Archive for June, 2021

What does “reducing expenses” mean to you?

Tuesday, June 29th, 2021

 

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

At SafeSourcing, we’re always focused on expenses. Helping our customers manage their expenses and reduce costs is in our DNA. It’s fair to say that nearly every organization we work with also has some degree of their focus placed on expense management too. The degree to which this is true varies, but expenses are usually an area of at least some focus.

These days, the level of focus on expense management and reduction seems to be higher. At least, that’s what we are hearing. We hear several times a day from many organizations that they are really focused on expenses right now. But what does that mean and what are you actually doing about it?

There are certainly many ways that one might decide tackle expense reduction. There are some very severe measures like furloughs and layoffs that, while effective in reducing expenses, have some other wide-reaching negative side effects on your business. There are some more temporary measures that can be taken such as freezing spending in certain areas. This can also be effective in the near-term, but this too has negative consequences.

In these times, measures such as these are being considered and implemented regularly. We see it in the news and we hear it in conversation.

There is another way to manage and reduce expenses, of course. Our readers already know that SafeSourcing reduces costs for our customers while maintaining current specifications and service levels and the cost reductions are not temporary. On average, we deliver over 24% cost reduction across all spend categories. That means that if you work with SafeSourcing to reduce your expenses, the reduction scales as you go. If you source $100,000 using our services, your new expense may be around $75,000 after working with us. If you source $10,000,000 using our services, your new expenses may be around $7,500,000.

Plus, working with SafeSourcing also means you get to hand off the hard work of finding vendors and negotiating new rates which can be very time consuming, especially if you’ve already reduced headcount.

I thought it was a good time to share a reminder that there are options if expense reduction is your new priority.

What does “reducing expenses” mean to you?

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.

 

 

 

 

Safety in Contracts

Thursday, June 24th, 2021

 

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

We’ve all heard that there is safety in numbers. It’s generally understood that in a larger group, each individual has a lower chance of something bad happening. Fish do it… humans too.

The point is that safety is a general concern. While we all take precautions to ensure personal safety, often the same level of attention is not paid to the safety of our contracts. Of course, there are contract management solutions available to provide safety relative to your contracts.

As I see it, contract safety is knowing when contracts are set to expire and proactively taking steps to prevent unfavorable auto-renewals. Contract Safety is knowing that the price you negotiated is also the price you pay throughout the contract term. Contract safety is always having your contracts at hand in the event that you need to review them.

Without these elements, you don’t have contract safety. If you don’t know where the contract is or you can’t verify the terms including pricing, or you don’t know when the contract ends, then you do not have contract safety.

Again, there is reasonably sound logic behind the theory that there is safety in numbers. I encourage you to take the same logical approach the safety of your contracts.

Dave Wenig is a Regional Sales Manager at SafeSourcing and is a devoted champion of saving money. Dave or any member of the experienced team at SafeSourcing would be happy to discuss how SafeContract™ can provide you with contract safety. For more information, please contact a SafeSourcing representative.

We look forward to your comments.

 

 

The Slow Boat to China  

Tuesday, June 22nd, 2021

 

Today’s post is written by Ivy Ray, Senior Procurement Specialist at SafeSourcing Inc.

For individuals waiting for a delivery that is stuck in transit, it is a minor irritation.  If you are a manufacturer producing supplies for your customer, it is a nightmare! Higher shipping costs have tremendously impacted the supply chain.  In addition to the increased cost, there are longer wait times, due to the slower circulation of containers. This slowdown, driven by the pandemic, is crippling to the supply chain, and has reduced overall capacity.  All of which is driving up rates and creating massive delays that are expected to continue for weeks to come.

China has been requesting the return of their containers after unloading, so instead of the usual filling of the returned container with goods, they are going back empty. Other factors, including reduced labor productivity at warehouses and at marine terminals, are also contributing to this issue.

In “normal times”, the alternative of air freight would be an option to relieve the strain, but these are not normal times.  Freight rates from China to the U.S. have surged 300% and international flight volumes have plunged due to recent travel restrictions. Air freight companies typically use the extra capacity on the belly of a passenger plane to transport cargo. Hopefully, the recent increase in passenger travel will soon bring this option back into play.

While there are always factors that have negative impact on the supply chain, these instances usually occur and are most times expected.  The recent traffic jam on the Suez Canal did not help matters at all. Global trade has been disrupted and is affecting multiple industries simultaneously which is unprecedented. Economies around the globe are absorbing the ripple effects of the disruption and there is an expectation that this will last, though the end of this year.  We are back to quoting the frequently used phrase for 2020, “we’re all in this together”, and we will have to hold on and wait for our ship to come in!

