Archive for the ‘Sourcing Strategy’ Category

Doom and Gloom, nobody is spending MONEY.

Wednesday, December 7th, 2022

 

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

I went to a mall this past weekend. It’s something I always liked to do during the holidays. Truth be told I used to love it as a kid during the pre-indoor shopping days. The cold of going from store to store made it seem more like the holidays and if I was lucky, it might even snow. All that much better in my mind.

Well, the hustle and bustle are back even if it is indoors. The first indication that consumers are being, well consumers was that there were no parking spots at 11 a.m. So, we circled and finally found a spot. To say the mall was crowed is an understatement. Literally every single store had waiting lines at the checkout. The restaurants were all full as were the coffee shops. I have never seen so many people in a Nordstroms, and their Café had a line out the door. When we finally left, the line to get in the parking garage was dozens of vehicles in length. So, consumers are not listening to the financial pundits and news channels. Much is still ok with the American consumer and prices will continue to go up on everything other than maybe real estate.

In a supporting article in the Wall Street Journal titled, Stocks Fall After Strong Data Raises Rate Fears Crude-oil prices extend declines, Treasury yields tick lower By Will Horner Follow and Jack Pitcher, the quote David Donabedian “The economy continues to show a degree of strength that I think was not expected,” said David Donabedian, chief investment officer at CIBC Private Wealth US. “The consumer is hanging in there quite well, jobs continue to be added, wage growth is significant, and consumers are still spending.”

Based on my observations and the above article, it does not sound as though consumer spending will be going down any time soon. So, you guessed it, prices are going up for everybody, individuals and businesses alike.

So, how do companies make sure they are sourcing products for you economically? Hey should Contact SafeSourcing Inc. We buy it more often than they do and know the levers to pull.

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.

Resources: Wall Street Journal

Watch your commodity markets closely!

Wednesday, November 30th, 2022

 

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

In an article by Bryan Doherty in Successful Farming titled EXPECT TIGHTER SUPPLY OF CATTLE IN 2023, ANALYST SAYS. Though cattle marketing numbers were heavier than expected late summer and fall, expect that beef production and the number of cattle marketed will be lower in the year ahead.

Why? The quick answer: higher input costs and drought conditions in key cattle-producing states will mean less inventory in the months ahead.

How do you make sure you are sourcing your commodity needs correctly? Contact SafeSourcing Inc. We buy it 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.

References:

Successful Farming: Bryan Doherty

Talking Turkey!

Tuesday, November 22nd, 2022

 

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

According to a recent article by Thomas Barrabi in the New York Post, Americans will face a record-high cost for a traditional Thanksgiving turkey this fall because of inflation and a shortage caused by bird flu outbreaks.

The cost of turkey hens — the bird that most often appears on Thanksgiving dinner tables — is currently up 57% compared to its five-year average, according to market data from research firm Urner Barry cited by the Wall Street Journal.

Prices have hit their highest level on record. Turkey breast meat has surged to a record of more than $6.50 per pound this year. The same cut cost less than $2 per pound in 2020.

This is another example of prices that do not need to be as high as they are. There are ways to mitigate these costs, but you should have been considering that in February and March. And you should have been engaging SafeSourcing Inc.

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.

References: Thomas Barrabi,  The New York Post

 

 

Based on October results are consumers really being impacted by inflation?

Monday, November 21st, 2022

 

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

According to TRADINGECONOMICS Retail sales in the US surged 1.3% month-over-month in October of 2022, the strongest increase in eight months, after a flat reading in September and beating market forecasts of a 1% gain. Sales at motor vehicle dealers were up 1.3% as supply chain constraints have been easing while rising gasoline costs pushed sales at gasoline stations 4.1% higher. Excluding gasoline and autos, retail sales were up 0.9%. Other increases were also seen for sales at food services and drinking places (1.6%), food and beverages stores (1.4%).

When results for this quarter are reported, we believe margins will also rise when looking at the cost savings we are seeing for our retail customers. If you want better margins and better earnings, maybe it’s time to talk to SafeSourcing about our risk-free trial. Sales up and costs down is a perfect formula

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.

