SafeSourcing Blog

These sessions can from time to time also run as forward auctions in order to reduce over stock conditions and reduce shrink. Regardless of the naming convention used there are certain rules which if followed will create higher quality events for the retailer and the supplier? This will result in creating better savings opportunities or cost avoidance in a tough market. The importance of focusing on a clear process will increase event participation. This focus on quality will be recognized by your existing trading partners and potential new sources of supply, and will keep them coming back in the future to compete fairly for your business.

1.Executive sponsorship is mandatory
     a. This is required at the CEO, CFO, CPO, CLO or head of the supply chain.
2. Get the entire buying organization together for a kickoff session.
3. Provide an over view of what you are going to do and the impact it can have on the company. Use company financial models.
4. Discuss and agree on success criteria.
5. Every event is not a homerun. Singles and doubles score runs.
6. Create a fun environment.
7. Consider prizes for the most creative use of an auction.
8. Use scorecards by department with percent of savings.
9. Discuss the meaning and importance of corporate aggregation.
10. Hand out event templates to gather existing product specifications.
11. Put a time requirement on data collection.
12. Gather an accurate list of your present suppliers.
13. Work with your sourcing company to identify a top 100 list of events.
14. Calendar the events.
15. Prioritize by dollar value, date and strategic value.
16. Conduct department level discovery meetings of 30 minutes to an hour.
17. Investigate existing contract language.
18. Look for auto renewal (evergreen) language roadblocks.
19. Determine alternate sources of supply with your sourcing company.
20. Develop an event rules and instruction template and post with each event.

Although these steps are not all encompassing, they provide a format for getting started that offers the best opportunity for reduction in cost of goods, expenses and improvement in corporate earnings. Be sure to combine this with a business partner that knows your business.

We look forward to and appreciate your comments.

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Sometimes I wonder what it takes to get through to people that as a procurement professional or knowledge worker, that their job is the most important job in retail. Or at least it could be.

This author has discussed on many occasions the various benefits to retailers of using e-Procurement tools. Not the least of which is that if a retailer were seriously to assign twenty percent of their above the gross margin line spend to these types of tools, they could increase their net earnings by up to 100%. In addition, much of the following would also happen.

1. They would continue to source high quality products.
2. They would continue to have great supplier relationships.
3. They would free up time to do other tasks.
4. They would improve their company’s net earnings by up to 100%.
5. They would support our fragile environment.
6. They would support global food and product safety initiatives.
7. They would have a larger audience of piers to converse with daily.
8. They would have a single source of information about their profession.
9. They would be instantly alerted to product recalls.
10. They would support a traceable supply chain.
11. They would have an endless source of new suppliers to review easily.
12. They would have product specifications at their finger tips.

Now you might wonder why many companies are not enjoying these benefits already. The following are the objections I hear all of the time after we have presented to a prospect that has not been exposed to e-procurement tools in the past.

1. I already get the best cost.
2. We’ve done business with this supplier for years.
3. I don’t have product specifications.
4. I don’t have time for this.
5. Switching costs will be too high.
6. I can’t insure the same quality.
7. We need to adhere to certain standards.

If you have an objection that is not listed above, or they pretty much fit your thinking, please review the dozen benefits above and weigh it against them.

As always, we look forward to and appreciate your comments

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This blog has discussed a variety of e-procurement issues from quality category discovery to safety certification adherence over the last several months. Recently I was asked by a medium sized retailer where they might begin or how to get started in becoming more eco-friendly in their e-procurement practices.

There are certainly a lot of potential answers to this question that might include beginning by defining what their company means by being more eco-friendly or what specifically they are hoping to accomplish with this initiative.

There are several environmental focus areas that can be easily integrated into a company’s buying decisions without to much difficulty. In fact much of the data can be provided by suppliers as part of a simple RFI process and supported in a detailed product specification. The following list is intended to offer some guidance or points of reference in developing a plan.

1. Evaluate the environmental performance of incumbent suppliers
2. Support eco-labeling on products,
3. Develop a list of corporate environmental requirements you support
4. Develop a list of environmental regulatory requirements you are required to support
5. Publish this inforamtion with all pre event supplier instructions
6. Require service and systems providers to provide an analysis of the environmental impact of their delivery model
7. Ask suppliers to provide pricing on an environmentally focused equivalent or alternative to the current product specification within pricing guidelines
8. Jointly raise the awareness of environmental issues that affect procurement by providing relevant information and training to internal staff and suppliers
9. Review your state, province and regional environmental policies as they apply to your business
10. Publish the goals of your environmental program in the reception area and in each buyer or category manager’s office space in clear view.

There are certainly other areas not included in this list, but these are a good starting point.

We look forward to and appreciate your comments

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If you can indentify these folks below?  We hope they grant you and yours all of your wishes.

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Have you ever had a best friend? Many people can never really say that they have. You may have family, friends, acquaintances and a variety of close relationships, but a best friend is something special and elusive. It is an unconditional acceptance of oneself by another and visa versa.  A best friend does not need to be another person. It is just an entity that understands you, listens to you, looks forward to being with you and generally gets excited when you are around and conversely is upset when you are not around.

The above is exactly the relationship I have or had with my dog Riley. Riley was born on The 25th of January in 1994. We found him at a store called Jacks Aquarium. Riley is a big boy at 52 pounds and being half chow and half golden retriever looks very much like the lion king. I think Riley picked us more than we picked him. We were a sad family at the time having lost my children’s childhood dog Ishi and then relocating to somewhere my family nor I  wanted to move to shortly afterwards. I really think he knew he could help us. So when my oldest daughter Tara picked this little ball of fur up, he pooped on her foot and it was at that minute that I knew he was ours and would become my very best friend. His mom named him on the way home because she wanted him to live the life of Riley for those that remember that TV show. And he did.

