Archive for the ‘B2b Supply Chain’ Category

Let’s play supplier poker if you dare!

Monday, September 14th, 2020

 

Todays post is from Ron Southard, CEO at SafeSourcing Inc.

Let’s play supplier poker! Then we’ll find out how good your current supplier data is.

If this were a real poker game, I’d raise our big supplier data versus your existing supplier data.

Locating, managing and updating supplier information that companies choose to do business with has never been more difficult. How many companies that you used to do business with 4-5 years ago are no longer in business? How many new companies have taken their place? I already know the answer you are going to give me. It’s I don’t know.

We keep hearing about big data. With new regulatory requirements emerging daily, economies failing, the supply chain shrinking in some places and expanding in others,  changing  safety factors and  environmental factors ( think LEEDS), detailed supplier information and traceability are but a few of the issues that require regular maintenance in order to mitigate a company’s risk.

Solution Providers like SafeSourcing that provide supplier databases (SafeSourceIt™) that are part of automating the procurement process, need to step up and make sure that their data support these changes on a regular basis to the greatest extent possible by providing tools that interacts with both regulatory agencies and suppliers to insure consumer safety and environmental impact as more new sources of supply and new products enter the supply chain on a daily basis.

Actions that solution providers can take should include but are not limited to:

1. Monitor daily alert data as to product recalls and safety warnings.
2. Trace warnings back to the original source of supply automatically and maintain history.
3. Require that suppliers meet certain safety certifications in order to participate in their database.
4. Require that suppliers meet required environmental certifications or programs in order to participate in their database
5. Provide a regular purge of suppliers that do not comply with necessary standards.
6. Validate the entire database regularly for companies no longer in business
7. Adhere to a strict RFI process for new suppliers requesting participation in their database.
8. Provide a rating system for suppliers that are offered to companies as new sources of supply.
9. Monitor regulatory agencies such as ISO for new standards and include them as further requirements in supplier databases.
10.Conduct on going category research for evolving sources of supply.
11.Compare your best customers GL to your database for additions deletions.

Ask your solution provider what their process is to grow manage and maintain their supplier database for your benefit.

If you’d like more information on the SafeSourceIt™ Supplier Database of over 427,000 cleansed global sources of supply, please contact a SafeSourcing customer services account manager.

We look forward to and appreciate your comments.

What happens when your supplier forgets that you are the customer?

Friday, July 24th, 2020

 

Today’s is from our archives at  SafeSourcing.

After contract negotiation, sometimes a vendor will forget who the customer is. This can be detrimental if it occurs in the quality of their perishable products.

When it comes to the quality of perishable products sold, it is important to have a quality check in place.  This is important when it pertains to perishable foods that don’t meet minimum standards and agreed upon expiration dates.  Without a quality check in place, there will be an opportunity with spoilage which will result in additional shrink then originally budgeted.

Two of the most effected categories in retail grocery are produce and dairy.  Fresh produce is a minimum requirement or your customer.  Typically produce is one of the first products you see when you enter a retail grocery store.  It has to look great.  The relationship you have with your vendor is important.  Sometime vendors try to implement a standard reduction for spoilage credits which is the same across all stores regardless of their actual spoilage.  This standard helps some stores and hurts others.  In the world of retail grocery, every penny counts and it is important that all credits are accounted for properly by store location. With dairy, you are only getting 7 days to sell your products due to sell dates; therefore, you set yourself up for spoilage.  Vendors should be held to giving you at least 14 days to sell the product before spoilage.

It is important to not allow your suppliers dictate to your company’s product expiration dates.  Regardless of the price set during negotiation and contract time, there was an agreement with the supplier that they would supply you quality products.  They need to be held to that agreement.

SafeSourcing does the due diligence to ensure all proper terms and specifications are included in the documents to set minimum standards and expectations.   These documents serve to remind suppliers of the quality and service expectation agreed upon at negotiation and contract time.

For more information on how SafeSourcing can help you with insuring fresh perishable products, please contact a SafeSourcing Customer Service representative.

We look forward to and appreciate your comments!

 

Supply Chain Safety Net

Wednesday, April 29th, 2020

 

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

During this trying time of COVID-19, organizations are battling uncertainty right now with demand fluctuations, production changes, and security of supply. In an earlier blog, I discussed the importance of innovation and there is no greater time than now to be innovative.

Innovation is often viewed as the application of better solutions that meet new requirements, unarticulated needs, or existing market needs. [1] Currently, there are some supplies that are in greater demand due to the need to meet the requirements that we are facing today. Solutions to meet these needs are coming from a multitude of sources and the world’s supply chain is being stretched to the limit. The National Association of Manufacturers was tapped to seek suppliers to provide or produce large-scale quantities within 2 weeks in response to the COVID-19 pandemic.