For more information on how SafeSourcing can help your procurement efforts, or on our Risk

Free trial program, please contact a SafeSourcing Customer Service RepresentativeWe have an entire team ready to assist

 

We look forward to your comments.

What Can You Do to Improve Your Company’s Finances?

Friday, June 18th, 2021

 

Today’s post is by Troy Lowe; Vice President of Development at SafeSourcing Inc.

I recently started working on a new tool that our team will be using to show our prospective clients and current clients how much savings that we at SafeSourcing can offer them.  While working on this tool, it reminded me of when I first started with the company years ago.  I was watching one of our RFQs that was running for one of our clients and was amazed that they received pricing that was more than 20 percent less than what they were currently paying.  My first question to one of my colleagues was, why are they paying so much?  And then my next question was, why doesn’t everyone do this?  Running an RFQ cannot only save you money on current products or services that you purchase but can also help in cost avoidance.  If you have current contracts ending soon, it is very possible that you will see those prices rising.  Running an RFQ with us could help you to avoid having to incur costs in the future.  If you would like to learn more about cost avoidance, take time to review data from a recent SafeSourcing BLOG.

Below are some of the RFQs that we have recently run for our customers to help them lower their expenses.

  1. Vehicle Leases
  2. Fleet Purchase or Lease
  3. Fleet Repair and Maintenance
  4. Diesel Fueling Program
  5. Plastic Supply Items
  6. Plastic Bags
  7. Paper Bags
  8. Lids and Straws
  9. Pest Control
  10. Office Supplies
  11. Cleaning Supplies
  12. Liquid and Foam Sanitizer
  13. Waste Removal
  14. Propane Exchange
  15. Uniforms
  16. Receipt Paper
  17. Bottled Water

Interested in learning how SafeSourcing can help your company save money and run more efficiently?  If you would like more information on how SafeSourcing can help your procurement efforts, or on our Risk Free trial program, please contact a SafeSourcing Customer Service RepresentativeWe have an entire team ready to assist you today.

 

 

 

So what?

Thursday, June 17th, 2021

 

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

Let’s get right to the point. What incentive do you have to reduce the costs that are within your control? Would you get a bonus? Would you get a bigger boat? Maybe a vacation home? Maybe it’s just one of many KPIs that gets tracked and rolled up into your performance review. What is it that would change the way you’re living?

The answer to that is going to be different for everyone, of course. But that’s also the answer to the question posed in the title of this blog. So what?

SafeSourcing is constantly proving that we can deliver an average 24.8% savings. But if that doesn’t matter to you, then why bother. If you are not responsible for managing expenses, then who is, and would it matter to them?

The reality is that payroll expenses are on the rise even while headcount is low. Vendors are pushing their price increases again with incredible frequency and at awfully high levels. In fact, we’re hearing stories about being understaffed by about 20% while those same companies are seeing seven figure salary expense increases to maintain their operations through overtime and other pay increases.

What’s your “so what?” If you don’t have one, I promise you that someone in the organization does and they would be very happy if you helped them reach their goals.

For more information, please contact SafeSourcing.

 

 

 

Business Education

Wednesday, June 16th, 2021

 

Today’s blog is by Margaret Stewart, Director of HR, and Administration at SafeSourcing Inc.

While much of today’s workforce has had some sort of formal or higher education, many jobs do not necessarily require that particular education level but may require just some level of education. The reason for this is because that while specific disciplines may not be needed to perform a job, it does require the general education skills that come with most college or other higher degrees. For example, a job may need a person to be able to create and give power point presentations, which is something that is often taught in higher education. This idea is flawed, because of course people may know how to do certain tasks without a formal education and it is also true that some with a formal education may not know how to do certain tasks. This is where business education comes in.

Some workplaces require higher skills at some things rather than others. Perhaps one job requires great rapport and phone skills while another requires a focused and regular use of excel. Businesses can not only look for candidates that fit each role the best, but also can implement on the job training. This ensures that employees are provided the tools and ability to perform tasks to their greatest capability.

In addition to training employees on some of the skills they will need, general education about a particular industry can help an employee understand not only what they are doing, but also why they are doing that task. If employees understand the importance of a duty, they will likely proudly perform that task because they understand the impact it will have on the other employees and the company as a whole.

