Retail Contract Leakage. Where does it come from and how can we stop it?

December 7th, 2023

Congratulations, you have used your e-procurement tools effectively and awarded the business to a new supplier!

 

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

How does your organization  now ensure that the award of business is implemented or delivered as awarded so that you indeed receive all of your savings?

This is probably the most difficult part of the entire procurement lifecycle. The first part is to understand your data and where it is kept, that includes understanding what constitutes contract leakage so that you know what you are looking at. Once you have the data needs to be looked at on a regular basis in order to insure leakage is not occurring. This should be at least monthly depending on contract language. Most contract management systems have alerts that can be triggered as frequently as required.

The following list although not all inclusive speaks too many of areas in which contract leakage can occur. This happens in all companies large and small. If you are aware of them, capture them and report on them there is a good possibility of controlling them.

1. Buying without a contract.

2. Expensing something outside of a contract

3. Having multiple contracts in place:

4. Executing a new agreement when one is already in place

5. Paying a price different from the contract

6. Delivery variances

7. Quality specifications variances

8. Making payments at a prices different from the contract

9. Scope creep

10. Invoice discrepancies

11. Missed volume discounts

12. Insurance discrepancies

13. Shipping discrepancies

14. Expired contracts resulting in price uplift

15. Evergreening

16. Overtime Violations

17. Material discrepancies

18. Sub Contractor discrepancies

Don’t  have your team work hard to drive benefits with your procurement solutions and then lose much of what you have gained to contract leakage. Ask your e-procurement solutions provider how they can help or save yourself a lot of time or please contact a SafeSourcing Customer Services Account Manager.

We look forward to and appreciate your comments.

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Are you spending enough time and focus on the bottom line!

December 6th, 2023

If not, what’s distracting you? Because it requires focus!

 

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

I was listened to a rant by Bernie Marcus today on MSN about focusing on the bottom line and not being distracted by wokeness.

One quote resonated with me. “We need leaders who are basically thinking about the shareholders and their employees,” he added. “And I think today it’s all about woke diversity, things that don’t hit the bottom line.” While I agree with the 1st sentence of the quote, I do think there continues to be a need to focus on a more diverse workplace.

I rant fairly frequently about the treatment of employees who are too often used to reducing costs because of a lack of focus on other cost areas that can return similar results. In fact, this focus is part of our elevator pitch as is the need to focus on the bottom line.  It goes like this. “We assist our customers in significantly reducing costs to improve gross margins and net earnings, support growth plans and maintain, retrain where needed and grow associate headcount”. That’s’ who SafeSourcing is!

How do we do it you ask? With SafeSourcing’ s eProcurement White Glove Services. And we average greater than 24% savings across all categories. Apply that number to your cost of goods and expense plan. Then compare it to savings attributed to your planned employee layoffs.

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. That includes our SafeSourceIt™ Global Supplier Database that includes over 557,000 vendor/suppliers.

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

 

 

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Not much has Changed! What are we in for at the Grocery Store and other venues for the holidays and beyond?

December 1st, 2023

A year later this still seems appropriate.

 

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

I live in Arizona. Yes, we have great weather beginning right around now until well into next year. Resultingly, we have a lot of visitors come to the valley during these times, which includes many holidays like Christmas, New Years, Hanukkah, Kwanzaa, and others I am probably forgetting. Add to that the NCAA Football Semi Final Fiesta Bowl, The Super Bowl, The Waste Management Phoenix Open and any number of car auctions including the popular Barret-Jackson Car Show. So, you guessed it, our population explodes during what we call The Season.

This puts stress on all our businesses and for many it is their best time of the year if they have product to sell. Let’s hope that the demand can be fulfilled. That may be a challenge based on the following article. So, plan. Well ahead!

