Archive for the ‘Sourcing Strategy’ Category

Does your company have a Buying Committee?

Thursday, June 9th, 2022

 

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

SafeSourcing has found that many companies achieve improved results by having additional eyes available to review complex categories before final contract award. Often, SafeSourcing is asked to be a part of these committees as we are generally very deeply involved in the data and meta data. Additionally, many companies only source service type categories annually while SafeSourcing may host these categories dozens of times in a single year and be more aware of nuances that can improve final negotiation.

A buying committee is an organization’s committee that analyzes and selects new products, deals, and offers special promotions. The buying committee has been implemented in many industrial organizations, hospitals, and government. The salesperson must provide information to all the members of the buying committee and should target the real sales efforts.

SafeSourcing is an eprocurement company that operates across multiple industries. As such we have specific experience in almost any commodity, service or capital related spend. To learn more, please contact a SafeSourcing customer services associate.

Low-Cost Country Sourcing

Wednesday, June 1st, 2022

 

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

Is your company considering bringing more of your sourcing onshore or changing to multisource?

Low-cost company sourcing along with sole source commitments has had a negative impact on the supply chain during the COVID-19 Pandemic and that negative impact continues in our current economic environment. Many companies are rethinking these strategies in to limit their supply chain risks. SafeSourcing continues to field requests to assist in finding alternative and or multiple sources of supply in this current environment. Our SafeSourceIt™ Global Supplier Database is the source for many of these companies.

Low-Cost Country sourcing (LCCS) is a procurement strategy in which a company uses foreign companies with lower wages to produce resources for manufacturing. By finding companies countries with lower labor and production costs that operate on leaner budgets than domestic operations, a company may be able to acquire materials and reduce operational expenses. Low-cost country sourcing is a part of a company’s global sourcing strategy. It is also called outsourcing or international procurement organization (IPO).

If you’d like to learn more about how SafeSourcing can assist in helping your company find additional sources of supply, please contact a SafeSourcing customer services associate.

References: http://www.businessdictionary.com/definition/low-cost-country-sourcing-LCCS.html#ixzz2BIrG7ujm

 

Logistics Service Provider

Thursday, May 19th, 2022

 

 

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

Logistics outsourcing involves a relationship between a company and an LSP (Logistic Service Provider) which, compared with basic logistics services, has more customized offerings, encompasses a broad number of service activities, is characterized by a long-term orientation, and, thus, has a rather strategic nature.

An LSP is really what most people would see as a traditional 3PL provider offering a combination of warehousing and transportation services or one or the other. As global and multi-national providers enter the game, things have certainly changed, but the Logistics Service Provider at its core is fundamentally the same.

Third-Party Logistics Provider (3PL) involves using external organizations to execute logistics activities that have traditionally been performed within an organization itself. According to this definition, third-party logistics includes any form of outsourcing of logistics activities previously performed in-house. If, for example, a company with its own warehousing facilities decides to employ external transportation, this would be an example of third-party logistics. Logistics is an emerging business area in many countries.

If you’d like to learn more about how SafeSourcing can assist in managing your selection of a variety of logistics issues, please contact a SafeSourcing customer services associate.

 

 

 

Stay Focused on Savings!

Tuesday, May 17th, 2022

 

 

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

While many buyers are acquiescing to higher prices month over month, it might be easy to assume that there is no other way. I am sure you know the old saying about what happens when you assume…

The truth is there are purchasing organizations out there who are still responsible for and capable of reducing their cost. As others talk about inflation, supply chain issues, the pandemic, and whatever other excuse du jour is popular at the moment, some are ignoring the noise and delivering cost reductions.

So, what is the difference between these types of procurement professionals? How does one decide that the best path is to accept price increases and the other decides to push back and win? Further, how does the latter actually succeed?

Tools like SafeSourcing’s SafeSourceIt™ suite of eProcurement solutions certainly play a critical role, but that is not the real differentiator here.

The real difference is the person. In the face of challenges, some will continue to try, and some will not. It takes determination, grit, and confidence to succeed as a buyer in these market conditions. I am truly fortunate to have the privilege of collaborating with many people with these exact traits, both as customer partners and as teammates here at SafeSourcing.

Because of this, I also get to watch these people persevere and create cost reductions where others say it is not possible. That is a very exciting thing to be a part of.

You must decide for yourself how you will react to challenges and whether you will continue to fight or roll over and die. If you would like to keep fighting to meet and exceed your cost reduction goals, we are here with you.

For more information, please contact SafeSourcing.

 

 

 

Seller-Driven Auctions

Friday, May 13th, 2022

 

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

A seller-drive auction is an auction where sellers post goods for sale and buyers will bid on them. A good example of a seller-driven auction would be eBay©. A seller would place a particular item that they want to sell online, and buyers wanting to purchase that item will place bids trying to ultimately win the auction for the product (s).

An often-overlooked tool is an online Forward Auction. Forward Auctions can be used to reduce over stock and decrease associated loss prevention costs.

Online forward auctions are an ideal way to get the best price for capital equipment, materials, overstock, and services you may want to sell, such as when you need to liquidate excess inventory. There are two basic types of forward auctions. The first is a liquidation or Forward auction where sellers are reducing inventory from overstock or liquidation.