References:

  1. TRADINGECONOMICS

 

Can We Collaborate?

Friday, November 18th, 2022

 

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

You have probably heard that phrase so many times, you might not even recall the first time you heard it. The reason it is such a popular phrase is because it has remained true and helpful throughout. Even during early school years, we are taught how to work with others to accomplish some task – because it is such an important skill and helps to accomplish goals throughout life.

In our current climate, it is still important to be able to work together. We work within our organizations and use the skills of those strongest in certain fields to help the group as a whole. In fact, we do this so much that we choose people based on their strengths and their ability to fulfil the organization’s needs – making a hundred heads better than one.

Sometimes the need extends further than within an organization. This is where collaborating with another organization can help! In fact, this is something SafeSourcing does quite often. Let us say you need to source, as an example, plastic bags. Perhaps you do not buy enough to get much of a discount. Here we can collaborate. With a SafeSourcing collaboration, your plastic bag quantities and other organizations’ quantities combined can expand the resources available to you and could get you a more competitive price.

If you are not sure if collaboration is right for you, you can still collaborate with SafeSourcing to help you get the services or supplies you need from the vendors that can help you the best. SafeSourcing has the expertise that can help strengthen whatever project you are set to undergo.

For more information on what the SafeSourcing team can offer you, or on our Risk-Free trial program, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.

References:

  1. http://safesourcing.com/ContactUs/tabid/60/language/en-US/Default.aspx
  2. https://www.zippia.com/advice/home-improvement-industry-statistics/

 

Your prices will keep rising!

Thursday, November 17th, 2022

 

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

There is always something. We have been watching as costs for everything continue to rise every month. There seems to be no end to the scary stories we are being told that seem to keep the prices rising and our wallets lighter.

One that has me particularly disappointed is the news coverage about a potential diesel shortage. The facts are minimal, and the stats are carefully selected. Comparisons are not offered nor are typical averages. The headline just tells us we are only have a 25-day supply of diesel. Of course, that is not really true. If you just look past the click bait and breathless recounting of the story, you will see it is nothing to be worried about.

What is worrisome is the effect that could have on already high prices. We all know that everything runs on diesel. America runs on diesel. That means that even a perceived shortage can spike prices (or just justify the already high prices to hold them there).

Regardless of the story and the excuse, when faced with increasing costs we must push back. Our customers have been doing that already and it is more important than ever.

For more information, please contact SafeSourcing.

 

 

 

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.

 

 

 

What happens when no one believes you?

Friday, November 4th, 2022

 

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

Over and over and over again. So, just what are you missing?

SafeSourcing is a a Spend Management Company. We consistently reduce costs greater than 24% of what companies can negotiate on their own, across their entire spend improving net earnings significantly. We also GUARENTEE it. So, test me if you dare. All you have to lose is the best total year business results your company has ever achieved. Insert here the sound of a clucking Chicken!

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.

 

 

Post-Consumer Materials and the Circular Economy

Tuesday, November 1st, 2022

 

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

How is your company planning to work with evolving circular economy issues?

According to Wikipedia A circular economy (also referred to as circularity and CE)[2] is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible.[3] CE aims to tackle global challenges as climate changebiodiversity loss, waste, and pollution by emphasizing the design-based implementation of the three base principles of the model.

Global business is now thinking way past post-consumer materials which as we all know drove many of the early recycling initiatives implemented by businesses. A definition of that term which is a beginning point but less broad than circular economy is below.

The term post-consumer materials are finished productspackages, or materials produced or created by a business or consumer.  Post-customer materials have served their intended uses and have been recovered or diverted from the waste stream with the intention of recycling or reuse. An example of post-consumer materials is paper recycling.  The purpose of paper recycling is to turn paper into new paper products.

SafeSourcing is an eprocurement company that operates across multiple industries. Our SafeSourceIt™ Global Supplier Database of over 457,000 suppliers provides easy access to alternative sources of supply based on post-consumer materials and or circular economy requirements. To learn more, please contact a SafeSourcing customer services associate.

Sources: Circular economy – Wikipedia