Archive for the ‘E-procurement Solutions’ Category

The United States did better financially than we all thought.

Friday, December 2nd, 2022

 

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

According to Paul Wiseman of the Associated Press in an Article titled, US Revises up last quarter’s growth. The writer mentioned that regardless of high interest rates and high inflation that our economy grew 2.9% from July through September.

Woe is me, while it appears based on what we here from the media that the sky is falling, consumers continue to spend, companies continue to buy and deals for both are out there if you know how to shop.

In another article from Paul Hannon of the Wall Street Journal titled Eurozone Inflation Declines, but ECB Remains on Guard. This means that the rate of inflation during November was lower than expected by almost 6% at 10% versus 10.6% from the year earlier period.

While we all need to remain vigilant, there are some bright signs out there, like the FED suggesting the easing of rate increases going forward. Every area of the globe has its economic issues, and many are still calling for a mild recession. This author does not agree.

I do think we can all do better with our spending both personally and corporately, and this will help improve corporate earnings and allow companies to retain employees. Personally, it is not different. The savings from proper negotiations will reduce personal debt and the reliance on credit.

How do you go about this? If you don’t ask, you’ll never know. I watched a company today reduce the cost on a category the source by >24%. It’s possible.

How do you make sure you are sourcing your products and services in the best way possible? Contact SafeSourcing Inc. We buy them more often than you do and know the levers to pull. Glad to share some recent examples when you reach out.

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.

For more information, please contact a SafeSourcing Customer Services Associate.

 

Sources:

  1. Wall Street Journal, Paul Hannon
  2. Associated Press, Paul Wiseman

How do you keep track of all the moving parts with your Procurement Team?

Monday, November 14th, 2022

 

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

You must be a WIZARD, and we have any easy to deploy solution for you.

SafeDashboard™ is the configurable entry point for companies to view every piece of information and tool that they have access to within the SafeSourceIt™ Portfolio.

Custom fit for every company, and to some extent every role and user within the company, the SafeDashboard™ allows a company to see the information that is most relevant to specific users in a way that does not require them to jump from screen to screen.

KPIs can be included to give executives an overview of their overall sourcing event activity within the system.

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.

To learn more, please contact a SafeSourcing customer services associate.

 

 

 

 

Did you win last night’s Powerball?

Tuesday, November 8th, 2022

 

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

While I can’t provide the customer’s name, they are NOT a $5B retailer per yesterday’s posts example. However, they are smart and focused and may well be some day. They took SafeSourcing up on our No Risk Offer. Their ROI will more than pay for their contract moving forward. Most procurement teams do not believe these types of results are possible in the current economy. Most of your teams will tell you this is a waste of time. I’ll bet you could use another $338K right now.

Here are the results:

  1. Expense Category: Pilot Event Number One:
    1. Savings $298,270.80
  2. For Resale Category: Event Number Two:
    1. Savings $40,072.32
  3. Total Savings: $338,343.12
    1. ROI 26X

You can still test me, if you’d like, this link will come directly to me. Your team will tell you this is not possible. I guarantee that your odds are better than 1 in 292 million to win Powerball.

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.

For more information, please contact a SafeSourcing Customer Services Associate.

 

 

 

Powerball is at Two Billion Dollars WOW. Did you buy a ticket?

Monday, November 7th, 2022

 

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

If you took the risk of buying a ticket or many tickets in the recent Power Ball. Join the losers club. That includes yours truly. According to sources, your chance of winning Powerball is 1 in 292 million. You have a better chance of being struck by lightning. Oh, and guess what? You cannot get your money back.

So, if you were silly enough to make this bet as I was and will do on Monday, why not try a sure thing. SafeSourcing guarantees our results. If you don’t win, you don’t pay. Our risk-free trial just might be the best thing to happen to your company. How many jobs would be saved or delayed, or new initiatives started if you had a billion dollars.

Here’s An Example:

Assume a $5B Retail Company. Assume cost of goods for this company is 70 percent or $3.5B. Let’s also assume this company were to only source thirty percent of their for-resale COGS. or $1.5B. With SafeSourcing’ s average annual savings of 24%, savings generated would be $840M. Now let’s assume that we also source the indirect or expense category. That would be $1.5B minus average payroll and benefits expense of 20%, so $1.2B. If we also average 24% savings here, that would be an additional savings of $288M. Therefor total savings would be $1.128B. From here we’d have to manage award of business and contract begin and end dates.

If you don’t have $5B in sales, the numbers would still be dramatic. When’s the last time Powerball guaranteed a $1M winner.

Can you find thirty percent of your COGS or Not for Resale spend to source? That’s up to you! Can you test me, if you’d like, this link will come directly to me. Your team will tell you this is not possible. I guarantee that your odds are better than 1 in 292 million.

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.

Best of Luck!

For more information, please contact a SafeSourcing Customer Services Associate.

 

 

 

Retailers it’s really pretty simple; just look at your Gross Profit.

