Prices going up or cannot get enough Product to satisfy demand?

June 3rd, 2020

What is the benefit of a large global supplier database?

 

Todays post is by Ron Southard, CEO at SafeSourcing Inc.

If used properly a large supplier database like SafeSourceIt™ Global Supplier Database provides companies with   readily accessible data that supports growing their spend with e-procurement tools

Companies should have continuing success when running prior e-procurement events over again, one area of commonality that has historically made this difficult is a lack of new sources of supply.

There is a proper way to ensure the sustainability of your eSourcing events such as RFI’s RFP’s and RFQ’s or Reverse auctions going forward. Since you have already conducted or should have conducted a detailed discovery the 1st time around a robust supplier database like the SafeSourceIt™ Global Supplier Database Query Tool with over 500,000 supplier companies will allow you to do the following based on up to date vetted data.

  • Conduct a detailed supplier discovery
    • Rank the suppliers
    • By Size
    • By Experience
    • By References
    • By Environmental certifications
    • By Safety Certifications
    • By Location
  • Develop a three-year supplier game plan
    • Identify suppliers for each category over the sourcing horizon
    • Develop a three-year supplier rotation bidding schedule
  • Ask the following questions
    • What suppliers will I invite and why
    • Keep in mind the unique benefits of distributors vs. manufacturers
    • Discuss potential award of business strategies

If you don’t have a reliable new source of supplier information and only use the same suppliers that you originally used to conduct your category sourcing events, don’t expect continuing savings as you really don’t have the appropriate leverage points. If you don’t know where to access this type of data, please contact SafeSourcing.

We look forward to and appreciate your comments.

 

What precautions should we take when driving in order to help prevent the spread of COVID-19

June 2nd, 2020

If you are looking to purchase any protective personal equipment and would like help researching available options, contact SafeSourcing.

 

Today’s post is by Troy Lowe; Vice President of Development at SafeSourcing.

When you are out driving to work and running errands you might be thinking about what you should be doing to prevent the spread of COVID-19 within your vehicle. Should you be wearing gloves, maybe wearing a mask, or keep the widows rolled up to prevent the entry of the virus. Well according to the Centers for Disease Control and Prevention (CDC) you should be doing this one thing to protect yourself. Make sure that you crack the windows of the vehicle to ensure fresh air is entering the vehicles cabin. Because this is an airborne virus you would think that leaving the windows closed would help contaminated air from entering the vehicle. But according to the CDC it is just the opposite.   By improving the ventilation within your vehicle, it will help reduce the risk of transmission. Studies have found that closed environments are around 18 times greater than open air environments. So the more fresh air that you let in the better it will be for the enclosed environment because it will help prevent contaminated particles on the surfaces of your vehicle from entering your mouth, nose or eyes. When you keep the widows closed, the particles are trapped within the cabin and each time someone coughs the particles build up. By just cracking one window approximately 3 inches can keep the interior well ventilated. The CDC also says that it is safe to run the vehicle’s air conditioning as long as you set it to non-recirculation mode. When this setting is on, the system does not recirculate the interior air but pulls in air from outside of the vehicle. Below are some other precautions you can take to keep your vehicle safe.

  • Keep windows cracked or open between drives.
  • Be extra careful of what you are touching when filling up.
  • Wash or disinfect your hands before touching the interior.
  • Limit the number of passengers.
  • Disinfect high touch areas frequently.

If you are looking to purchase any protective personal equipment and would like help researching available options, feel free to contact SafeSourcing.   We can gather all the necessary information for you and help you decide which one meets your needs. If you would like more information on how SafeSourcing can help you, please contact a SafeSourcing Customer Service representative.  We have an entire team ready to assist you today.

 

 

 

When do Price Increases Become Price Gouging?

June 1st, 2020

Whether it is price gouging or not, price increases are an unwelcome trend right now.

 

 

Today’s post is by Dave Wenig, Senior Vice President of Sales and Services at SafeSourcing.

At this point in time, we’re well into the pandemic. States are reopening and business are working hard to get back to normal, including deciding what normal means now. Clearly, the COVID-19 pandemic has had, and will continue to have, wide-reaching effects on the economy. Which brings me to price gouging. Rather than looking at this from a legal perspective which will vary, I would like to pose a question from a more personal perspective. At what point do you feel a price increase has become price gouging.

