Archive for March, 2021

Getting Savings Through the Learning Curve

Thursday, March 18th, 2021

 

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

Learning is a topic that has no shortage of sayings and idioms, and common phrases that refer to it. To name a few…

  1. “You learn something new every day”
  2. You can “learn the hard way”
  3. You can “learn from your mistakes”
  4. And, of course, you may experience a “learning curve”

The list could go on, but the point is that learning is a fact of life. In eProcurement, you will likely find plenty of opportunity to learn, but there are a few things that you can do as you get started to make sure you learn quickly and that you’re able to enjoy the benefits of your eProcurement process even as you’re learning. Here are a few thoughts on the matter so that you can learn from the experience of others.

The first one  I’ll share is that it is absolutely possible to learn as you go with eProcurement. In fact, the best way to learn how the process works and what works best for you is to select some categories to start with and to begin sourcing. With SafeSourcing, we help our customers get off and running very easily because of our full-service SaaS model. That eliminates many of the typical barriers to entry that would prevent a new user from experiencing how eProcurement works and from getting the immediate value created when we reduce costs in those early categories.

Secondarily, I would note that you don’t need to learn anything the hard way. For customers willing to embrace eProcurement and are willing to be open minded in their learning, SafeSourcing can offer much guidance. From experience, the more closely you are willing to work with us and communicate regularly, the better your learning experience will be. We’d rather help you learn from the mistakes of other than your own and we’re going to guide you around the types of challenges and pitfalls that exist.

Like any subject, learning in eProcurement is an entirely subjective experience. From our perspective as the eProcurement provider, we can make learning a very easy process, but everyone learns their own way. No matter your learning style, just know that we’re here to make sure that you succeed.

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.

 

 

 

Poultry Trading Enters the Digital Age

Wednesday, March 17th, 2021

 

Today’s blog is by Gayl Southard, Vice President Administration for SafeSourcing.

For companies, such as Tyson Foods Inc., moving product from farmers to vendors worldwide still requires phone calls, spreadsheets and vendor relationships with middlemen that take a cut of the profits.  The broker fees add up and getting up-to-the-minute pricing information isn’t always reliable.  Inventory and supply are not on a centralized database.

Scott Spradley, Chief Technology Officer at Tyson, the second largest processor of chicken, beef, and pork in the U.S. indicated some of their partners still rely on fax machines.  To fill a supermarket order for chicken, salespeople need to call the warehouses across the country.  Improving technology could dramatically improve company profitability.  Tyson is employing technology with robotic arms to package poultry and digital equipment for sales teams to identify consumption trends.  Spradley said a couple of years ago while he was preparing for a board meeting he was thinking about all of the components that made up his breakfast sandwich and all the stops those separate ingredients had to make before it reached the consumer.  Thousands of miles are involved in bringing ingredients together, as well as packaging, for one breakfast sandwich.  By reducing mileage using technology costs will come down.

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.

References………………………………………………….

Julia-Ambra Verlaine, WSJ, 3/9/2021

 

How should companies determine value? Part III of III.

Tuesday, March 16th, 2021

 

Yesterday I asked you to check back today for Part III of this post to learn why our customers and associates are passionate about SafeSourcing

Today’s post is by Ron Southard founder and CEO of SafeSourcing.

I originally published this  three part series seven years ago. In todays environment it is as important as ever. Please Enjoy

We launched our company SafeSourcing over  12 years ago. Our goal during that time was to bring passion and commitment to the procure to pay process. I was in a meeting with a customer a few weeks back and asked if they would be adding additional staff to support the work we do together. The answer was not directly to the procurement team, but because of the work we do together; other departments will be able to benefit by maintaining headcount that might not have otherwise. This may not be job creation, but it certainly is job preservation. The customer I was speaking to has also added a number of associates both temporary and full time to support the work we do together over the last several years and we have added several associates to support this customer alone. So, we have created jobs for our customer, preserved jobs for our customer, created jobs for our company and saved our customer millions of dollars at the same time. I can’t think of a better value equation and if that’s not meaningful work I’m not sure what is.

Procurement in general may not be the profession of choice for many, however it is a place that associates can be passionate about if the trickle down is explained and reinforced properly. In today’s world, who would not be passionate about helping to create or retain jobs, improve product and food safety and support a better environmental footprint?

There may even be more than a few folks running for public office at the highest level today that could be significantly more successful with their approach if they could prove that their desire is to do the same, albeit in a much larger footprint. It’s easy to be passionate yourself; it’s much more difficult to ignite that same passion in others. When you do, then you have real value.

If you would like to work with a team that is passionate about procurement to help your team find their passion, please contact a SafeSourcing customer services representative or ask us for an executive reference. You won’t be sorry that you did.

 

How should companies determine todays true value? Part II of III.

Monday, March 15th, 2021

 

I heard  a young worker say the other day that new hires did meaningless work and needed to be prepared for that when the started a new job.

Today’s post is by Ron Southard founder and CEO of SafeSourcing.

