Archive for January, 2010
Thursday, January 14th, 2010
Definitions are often tied to the concept of a set of parts or elements which have relationships among them differentiated from relationships with other elements outside the relational regime.
So how does one define a complex e-negotiation event? On the surface it may be an event with a large number of line items within a particular product set such as generic drugs in the retail space or raw materials used to manufacture components that require special handling, shipping and standards adherence.
This author would suggest that any event including multiple line items each with different specifications, order quantities, delivery locations, multiple suppliers not bidding on each line item, a split award of business and the size of the spend qualifies as a complex event. Adding to the complexity may be the overall strategy required when sourcing the right mix of suppliers to compress pricing properly and drive early and consistent bid activity…
The above example would qualify as organized complexity where there is a non-random, or correlated, interaction between most of the parts. In order to support complex events, your supplier needs to have an understanding of the specific market place and practices and processes in place that allow these activities t bring complex events to market in the shortest period of time. Generally this should occur within less than two weeks from event notification to event completion.
In a two part post from October of 2008, this author tried to define the relative complexity of the retail environment and its potential impact on the use of e-procurement tools. Specifically we identified the following areas of interlocking complexity.
1. Supply Chain complexity.
2. Rate of change in the global supply chain.
3. Long term inherited supplier relationships.
4. Lack of retail procurement staff.
5. Lack of time.
6. Multiple sources of supply.
7. Limited view of new sources of supply.
8. Confusion as to who’s the customer and who’s the supplier
Being comfortable that your solution provider understands your market place and has a well defined process for hosting Complex e-negotiation events insures that they are not difficult to host.
We appreciate and look forward to your comments.
Posted in B2b Reverse Auction, E-procurement, E-procurement Solutions, E-procurement Tools, Online Procurement, Online Reverse Auction, Procurement Auctioning
Wednesday, January 13th, 2010
ISO has published a new, updated brochure providing a basic introduction, as its title indicates, to Environmental management – The ISO 14000 family of International Standards. The 12-page, color brochure is the latest edition of a successful publication first released in 1998, two years after the launching of the first standards in the ISO 14000 family
The International Organization for Standardization widely known as ISO, is an international standard -setting body composed of representatives from various national standards organizations. Founded on February 23, 1947, the organization promulgates world-wide industrial and commercial standards. It is headquartered in Geneva, Switzerland. While ISO defines itself as a non – governmental, its ability to set standards that often become law, either through treaties or national standards makes it more powerful than most non-governmental organizations. In practice, ISO acts as a consortium with strong links to governments.
The SafeSourceIt™ Supplier Database holds it suppliers accountable to many ISO standards including 14000, 7002, 9001 and 22000.
We look forward to and appreciate your comments.
Posted in E-supply Chain, Procurement Tool, Retail Supply Chain, Sourcing Safe Foods
Tuesday, January 12th, 2010
Primary success in e-procurement programs such as reverse auctions of which there are many types is in many cases measured by cost reductions. That’s because within a budget period they drop directly to a company’s bottom line plus or minus some switching costs. On more than one occasion I have heard; “did we hit a home run?” Less emphasis seems to be placed on cost avoidance in an up market and creating a sustainable process. This often results in less spend be assigned to these very effective tools then should be.
In order to ensure that results are sustainable; the strategies for all targeted e-procurement categories require consistent deployment across all departments throughout the host company. This is accomplished by utilizing a well planned repeatable process for category selection and discovery, supplier selection, and a solid strategy that is well understood by all buyers and category managers for negotiation and the award of business process.
Supplier selection and management is a critical stage that requires the understanding and participation of all sourcing professionals within an organization. One small mistake by anyone within the procurement or supply chain organization could negatively impact the potential results of an e-procurement event. Historical long term relationships that drive behind the scene comments like; “don’t worry we’ll be fine” to a long term supplier may drive inappropriate bid behavior and lack of ongoing credibility with your program. Not to mention the potential legal implications.
If you are not having the results you would like to or have less than twenty percent your total corporate spend assigned to e-procurement tool’s that are offered in the form of Software as a Service or cloud computing, ask your provider why?