Just for reference, SafeSourcing’s own Wiki defines price gouging as follows. “Price gouging occurs when a business increases the cost of their offering by an unreasonable amount. While price increases can occur at any time without being considered price gouging, these should generally not exceed around 20%. State laws may dictate the amount of the increase and other considerations in determining whether a price increase constitutes price gouging. Excessive price increases aimed at taking advantage of an emergency situation during times of emergency may be deemed to be price gouging, especially if competitive prices are significantly lower.”

Recently, many of our customers are being handed price increases for mission critical supplies that they need to operate, especially during the current pandemic. Supplies like gloves and other safety supplies are prime targets for these price increases. Some price increases have been observed at nearly 400%. Do you think that is price gouging? I do.

If we use competitors’ prices as a test of whether price gouging has occurred, then it certainly has. Fortunately, SafeSourcing is able to do what many companies simply cannot do on their own. SafeSourcing can challenge price increases in real time via our online RFQ tools and our vast global supplier database. That means that if one of our customers receives a price increase that they suspect is unfair, we can leverage our tools and process to attempt to achieve cost avoidance and to put a stop to price gouging as it happens.

Price increases aren’t always price gouging. We need to be more diligent than ever in managing price increases to avoid being taken advantage of. Now is not the time for our supplier partners to reap enormous margins while so many businesses are struggling to stay open.

Have you seen large price increases, let’s talk about it. If you would like more information on how SafeSourcing can help you, please contact a SafeSourcing Customer Service representative.  We have an entire team ready to assist you today.

Are your nervous heading back to work?

May 29th, 2020

Should I wear a mask?

 

 

Today’s post is by Troy Lowe; Vice President of Development at SafeSourcing.

With states starting to allow the opening of businesses and other activities, there is a debate on whether or not you should wear a mask when in public. This, of course, only means if you are in public and around other people. If you are in an open area and are not within 6 feet of other people, then no mask should be required to stop or spread of the infection. If you are entering a business or other area where people are close together, then they recommend that you wear a mask to help prevent the spread. Experts are now saying that wearing a mask may not prevent you from getting the virus but may help keep you from spreading it to other people if you do not know you are infected.

Wearing a mask can be very constrictive to some people and sparks the debate to whether or not wearing a mask does anything to help protect those around us. This is something that I struggled with when deciding if I should or should not wear a mask because of advice I have been given in the past. My wife became ill last fall and is still seeking treatment and recovering. When she was diagnosed it was the start of flu season so we asked several of her doctors if she should wear a mask when in public. Because of her weakened immune system, we were very concerned of her catching the flu and it leading to other major health problems. Several doctors told us that she did not have to wear the mask because studies have shown that wearing a mask does little to help you from catching the flu. Because of this advice, she did not wear a mask through the fall or winter. But now, after listening to both sides over the last few weeks, we have decided that we are going to wear the masks. If wearing the masks can help spread the disease to even one person we feel it is the right thing to do.

If you are looking to purchase any protective personal equipment and would like help researching available options, feel free to contact SafeSourcing.   We can gather all the necessary information for you and help you decide which one meets your needs. . If you would like more information on how SafeSourcing can help you, please contact a SafeSourcing Customer Service representative.  We have an entire team ready to assist you today.

 

 

 

 

 

Should we venture out to the newly opened businesses?

May 28th, 2020

If you are looking to purchase any protective personal equipment and would like help researching available options, feel free to contact SafeSourcing.

 

 

Today’s post is by Troy Lowe; Vice President of Development at SafeSourcing.

With all of the restrictions put in place due to the COVID outbreak, we have been taking drives in the evening to get a change of scenery. It has been weird driving around and seeing way less traffic and all of the abandoned restaurants and businesses. Taking these long drives has been getting us out of the house but it hasn’t taken our minds off of all the problems that exist. But recently our state has started to remove some of the restrictions and now taking these evening drives has become very refreshing. We live around a few small towns and as we drive through them now we are seeing people walking and enjoying themselves as they frequent the local shops. Some of the smaller downtowns are blocking off the side streets and installing tables so that people can buy food from the local shops and eat outside. It’s just refreshing to see that things are starting to look a little more normal. With that being said, I’m not sure when we will be partaking in all of the activities. I think that we will be waiting about another a month or so to see if these new rules on the restriction are affecting the number of infections. If the numbers keep going down, then we will start to venture out into places with larger groups. Maybe take baby steps like eating out at places that have large outdoor patios where there is a lot of air circulating to maybe reduce the risk of infection. Until then we will probably still restrict where we go and don our masks accordingly. If you are planning to go out, have fun and stay safe!

