Archive for May, 2022

Memorial Day Observance 2022

Monday, May 30th, 2022

 

Today’s post is from our archives at SafeSourcing Inc.

Many people visit cemeteries and memorials, particularly to honor those who have died in military service. Many volunteers place an American flag on each grave in national cemeteries.

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The article below is sited from: http://www.cute-calendar.com/event/memorial-day/5719-usa.html

Memorial Day is a United States federal holiday observed on the last Monday of May (May 31st in 2021). Formerly known as Decoration Day, it commemorates U.S. men and women who died while in the military service. First enacted to honor Union soldiers of the American Civil War (it is celebrated near the day of reunification after the Civil War), it was expanded after World War I.

Many people observe this holiday by visiting cemeteries and memorials. A national moment of remembrance takes place at 3 p.m. local time. Another tradition is to fly the flag of the United States at half-staff from dawn until noon local time. Volunteers often place American flags on each grave site at National Cemeteries.

Members of the Veterans of Foreign Wars take donations for poppies in the days leading up to Memorial Day; the poppy’s significance to Memorial Day is the result of the John McCrae poem “In Flanders Fields.”

In addition to remembrance, Memorial Day is also used as a time for picnics, barbecues, family gatherings, and sporting events. One of the longest-standing traditions is the running of the Indianapolis 500, an auto race which has been held in conjunction with Memorial Day since 1911. The Coca-Cola 600 has been held later the same day since 1961. (From: Wikipedia, license: CCA-SA)

Whether you are observing Memorial Day by volunteering your time placing flags on the graves of soldiers, volunteering your time to spend with wounded soldiers, or are just spending family quality time together, we at SafeSourcing wish you a safe and memory making Memorial Day.

For more information on how SafeSourcing can help with your business needs,  or information on our “Risk Free” trial program, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.

We look forward to your comments.

Continuous Replenishment (CRP)

Thursday, May 26th, 2022

 

 

Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc.

Does following a CRP Program ensure that you are getting the best market price at all times.

Continuous replenishment is an ordering process based on the exchange of electronic data between a store and a distributor that indicates when a store is running low on a product and needs a new shipment of the item. CRP programs reduce inventory levels and operating costs by having products delivered on a frequent, as-needed basis. With CRP, consumer demands–based on scan data, warehouse movement, and sales forecasts— drive warehouse replenishment orders and shipping. In the most common form–vendor managed continuous replenishment– the distributor‘s warehouse transmits data daily to the vendor on inventory levels and store orders; the vendor is responsible for creating the orders necessary to ensure that the warehouse can meet the retailer ‘s product needs.

If you’d like to learn more about SafeSourcing’s  E-Procurement solutions that can assist in making sure that your costs are as low as the market will possibly allow, please contact a SafeSourcing customer services associate.

Is the baby formula shortage affecting you?

Friday, May 20th, 2022

 

 

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

If you shop for anything now a days, you have probably noticed that there are shortages on many things that we purchase from food to auto parts.  All of the shortages are causing problems for everyone whether they are personal, or business related.  The newest shortage that caught my attention and is very concerning is the shortage of baby formula.  The White House press secretary Jen Psaki said earlier this week that the US Food and Drug Administration is “working around the clock” to address the baby formula shortage and the manufacturers are saying that they are producing the formula at full capacity and making as much formula as they can.  But besides all of the efforts it is still not enough to meet the current demand.  It seems that stores nationwide have been struggling for months to keep the formula in stock and a recent recall has made the shortage even worse.  It is getting to the point now that several major retailers are trying to preserve inventory and are limiting the amount of baby formula the customers can purchase. According to researchers, the out-of-stock rate for baby formula was between 2 to 8% in the first half of 2021 and now has risen to around 40% and in some states the number has risen over 50%.  Some parents have been forced to find the formula online from resellers and are seeing prices as high as $120 for a single can.  Some good news is that experts are saying that the shortage should only last another 6 to 8 weeks.  Hopefully, that is the case for all the concerned parents.

Interested in learning how SafeSourcing can help your company save money during these and other shortages?  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.

