Afternoon Coffee: SourceDay integration with Coupa; Uber and Lyft keep gig worker classification; Lean manufacturing and paper product supply chain

SourceDay announced a new integration with Coupa Software to improve supplier collaboration capabilities for purchase orders in the Coupa Business Spend Management (BSM) Platform.

Coupa certified SourceDay, known for its supplier collaboration software, to use its cloud-based platform.

Together, the companies hope to empower organizations around the world with visibility and control to spend smarter in their supply chain. They hope to create a unified supply chain planning and collaboration system across all suppliers.

SourceDay fits within the CoupaLink Certified Technology program, which enables software partners to build complementary solutions that easily connect into the Coupa platform. By moving all solutions under one roof, customers can optimize their business spend while reducing risk and third-party software integration.

“With the current economic climate, having increased control of your supply chain is more critical than ever,” Roger Goulart, Coupa’s senior vice president for business development, said in the press release. “We’re proud to integrate with SourceDay to give our customers even greater flexibility and choice of supplier network collaboration in order to grow and accelerate delivered value.”

California court rules ride-share companies can continue classifying drivers as contractors

A California court ruled that ride-share companies Uber and Lyft will not be required to immediately reclassify drivers as employees rather than independent contractors, according to CBS News.

A state judge issued an injunction ordering gig companies like Uber or Lyft to stop violating provisions of a California law, AB5, that has strict guidelines about when companies can classify workers as contractors.

Uber threatened last week to halt operations because it was going to have to “restructure” its business model. Lyft also threatened to halt operations in the state on Thursday, according to CBS News.

The new ruling allows companies to continue classifying drivers as contractors until the first hearing in the case, scheduled for Oct. 13. The upcoming hearing will likely be a huge decision on how the gig economy runs in the future.

"In this game of high stakes poker, we believe this is a smart move by Lyft with Uber, and the court ruling today was a major victory lap for both players," Dan Ives, an analyst, told CBS News.

Why stores can’t keep up with demand for paper towels

Months after the initial panic buying of home goods sparked by the COVID-19 disruption, many retailers still cannot keep their shelves stocked with paper towels, according to the Wall Street Journal.

The shortage is in large part because of a concept called "lean manufacturing," which companies have been using for years.

The idea behind lean manufacturing is to generate more profit by only manufacturing enough products to keep the supply chain moving, but not producing in excess, according to the article.

On average, 21% of household paper products were out of stock at U.S. stores in August. The article said the shortages likely will not abate any sooner because producers don’t plan on building more manufacturing capacity for production.

“The capacity to make paper towels is both very expensive and requires a very long lead time to build,” David Taylor, P&G’s CEO, told the Wall Street Journal. “You wouldn’t run a business at 30% or 40% extra capacity. The cost of that would not allow you to price in a way that meets customer needs.”

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