Archive for September, 2019

Sourcing Value and Private Label Products: Reboot

Wednesday, September 11th, 2019

 

Today’s post is from our SafeSourcing Archives

Three years ago the Wall Street Journal published an article about how the economy is forcing consumers to consider lower priced stores and goods to save money (Article Link).  Since that time major retailers such as Kroger’s have invested heavily into private label brands that consumers trust as much if not more than the National brands they used to buy.   Just announced in June were three brand new private label store brands from Kroger to bring in quality products at a lower price point.

In today’s blog we will be looking into some new areas of private label sourcing you might not have thought about previously.

Services – One of the areas that companies do not always think of for private label sourcing are services.  Many of these services deal directly with the design and marketing of the private label products themselves helping to develop campaigns for the retailer.  There are other services, however, such as Kosher services and product development services that can also be sourced.

Product Ingredients – In some cases the retailer manufactures or is considering manufacturing their own private label products and the raw materials needed for those products need to be sourced.  Flavorings, chemicals, fragrances, pharmaceutical ingredients and organic ingredients are just some of the items that can be sourced.

Supplies and Equipment – When it comes to private label products there are also unrelated equipment and supplies that are needed in order for the inventory to get to the consumer.  Advertising vehicles, pallets, shelving, signage, coolers and freezers, and doors and curtain systems are just a few of the many types of connected purchases which are necessary in order for private label products to be sold.

Not For Resale – This area of private label spend is growing larger every day as more retailers are beginning to offer food and/or beverages in their stores.  Towels, cups, bags, trays, paper products, and stretch wrap are all additional areas of private label products which can be sourced on a regular basis.

Whatever your private label Sourcing need is, the economy is quickly demanding that companies begin to pay more attention to the mix of products they source for their customers.  For assistance in sourcing these categories for your business, please contact a SafeSourcing Customer Service Representative.  

We look forward to your comments.

A Sourcing Diatribe you should read!

Wednesday, September 11th, 2019

 

 

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

Here’s the diatribe to tell you why they don’t.

Example: Your finance department in reviewing current costs looks at your waste management costs and discovers that they have gone up significantly over the last two years. They call your Category Manager (if you have one) in order to ask why? The answer they get back is that in discussions with your current vendor, their costs have gone up significantly. Your finance department representative asks for examples. The answer he/she gets, is as follows, “I don’t know, but I’ll reach out and ask”.

Alternative Example: Your finance department in reviewing current costs looks at your waste management costs and discovers that they have gone up significantly over the past two years. They call your Sourcing provider SafeSourcing Inc. (if they are) in order to ask why? The answer they get back is that in discussions with your current vendor, their costs have gone up significantly. Your finance department representative asks SafeSourcing for examples. The answer he/she receives is as follows.

There are several reasons. The first is that 2 years ago the Chinese were the largest importers of recycled materials, specifically plastics and papers. At the time they were importing approximately 15M metric tons. Today they are importing approximately 7M metric tons. This has gone from a revenue producing opportunity for suppliers to a cost. Additionally, there is a shortfall of drivers in the US that has caused demand for their skills to increase accordingly. As a result, all freight hauling focused companies have experienced a shortfall of drivers and an increase in costs for the drivers that they do hire.

Additionally, diesel prices in 2017 were lower than they are today. While these prices have eroded somewhat (about 6%) between 2018 to 2019, they are still not at the low levels they were in 2017. There are additional areas to also consider like new equipment that are also higher based on demand. Now can I provide you with a strategy as to how we (SafeSourcing) can mitigate these costs going forward and maybe even rain them in some?

I know all executives have had these types of frustrating conversations internally as well as with your suppliers. I also know that SafeSourcing regularly provides these types of answers and reviews across hundreds of categories for our customers. It is the precise reason that our average savings across all categories during the last 2 years is greater than 24%.

While the above is a specific example, what can you tell me about your freight costs, supplies costs, commodity costs, construction costs, equipment costs, items for resale costs etc. Probably not as much as SafeSourcing can tell you. Give us a call and find out.

For more information regarding SafeSourcing and how we can help you with your sourcing, or regarding our Risk Free Trial Programplease contact a SafeSourcing Customer Service representative, you’ll be glad you did! We have an entire team ready to assist you today.

We look forward to and appreciate your comments.

Paper Towels vs. Hot Air Blowers

Tuesday, September 10th, 2019

 

 

Today’s post is by Gayl Southard, Administrative Consultant at SafeSourcing, Inc.

While traveling this past summer, almost without exception, all the public restrooms I used had hot air blowers instead of paper towels. I wondered which was the better option.