If you are looking to purchase any protective personal equipment and would like help researching available options, feel free to contact SafeSourcing.   We can gather all the necessary information for you and help you decide which one meets your needs. If you would like more information on how SafeSourcing can help you, please contact a SafeSourcing Customer Service representative.  We have an entire team ready to assist you today.

 

 

 

What does “reducing expenses” mean to you?

May 27th, 2020

These days more companies are saying that they are focused on expenses. Is this just more talking points?

 

 

These days more companies are saying that they are focused on expenses, but what exactly does that mean?

Today’s post is by Dave Wenig, Senior Vice President of Sales and Services at SafeSourcing.

At SafeSourcing, we’re always focused on expenses. Helping our customers manage their expenses and reduce costs is in our DNA. It’s fair to say that nearly every organization we work with also has some degree of their focus placed on expense management too. The degree to which this is true varies, but expenses are usually an area of at least some focus.

These days, the level of focus on expense management and reduction seems to be higher. At least, that’s what we are hearing. We hear several times a day from many organizations that they are really focused on expenses right now. But what does that mean and what are you actually doing about it?

There are certainly many ways that one might decide tackle expense reduction. There are some very severe measures like furloughs and layoffs that, while effective in reducing expenses, have some other wide-reaching negative side effects on your business. There are some more temporary measures that can be taken such as freezing spending in certain areas. This can also be effective in the near-term, but this too has negative consequences.

In these times, measures such as these are being considered and implemented regularly. We see it in the news and we hear it in conversation.

There is another way to manage and reduce expenses, of course. Our readers already know that SafeSourcing reduces costs for our customers while maintaining current specifications and service levels and the cost reductions are not temporary. On average, we deliver over 24% cost reduction across all spend categories. That means that if you work with SafeSourcing to reduce your expenses, the reduction scales as you go. If you source $100,000 using our services, your new expense may be around $75,000 after working with us. If you source $10,000,000 using our services, your new expenses may be around $7,500,000.

Plus, working with SafeSourcing also means you get to hand off the hard work of finding vendors and negotiating new rates which can be very time consuming, especially if you’ve already reduced headcount.

I thought it was a good time to share a reminder that there are options if expense reduction is your new priority.

What does “reducing expenses” mean to you?

If you would like more information on how SafeSourcing can help you, please contact a SafeSourcing Customer Service representative.  We have an entire team ready to assist you today.

 

 

 

 

Getting Back

May 21st, 2020

Many places are reopening, but what does that mean?

 

Today’s blog is by Margaret Stewart, Director of HR and Administration at SafeSourcing Inc.

Many places and businesses are beginning to reopen after closures from the Covid-19 pandemic. From retailers and salons, to gyms and daycares, many people are planning on getting back, but what does that really mean? The concern over the virus is still present, so in order to even open doors, numerous precautions must be taken.

First, employees must be given masks. There has and still is a shortage of masks that effectively protect people from the virus. There must be enough masks for every employee, which means any business will need to have a supply already. Right now, you can use your procurement partner for help in sourcing the masks you will need to get your business on its way to reopening.

Next, the places where employees are working must be cleaned, thoroughly and often. This means common areas must be disinfected. This likely means a hefty supply of sanitizer and cleaners will be needed and must be available before reopening. Again, your procurement partner can help you source the supplies you need and help find the right supplier for your needs.

Finally, getting back to work will require social distancing. For many, this is especially difficult. For example, restaurants will need to move tables apart, often 6 feet or more, which can reduce the number of tables that can fit in a dining area. This can reduce the number of people seated at a time and can greatly reduce the amount of business. Other businesses will have to make other adjustments, like separating cubicles, reorganizing stores to make aisles wider, and reducing the number of employees in the business at one time. Some businesses may bypass the social distancing altogether and have their employees continue working from home indefinitely.

While it may take some preparation and getting used to, businesses will reopen and things will get back to regular routines. This is where you may rely on others to get through this. A procurement partner, like SafeSourcing, can help your organization find the suppliers of supplies you will need to get things back up and running. They are ready to help and have the experience you might need during difficult times like this.

For more information on how SafeSourcing can help your procurement efforts, or on our Risk

Free trial program, please contact a SafeSourcing Customer Service Representative. We have an entire team ready to assist you today.

 

 

Revisiting Your Supply Chain

May 19th, 2020

If COVID-19 has disrupted your business, or you're doing better than ever, NOW is the time to revisit your supply chain.

