Archive for July, 2012

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The 2013 planning season is here.

Thursday, July 12th, 2012

Sourcing strategic plans sometimes have way too many guidelines that to often result in little to no specific actions. Without actions, plans are really nothing more than dreams.

Strategic sourcing in the retail vertical continues to be way behind the rest of industry. It’s time that strategic sourcing plans result in specific short term tactics that can drive immediate and measureable results. Do you have the tools in place to help you carry out these tactics?

A strategy is simply a plan of action designed to achieve a particular goal. In the case of strategic sourcing, the simple goal might be to buy the best product (quality) at the best price and labor optimization (total cost) from the best suppliers (standards).

In today’s world way too many manual processes remain in place in the retail vertical relative to the RFX or other procurement areas such as POM or CLM. There are too many pieces and parts on too many desk drawers or on to many non accessible desk tops. This does not mean that retail organizations do not have a sourcing strategy. For example, the goal of a company may be to improve net profits: the strategy chosen might simply be to reduce costs of goods and services. But the real issue is the The question HOW and with WHAT?

Most retail companies do not have tools in place that allow for the  automation of the RFX, Contract Management, Purchase Order Management or other procurement processes that drive best in class results from a strategic sourcing plan. So will this plan be successful. Probably not! In fact, more times than not companies will continue with or revert to using their time honored processes and negotiation techniques. These results in the potential loss of any savings you were able to indentify though leakage that is invisible.

Enter the specific tactic. Maybe rather than developing tactics for a plan that is destined to fail, you should call a Strategic Sourcing solutions provider that can provide you with the tools that support your strategy and can be implemented quickly in order to keep you in front of that other company on the opposite side of the street.

The planning starts today, so why not reach out to a SafeSourcing customer services representative to find out how easy we can make achieving your strategic goals. 2013 is just around the corner.

We look forward to and appreciate your comments.

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Developing a Mobile Application Strategy

Monday, July 9th, 2012

Today’s post is by Mark Davis; Sr. Vice President of Operations and CTO at SafeSourcing. Mark

iPhones.  iPads.  Android.  Smartphones. Mobile Apps. All of these devices and technologies represent the growing movement of Bring Your Own Device where people are beginning to view their mobile devices as extensions of themselves, using them in every form of communication, entertainment and business use imaginable.  Developing a strategy for how your business can leverage this new trend will be an important part of many businesses’ IT strategy in the coming months.

In today’s blog we will look at some of the different ways to begin planning for a new strategy in mobile applications.

Converting existing applications – Many companies take their first step into mobile application technology by fitting their existing web applications into a format more conducive to the mobile footprint.  The benefit of this approach is the increased speed by which companies can be compatible with these devices.   Unfortunately the results of this approach are very limited and seen by many as a short-term solution due to the fact that they are not able to leverage the power that mobile devices can offer such as GPS technology.

Consulting Firms/Software Frameworks – Companies that are ready to take the next step toward a true mobile application will often contact mobile app consulting companies like Layer 7 Technologies to work with them to develop initial applications that begin to deliver more to their customers than the basic alerts and discount specials.  The cost can generally be higher but the timeline for delivery as a result is greatly reduced.   Companies in this space can generally be evaluated easily with a Request For Information followed by more specific project information in a Request For Proposal.

Developing Native applications –Often, the best solution is to develop a mobile application internally.  This solution can have the longest timeline but it also offers the most control and ongoing capability for support.  The issue for most companies is that unless their core business is in developing software, they may not have the development staff capable of developing the software.  In these cases, bringing in contingent IT labor to help supplement your current staff for the life of the project can help.  In many cases your IT Managed Service Provider will coordinate fulfilling these needs. 

For more information about how SafeSourcing can assist with connecting you with the right technologies and vendors to help with your mobile application strategy, please contact a SafeSourcing Customer Service Representative.  

We look forward to your comments.

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Situational Analysis

Friday, July 6th, 2012

Today’s post is by Mark Davis; Sr. Vice President of Operations and CTO at SafeSourcing.

Over the past few years most companies have had to face a reduction of staff, either due to the economy or due to the large group of Baby Boomers exiting the workforce.  More important than the number of staff leaving is the level of expertise companies are losing in this process from employees with decades of experience.  

Combine this with the fact that how companies are being run and the technology they are using to run it is changing frequently, it creates an opportunity for consulting companies to perform assessments to help companies begin to make the changes they need to make to stay competitive.  In today’s blog we will look at a few of these areas that are increasing in their use by companies around the world.

Telecommunications – With technology changing so frequently, it makes it difficult to know whether you’re always getting the best solution for your company. Assessment companies can ensure you are getting the maximum telecom cost reduction—often with improved services or features.  Some services that are usually reviewed are cellular, local & long Distance, and telephone systems

Utilities –Energy industry deregulation has increased the competition among suppliers, with no barriers to changing suppliers. Consultants in this field continually monitor prices and industry forecasts.  Many times they can also provide a Group Purchasing Organization for high-volume discounts.

Waste Removal – In many industries consultants can not only assist with reducing waste removal costs, but can also create a revenue stream for recyclable waste.   Expense Consulting can manage solid waste, recyclable, paper shredding as just a few.

Packaging – Besides helping to negotiate prices on product packaging, containers, and packing materials consultants can help select and specify the most appropriate type of packaging for every need.  They can also help you realize savings through optimum purchase volumes and inventory control on corrugated, packaging materials, and retail packaging.

