SafeSourcing knows how to do it! Do You? Now let’s get to the financial example.
Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc
Example: Prove me wrong if you think you can!
Assume a $150M Retail Company with industry earnings of just one percent or $1.5M. Additionally cost of goods for this company is 70 percent or $105M. Let’s also assume this company were to only source ten percent of their for-resale COGS or above the gross margin line spend or roughly $11M. With below industry average savings of only ten percent, total savings generated would be $1.1M which is a direct impact to net profitability. If all other segments of the P&L perform to plan and all savings are recovered during the same business calendar year net profitability would increase to $2.6M or a 73% improvement.
NO BS Here! If you don’t believe me, I will be glad to personally sit down with your CEO or CFO and Finance team and prove it to you! Imagine what else you could do to earnings if you also attacked your Expense in the same way.
Companies can begin with SafeSourcing almost immediately (SaaS/Cloud offering) with no risk (Cost Neutral Pilots) and no IT involvement at all, why don’t more companies use eProcurement tools. That’s a great question! Probably because they are embarrassed to not already be getting these results.
If this author were you, I just could not ignore this type of opportunity. If you’d like to learn more, please contact a SafeSourcing Customer Services Account Manager. Or me.
We look forward to and appreciate your comments.