I originally published this  three part series seven years ago. In todays environment it is as important as ever. Please Enjoy

This totally freaked me out as a business owner who constantly strives to point out the value of what we do, as well as the value we create relative to job growth internally and externally. Certainly one can measure value in terms of customer savings, Return on investment, capital etc. One can also create value through quality improvement of both services and products sourced beyond what is being sourced today. Value can be measured in process improvement internally and externally that might add to a company’s profit or help in retaining jobs. There is a measureable trickle down effect of doing meaningful work; it is something you can be passionate about if you truly are trying to be a better corporate and global citizen. Are there scorecards that measure this? Unfortunately, probably not all of it in one place, but having conversations with your employees/associates relative to their understanding of what your company’s mission is and why it is important is more than just a reason for another meeting that they probably don’t want to attend in the first place.

Personally, I believe that people want to be perceived as valuable by anyone and everyone that they meet whether in their personal life or their professional life. As leaders, we should be in the job of creating excitement about what we do. We may in fact have associates that started out wanting to be a doctor, lawyer, professional athlete or some other profession as many of us did. Today at our company, they work in procurement. Left to their own devices they may feel as though they have not or can not accomplish the success they dreamed about in their youth. Whose job is it to stop that thinking in its tracks and promote an environment of excitement and passion? The answer is that leadership starts at the top. If our leaders are not passionate and regularly reinforcing the work of their company, how do you expect your associates to be passionate. After all, who wants to just go to work and do meaningless stuff?

Check back for Part III of this post on Tuesday March 16th  to learn why our customers and associates are passionate about SafeSourcing.

In the meantime if you would like to work with a team that is passionate about procurement to help your team find their passion, please contact a SafeSourcing customer services representative or ask us for an executive reference. You won’t be sorry that you did.

We look forward to and appreciate your comments.

How should companies determine todays true value? Part I of III.

Friday, March 12th, 2021

 

For those of you that are not informed I am referring to Jack Welch the former CEO of G.E.

Today’s post is by Ron Southard founder and CEO of SafeSourcing.

I originally published this  three part series seven years ago. In todays environment it is as important as ever. Please Enjoy

The first question one might ask of you is; are you talking about ethics or mathematics? This is certainly a fair question even when we apply it to business. The mathematics are certainly what the CFO or finance department are looking for  in a pure value equation of I am buying this product or service from you for the following amount with a return on my investment over this period of time. That’s simple math. Most can understand it. The ethical side of the company which is or should be within the domain of the CEO’s office and where strategy should be developed also adds in the esoteric or ethical value. Most of the time this is defined in the company’s Corporate Social Responsibility initiatives or CSR in terms of value to the community or communities your company serves, value to the environment or value to safety in a variety of areas. Some companies try to measure both areas and report them in the form of Triple Bottom Line results or TPL. This area is a little more difficult to understand as the audience that understands the particular area of measurement or expertise can be much smaller.

For the purposes of this two part post, we will focus on the 2nd area of determining ones value within the framework of your job where if we are not careful, the perception of a few can become the reality of many.

I heard a young worker say the other day that new hires did meaningless work and needed to be prepared for that when they started a new job.

Check back for Part II tomorrow to learn why this totally freaked me out.

In the meantime, if you would like to work with a team that is passionate about procurement and the entire procure to pay process to help your team find their passion, please contact a SafeSourcing customer services representative or ask us for an executive reference.

We look forward to and appreciate your comments

Looking for a new Procurement Service Provider? Look no further!

Wednesday, March 10th, 2021

 

Today’s post is our archives at SafeSourcing Inc.

SafeSourcing, Inc. is here for you, where we focus on YOU and YOUR needs, and not just sell you a tool, we provide you exceptional service!

10X

 

 

 

 

About us:

Just in time, an innovative alternative has arrived. SafeSourcing is loaded with efficient and comprehensive tools and programs that turn the procurement process into a highly productive endeavor. SafeSourcing® is, literally, a one-stop shopping center.

At SafeSourcing, we focus on safety and security. All our vendors are part of a high quality supplier database with many associated tables that support security and safety in the supply chain. SafeSourcing’s suppliers are also checked for their support of socially responsible initiatives including their eco-friendly practices.

To that end, our SafeSourceIt™ Supplier Database of over 427,000 global suppliers contains over 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.

The SafeSourcing objective is to help buyers save considerably on costs. History shows that in selected categories, buyers have saved as much as 30-40%. Auction events can literally be set up in minutes, creating a significant efficiency improvement over traditional offerings. Studies have shown that a 5% saving in procurement costs translates into an effective increase in sales growth of 30%.

“As our technology advances, new companies are given the tools to do business in a better, smarter, more streamlined and cost effective way. SafeSourcing is one of those companies and delivering these advances to the procurement community is why we are here.” Ron Southard, CEO, SafeSourcing.

SafeSourcing is committed to proactively supporting safety and environmental standards in the global supply chain. We donate a portion of our net profits to retail education, green and safety initiatives.

Are you interest in learning more about SafeSourcing and how we can help your company? 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.

 

The Central Procurement Function!

Tuesday, March 9th, 2021

 

Today’s post is from Ron Southard, CEO at SafeSourcing Inc.

