Tom Kieley, SourceDay CEO and Co-founder
Manufacturing companies rely on suppliers to get parts on time to fill production orders and deliver goods on time.
Problems can arise when a parts supplier is late or doesn’t deliver the right item or doesn’t have enough inventory on hand to fulfill the order.
That’s the problem SourceDay solves. The Austin-based company has created a software platform complete with a dashboard, analytics, and data that allows manufacturers to manage their suppliers and receive just in time inventory.
The result is more efficiency and a big cost saving to manufacturers, said Tom Kieley, CEO and co-founder.
SourceDay Wednesday announced it has completed $6.5 million Series A round of funding from Silverton Partners, Draper Associates, and ATX Seed Ventures. To date, the company, founded in 2013, has raised a total of $10.8 million.
Kieley and Clint McRee, co-founder and Chief Operating Officer, met at a software company a while ago in Austin and came up with the idea for SourceDay. They both have worked in the manufacturing and supply chain industry. They understood the problems a manufacturer experiences when not getting supplies in time, Kieley said.
SourceDay, which has 30 employees and is based in Northwest Austin, plans to double in size by the end of next year, Kieley said. It plans to use the funds raised to expand its sales and marketing efforts and to accelerate its product development and strategic hires, he said.
“Manufacturers and distribution companies struggle to manage their suppliers,” Kieley said. And as a result, they might be unable to deliver a customer’s order.
Just in time manufacturing is the goal and one of those “unicorn type things to achieve” for many, Kieley said.
That’s where SourceDay’s software platform comes in. It provides manufacturers with visibility to the supply chain in real time, Kieley said.
“We do that by giving real-time data,” Kieley said.
SourceDay’s Team, courtesy photo.
SourceDay has 100 enterprise companies as customers and more than 3,000 suppliers in seven countries on its platform and it’s growing, Kieley said. Some customers have reported a 35 percent improvement in supply chain management as a result of using the platform, he said. It has customers in the oil and gas, transportation, aerospace, healthcare medical device, and wholesale industries, he said. Most of them have between $30 million to $2 billion in annual revenue, he said.
“SourceDay’s software is well-timed with the rapidly increasing demand for solutions that digitize the supply chain,” Morgan Flager, General Partner with Silverton Partners, said in a news release. “We see direct spend purchasing and procurement as areas ready for improvement. Also, we are seeing expanding interest in SourceDay as awareness of this ideal automation solution expands across the industry.”
SourceDay’s software as a service model automates and provides standards to the entire procurement process for manufacturers. It automates purchase orders, invoices, and more in a centralized cloud-based application. As a result, SourceDay significantly reduces cost, accelerates operational performance and diminishes the risk to the supply chain, Kieley said.