Some of the basic differences are:

    1. Hand dryers create less waste. A big complaint for many companies are paper towels have to be cleaned up, some people flush them creating plumbing expenses, and the cost of the paper towel averages about 1 cent per sheet (the the average person uses 2.5 sheets to dry their hands) compared to .02-1.8 cents of electricity used with a hand dryer.
    2. Hand dryers create much less waste than paper towels. Many companies complain they have to cleanup paper towels that can be all over the floors of restrooms. Someone has to be responsible to bag them, cart them to a dumpster, and then the expense to have to take to them to a landfill. It is easy to see why the hand dryer seems to be the better choice here.
    3. Some people believe a hand dryer just circulates bacteria in the air. A hand dryer should be cleaned every year (and more often if in a heavy use environments) to remove built up dust. A high-speed dryer is better in this regard as the forced air keeps them cleaner. There is a hand dryer that contIns anti-microbial compounds imbedded in the paint and plastic components that minimize bacteria growth.
    4. “A 2012 systematic review found that paper towels dry hands more quickly and more thoroughly than air dryers.”1. Where hygiene is paramount such as hospitals and clinics, paper towels should be recommended.
    5. Air dryers allow only one user at a time. A user can take a full minute to dry their hands. This can lead people to avoid drying their hands. A study revealed some people only took 22.5 seconds to dry their hands, and 41% of people left the washroom drying their hands on their clothing. Wet hands spread bacteria much more effectively than dry hands. The bottom line here is that paper towels dry hand more effectively and people use them more. With a hand dryer, people incompletely dry their hands, or not at all.
    6. If your goal is to reduce your carbon footprint, than air dryers are the way to go. If you want to maximize customer service, most people prefer paper towels. “If, however, your primary goal is hygiene, which is the case in hospitals and other healthcare settings, then paper towels are the current clear winner. They dry hands faster, more completely, and minimize the spread of bacteria to the environment and cross contamination.”2

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.

References……………………………………………………………………………

1 https://www.restroomdirect.com/hand-dryers-vspaper-towels.aspx

2.https://science based medicine.org/air-dryers-vs-paper-towels/

 

 

Disaster Recovery

Wednesday, September 4th, 2019

 

Today’s post is written by Ivy Ray, Account Manager at SafeSourcing Inc.

Dorian reminds us that  hurricane season is still here,  meteorologists indicate there  three more potential storms are lined up right behind her.  There are areas that are still in recovery from the last  several seasons.

We can’t fight the forces of nature, but we can be prepared as we enter the hurricane season.  Safety is the initial concern during a weather disaster, but the residual damages can be far reaching. Whether the damages are resulting from hurricanes, wildfires, earthquakes, tornadoes, or blizzards, it could greatly affect business operations.   An event that disrupts your business could actually put you out of business if you don’t have a plan in place. Your organization may not be directly affected by such an event, but your key suppliers and vendors could be.

A disaster recovery plan is essential to keeping your organization running in the case of a natural disaster. It is a good idea to utilize the National Weather Service’s national preparedness calendar as a guide for year-round reminders to identify potential disasters and review your organization’s disaster recovery plan.

Some questions that an organization should keep in mind are:

  • How will your data be affected?
  • Do you have remote systems in place?
  • Do you have backup vendors?
  • Is there a secure alternate operations site?

Disaster recovery involves a set of policies, tools and procedures to enable the recovery or continuation of vital technology infrastructure and systems following a natural or human-induced disaster.  It’s not enough to have the procedures in place; you need to know what’s in the plans to be able to execute them when the time comes.  Have a plan and be ready for action, but most of all be safe!

For more information on how SafeSourcing can assist you in exploring your procurement solutions for your business or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative.  We have an entire customer services team waiting to assist you today.

We look forward to your comments.

 

References ————————————————————————————–

  1. http://fortune.com/2018/05/14/2018-hurricane-season-forecast-possible-tropical-storm-in-gulf/
  2. https://weather.com/storms/hurricane/news/2018-04-19-2018-hurricane-season-forecast-the-weather-company-ibm-april
  3. https://en.wikipedia.org/wiki/Disaster_recovery

 

Happy Labor Day Weekend

Monday, September 2nd, 2019

 

Todays post is by Ronald D. Southard, CEO at SafeSourcing Inc.

Do you know how many products are affected by the price of corn?

Here are an easy bakers dozen of the more than hundreds for you to ponder. How do they affect your purchasing? Many of you probably have no idea! The good news is that SafeSourcing can help.

1. Alternative medicine
2. Chemicals
3. Bio-fuel
4. Food
5. Feed
6. Sweeteners
7. Starch
8. Beverage Alcohol
9. Plastics
10. Fabrics
11. Adhesives
12. Fish Bait
13. Herbal Supplements

If you’d like to understand how SafeSourcing takes into account this type of commodity information when sourcing your products, please contact a SafeSourcing customer services account manager.

We look forward to and appreciate your comments.