In a story title All the Food Shortages Coming to Grocery Stores Soon, Experts Predict by Kali Coleman at Best Life. From toilet paper to cleaning supplies, shoppers were rocked by major shortages in 2020 as a result of the pandemic and everything that came with it. But even as the COVID situation has improved, supply chain issues have continued, some with major consequences. Now, many experts are warning that we should prepare ourselves for several food shortages in the not-too-distant future. Read on to find out what you might not be able to find at your local grocery store.

Based on my observations and the above article it seems though both consumers and suppliers will have the plan intelligently by looking at alternatives, replacement products and recipes in order to please their customers. And both should plan on spending more too.

So, how do you find alternate sources of supply if you are a retailer? Contact SafeSourcing Inc. our SafeSourceIt™ Global Supplier Database includes over 557,000 vendor/suppliers and we work with them all the time.

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

Resources:

  1. Best Life, Kali Coleman

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SafeSourcing Announces the Release of a New White Paper

November 29th, 2023

The white paper will be available to industry professionals and the public via the SafeSourcing website, www.safesourcing.com.

 

Mason, OH – November 28, 2023 – SafeSourcing, Inc., a leading eProcurement company offering a complete Procure to Pay suite of applications supported by their White Glove Seven Step (7) managed services program, has announced they will be releasing a new white paper titled Successfully Sourcing Categories!

In this new white paper titled “Successfully Sourcing all Categories”, CEO Ronald Southard dives into the details as to what it takes to run successful sourcing events and shows the results that can be achieved when the legwork and required research are completed properly.

This white paper is among many that Ron Southard, an industry leading procurement expert, has published over the years The white papers aim to educate those in the procurement field on the nuanced details of what the procurement space has to offer when approached correctly. The white paper will serve as a guide and a tool for those in the industry on what steps can be made to achieve more success in their own sourcing efforts and to demonstrate the overwhelming value of a procurement partner such as SafeSourcing into any organizations sourcing environment. Other titles can also be found at this link to the SafeSourcing Website.

The white paper will be available to industry professionals and the public via the SafeSourcing website, www.safesourcing.com and LinkedIn.

SafeSourcing, Inc. provides cost effective tools under the SafeSourceIt™ product family that allows companies to dramatically reduce cost of goods, capital spending, and expenses in a timely manner while also reinforcing environmental and product safety programs. Focus is placed on a company’s entire spend for all products and services. SafeSourcing’s early-stage client engagement is specifically focused on cost reduction through the use of a detailed seven step, white glove process using the SafeSourceIt™ e-RFX application suite. Visit www.safesourcing.com to learn more.

Contact Information:

Marketing Department, marketing@safesourcing.com 888-261-9070

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Could You Get More Procurement Savings?

November 28th, 2023

Five (5) signs that you may be leaving money on the table.

 

 Today’s post is from our archives at  SafeSourcing.

Many of the organizations we speak with believe they handle their purchasing reasonably well, either with their existing internal processes or without any eProcurement tools at all. These companies may even realize savings as they negotiate with their vendors. That’s said; very few of these organizations are doing as well as they should, given the wide availability of eProcurement solutions and/or the ease of use available with full-service SaaS options.

Here are my top 5 signs that your organization is not maximizing the savings potential by using only a traditional procurement process.

  1. You only seek quotes from 2-3 vendors. Historically, our data suggests that having 6-8 suppliers quoting drives the highest possible savings.
  2. You haven’t competitively bid a category in the last 3 years. It is at this point that we find a category should be sourced, including non-incumbent vendors, to ensure you are still receiving the best market prices.
  3. You don’t have easy access to your existing contracts. If you don’t already, you should implement a contract management tool. Too often, we see organizations unsure of contract terms and key dates falling victim to unfavorable auto-renewals.
  4. You do not have a set of specifications for the category. This is both common and fixable and places the incumbent vendor in a place of perpetual power in negotiations.
  5. You’re not using eProcurement. As well as your organization does when negotiating, we see significant increases in savings, often 10-20% more, when our clients use their eProcurement tools effectively. One client recently admitted that they would never have asked for the prices or discounts that we deliver for them. Each of the four preceding signs is also an indicator that you’re not using eProcurement. In fact, by implementing a strategic eProcurement program, you’ll likely resolve one through four organically.

