If you want to run a successful sourcing event, you’ll need your REAL current price.
Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc
According to Bing, the spot price of a commodity is the current cash cost of it for immediate purchase and delivery. The futures price locks in the cost of the commodity that will be delivered at some point other than the present usually, some months hence. The difference between the spot price and futures price in the market is called the basis.
At SafeSourcing we always ask our customer for their current price when developing the strategy for sourcing events. The nice part about the word current, is that it means today. Not the price you negotiated a year or two ago or longer that has gone through commodity shifts that have triggered escalation language in your contract. True some of you may be paying the exact same price as you did two years ago, but just wait until you have to renegotiate. If you don’t know, there are ways to get that information through an eRFI, eRFP or other means. When SafeSourcing says we will guarantee our results we are talking about what SafeSourcing is able to achieve versus a true current price that we can all agree upon. This is also the reason that true sourcing events may take multiple forms and why a strategy is needed.
If you’d really like to begin saving money, please contact a SafeSourcing Customer Services Associate.
SafeSourcing is a Procure to Pay SaaS based provider of a number of e-Procurement solutions and associated white glove services that are part of our SaaS offered SafeSourceIt™ eSourcing suite. These include but are not limited to SafeContract™, SafePO™, SafeDocument™ and our SafeSourceIt™ Global Supplier Database that includes over 557,000 vendor/suppliers.