SafeSourcing was able to successfully source label products for a client, in the midst of this crisis. The label suppliers were ready and able to come through with significant savings over 35%. Organizations are learning a valuable lesson, which is to have a plan and stay ready. In order to get through this situation today and to be ready for the future we need more effective practices, products, and processes. Increased services, technologies, and business models that are readily available to markets, governments and society.

This calls for better financial management, cost control and less organizational waste. Many organizations are beginning to re-evaluate their purchasing processes, and identify new types of e-procurement tools that will meet their needs. Find out what SafeSourcing can do for you.

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…………………………………………………………………….

[1] Maranville, S. (1992). “Entrepreneurship in the Business Curriculum”. Journal of Education for Business. 68: 27–31.

 

COVID-19! Banks and Governments are too big to execute!

Tuesday, April 14th, 2020

 

Todays post is from Ronald D. Southard, CEO at SafeSourcing Inc.

Have you applied for your loans from any of the Government/SBA programs that are intended to help small business and their employees during the COVID-19 Pandemic?

If you have, you probably have the same tales of woe as 100% of other small business that have done the same thing. Hey, we will invest whatever time it takes in order to protect our associates and our businesses.

At SafeSourcing Inc. small though we are, we have applied for the following relief programs.

  1. The Paycheck Protection Plan through Bank of America and supported through the SBA.
  2. We have applied for the Federal Reserve backed program through the SBA sponsored AZ-00065-Arizona COVID-19 disaster loan program.
  3. We have also applied for the small $10K Disaster Fund Grant through the SBA.

Personally, I have waited on an open phone line to the SBA where I was caller # 964 and waited it out in order to be told they can not give me an update. I also have a loan application number and they have no way to look it up. I have also waited on the phone for 2 hours with my Banks data collection company Itralinks. In that process, I started as caller # 177, waited until I was number one, pressed start and became caller # 176. I waited again and at the same time became caller # 175. Not only can’t they handle the volume, their application has zero instructions for the user. If we did not own a document management system at SafeSourcing, I never would have figured this out.

I believe that President Trump said that we can’t make the cure worse than the disease when referring to COVID-19. In the same light, we can’t make the small business solutions proposed by the government increase the level of pain small business are suffering. The question now is how many small businesses have failed already because they had to wait to long for the Band-Aid cure that these programs are to begin with. I’m guessing the numbers are in the millions.

It’s time that someone moved beyond sound bite answers and got their act together.

We look forward to your experience and comments.

 

Knowing Who Your Suppliers Are – Onsite Visits – Part II of II

Friday, April 3rd, 2020

 

Yesterday we posted  about the importance of onsite visits with your suppliers, how to prepare, what to look for, and the value of performing these visits.  This week we will be taking a look at some of the additional things that you need to think about when visiting a supplier in another country.

Visits to international sites will need to encompass the same types of information gathering as a domestic one such as reviewing the cleanliness of the facilities, observing production, logistic and storage processes, but there 3 important areas that must be considered in addition to these that may determine the success or failure of the visit.

Language – Assuming you are visiting a supplier that is not located in a predominantly English-speaking country, the capability to communicate onsite is an important one that should be addressed well in advance of the visit.  Many times the supplier will have staff that is fluent in more than language and can act as an interpreter, however procuring your own interpreter is also a suggestion and possibility. Also, some basic considerations of your own communication style would be to speak more slowly than usual and pause in between sentences to be understood more easily.

Culture – This is an important area to prepare for because in some countries seemingly minor things can create a tense atmosphere.  Determining whether to bow and the details surrounding when and how, if the country shakes hands when they greet and which hand they shake with are all important items in some countries and should be learned prior to your visit.  On the other hand, it is equally important to note the things that are normally unaccepted behaviors in the U.S. which many times are not viewed the same way in other countries.  Americans would generally never answer a phone call in a meeting or show up to an appointment late, but in other countries these behaviors are far less important and frequently occur during the course of doing business.

Capturing the details – Visits to international suppliers generally come with a price tag that is not insignificant to your company, so capturing as much data as possible is important on these visits.  Wherever you go during your visit take a notepad and camera with you to record what you see and hear while on the visit.  Many manufacturers will allow you to take occasional pictures as long as you ask in advance and have it cleared.  Some may not allow it and others may allow it as long as no employees are included in the pictures.  Capturing these details will be very useful to you and your team in the future and can potentially save trips for other employees in the future.

Onsite visits to your suppliers are incredibly valuable and important to your organization and are a terrific tool for knowing who your suppliers are and how they do business.  They are also important forums to gather details necessary for later contract negotiations.