Do you see any of these signs in your organization? If so, take steps to correct and you’ll see immediate, measurable results.  For more information, please contact SafeSourcing.

We look forward to your comments.

 

 

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

November 24th, 2023

And without it, the possibility of Retailers servicing your needs this Black Friday would be ZERO!

 

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.

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Happy Thanksgiving Weekend 2023 from SafeSourcing. Who were the Pilgrims?

November 22nd, 2023

This author is pleased to be descended from both Myles Standish and John Alden both Mayflower passengers neither of who were members of the religious congregation that was originally responsible for coining the word pilgrim.

 

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

According to the Mayflower Society, as history has evolved, any of the 102 Mayflower passengers who arrived in Plymouth on the Mayflower and survived the initial hardships is now considered a Pilgrim with no distinction being made on the basis of their original purposes for making the voyage.

The Mayflower Pilgrims and their fellow travelers were authors of the first true governing document created in a New World colony. The Mayflower Compact is considered to have set the stage for the Constitution of the United States.

These were the same pilgrims that were responsible for the holiday we celebrate today called Thanksgiving.

We wish you and yours a peaceful and happy extended holiday weekend.

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Have you seen the new features and Artificial Intelligence (Ai) coming in Google Maps?

November 20th, 2023

Google Maps recently got a massive new AI upgrade.

 

Today’s post is by Troy Lowe; Vice President of Development at SafeSourcing.

As you probably know, Google Maps is one of the most popular navigation applications in the world.  If you haven’t heard Google Maps got a massive new AI upgrade recently and added 5 new features that makes it smarter and more helpful than older versions.  One of the new features and probably one of the most impressive is the Immersive View feature.  This feature allows you to see your routes from the street level in an amazing 3D view.  This new feature allows you to get detailed and realistic views of your surroundings, landmarks, and directions before you even begin your trip.  Using this feature is very useful when your trip involves complex or unfamiliar areas where most people may get lost by the confusing directions or surroundings.  This feature works by allowing you to preview every step of your trip whether you are driving, cycling, or walking.  For example, if you wanted to take a scenic bike route, you would just request cycling directions to the destination and then tap Immersive View preview to see your route in a stunning, multidimensional view from start to finish.  Doing this can help you prepare for each turn as if you were there with detailed, visual turn by turn directions.  It has a time slider that you can use to view helpful information like weather conditions and simulated traffic.  This will allow you to avoid taking the trip during bad weather or during heavy traffic times.  Below are some of the other new features.

  • Google Maps Search with AI
  • AI enhanced Google Maps Navigation
  • Added EV Charging Station Info
  • Lens in Maps Feature

If you are looking to purchase new smartphones or devices for your company and would like help researching available options, feel free to contact SafeSourcing.   We can gather all the necessary information for you and help you decide which one meets your needs.  If you would like more information on how SafeSourcing can help you, please contact a SafeSourcing Customer Service representative.  We have an entire team ready to assist you today.

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The Vital Role of Procurement Services in Business Success

November 17th, 2023

The importance of procurement services cannot be overstated in today's dynamic business landscape!

 

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

In the complex ecosystem of modern business operations, the role of procurement services stands as a linchpin for organizational success. Procurement, often regarded as a behind-the-scenes function, plays a pivotal role in driving efficiency, cost savings, and sustainability within businesses across industries. It encompasses the processes involved in acquiring goods, services, and works from external sources.

Driving Efficiency and Cost Savings

At its core, procurement is about optimizing the purchasing process to ensure the right resources are obtained at the right time and at the best possible cost. Leveraging procurement services allows businesses to streamline their supply chain, negotiate favorable terms with suppliers, and source high-quality materials or services while minimizing expenses. This efficiency not only impacts the bottom line but also enhances operational agility.