We appreciate and look forward to your comments
Posted in B2b Reverse Auction, B2b Supply Chain, E-procurement, E-procurement Solutions, E-procurement Tools, E-supply Chain, Eprocurement Auction, Online Reverse Auction, Procurement Auctioning
Monday, January 11th, 2010
From mid tier one retailers on down the use of reverse auctions has been very limited since their inception at the end of the 1990’s. The reason is because there was very little focus on the retail segment and the tools were also very difficult to use and expensive. If retailer’s think a tool is so complicated that they can not do it themselves, they won’t use them.
We are seeing a small uptick in e-negotiation tools in retail and this author believes that some of the following quotes from the folks watching a reverse auction last week may be the reason why.
1. “This was pretty simple to do”
2. “If we hired someone we could do these ourselves with you guys”
3. “This is fun”
4. “You mean the reports are already available”
5. “I love the sports concept”
6. “It was easy to follow the marquis and what was going on from one screen”
7. “The multiple color schemes were great”
8. “I can’t believe how fast you guys set this up”
9. “We saved that much money and only have to pay what we discussed”
10. “Can we do another one today”
11. “I may get a promotion out of this”
12. “I love that calculator at the end of the bid process”
13. “I like all of the supplier data that was accessible during the auction”
14. “Now I know how the big guys get the pricing they do”
So what does this all mean for retail procurement professionals? It means that today’s tools are easier to use, more interactive, maintain your attention during an auction, integrate gaming technology to keep it fun and are lower cost than their predecessors.
This all adds up to a focus on retailers entire spend both indirect and direct as well resulting in increased utilization by middle market and large retailers alike.
If you would like to have fun, save money and do it quickly, please visit us at www.safesoucing.com.
We look forward to and appreciate your comments.
Posted in B2b Reverse Auction, E-procurement, E-procurement Solutions, Online Reverse Auction, Retail Supply Chain, Reverse Auction, Reverse Auction Procurement
Friday, January 8th, 2010
For over ten years, the nonprofit Center for Resources (CRS) has developed and implemented consumer-protection standards for the voluntary renewable energy market through the Green-e program.
What is Green-e? Green-e is the nation’s leading independent consumer protection program for the sale of renewable energy and greenhouse gas reductions in the retail market. Green-e offers certification and verification of renewable energy and greenhouse gas mitigation products. It is a program of the Center for Resource Solutions.
Green-e Energy certifies renewable energy products sold to residential, commercial, industrial and wholesale customers. Certification services are available to all companies selling renewable energy. The process to get a renewable energy product certified varies depending on the type of product seeking certification, based on the following two categories of companies offering renewable energy products.
Ask your procurement solutions provider if they can tell you what companies carry this certification. SafeSourcing can.
We look forward to and appreciate your comments.
Posted in B2b Supply Chain, E-procurement Tools, Green eProcurement Practices, Retail Supply Chain, Sourcing Strategy
Thursday, January 7th, 2010
According to the Humane Farm Animal Care website over 10 billion animals raised for food in the U.S. annually endure inhumane treatment. Most are confined such that they can’t behave normally. Chickens can’t flap their wings or move. Pigs can’t turn around. Crowding and stress from these conditions compromise animals’ immune systems. They must ingest antibiotics regularly to prevent disease. Further, the current system of factory farms causes problems for the people involved, the environment, and consumers, as well as for the animals.
According to Humane Farm Animal Care the impact extends beyond the animals. Overuse of antibiotics in animals is causing more strains of drug-resistant bacteria. The Institute of Medicine at the National Academy of Sciences estimated the annual cost of treating antibiotic-resistant infections in the U.S. at $30 billion.
What can retail buyers do? Look for and buy products labeled Certified Humane Raised and Handled® and encourage the suppliers of your favorite food brands to become certified and to use Certified Humane Raised and Handled® ingredients in their products.
The SafeSourceIt™ Retail Supplier Database contains all suppliers that are Certified Humane Raised & Handled and we encourage others to follow this model.