If you are interested in locating potential new sources of supply, please contact SafeSourcing.  The SafeSourceIt™ Supplier Database contains 457,000 globally.

We look forward to and appreciate your comments.

Knowing Who Your Suppliers Are – Onsite Visits – Part I of II

Thursday, April 2nd, 2020

 

Todays post is from our SafeSourcing Archives

One of the important practices recognized by many successful procurement professionals is that of performing onsite visits to both their new and incumbent suppliers.  So much can be learned about how your suppliers do business that may affect your future decisions and contracts.

Today’s blog will be focusing on visits to domestic suppliers and Part II will have more details on visiting your international suppliers.

If you are dealing with a new supplier and scheduling an onsite visit, this is the opportunity for you to validate all of the details they have presented in their RFP/RFI response or presentation; validating that they have the staff, resources and facilities to handle the demand you are requiring of them.

This will be an opportunity to meet the sales and support team that will be assisting you and your company when the inevitable problem does occur, so take advantage of this time to get acquainted with the supplier’s staff.

If you are dealing with an incumbent supplier, make sure you have thoroughly reviewed your existing contract so that details about the level of service and quality promised can be focused on as part of the visit.  Make sure that you request, in advance, any additional reporting from your IT department or from the supplier on the history of the relationship so far.  This would include quality issues, shipping issues, product delays, inventory availability or any other special circumstance that may have occurred.  This visit will be the right time for you discuss these with the supplier face-to-face.

A final very important area to spend time in your visit, whether new or existing supplier, is the shipping area.  Here you will have a very clear idea of how the supplier is organized and you may even get a glimpse at the companies they get their raw materials from as well as other customers they are shipping too for future reference and follow-up.  Information found in this area will also go a long way when having contract negotiations with your incumbent suppliers for concessions on how your products and deliveries are handled.

Onsite visits are critical to understanding who you suppliers are and can be extremely valuable negotiation checkpoints.  My next blog will focus on the differences and things to consider when visiting international suppliers.

If you are interested in locating potential new sources of supply, please contact SafeSourcing.  The SafeSourceIt™ Supplier Database contains 457,000 globally.

We look forward to and appreciate your comments.

What’s the genesis of your supplier database and how was it built?

Tuesday, March 24th, 2020

 

Todays post is from Ronald D. Southard, CEO at SafeSourcing Inc.

All databases have their start as an information gathering exercise that ultimately is enhanced by those characteristics the owner or developer determines to be useful to the community of interest the database is to be offered to. The information then becomes part of a data model where information sets can be accessed or searched based on a variety of queries or questions. Most developers follow a process called Universal Description, Discovery, and Integration or UDDI  as this process.

Universal Description, Discovery and Integration or (UDDI) is a standard established for building online databases of companies and the goods and services they provide, similar to Yellow Pages for the Internet. UDDI is intended to help businesses locate suppliers and products. Sourcing companies supplier databases go well beyond this definition.

Data models can be extremely complex and that is where they become more than a simple on line yellow pages. In fact high quality supplier databases should be able to provide much of the data you might find in the opening pages of a detailed RFI. A simple query like show me all companies within a 500 mile radius of your home office zip code that provide a set of products that meet the following safety certifications.  A next step might be summarizing all company information for these companies by a list of attributes such as company description, sale, years in business, officers etc.

How easy would that make your life?

If you’d like to find more qualified and vetted suppliers to support your sourcing efforts of any product or service, please contact a SafeSourcing Customer Services Account Manager

We look forward to and appreciate your comments.

Thanksgiving and Black Friday is really a story of a supply chain found and developed!

Friday, November 29th, 2019

 

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

Happy Thanksgiving Weekend from SafeSourcing

One hundred and two pilgrims and crew arrived in Massachusetts after a 3,000 mile trip from England on the Mayflower. It is safe to say that as a result of that distance there was no existing supply chain to leverage, so one had to be developed and quickly. This began with basic hunting and gathering and later included trading with the areas indigenous peoples known as the Wampanoag’s for corn, seed and foraging and planting techniques.

The Thanksgiving holiday we celebrate today really stems from the feast held in the autumn of 1621. Since the pilgrims had only arrived on November 21st of 1620 they had really not been there long enough to develop a fully reliable and renewable supply source. They had however established collaborative relationships with the local Wampanoag people who became regular trading partners and who helped them celebrate the colony’s first successful harvest.

The most detailed description of the “First Thanksgiving” comes from Edward Winslow from A Journal of the Pilgrims at Plymouth, in 1621:”Our harvest  being gotten in, our governor sent four men on fowling, that so we might after a special manner rejoice together after we had gathered the fruit of our labors.

