Afternoon Coffee: SourceDay raises $12.5 million; Amazon Shipping to stop third-party deliveries; U.S. dairy farmers dumping milk

SourceDay has announced that it has closed $12.5 million in Series B funding. The investment is led by Baird Capital, a new investor who will gain a seat on SourceDay’s board, and additional participation includes Series A investors Silverton Partners, ATX Ventures and Draper Associates, the company said in a press release.

SourceDay, a provider of supplier collaboration solutions that focus on direct spend, will use this funding to mitigate supply chain risk during the COVID-19 pandemic and prepare customers for the eventual market rebound.

“The COVID-19 pandemic is exposing the ways that outdated supply chain practices make manufacturers vulnerable,” SourceDay CEO Tom Kieley said in a press release. “I’m excited to add Baird Capital to our team of investors. Baird’s experience with leading SaaS companies and its relationships across the manufacturing sector will help SourceDay achieve our mission to make companies less vulnerable to current supply chain disruptions and to all kids of shifts in demand.”

This round of investment is expected to fund the company’s product and go-to-market strategy, including updated collaboration tools and reporting solutions using new machine learning and predictive analytics processes, the press release said. SourceDay also said it plans to expand its catalog of free SaaS solution providers and distribution partners.

Amazon Shipping to be suspended

In a move that begins in June, will pause Amazon Shipping, its delivery service for non-Amazon parcels that directly competes with UPS and FedEx, according to The Wall Street Journal.

Amazon is suspending the service because it needs people and capacity to handle a surge in orders from Amazon warehouses due to the coronavirus, the article said.

The Journal reviewed an Amazon note to shippers that said: “We understand this is a change to your business, and we did not take this decision lightly. We will work with you over the next several weeks so there is as little disruption to your business as possible.”

Disruption in supply chain forces U.S. dairy farmers to dump milk

The coronavirus has led to major supply chain disruptions, leading to tons of fresh produce to be wasted in the U.S., according to an article on the World Economic Forum’s website.

For example, despite high demand, the Dairy Farmers of America has had to ask farmers to dump their milk. The disruption to supply chains means that farmers are unable to get their produce to market.

With most restaurants and schools closed across the country, dairy processing plants have been forced to focus almost exclusively on supplying retail grocery stores. Export markets are also suffering, since food-services around the world have shuttered in response to the COVID-19 outbreak.

Pandemic sees further decline in U.S.-bound port volumes

The COVID-19 pandemic has negatively affected U.S. port volumes, the website Logistics Management said. The Port Tracker report, issued by the National Retail Federation (NRF) and maritime consultancy Hackett Associates, said volumes for major United States-based retail container ports were on the decline.

The Port Tracker report saw 1.51 million TEU (twenty-foot equivalent units) handled in February 2020, a 17% decline compared to January and an overall 6.8% annual decrease.

March is also expected to be slower than normal, with an estimated 1.27 million TEU. This would mark a 21.3% decrease for the month, which is the lowest volume since 1.21 TEU in February 2015, the website said.

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