tom Kieley leads the SourceDay team. Tom has over a decade of experience in product management and operations, hardware and software sales, and supply chain management. Backing Tom is a seasoned group of B2B SaaS professionals who have held senior leadership roles at other early-stage companies.
How We Are Involved
Ring Ventures (for the Texas A&M community) sponsored AV’s participation in a $31.5 million series C led by Norwest Venture Partners and a $12.5 million Series B led by Baird Capital. Co-investors include ATX Ventures, Draper Associates, and Silverton Partners. Bascom Ventures (for the University of Wisconsin community), Nassau Street Ventures (for the Princeton community), Triphammer Ventures (for the Cornell community), and AV’s Total Access Fund are also invested in SourceDay.
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