SafeSourcing utilizes training as a regular practice for clients and for employees. In addition, we provide to the public a free newsletter every month that contains useful information about businesses, the economy, markets, or trades. On top of that, SafeSourcing also has a free wiki with industry related terms and definitions so that everyone can have access to the knowledge needed to perform to their utmost best.

For more information on how SafeSourcing can help with your understanding of business needs, explore products that are good to source, or on our Risk Free trial program, please Contact a SafeSourcing Customer Service representative.

We have an a very educated and business savvy team ready to assist you today.

Morale and Productivity

Tuesday, June 15th, 2021

 

 

Today’s post is by Margaret Stewart, Director of HR and Administration at SafeSourcing Inc.

It is often said that happy employees are productive employees and productive employees are happy employees. So, how do the two affect each other and why? We will look at what kinds of things promote better morale and what can boost productivity.

Morale – First, morale is enthusiasm, ability, and confidence of a group. This means if your organization’s team is able, confident, and hopeful then their morale is high. If morale is high, your team is likely pretty happy with what they are doing. However, is morale is low, you may find your employees lacking motivation and drive. So, how can you boost morale? Below are a just a few ways to help morale when it seems low:

  • Talk to your employees – this may seem simple, but it gives everyone a chance to say whatever is on their mind and also opens up a line of communication that might otherwise be unused.
  • Give positive feedback – this one is essential to keeping happy employees. Giving positive feedback shows someone what they have done well and what they should do more. Small wins in the workplace are still wins and can encourage more positive behavior in the long run.
  • Be a teacher – when something doesn’t go the way expected or desired, being a teacher and giving positive advice on how to handle it and what methods could help. This is a morale boosting way of addressing a problem without placing blame or outright accusing one of erring.

While we may all want our employees to be happy simply because we value each person’s happiness, there are more reasons to help boost morale. The two are, in fact, correlated. While low morale can cause job dissatisfaction, absenteeism, and affect turnover, high morale can do the opposite. A happy employee is more likely to stay longer with a company, is more dedicated, and is more productive. On top of all of this, they can help boost the morale of other employees, helping to boost morale of an organization as a whole, increasing retention and productivity.

Another great way of boosting morale in a company is when the company itself is doing well and one particularly great way to help a company is by implementing a procurement partner. Every company has things they need to buy and source and a procurement partner can help your employee’s morale by providing assistance, expertise, resources, and results that can help everyone involved

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 today.

 

Busting Myths About Milk

Friday, June 11th, 2021

 

 

Today’s repost blog is by Gayl Southard, Vice President of Administrative at SafeSourcing.

At one time, buying milk was simple. Your local dairy used to deliver it right to your doorstep.

Today, however, we have nonfat, low-fat or whole milk. There are also soy milk, almond milk, hemp, or oat milk. Do you want cow milk or goat milk? With or without lactose? Raw or pasteurized? Plain or flavored? There is controversy as to which drinks can even be called milk.

 Christopher Gardner, Ph.D., a Stanford Nutritionist Scientist, is working hard to clear up some of these myths.   Most of us grew up believing milk was good for us. It built strong bones! It was considered a source of calcium, a factor for good bone health. However, there are countries such as Japan and India where the country is predominately lactose intolerant and milk consumption is low and so is the rate of hip fractures. Many of these cultures also do more weight-bearing activities than Americans. Gardner advises that people are better off on relying on physical activity to build strong bones than consuming milk to strengthen bones. Gardner further advised milk can improve bone density, but whether it prevents bone fractures remains debatable.

Milk can be a healthier alternative to soda. The popular vanilla and chocolate plant-based milks are often laden with sugar. It is important to check the nutrition labeling. Gardner stated, “The nutrition label also allows you to compare the amount of fats, protein, carbs and vitamins in each type of milk. For example, the plant-based milks generally don’t have saturated fat like cow’s milk so they don’t raise LDL-cholesterol as much as dairy milk, but they do have about the same amount as calcium,’ he said. And soy milk has the same amount of protein as dairy milk, but almond milk has much less protein.”1

Another milk misconception is that 2 percent milk means 2 percent of calories are from fat, but it’s 2 percent of the weight (which is mainly water) and 35 percent of the calories. Whole milk has nearly 50 percent of calories from fat, and 1 percent milk has about 20 percent. The old belief was whole milk made you fat and skim milk helped you lose weight was refuted by Harvard in a study that followed over 100,000 nurses over 30 years including their dietary changes. The study revealed switching from whole milk and skim milk did not make any weight change.

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 today.