Logistics Service Provider

Thursday, May 19th, 2022

 

 

Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc.

Logistics outsourcing involves a relationship between a company and an LSP (Logistic Service Provider) which, compared with basic logistics services, has more customized offerings, encompasses a broad number of service activities, is characterized by a long-term orientation, and, thus, has a rather strategic nature.

An LSP is really what most people would see as a traditional 3PL provider offering a combination of warehousing and transportation services or one or the other. As global and multi-national providers enter the game, things have certainly changed, but the Logistics Service Provider at its core is fundamentally the same.

Third-Party Logistics Provider (3PL) involves using external organizations to execute logistics activities that have traditionally been performed within an organization itself. According to this definition, third-party logistics includes any form of outsourcing of logistics activities previously performed in-house. If, for example, a company with its own warehousing facilities decides to employ external transportation, this would be an example of third-party logistics. Logistics is an emerging business area in many countries.

If you’d like to learn more about how SafeSourcing can assist in managing your selection of a variety of logistics issues, please contact a SafeSourcing customer services associate.

 

 

 

The Conglomerated Corporations of America

Wednesday, May 18th, 2022

 

Today’s post is from Patrick Quinn is a Procurement Specialist at SafeSourcing Inc.

It is no secret that the illusion of choice exists in every industry. Most brands you find at the store are owned by only a few companies, and the same problem exists for almost every manufactured product that we see in our homes. This observation can be quantified when you look at the total number of listings on stock exchanges from year to year. In the mid-1990’s, over 8,000 companies were publicly traded on the NYSE and Nasdaq. Because of the 2008 recession that number dropped to around 3,600, and as of Q1 of 2022 6,296 companies were on the two markets. But the growth has slowed down over the last several years. In 2018, 5343 companies were traded, so where has the growth gone?

Instead of going to market for capital, growing companies are acquired and become a brand under a larger firm. More and more industries have been heading this direction and the parent companies can control prices further and further. This can make comparison shopping incredibly difficult, as the more brands and names appear, the fewer options there actually are.

But, instead of letting the same big firms share the space in your market and control each and every price over and over, there is another option. Tip the space between the firms towards each other make them compete directly for your business. An eRFQ forces these firms to acknowledge each other’s existence as competition, if even for a moment. The results can be quite fascinating to see, and beneficial for your bottom line.

To help you pit the big guys against each other, please contact a SafeSourcing Customer Service Representative.

 

 

 

Stay Focused on Savings!

Tuesday, May 17th, 2022

 

 

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

While many buyers are acquiescing to higher prices month over month, it might be easy to assume that there is no other way. I am sure you know the old saying about what happens when you assume…

The truth is there are purchasing organizations out there who are still responsible for and capable of reducing their cost. As others talk about inflation, supply chain issues, the pandemic, and whatever other excuse du jour is popular at the moment, some are ignoring the noise and delivering cost reductions.

So, what is the difference between these types of procurement professionals? How does one decide that the best path is to accept price increases and the other decides to push back and win? Further, how does the latter actually succeed?

Tools like SafeSourcing’s SafeSourceIt™ suite of eProcurement solutions certainly play a critical role, but that is not the real differentiator here.

The real difference is the person. In the face of challenges, some will continue to try, and some will not. It takes determination, grit, and confidence to succeed as a buyer in these market conditions. I am truly fortunate to have the privilege of collaborating with many people with these exact traits, both as customer partners and as teammates here at SafeSourcing.

Because of this, I also get to watch these people persevere and create cost reductions where others say it is not possible. That is a very exciting thing to be a part of.

You must decide for yourself how you will react to challenges and whether you will continue to fight or roll over and die. If you would like to keep fighting to meet and exceed your cost reduction goals, we are here with you.

For more information, please contact SafeSourcing.

 

 

 

Shortages

Monday, May 16th, 2022

 

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

With an ever-changing market, shortages of goods and supplies will happen from time to time. Many of us have seen it happen before, but typically when there is a large-scale shortage, production gets ramped, and the shortage is short lived. Since Covid, however, we have seen a number of items across numerous industries become scarce. While some items are beginning to increase production, the Russian invasion of Ukraine has put a lot of other necessary goods out of production. This not only makes that particular good harder to find (if at all even possible) but may even have larger impacts on goods that might need that particular product.

