As a follow up yesterdays post, the next question was; what is the benefit of a large retail supplier database?

May 6th, 2010

If used properly a large retail supplier database like SafeSourceIt™ provides Retailers with readily accessible data that supports growing their spend with reverse auctions?

Retailers 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 suppliers.

There is a proper way to insure the sustainability of your reverse auctions going forward.  Since you have already conducted or should have conducted your detailed discovery and analysis a robust retail supplier database will allow you to do the following.

1. Conduct a detailed supplier discovery
a. Rank suppliers
i. Size
ii. Experience
iii. References
iv. Environmental certifications
v. Safety Certifications
2. Develop a three year supplier game plan
a. Develop a three year time line  for all categories
b. Identify suppliers for each event over the three years
c. Develop a three year rotation schedule for the selected suppliers.
3. Role Play internally  each year for a test category
a. Ask the following questions
i. Who will you invite and why
ii. Keep in mind the unique benefits of distributors and manufacturers
iii. Discuss award the business strategies
iv. Review alternate scenarios
v. Review impact on non awarded suppliers
vi. Determine which suppliers will be invited back
vii. Determine what new suppliers from your database search will be invited next year

If you only have the same list you originally used to conduct your historical events, don’t expect savings the 2nd and 3rd time around if market conditions are similar. Or, you could call Safesourcing.

We look forward to and appreciate your comments.

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