The fowl referred to above certainly could have included a wide range of fowl that was plentiful in the area such as wild turkey, pheasant, goose, duck, and partridge and unfortunately by today’s standards even eagles.

The pilgrims probably didn’t have pies or much of anything sweet at the harvest feast because they did not yet have ovens. They had brought some sugar with them on the Mayflower but by the time of the first Thanksgiving, the supply had probably run out.

Their meals also included many different types of meats. Vegetable dishes, one of the staples of today’s Thanksgiving, didn’t really play a large part in the feast. Other items that may have been on the menu certainly included sea food such as clams and lobster, Indian corn, wild fruits and nuts, meats such as venison and seal and certain dry herbs and spices.

The Thanksgiving meal that has today become a national holiday is a symbol of supply chain cooperation and interaction between English colonists and Native Americans.

We look forward to and appreciate your comments.

Happy Thanksgiving.

Can recessions represent opportunity Part II of II?

Thursday, October 10th, 2019

 

Today’s post is from our  SafeSourcing Archives.

Please view Part I  of this post to understand this subject matter in its entirety.

Recession brings destruction, and with that opportunity, within the gaps created by those business changes. Many other firms have simply pulled back, and have less aggressive marketing, and are less aggressively pursuing new opportunities, new customers, and new products. Others have been effective in centralizing purchasing, locking in supplier commitment, and transforming their internal purchasing culture. All the above scenarios create opportunity savings for the suppliers.

But how do the purchasers take advantage of the changing business landscape?

A more aggressive survival of the fittest environment means the incumbent suppliers are more apt to make concessions in order to keep your business, making the market more competitive. That is, more competitive for your business. Furthermore, more suppliers are focusing on converting to leaner product management, meaning lowering inventories and overhead. The most difficult aspect of taking advantage of this is sifting through the overwhelming number of suppliers, and creating an environment that breaks down the pricing informational barriers, in order to promote competition for your business. How do you take advantage of this competitiveness in a way that’s safe, effective, and manageable?

That’s what we do. We do the research, the legwork, and bring the competitive environment to bear in a way that is risk free to the supplier, but high reward to the businesses that establish the purchasing relationship.

If you think your business could benefit from our managed sourcing solutions, contact a  SafeSourcing customer services representative and we’d be happy to discuss your strategic options.

We look forward to and appreciate your comments

Can recessions represent opportunity Part I of II ?

Wednesday, October 9th, 2019

 

Today’s post is our SafeSourcing Archive.

Do you know what FedEx, Hewlett-Packard, Disney, Hyatt, MTV, and CNN all have in common? They were all started during periods of economic recession.
Uncertainty in the business landscape can fuel tremendous opportunity. How many corporations are trying to scale down excess inventory and are willing to sell at drastic discount to do it? How many dislocated and highly skilled professionals are willing to accept historically low salaries to find reliable work? How many consumers have drastically changed their purchasing behaviors?

To the adaptive go the spoils?

That last scenario is the one that frightens retail businesses the most.

After all, who wants to abandon their core business and cash cows? That’s a scary proposition, when traditionally most firms would prefer low risk/low reward stability over higher risk innovative adaptability (Consumers have the same career mindset, as you’ll see below). However, as our highly dynamic economic and technological environment has repetitively proven, no one can afford not to adapt if they want to survive. Some corporations and new startups have discovered that trying to convince consumers to spend the way they used to (and can no longer afford to) is a losing game, and that the real opportunity is to discover and acquire a share of the new ways consumers are spending. For instance, Target has rebranded itself as a discount designer product store. For others though, it may be more prudent to create spin-off discount brands to serve that market, but keep that brand insulated from your premium brand to prevent any negative ass
ociations of discount retail from your primary brand. Opportunity is not exclusive to consumer spending though, it exists also in the new ways consumers are seeking revenue.

Counterintuitive to what most of us might think about recession-era job seekers, is that there has been a shift in emphasis away from the pursuit of higher pay for potential job seekers.

Due to the insecurity the population is feeling however, it should come as no surprise that security is the consistent priority, replacing pay scale as the most sought after characteristic of employment. A 2010 poll by the Associated Press showed 64% of workers under 25 years of age are unhappy with their jobs, and less than half of all Americans are happy with their jobs. What does this mean to employers? There exists opportunity in recruiting talent, and they are looking more for stability than they are looking for large salaries. Of course, savings in production are being pursued just as fervently as savings in acquisition, but everyone can benefit from these savings all along the supply chain.

Please check back tomorrow to read part II of Michaels informative post.

If you’d like more information about SafeSourcing, please contact a SafeSourcing customer services representative.

We look forward to and appreciate your comments.