Strategic Decision-Making

Procurement services extend beyond mere transactional activities. They involve strategic decision-making that aligns with a company’s overall objectives. Procurement professionals evaluate supplier performance, assess risks, and identify opportunities for innovation and collaboration. This strategic approach helps in fostering long-term relationships with suppliers and mitigating potential disruptions in the supply chain.

Mitigating Risks and Ensuring Compliance

In an increasingly globalized marketplace, navigating through various regulations, compliance standards, and ethical considerations is a complex task. Procurement services play a crucial role in mitigating risks associated with supplier relationships, ensuring adherence to regulatory requirements, and maintaining ethical sourcing practices. This not only safeguards the company’s reputation but also reduces potential legal and financial risks.

Fostering Innovation and Sustainability

Procurement services contribute significantly to fostering innovation and sustainability initiatives within organizations. By engaging with suppliers to identify environmentally friendly materials or sustainable practices, businesses can reduce their environmental footprint and align with evolving societal expectations. Collaborating with suppliers on innovation leads to the development of cutting-edge products or services, giving companies a competitive edge.

Enhancing Supplier Relationships

Effective procurement services are built on strong supplier relationships. Cultivating partnerships based on mutual trust and understanding fosters collaboration, flexibility, and responsiveness. Strong supplier relationships often result in preferential treatment, better terms, and a more agile supply chain network, ultimately benefiting the organization’s overall performance.

The importance of procurement services cannot be overstated in today’s dynamic business landscape. Beyond simply acquiring goods and services, it plays a multifaceted role in driving efficiency, mitigating risks, fostering innovation, and ensuring compliance. Businesses that prioritize robust procurement strategies position themselves for sustained growth, resilience, and competitive advantage in the market.

For more information on what the SafeSourcing Procurement Managed Services 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.

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Why use SafeSourcing versus other providers in the Procurement Space?

November 15th, 2023

There are a lot of positive reasons to use SafeSourcing Inc. Here are Eight (8).

 

Today’s post is from a collection of data and other tools that SafeSourcing’s CEO Ronald D. Southard uses regularly in the pursuit of fresh content.

  1. Cost Savings: SafeSourcing can help businesses achieve cost savings through strategic sourcing and negotiation processes. By leveraging their expertise and technology, they will assist in obtaining better prices from suppliers than you can.
  2. Efficiency in Procurement: SafeSourcing offers tools and platforms that streamline the procurement process, making it more efficient and reducing the time and resources required for sourcing all categories of goods and services.
  3. Supplier Relationship Management: SafeSourcing might provide services to help businesses manage relationships with their suppliers effectively. This can include monitoring performance, addressing issues, and fostering collaborative partnerships.
  4. Risk Mitigation: The company may have tools and processes in place to assess and mitigate risks associated with the procurement process. This could include evaluating supplier reliability, compliance, and other factors that may impact business operations.
  5. Access to a Network of Suppliers: SafeSourcing could offer access to a wide network of pre-vetted suppliers in their SafeSourceIt™ Supplier Database. This can be particularly beneficial for businesses looking to expand their supplier base or enter into new markets.
  6. Technology Integration: If SafeSourcing utilizes advanced technologies, businesses may benefit from the integration of these tools into their procurement processes. This could include e-sourcing platforms, analytics, and other technological solutions embedded in the SafeSourceIt™ family of solutions.
  7. Compliance Support: SafeSourcing through regularly sourcing hundreds of categories may assist businesses in ensuring that their procurement practices comply with relevant or evolving regulations and industry standards. This can be crucial for avoiding legal issues and maintaining a positive corporate image.
  8. Customized Solutions: The company may tailor its managed services to meet the specific needs of individual businesses. This personalized approach can be advantageous in addressing unique challenges and optimizing the procurement process.

To learn more please contact a SafeSourcing Customer Services Representative.

 

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