For instance, much fuel globally comes from Russia and the war currently happening has halted supplies and caused prices to increase for everyone everywhere. While we are thankful we are not in the war zone and have deep sadness for those that are, the effects are felt everywhere. In fact, with fewer amounts of fuel comes increased interest and demand for electronic and other battery-operated vehicles and machines. This has also caused a shortage of those as well, making the cost of buying any electronic vehicle much higher, if at all possible.

With the global economy where it stands and the shortages felt across nearly every product and service, from housing and cars to foods and chemicals, the importance of using what resources we cannot be stressed enough. For instance, we may need to look closer to home for many things we seek to buy. If you want honey, you may have the best luck contacting your local honey farm, which will likely be at a higher price, but ultimately is a way to obtain what you need. A procurement partner like SafeSourcing can help your organization navigate different markets and help to source the products or services you need.

For more information on how SafeSourcing can help your organization or on our Risk Free trial program, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.

 

Seller-Driven Auctions

Friday, May 13th, 2022

 

Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc.

A seller-drive auction is an auction where sellers post goods for sale and buyers will bid on them. A good example of a seller-driven auction would be eBay©. A seller would place a particular item that they want to sell online, and buyers wanting to purchase that item will place bids trying to ultimately win the auction for the product (s).

An often-overlooked tool is an online Forward Auction. Forward Auctions can be used to reduce over stock and decrease associated loss prevention costs.

Online forward auctions are an ideal way to get the best price for capital equipment, materials, overstock, and services you may want to sell, such as when you need to liquidate excess inventory. There are two basic types of forward auctions. The first is a liquidation or Forward auction where sellers are reducing inventory from overstock or liquidation.

If you’d like to learn more about how SafeSourcing can assist in properly identifying and selling your overstock and other back-room accumulations through the use of a SafeSourceIt™ Forward Auction, please contact a SafeSourcing customer services associate.

 

 

Performance Bonds

Thursday, May 12th, 2022

 

Performance Bonds

Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc.

Do you use performance bonds on your store construction contracts? Should you? So, what are performance bonds and how do they work?

A performance bond is given as a guarantee to clients by specialist insurers or banks on behalf of contractors and at their expense. The performance bond would bind the insurers to compensate clients (up to the amount of the bond obtained) in the event of a default by a contractor. For example, a building contractor may issue a bond to a client for the building which the contractor is building. If the contractor does not fulfill the contract per specifications, the client is protected to a guaranteed compensation.

If you’d like to learn more about how SafeSourcing can assist in properly analyzing the total cost of your construction projects including general contractor section, please contact a SafeSourcing customer services associate.

 

High-Low Pricing Strategy

Wednesday, May 11th, 2022

 

Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc.

According to Wikipedia, high-low pricing (or hi-low pricing) is a type of pricing strategy adopted by companies, usually small and medium sized retail firms. It is a type of pricing where a firm charges a high price for an item and later will sell it to customers by giving discounts or through clearance sales. The basic type of customers for the firms adopting high-low price will not have a clear idea about what a product‘s price would typically be or must have a strong belief that “discount sales = low price” or they must have strong preference in purchasing the products sold in this type or by this certain firm.

There are many big firms using this type of pricing strategy (ex: Reebok, Nike, Adidas). The way competition prevails in the shoe industry is through high-low price. Also, high-low pricing is extensively used in the fashion industry by companies (ex: Macy’s, Nordstrom…).  This pricing strategy is not only in the shoe industry but also in many other industries. But, in these industries one or two firms will not provide discounts and works on fixed rate of earnings those firms will follow everyday low-price strategy in order to compete in the market.

If you’d like to learn more about how SafeSourcing can assist in properly analyzing the total cost of your annual purchases, please contact a SafeSourcing customer services associate.

Sourced: http://en.wikipedia.org/wiki/High-low_pricing