The importance of the single and getting on base!
Today’s post is by Dave Wenig, Vice President of Sales and Services at SafeSourcing, Inc.
This post is part 2 of Baseball Season and eProcurement series. In the last months post, Baseball Season and eProcurement Part 1 we discussed how at SafeSourcing we measure eProcurement success using baseball terminology as our customers watch their online Request for Quote (RFQ) Events.
Today’s post will focus on the importance of getting on base with a Single. At SafeSourcing, we define a Single as an RFQ Event that has savings of at least 5%, but less than 10%. In future installments of this series, we’ll focus on Doubles, Triples, Home Runs, and Grand Slams. It’s too easy to say that the goal of an RFQ Event should be a Home Run or a Grand Slam. After all, with an average savings percentage that is nearly a Grand Slam at 24.8%, it’s fair to expect big results.
As you probably know, base hits are very important in baseball and that holds true in eProcurement. For some categories including certain commodity items, a Single is actually a very significant win. For other categories, a single represents a last mile effort to drive out even more savings on a category that the customer has already done a reasonable job of negotiating without eProcurement.
In one recent example of a high spend category that had been negotiated by the customer pretty well before an RFQ Event, we attained a Single. This category was plastic bags and was a closely monitored category for this retailer. This was still a high-value win for the customer as it was a simple RFQ Event to prepare for and achieved immediate savings dollars representing hundreds of thousands in savings over the term of the award.
Another recent example of a Single achieved by a SafeSourcing customer was in an RFQ Event that included items like various pickles and peppers. In this example, the customer had been presented with a price increase. Despite the price increase, they were able to attain a 6.93% savings on the category. Considering that they were able to avoid the increase and then some. That is a solid base hit.
There are many results like these and there are interesting stories including great savings dollars behind each. In the next entry in this series, some examples of Doubles will be shared.
For more information, please contact SafeSourcing.