As you can imagine the answer to this question could actually be pages in length. However the following is directionally correct based on the question and minus the organizational structure and alignment. However, it is this authors firm belief that Procurement should ultimately report to Finance. Example: CPO reports to CFO.

The Central Procurement Function in responsible for the procurement of goods, services and capital projects by an authorized group within a company’s hierarchy. Central procurement in a best case scenario includes the financial decision making authority specific to that procurement on behalf of the entire company for reuse or resale from an approved list of vendors or suppliers. In some cases the budget for a specific spend may reside within another functional area  where central procurement collaborates and negotiates on behalf of that areas subject matter experts but the subject matter experts approve the final vendor selection.  In the case of manufacturing company’s  this function also includes the purchase of commodities used in the manufacture of finished goods.

The central procurement function is typically authorized within a company in order to insure consistency thought-out the organizations procurement process by eliminating the potential negative effects of non-collaborative, non-aggregated purchasing by multiple divisions, departments and other corporate entities that can support rogue or unstructured buying.

Measurements of a central procurement organizations success can differ widely from company to company depending upon where they fall relative to a procurement maturity model. Typically these organizations are measured by overall procurement Key Performance Indicators or KPI’s at the procurement department level that usually includes the following at a minimum.

1.  Percent of spend under management
2.  Price Improvement
3.  Quality Improvement
4.  Safety Improvement
5.  Reduction in Carbon Footprint
6.  Service Level Improvement
7.  Distribution Flexibility
8.  On  Time Delivery Improvement
9.  Supplier Management

Management of these KPI’s is intended to insure that  companies have a defined  processes in place so as to promote a fair and open competitive model for the supplier community that’s  interested in soliciting their business.  This also minimizes the opportunity for fraud and collusion while insuring the best possible product or service is purchased at the best possible price and overall value to the company.

If you’d like to learn more about the central procurement function, please contact SafeSourcing.

We look forward to and appreciate your comments.

A Sourcing Diatribe you should read and share with your finance team!

Monday, March 8th, 2021

 

 

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

Here’s the diatribe from two years ago that still applies today and they still 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.

SafeSourcing Inc. is hosting a Collaborative Technology RFQ

Friday, March 5th, 2021

 

Todays post is from Ronald D. Southard, Chief Executive Officer at SafeSourcing Inc.

Executives Leadership Teams:

SafeSourcing Inc. is hosting a Collaborative Technology RFQ event on behalf of our customers for PC, Tablets, Peripherals etc. in the VERY near future.

We held a similar event last week in the healthcare industry and our customers achieved 34% cost reduction on their exact configurations and other budgeted purchases.

Based on current market dynamics, the opportunity to save NOW is very significant.

Your technology team will tell you that they are already getting the best price and that we can’t possibly beat it. THEY ARE NOT, and YES WE CAN! Our opportunity is ZERO risk. If you do not reduce your costs, you will never be invoiced by SafeSourcing. You may keep the updated Terms and Conditions, Supplier Research and Final Report Package we provide all participants as our thanks for trying and future use.

Please respond to this email with your interest and who we should work with. I will keep you updated as to progress. This is my personal email address for this RFQ.

Please feel free to share with anyone you think might benefit.

Thank you,

 

 

The U.S. Consumer Price Index has risen 1.4% since January 2020.

Tuesday, March 2nd, 2021

 

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

According to the U.S. Bureau of Labor Statistics The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Indexes are available for the U.S. and various geographic areas. Average price data for select utility, automotive fuel, and food items are also available.

Additionally, according to the BLS, this index is up +1.4% since January of 2020. I think most of the consumer community must think why prices are going up during a pandemic. Why are companies not trying to take care of their customers and keep cost reasonable?

Unfortunately, many companies site the pandemic as a primary reason for raising their prices. In a nutshell, their prices are going up because their supplier’s prices are going up, because commodity prices are going up while in many cases demand is going down. For one, this author does not buy it, and neither should you whether you are a consumer or a company. There are ways to mitigate cost increases. For the most part, they ALWAYS work, during a pandemic or any other crisis.

For every commodity that rises there are also commodities that fall. For every company that raises their prices to their end user be it consumer or company, there are others that want your business bad enough to keep prices stable if not lower them. The issue is that companies must be willing to put the work in if they want to keep prices down. Too many companies continue to operate in a business-as-usual manner. It is easy to spot when individuals or companies operate from the “this is how I learned it, and this is how I do it” point of view. Some clues are.

  1. They buy from the same suppliers repeatedly.
  2. They do not have a clear view of their existing contracts.
  3. They do not have a view of their performance against those contracts.
  4. They do not have a view of additional sources of supply and rely too much on single source.
  5. They do not put their products and services out to bid on a regular basis.
  6. They do not have current specifications for their products or services.

Unfortunately, smaller companies do get to the point where they cannot absorb higher costs. If they try to pass it on to their customers, their customers go elsewhere as customer loyalty is not as high in this decile of consumers or during challenging times like we faced during 2020 and today.

Here is a promise. If you cannot figure out how to keep your costs down, contact us at SafeSourcing because we can. As a matter of fact, call me personally 480-773-7524 or email me at ronsouthard@safesourcing.com.

Here is to better times and better prices.