Printing –Internet printing companies can offer significant cost savings, and digital printing and with color-matching technology as good as it is, it has virtually eliminated the need for on-site proofing and pre-press reviews. The following are some of the categories with great savings potential:  Labels,  forms, marketing material, business cards, letterhead & envelopes.

For more information about how SafeSourcing can help connect you with the right company to assess your usage and proper needs in these areas, please contact a SafeSourcing Customer Service Representative.  

We look forward to your comments.

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Detailed Expense Analysis is a key driver of Strategic Sourcing.

Thursday, July 5th, 2012

Today’s post is by Ryan Melowic, Director of Customer Services at SafeSourcing.

An Expense Analysis is the detailed scrutiny conducted by firms for every expenditure made regarding any kind of expenditure made within the company. 

Expense Analysis has a great effect on both the micro as well as the macro environment of a company.  Macro environment consist of external factors that influence an organizations decision making and its performance, whereby micro is the vice versa, thus issues that affects the company internally.  On this basis, both macro and micro environments have effect on the cost analysis.  In this analysis, Positive factors are highly considered thus hindering the negative ones to determine a net result that enhances profitability.

Merchandise and services that the company is interested in acquiring are the major focal points in this evaluation.  Quality and quantity issues are weighed, concerning the profits and benefits mostly in the financial impact that the company will achieve by acquiring them.  Decisions like, whether the company should outsource or obtain permanent manpower, machines, its source of supply of essential raw materials, maintenance support and other key related areas are outlined.

Expense Analysis when incorporated in a company’s financial budget and planning,  goes a long way to ensuring not only the money involved in any kind of transaction is safe guarded but also  that the quality of goods or services delivered by a preferred supplier is purchased economically.

Strategic sourcing can help the company as a valued added service of procuring their products and services by focusing on  lower costs thorough scrutiny of suppliers by  tools such as; catalogs, market data, RFI’s, RFQ’s and reverse auctions.

If you’d like some details on Expense Analysis, contact a SafeSourcing customer services representative.

We look forward to and appreciate your comments.

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What did you learn today?

Tuesday, July 3rd, 2012

Today’s post is by Heather A. Powell, Account Manager at SafeSourcing.

It is said, you learn something new every day. Every day you pick up knowledge whether you realize it or not.  Just think back over the past 24 hours. There is some little tidbit you might have learned whether it was job related or home related.

So what have I learned today? While researching water delivery companies who deliver water to homes and offices, that there are more than 5 types of water you can buy in 5 gallon bottles. Is this useless knowledge? Absolutely not!  Though each of those types have special properties or, yes, ingredients, they each have their own price points too. While most customers know that spring water is really tap water, did they know that there can be a $1.00 or $2.00 difference in the price? Does this make a big deal? Sure it can!

Example:  Your Company uses a quantity of 6 five gallon bottles of “spring” water a month at $7.00 per bottle, however, if your company was to switch to purified water at $5.00 per 5 gallon bottle. That is a $12.00 savings per month, and $144.00 savings per year!

Also you can research and negotiate the extras your company is charged. Hidden fees… Refundable bottle deposit can range from $4-$8 per bottle! The water dispenser rental fee $2-$10 per month! Service fees, extra delivery fees, set up fees, maintenance fees… H2O can be expensive!

Now how does something as simple as this lesson help you? While you may be an office manager in charge of getting the water delivery taken care of monthly or buying toner, printing paper, and other office supplies and services, or you could be a buyer in charge of buying steel, fuel, or even nuts and bolts to keep production moving, this lesson supplies you with something you may not have known. There are details about every little and big thing that can help save your company money.

How do you get started learning those details? How do you go forward to negotiate those savings? Need ideas of where we can help save your company money? Contact a SafeSourcing Customer Service Representative.

We look forward to your comments.

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STOP! Do not call the seller! Research, research, research your options!

Monday, July 2nd, 2012

Today’s post is by Heather A. Powell, Account Manager at SafeSourcing.

Dear Buyer,

This is your 30 day notice that your annual contract is coming up, let’s discuss how we can extend your current contract…

Sincerely,

The Seller

STOP! Do not call the seller! Research, research, research your options!

Do not procrastinate to the point you are struggling whether or not to stick with your current supplier or search for a new supplier.  Give yourself time to research your alternatives. If you know a contract is going to expire within 60 or 90 days, start your research NOW! There is no harm in learning as much to know as possible about your product and your company’s annual needs for that product.

Maybe your current supplier does have the best price in town, maybe not…. If you could save 5, 10, 15, even 20% or more on your current product why would you stick with your current supplier, and why not explore your options with a new supplier who can give you better savings, maybe better service, with a better product? Are you lost and not sure which way to look? Are you unsure of where to start or who to talk too? You don’t have enough time to start the process or do the research you know needs to be done? Let SafeSourcing be your guide and source to getting you the answers you need, even if you did procrastinate and have 30 days left. We can do all of this for you and your company from research of the product, to research of the suppliers, to follow through of hosting an RFQ to get your company the best possible savings and value of your product.

Don’t become the King or Queen of Procrastination! For more information about how we can assist with sourcing your needs for your company, please contact a SafeSourcing Customer Service Representative. 

We look forward to your comments.

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