C-Suite Leaders. Do you really believe that prices should be rising or that inflation should be so high?

February 11th, 2022

If you do, I have a bridge in Brooklyn I can sell you!

 

Today’s post is by Ron Southard, Chairman and CEO at SafeSourcing Inc.

In the last several weeks SafeSourcing has run online bids for construction materials, meat products, and several types of store fixtures. All have resulted in beneficial results for our customers. In fact, for savings that are lower than their previous contract pricing. I am not going to ask you to believe me, because you will have a bunch of reasons as to why your procurement teams cannot produce the same results. So just sit around until inflation goes away. Or just sit around until perceived supply chain issues resolve themselves. Once that happens, your costs will return to pre pandemic pricing. Here is what I have to say about that, BS!

I have read articles recently about Ford Motors CEO being upset with dealerships for unreasonable markups, to the point of potentially restricting allocations to those dealers. Today GM entered the same conversation. I have read about giant meat packing companies paying millions of dollars to settle price fixing charges. There are many more examples like this, there is no need for the price increases that are being charged to consumers or for your vendors to be raising prices to you as much as they are.

Actual savings versus your older contract pricing may be difficult, but per the few examples I mentioned above, not impossible. Cost avoidance from the pricing your suppliers are quoting you is nearly 100% possible if you setup your bid correctly. In today‚Äôs world, single source is a danger as we have seen during our ongoing and perhaps never going away pandemic. Our SafeSourceIt™ Supplier Database has thousands upon thousands of suppliers that would love your business or part of your business and at a better price than you are getting today.

Whether you have capital projects, cost of goods issues as we have discussed or want to focus on your expense, we have done it all from software and services to commodities.

If you do not believe me, click on the contact us link imbedded here, and it will go directly to me. Or just keep not focusing on it and as your team is telling you, it will not get any better

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