We look forward to and appreciate your comments.
Posted in B2b Supply Chain, E-supply Chain, Green eProcurement Practices, Retail Supply Chain, Sourcing Safe Foods
Wednesday, January 6th, 2010
At Safesourcing, Green Seal is one of the supplier certifications we monitor in support of our customers Corporate Social Responsibility initiatives.
Green Seal Certification ensures that a product meets rigorous, science-based environmental leadership standards. This gives manufacturers the assurance to back up their claims and purchasers confidence that certified products are better for human health and the environment
Founded in 1989, Green Seal provides science-based environmental certification standards that are credible, transparent, and essential in an increasingly educated and competitive marketplace. Their industry knowledge and standards help manufacturers, purchasers, and end users alike make responsible choices that positively impact business behavior and improve quality of life
Green Seal works with manufacturers, industry sectors, purchasing groups and governments at all levels to “green” the production and purchasing chain. We utilize a life-cycle approach, which means we evaluate a product or service beginning with material extraction, continuing with manufacturing and use, and ending with recycling and disposal.
To learn more about environmentally focused procurement programs please visit www.safesourcing.com.
We look forward to and appreciate your comments.
Posted in Green eProcurement Practices, Reverse Auction Procurement, Supply Chain Procurement
Tuesday, January 5th, 2010
At SafeSourcing we check our suppliers for their safety and environmental certifications. NSF is among the standards that we look for to ensure a suppliers engagement in sustainable initiatives.
NSF International, The Public Health and Safety Company™, a not-for-profit, non-governmental organization, is the world leader in standards development, product certification, education, and risk-management for public health and safety. For 65 years, NSF has been committed to public health, safety, and protection of the environment. While focusing on food, water, indoor air, and the environment, NSF develops national standards
According to NSF businesses interested in growing sustainability can improve total business results. NSF sustainable business solutions add credibility, cost savings, and long-term value to a company’s sustainability program.
If you want to learn more about SafeSourcing and our initiatives to support sustainability and product safety please visit our website.
We look forward to and appreaciate your comments.
Posted in B2b Supply Chain, E-supply Chain
Monday, January 4th, 2010
Fair Trade Certification Overview:
The Fair Trade Certified™ label guarantees consumers that strict economic, social and environmental criteria were met in the production and trade of an agricultural product. Fair Trade Certification is currently available in the U.S. for coffee, tea and herbs, cocoa and chocolate, fresh fruit, flowers, sugar, rice, and vanilla. TransFair USA licenses companies to display the Fair Trade Certified label on products that meet strict international Fair Trade standards.
Fair Trade Certification empowers farmers and farm workers to lift themselves out of poverty by investing in their farms and communities, protecting the environment, and developing the business skills necessary to compete in the global marketplace.
Fair Trade principles include:
• Fair prices:
• Fair labor conditions:
• Direct trade:
• Democratic and transparent organizations:
• Community development:
• Environmental sustainability
If you are a supplier, do the right thing and get certified.
We look forward to and appreciate your comments.
Posted in Product Procurement, Sourcing Safe Foods, Uncategorized
Friday, January 1st, 2010
History shows that in selected categories, buyers have saved as much as 30-40% with SafeSourcing’s e-procurement services. Studies indicate that a 5% saving in procurement costs translates into an effective increase in sales growth of 30%.
Our SafeSourceIt™ North American Retail supplier database of over 350,000 suppliers contains more than twenty-five unique certification standards that are supported by our best practice initiatives such as GFSI, ISO 22000, Green Seal, ECO-LOGO, Fair Trade, SQF and Certified Humane Raised & Hand-Fed.
SafeSourcing is committed to proactively supporting safety and environmental standards in the global supply chain. We donate 10% of our net profits to retail education and green and safety initiatives as mandated by our customers.
To simplify your procurement process and reduce your procurement costs throughout 2010, contact SafeSourcing! We look forward to assisting you!
Thank you for all of your support in 2009. We look forward to and appreciate your comments.
Posted in E-procurement, E-supply Chain