Riley really was a wonder dog. He house trained (potty trained) himself in two days and learned very early on that our clawless cat Ginger could box him silly if he messed around with her to much. It was just a pleasure to watch him do what he did as he grew. Riley loved to walk. In many cases he went twice a day about a mile and a half each time regardless of weather. We even made snow angels together and hid under trees during a severe storm one time. I’m sure that the many miles both my wife and I walked with him helped us physically and emotionally. Riley loved to go to the “The Creek” on a car ride every Saturday regardless of the weather. He knew that in addition to the ride and walk that he would get to eat Jack’s Links Beef Jerky on the way home and he still does to this day. No boring biscuits for this boy, he wants his Jerky. At seven years old, Riley lost his eye sight to glaucoma; he had such beautiful golden eyes. I knew he would still want to be good looking for the girls so I had his eyes replaced with fake ones. After all an intact male dog does not need to see to perform at his best, but he does need to be good looking. Several years later Riley lost one of those eyes and has had only one since. The best line we ever hear is from small kids that say something like; “does the other one work”  At nine years old, Riley and his mom and Dad (me) moved to Arizona and left his sisters Tara and Meri behind. This was really hard on Riley, but every time he heard their voices on the phone or saw them during a visit he would go crazy because he loved them so.

 During his years in Arizona Riley found wonderful places to walk including a big lake he called the fountain. It did take him a while to remember not to stray from the path because of Cacti (ouch). Remember he is blind. During Riley’s life in Arizona he was a victim of the pet food issue that killed thousands of dogs and cats across the country because of melamine. (This actually was one of the motivations for my company SafeSourcing) He lost a lot of weight and we thought we would lose him but this boy is a fighter. He has however never eaten dog food again. He loves tuna, chicken, hamburger, steak and most anything we eat for dinner which he dutifully eats along with us at my feet every night. When Riley was 13 he got to take a car trip across the country to visit his old haunts in Ohio. He absolutely hated the scenery on the car ride and could not wait to get to his hotel room each night for dinner, jerky and some well earned sleep. Riley remained very healthy for most of his life until he turned fifteen. The last year has been tough as he has had a number of issues but has fought his way back each time. In fact he is asleep at my feet as I write this short tribute. He does not know what is going to happen tomorrow, in fact at the moment I’m not sure he is aware of much as the steroids are what keep him with us at this point. He does know that it seems to be raining today which does not happen in the desert very often. I’m glad he can not see because he would know it is my tears that are falling gently on him as we hug for one of the last times.

I’m still praying for a miracle but not holding out much hope. During his last rebound over Thanksgiving we had one last walk to the park where he told off another large dog that thought it was now his park. He had not been able to be there in months. I will miss my walks and rides into the desert with the top down. I will miss him sleeping beside my bed at night. I will miss him sleeping at my feet in my office while I work. I will miss how he intelligently finds his way around the house without eyesight. I will miss how he can find Jerky on the other side of the room. I will miss talking to him when I’m lonely. But most of all I will miss that he misses me when I’m gone whether it is for a minute or a month. That’s because we are best friends and we love each other.

So, good by my dear best friend your mom, sisters Tara and Meri, granddaughter Sammi and brother Ryan all miss you already. I however miss you most of all and always will. You are my best friend and my son. Until we meet again run free you now have you sight back.

Your Dad loves you most of all and will never be the same again.

I know many will not read this. If you do and want to comment, find someone you love and hug them first. I hope you have a best friend like this some day.

Comments welcome.

Riley on a Car Ride.

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CSR is subject to a lot of debate as to whether there it has a strong business case. This author and many others argue that corporations benefit in multiple ways by operating with a broader perspective that will produce longer term benefits than their immediate, short-term profits. Others continue to argue that CSR distracts from the fundamental economic role of businesses.

In support of a well established CSR program, a 2008 study indicated that twenty six (26) percent of consumers indicated they planned to be consciously greener during the next year. Thirty four (34) percent indicated they would even be willing to pay more for it. These numbers continue to trend upward.

While many continue to minimize the impact of a well thought out CSR program, successful companies are building and measuring the impact of these programs with an increased focus on energy, waste, construction, carbon footprint, products, charitable giving, community action, food safety and the intersection of all of these components on their enterprise consituatants.

At the center of a good CSR program, is the ability to hold suppliers and other trading partners accountable to the same standards a company has set for itself. This however can not come at additional cost. As such, procurement solution providers play a huge part in ensuring that the following listed items are not only part of a well constructed CSR program, but are also included in the CSR programs or initiatives of your incumbent suppliers and potential new sources of supply. The following questions then become a good cross reference point as to what should be in your CSR program as well as that of your collaborating business partners.

1. What percentages of the products you carry are green or have undergone reformulation to make them more environmentally friendly?
2. Are you using reusable bags as a way to defer plastics from our landfills?
3. What are your utility reduction plans?
4. Do you have an energy reclamation plan?
5. Do you have a renewable energy program?
6. How are you or your suppliers making your fleets more efficient?
7. Are your new construction projects LEED certified?
8. What are your outbound or community education plans?
9. What community programs do you support?
10. What is your charitable giving program?
11. Do you have a CSR committee?
12. What are your product recall procedures?
13. How do you support product traceability?
14. What are your plans to protect your customers from food born illness?
15. Do you have a company certification cross reference map in place?

Ask your solution provider how they can assist you with this process.

We look forward to and appreciate your comments.

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