If you’d like to learn more about how SafeSourcing can assist in properly identifying and selling your overstock and other back-room accumulations through the use of a SafeSourceIt™ Forward Auction, please contact a SafeSourcing customer services associate.

 

 

A Category Management Primer!

Thursday, April 28th, 2022

 

 

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

What is the structure of your buying organization?

Evolution to a category management structure began in the 1980’s. Many companies today have still not completely evolved to this structure. So, what are some of the elements of a category management structure and what do they do. Here are some definitions from the SafeSourcing Wiki which is free for anyone to use.

  1. CategoryManagement is a retailing concept in which the total range of products sold by a retailer is broken down into discrete groups of similar or related products; these groups are known as product Examples of grocery categories may be tinned fish, washing detergent, toothpastes, etc. Each category is then run like a “mini business” (Business Unit) in its own right, with its own set of turnover and/or profitability targets and strategies.
  2. categorymanager (CM) analyzes product brands and mixinventory levels, movement, shelf space allocation, promotions, buying, and profitability of a merchandise category. They manage the marketing for a range of related products in a way designed to increase sales of all of the products, as opposed to a brand manager who markets an entire brand of goods.
  3. Within a category, a category captain is the manufacturer‘s representative responsible for analyzing the productmovement, assortment, inventory management, promotion, buying, and profitability for a specific geographic area or an entire chain. They will be expected to have the closest and most regular contact with the retail In order to do the job effectively, the supplier may be granted access to a greater wealth of data-sharing.

If you would like to learn more about our daily posts or other SafeSourcing free tools like our SafeSourcing Wiki, please contact a SafeSourcing customers services associate.

 

 

Women’s Business Enterprise National Council

Wednesday, April 27th, 2022

 

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

What does your company do to support your social responsivity initiatives through your supply chain and supplier relationships? What do they do to support yours?

At SafeSourcing we ask these questions on your behalf to our suppliers in the SafeSourceIt™ Supplier Database. One of those types of businesses are those owned by Women amongst other minority owned business we also inquire about. This service is no charge to our customers during our six-step sourcing strategy.

The WBENC was founded in 1997 as an advocate of women-owned business. It is the third largest certifier of women owned or operated businesses. The WBENC works with businesses to expand and utilize their diversity programs. The WBENC has over seven hundred members. As part of its efforts, the WBENC provides its partner agencies with onsite training and other educational materials.

If you would like to learn more about SafeSourcing and how we work to support yoursocial responsibility initiative, please contact a SafeSourcing customer services associate.

 

Second Tier Sourcing

Tuesday, April 12th, 2022

 

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

Second Tier Sourcing is a procurement policy that is used by various Fortune 500 corporations. This is a practice of rewarding suppliers for attempting to achieve minority-owned business spending goals of their customer(s).

The program was created by the Chrysler Corporation in 1993 and now extends throughout the Fortune 500. In 2005, Toyota set a goal of 10% for their suppliers and holds an annual matchmaking event to help their suppliers achieve those goals.

The SafeSourcing Supplier Database with over 450,000 suppliers contains the information necessary to support your minority-owned supplier search criteria.

If you’d like to learn more about how SafeSourcing goes about holding your supply chain accountable, please contact a SafeSourcing customer services associate

Collaborative Planning, Forecasting and Replenishment

Thursday, April 7th, 2022

 

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

With the supply chain being in the turmoil that it is today does this process still work and can mid-market companies even afford it.

Collaborative Planning, Forecasting, and Replenishment (CPFR) is a type of software system that enables businesses to interactively share production, inventory, and order information online with their partners. Its main concept aims to enhance supply chain integration by supporting and assisting joint practices. CPFR seeks cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain. Information shared between suppliers and retailers aids in planning, satisfying customer demands through a supportive system of shared information.

What are your alternatives to Collaborative Planning, Forecasting and Replenishment? SafeSourcing has written about this subject many times. You can find them in our SafeSourcing Daily Blog that has published over 3500 articles on a variety of topics. Please check into these three or research the rest of our archive yourself. What is Collaboration? Part I. What is Collaboration? Part II and What is Collaboration? Part III of III.

If you would like to learn more about our daily blog philosophy please contact a SafeSourcing customers services associate.

Inventory Management Program and Control Technique (IMPACT)

Tuesday, April 5th, 2022

 

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

Especially in today’s world, you should be paying attention to this. If not, you’ll be glad to know that SafeSourcing does.

The Inventory Management Program and Control Technique (IMPACT) is a way to maintain the stock keeping items at desired levels, whether they be raw materialsgoods in progress, or finished goods.

Inventory Management and Control is a scientific method of determining-

  1. What to purchase
  2. When to purchase
  3. How much to be kept as stock for a given period

Efficient inventory management and control means, never falling short of anything, never overstocking of anything and never dispatching too many small orders too often.

The SafeSourcing Wiki is an excellent source of information and educational content for procurement professionals and organizations. Better than that, its free to use. Even better than that, if your company is  looking for education delivery programs and certifications, please contact a SafeSourcing Customer Services Associate to discuss our programs.