Thursday, October 20th, 2022

 

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

How many times do we hear all of the reasons for a retail company’s performance being off? It’s the cost of doing business over seas, the economy, the cost of fuel, heath care costs etc. How often do we hear, that we are doing better than the same period a year ago or we are exceeding plan. All of that is nice stuff, but the bottom line is your bottom line. If you top line sales are up and your net profit is up it does not necessarily mean that you have all of your procurement issues under control.

Let’s start with some numbers you might want to look at. Don’t just assume that profit is a good thing because profit could be caused by an imbalance in your category margins.

Here are a few good questions to ask yourself.
.
1. How do your cost of goods compare to the rest of the industry for a chain of your size?
2. How do your operating expenses compare to other chains of your size?
3. How do your gross margins compare to other chains your size?

All of the above can be good indicators of overall company health and certainly procurement health. If your cost of goods is higher than industry averages for a chain of your size, why is that? Is there a specific category that is causing the issue? Do you know how to isolate the problem and then eliminate it?

If you don’t have or know this information, you should ask your e-procurement provider if they have it, because they should if they want to model an improvement plan for you.

As an example, here is an example of a previous years U.S. based convenience store chains targets for non fuel.

1. Cost of Goods Sold should run somewhere around 71% or 72%
2. Gross Profit should run around 28% to 30%
3. Operating Expenses should run around 26% to 29%
4. Net Operating Income around 2%

While these numbers are certainly off based on Pandemic issues, product  or services mix, you can build a case model on them to compare before and after for you company. That is if you have a tool like SafeBIM™ from SafeSourcing. BIM stands for Business Impact Model.

If you are way out of balance with these numbers and want to understand how to rebalance them, contact a  SafeSourcing Customer Services Associate.

 

Why do you need to use eProcurement tools like eRFQ’s or Reverse Auctions

Thursday, October 13th, 2022

 

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

Because of terms like Off-Invoiced Amount which is not a sustainable negotiation tactic

What aggravates me in Business-to-Business supplier/customer negotiations are old tactics like the term off-invoiced amount which are generally not captured properly or sustainable in your ongoing negotiations. The use of eProcurement tools that capture all information from suppliers drives better measurable savings that can be easily tracked across any enterprise.

The term off-invoiced amount is an amount which is reduced to a retailer in return of purchasing specific quantities of goods in a specific period of time to increase the volume of sale to the retailer.  Also, an off-invoice amount could be a sales promotion in which the manufacturer offers the retailer a price reduction on the product price at the time of ordering.

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.

To learn more, please contact a SafeSourcing customer services associate.

 

 

 

Are you sourcing a new category or cannot find a specification for a current category?

Wednesday, October 12th, 2022

 

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

Often when speaking with customers and prospects I am asked why SafeSourcing can reduce their current pricing as dramatically as we do.  My fist response to ask how often they source the category. The answers range from annually to every few years or longer. From there I ask them how they keep track of industry changes and evolution. This normally draws a blank look. My answer to them is that categories that they source even annually are evolving every day. Just think about waste removal the transition to a circular economy. What you might source for service today may not be the same as what is available six months from now, and at what cost SafeSourcing may source those categories dozens of times in a year and all of those changes are kept in our The SafeSourceIt™ Event Templates Library and are up to date to the present day. Often these templates are more complete than data the customers have on file.

Our SafeSourceIt™ Event Templates Library is available to customers of SafeSourcing Inc. This library is designed to shorten the process of procuring a variety of not for resale and for resale products by making SafeSourcing’ s best practices tools available to our customers to shorten the amount of work one must do to prepare for quality e-procurement events. For more information or a demonstration of this tool please contact marketing@safesourcing.com.

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.

To learn more, please contact a SafeSourcing customer services associate.

 

How does your company control all of your purchasing at all levels?

Friday, October 7th, 2022

 

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

SafeCatalog™ is a tool that allows companies to consolidate the products and services they order into one online view for employees. This tool is easily customizable and allows users to create different catalogs for multiple departments within their organization. It also provides control over ordering by listing only approved vendors at negotiated rates.

When integrated with the SafePO™ module, users can have their catalog orders automatically processed and entered into an online purchase order system that allows suppliers to be notified of the order once it has been approved.

Catalogs can be populated with items from one or multiple suppliers and are presented in a way that includes descriptions and provides prices in one location.

SafeCatalog™ provides users the leverage to monitor and control spending through spending thresholds that ensure that users are receiving the correct price for all items.

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.

To learn more, please contact a SafeSourcing customer services associate.

 

Can you go to one place to view and access all of your procurement required data?

Wednesday, October 5th, 2022

 

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

Most Procurement knowledge workers I talk to cannot!

SafeDashboard™ is the configurable entry point for companies to view every piece of information and tool that they have access to within the SafeSourceIt™ Portfolio.

Custom fit for every company, and to some extent every role and user within the company, the SafeDashboard™ allows a company to see the information that is most relevant to specific users in a way that does not require them to jump from screen to screen.

KPIs and scorecards can be included to give executives and other procurement knowledge workers an immediate and up to date overview of their overall sourcing event activity within the system.

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 SafeSour