Citations:

1 Jennifer Huber, Stanford Medicine Scooe, 8/14/2918

 

Make Stress Your Friend

Thursday, June 10th, 2021

 

Here’s a repost from Ivy Ray, Sr. Procurement Specialist at SafeSourcing Inc.

Stress is a part of life for all of us.  As long as we face encroaching deadlines, competing responsibilities, overloaded schedules, last-minute crises, financial troubles, and social conflicts, we’re going to encounter it often. So, when my cardiologist tells me ‘you have to keep yourself stress free’, my response is who does that?  Doctors have typically been telling their patients this for decades, which causes people to spas out when confronted with a stressful situation. The new science of stress reveals that how you think about stress matters.

Kelly McGonigal, PhD, a health psychologist, has a life-changing solution: “make stress your friend”.  In her 2013 TED Talk, Dr. McGonigal presented a scientific study which studied the stress patterns and responses of 30K people for 8 years.  The finding was that stress was deadly for those who believed that stress was bad for their health. Stress is not the culprit, but your thoughts surrounding stress can kill you. You should view your body’s stress response as helping you to get through a tough situation.

Anyone struggling with stress at work might take a few pointers from Major League Baseball’s mental-skills coaches. Currently, 26 of the 30 MLB teams employ sports psychologists or mental-skills coaches to help players’ mental game which can make the difference between success and failure. Ken Ravizza, a mental-skills coach for the Chicago Cubs, teaches players to stay aware of their mental state by imagining an inner traffic signal: It’s green when your body is calm and the mind focused. It turns yellow when your heart rate and blood pressure start rising and you begin having trouble focusing. It flashes red when you start believing your self-doubts. Your muscles tighten and you lose control. Dr. Ravizza directs players to choose a focal point to look at during tense moments, such as a foul pole or spot on their glove, and imbue it with special meaning.

Jonathan Fader, a former mental-skills coach for the New York Mets, coached a self-employed trader who worried so much about hitting his monthly profit targets that his performance began to slide. He advised him to let go of the outcome and focus on attaining the mental state he hoped to experience after he succeeded—calm, masterful and capable of quick, rational decisions.  By improving his performance on measures he could control, the trader began netting better monthly results. We can’t always control stressful situations, but we can control our thoughts and how we deal with them.

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———————————————————————-

https://www.ted.com/talks/kelly_mcgonigal_how_to_make_stress_your_friend

https://www.wsj.com/articles/trouble-at-the-office-baseball-can-help-1528724159

Do you really believe that the rising prices of food and related services is needed?

Tuesday, June 8th, 2021

 

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

These are legitimate questions because consumers at all levels of the economy are being charged more for what they are buying. There are all sorts of reasons such as the pandemic, and its impact on the global supply chain. Shortages driven by drought and other natural disasters; the dilemma of a single source supply chain that is kicking companies that went that way in the tail. I could go on and on. While there are all sorts of reasons and excuses, the fact is that companies do not need to accept the level of rising prices that they are being given by their vendors/suppliers. Nor do the vendors/suppliers need to accept the prices they are being offered for the commodities they need. And most importantly consumers do not have to accept these price increases because they have the freedom to choose to go elsewhere with their money. Consumers should try building their own shopping list and get prices from at least 5 or 6 sources. Use online price lists and shelf prices from stores you regularly frequent and others that you do not for one reason or another.  You will find better pricing for pretty much the same items, and you can also take the additional step and ask if that is the best your retailer can do. Seek out the grocery manager and say I really like your store, but the price on this item is lower elsewhere. If you do not try, you will never know.

Here is a fact for retail companies that are raising prices to their end user, the consumer. You are overpaying your suppliers. If your procurement department is not focused on getting you the best possible price, then they are not doing their job. SafeSourcing continues to source cost of goods items, services, and capital items for our customers at significantly below the prices retailers are being quoted by their supply chain partners. Again, if you always do what you have always done, you will never see improvement.

Here are just a few of the items our customers have recently sourced at much lower prices than their suppliers’ recent quotes. These are all within the last 60 days.

  1. Bottled Water 30% below recent price quote
  2. Can Liners 10% below most recent price quote
  3. Hispanic Food 15.7% below most recent price quote
  4. Sugar 9.4% below most recent price quote
  5. Corrugate Packaging 20.4% below most recent price quote

I could add dozens more in all areas of your business, but for readability with leave it at five.

Companies are focused on so many issues today relative to hiring, product mix and availability amongst others that I do not believe all is being done that can be to make sure that the best price is being made available to them or their customers.

If you don’t believe me or just are thinking blah blah blah, then call me on it and we’ll prove it to you at ZERO RISK!