Archive for March, 2015

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Will a Reverse Auction always result in savings?

Thursday, March 12th, 2015

 

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

To the above point, this author has never seen a single category or product that can not be sourced using a reverse auction. And, I know many will argue this point with me. My answer however is a little more complex and is based on the evolution of original reverse auction or e-negotiation tools. As these tools have evolved, so have the processes associated with them whereby today’s tools have many features that support the entire RFI to RFP process within the same toolset resulting in a final compression event of reverse auction?

The process is really what determines the success of your e-negotiation event and that includes the determination of what it is you are looking to measure. Simply indicating that you want to reduce last year’s price or the price from your last contract is not always a fair analysis. Markets fluctuate daily and a year after your original contract, markets that drive the product you are sourcing may not be favorable to reducing your current price. However utilization of these tools may be able to help you reduce prices you might have to pay while prices are rising or put another way help you avoid costs. Cost avoidance is a good thing, particularly if your competition is not doing the same thing.

In many cases, if your contracts are not current and you have not used these types of tools to negotiate your current pricing and you do not know where to find alternative sources of supply; you will most likely see savings during the first year. After that the category and commodity driving it will determine further compression, holding prices constant or cost avoidance. All are a benefit of todays best of breed e-negotiation tools.

If you’d like to learn more as to how SafeSourcing can reduce your cost of goods, capital budget or expenses, please contact a SafeSourcing Project Manager.

We look forward to and appreciate your comments.

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Successful supplier relationships

Monday, March 9th, 2015

 

Today’s post is by Tyler Walther, Account Manager for SafeSourcing.

The relationship between a supplier and buyer can be multifaceted with each party wanting to maximize its time, resources and cash investment. Often times these may be competing priorities that can add stress to the relationship.

What’s required to sustain a mutually beneficial relationship is an understanding of each other’s business needs. That does not necessarily mean driving for the lowest price but actually realizing that the success of one partner helps the success of the other.

Supplier relationships are different from simple purchasing transactions in many ways.  First, there can be a sense of commitment to the supplier. For example, if a supplier sells farm feed, he can feel confident that the buyer will use him the next time the company he represents requires a new shipment of farm feed. Another element of these supplier relationships is advanced planning. Buyers don’t just communicate with suppliers when a purchasing need arises; they also contact them in order to discuss their future needs and to determine how best to fulfill those needs by working cohesively.

One key is a supplier’s knowledge of the buyer’s business. When suppliers are viewed as commodity providers, they generally don’t take the time or are not given the opportunity to learn the details of the business or its future business strategy. Consequently, suppliers that are deemed to be partners are encouraged to become knowledgeable about the company, its procedures, its products, and its goals. The result is greater buyer satisfaction with the services provided by the supplier.

Overall, suppliers and buyers are better served when they come together to form strong, mutually beneficial, secure business relationships. When these relationships exist, they can drive the growth and profitability of both organizations and prevent purchasing difficulties.

If you’d like to learn more, please contact a SafeSourcing Customer Services Account Manager.

We look forward to and appreciate your comments.

 

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E-procurement white papers contain way too much opinion and far too little here’s how to do it.

Thursday, March 5th, 2015

 

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

For those of you that did not have an opportunity to read all of the following historical posts I am providing the titles and their links below for your use. They specifically indicate how to get started with e-procurement, find the right categories quickly and how to sustain an e-procurement program.

1. “Here is some Lasik for retail e-procurement professionals in order to create better focus”.
2. “Part II of here is some Lasik for retail e-procurement professionals in order to create better focus”.
3. “Why do we hear that reverse auctions are not as successful the 2nd time around”?
4. “How does a price index play into e-procurement practices”?
5. “Retail spend management basics for e-procurement professionals and knowledge workers”.

I truly hope you find these posts useful in your procurement jobs as many of my customers have. If you’d like to learn more, please contact a SafeSourcing Project Manager.

We look forward to and appreciate your comments.

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E-procurement white papers contain way too much opinion and far too little here?s how to do it.