 

 

Today’s post is by Dave Wenig, Senior Vice President of Sales and Services at SafeSourcing.

Many companies have had to make significant changes as a result of the COVID-19 pandemic. The reality is in many cases, businesses have faced the reality that it will be a long time before they are able to get back to where they were at the end of 2019. Whether your company relies on a global or domestic supply chain, it is very likely that some of the vendors that you rely on have faced challenges.

Now more than ever, it is important to revisit your supply chain and be certain that you will have the supplies you need to operate under your new conditions. As part of that effort, it is time to consider whether your previous agreements are still appropriate. For example, you might find that you only expect to do a fraction of the business that you used to. That will mean that you might not be able to meet your previously agreed volume commitments with your vendors. Conversely, you might find that your business now has need for in-demand supply items that you didn’t need before. Many are also under increased pressure to reduce costs as well.

Regardless of your specific situation, the reality is that now is the time to fully assess your needs and to negotiate all aspects of your supply chain which may include renegotiating existing agreements early in light of the new realities.

Whether or not you are currently having challenges with your existing supply chain, this exercise is valuable. In recent online procurement events for customers we have found that many vendors are eager to earn new business and will happily rise to the occasion to be a primary or secondary source of supply. In uncertain times, having your pick between sources of supply might just make the difference in the event of a supply chain interruption caused by COVID-19.

At SafeSourcing, we typically tout the cost savings aspects of our eProcurement services. In this case, our customers have the added benefit of attaining both the cost savings and the added security that comes from ensuring your supply chain is strong.

Stay safe and don’t be shy if you need assistance. We’re all in this together. If you would like more information on how SafeSourcing can help you, please contact a SafeSourcing Customer Service representative.  We have an entire team ready to assist you today.

 

 

During a Pandemic like COVID-19, Is there benefit to a large retail supplier database?

May 15th, 2020

Maybe your current supplier can't handle your volume any more. What you don't need is the yellow pages!

 

Todays simple post is from Ron Southard, CEO at SafeSourcing Inc

Maybe you’re looking for KN95 face masks, gloves or other medical safety equipment. Do you know all of the off shore suppliers and how to contact them? We do!

Maybe your current supplier can’t handle your volume any more because of the Pandemic! Where do you look.

Once you are armed with a robust Global Supplier Database such as  SafeSourcing’s  SafeSourceIt™ Global Supplier Database  and it’s easy to use query tool.

If you need assistance, just contact us at 1-888-261-9070 or  marketing@safesourcing.com.

We’re here to help!

Going Bananas!

May 14th, 2020

Banana Bread is the Official Baked Good During COVID19

 

 

Today’s blog is by Gayl Southard, Administrative Assistant it SafeSourcing.

Banana bread has become the unofficial baked good of COVID-19. It seems like everyone is making it. Google searches surged the week of March 15—right after the federal government announced a state of emergency due to COVID-19, and the first week many people were staying at home full-time because of social distancing. Pinterest shows a similar surge in user interest for banana bread recipes starting on March 24. Views of all banana bread recipes surpassed 1 million just in the week of March 29 through April 4. But the question remains: Why did banana bread in particular become the baking status symbol?

This is not the first time in history when people turned to banana bread. Food historian Sarah Wassberg Johnson says that the first time anyone made banana bread was likely during the Great Depression. This was another time of extreme economic and social hardship for most Americans. It was thought a housewife had some bananas that were going bad and decided to try and make bread out of it. The ingredients are cheap, bananas are easy to find regardless of the season. Bananas are easy to work with because they are soft. Banana bread doesn’t require proofing, kneading, or rolling. It’s an easy recipe for a novice.

“Fast forward to today, and pandemic aside, there are some pretty clear parallels between the Great Depression and now. Twenty-two million Americans have filed for unemployment in the past four weeks, and the International Monetary Fund (IMF) predicts that the current global recession will be more severe than both the Global Financial Crisis of 2009 and the Great Depression. Yet to Johnson’s point, banana bread ingredients—eggs, flour or alt-flour, eggs, etc.—are still cheap and relatively easy to find, making it friendly to a variety of budgets. (In March 2020, the average price per pound of fresh bananas was $0.58.)”1

For more information on how SafeSourcing can help your procurement efforts, or on our Risk

Free trial program, please contact a SafeSourcing Customer Service Representative. We have an entire team ready to assist you today.

References….…………….

1 Emily Laurence, Healthy Cooking, 4/16/2020