Thursday, March 5th, 2015

 

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

For those of you that did not have an opportunity to read all of the following historical?posts I am providing the titles and their links below for your use.?They specifically indicate how to get started with e-procurement, find the right categories quickly and how to sustain an e-procurement program.

1.??Here is some Lasik for retail e-procurement professionals in order to create better focus?.
2.??Part II of here is some Lasik for retail e-procurement professionals in order to create better focus?.
3.??Why do we hear that reverse auctions are not as successful the 2nd time around??
4.??How does a price index play into e-procurement practices??
5.??Retail spend management basics for e-procurement professionals and knowledge workers?.

I truly hope you find these posts useful in your procurement jobs as many of my customers have. If you’d like to learn more, please contact a SafeSourcing Project Manager.

We look forward to and appreciate your comments.

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When Sourcing your Wireless Plans, you need to understand if they all the same?

Tuesday, March 3rd, 2015

 

Today’s post is  from the Sourcing Strategy archives at SafeSourcing.

It’s always good to know what you are paying for and what you aren’t paying for. Do you know what you are paying for?

Although the amount of data we view today and amount of storage capabilities have grown substantially since this last posted, the principle behind its information is still rock solid.

For instance, Sprint is one of the only companies left that claims to have completely unlimited data. Many other companies, like AT&T and Verizon, have different tiers of data rate plans. The higher tier, the more you may have to pay a month for your mobile phone plan. When signing these contracts, you should ask yourself, really how much data is 2 GB and how much do you actually need? Most people probably don’t know. However, if you do a little research, you can find out.

According to phonearena.com, just a few deliverables that 2 GB will get you; 4,000 visits to a website, 500 photo uploads to social media sites, downloading 285 high quality MP3’s, streaming 4 hours of high quality music a month, etc. What does this mean to you?

This may seem like a lot to some and not so much to others, but understanding facts like these will save you money. Why pay for 4 GB of data when you are only using 1 GB of data. Or would you rather have a piece of mind of not having to keep track of your data and go to a company that offers unlimited data.

Long story short, it is good to know what you are paying for and what you are using of what you are paying for. A good way to understand this disparate data, so that you have your facts straight is to do your research. Please contact a SafeSourcing customer services Account Manager for help with all of your sourcing needs to make sure you are get the right product for you or your company’s needs.

We look forward to and appreciate your comments

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California Plastic Bag Ban Delayed

Monday, March 2nd, 2015

 

Today’s post is by Tyler Walther, Account Manager for SafeSourcing

The first statewide ban on single use plastic bags in the nation will not go into effect this summer as previously thought.  The Secretary of State in California’s office stated Tuesday that a referendum to overturn the bill has qualified for the November 2016 ballot.

The state of California acknowledged that the trade association American Progressive Bag Alliance (APBA) attained at least 110 percent of the 504,760 confirmed signatures needed to qualify its measure to reverse the plastic bag ban. Accordingly, the unprecedented law is now delayed until California pollsters vote in 2016.

California Governor, Jerry Brown, ratified last September and originally set to go into effect this July, the ban would require large grocery stores and supermarkets such as Wal-Mart and Target to charge at least 10 cents for each recycled paper bag or reusable bag given to consumers. The plastic bag industry has argued that the ban has little to do with the environment and was a scheme by the California Grocers Association to make money off the 10-cent fee. The law also grants $2 million in loans to help plastic bag manufacturers transition their businesses to manufacture reusable bags.

Many believe Californians will support the ban on plastic bags. Plastic bags litter the streets and oceans of California, often killing the marine animals that swallow them. Reports state plastic bags could take as long as 1,000 years to biodegrade, making them a significant environmental concern.

There are currently more than 100 city ordinances banning plastic bags already existing throughout California, and will not be affected during the voter legislation period.

For more information on how SafeSourcing can assist you in exploring your procurement solutions for your business, please contact a SafeSourcing Customer Service Representative.  We have an entire customer services team waiting to assist you today.

We look forward to your comments.

 

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