Today’s post is from our SafeSourcing Archives

Does your preparation matter that much? Will your discovery work lead to the best decisions you can make?

In Part I of this post How Much Legwork Do You Do To Prepare we discussed knowing/understanding your market around the particulars of the Market Trends, Pricing Trends, Hurdles and Product Content. In Part II we discussed Knowing Your Product with details like Specifications, Substitutes and Alternatives and Knowing the Suppliers with details about Location, Product Line and issues such as Environmental Responsibility.

In our final post of this three part series we focus on knowing your own company and its goals so that you can interpret and understand the results.

KNOWING YOUR COMPANY

1. Sustainability – Sustainability is a way of working and living that balances immediate needs for commerce, living, habitation, food, transportation, energy, and entertainment with future needs for these resources and systems as well as the liveliness and support of nature, natural resources, and future generations. Where does your company currently stand and where is your company going in this area? Knowing this can benefit your company long-term.
2. Target Market- This is the group of consumers that the business has decided to aim its marketing efforts and ultimately its merchandise towards. A well-defined target market is the first element to a marketing strategy. The marketing mix variables of product, place (distribution), promotion, and price are the four elements of a marketing mix strategy that determines the success of a product in the marketplace.

KNOWING YOUR GOALS

1. Desired Results/ Defined Goals – Knowing where you want to end and what you want to achieve will help guide you in the direction to do so. If you do not clearly define your goals and desired results, then how will you know when your work is done and you obtained the goal(s)?

KNOWING THE RESULTS

1. Desired Savings Achieved – Although cost savings is always the primary goal for renegotiating contracts with suppliers, it is also as important to have a Service Level Agreement (SLA) in place that will be obtained by the awarded supplier. While savings are key to the financial leadership of a company, the more important concern is that the operators are satisfied with the incumbent or newly awarded vendor.
2. Success – The success with any initiative is determined solely by you. It does not always come in the form of cost savings. Success can also be determined by the time invested to accomplish the desired outcome. Too much time or delays in making a decision can cost companies additional expenditures. Additionally, success can be determined when considering the many impacts a decision brings; i.e. green initiatives/environmental impacts, company diversity goals, contract duration, and flexibility.

For more information on how we can help you with all of the legwork required to fulfill your procurement needs or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.

We look forward to and appreciate your comments

Today’s post is from our SafeSourcing Archives

Does your preparation matter that much? Will your discovery work lead to the best decisions you can make?

In Part I of this post How Much Legwork Do You Do To Prepare we discussed knowing/understanding your market around the particulars of the Market Trends, Pricing Trends, Hurdles and Product Content. In today’s Part II of this three part post we will discuss knowing your product and knowing your suppliers in more detail.

KNOWING YOUR PRODUCT

• Specification – This is a detailed description or assessment of requirements, dimensions, materials, etc. This is a very important step in the process as this alone can determine the long term impacts to consumers and end users of the item. Being absolute on what specifically is needed is imperative to the success of the project.
• Substitutes and Alternatives – These are similar products/items that can be used in place of the original. This is mostly acceptable on a short term basis. Once specifications have been determined, it is imperative that the vendor adheres to the specification for a multitude of reasons, mainly integrity of the product and costs. At times, there may be a need to substitute due to product shortage.       In this case, there must be a clear plan and expectations as to what those acceptable substitutions can be. Leaving it up to the vendor may have negative downstream impacts in consumer image and financial costs.

KNOWING THE SUPPLIERS

• Location – This is the specific area where the supplier would be found. This is important to the customer for purposes of logistics as well as doing business with local accredited companies. Any freight and mileage charges will add to your cost.
• Product Line – This is the offering of items in which a customer is interested. The larger the product line, the more likely the service level will be consistent. This is not always the case, but paying close attention to the expansion or compression of a product line on an ongoing basis can head off any possible impact to business.
• Environmentally Responsible – (also eco-friendly, nature-friendly, and “green”) These are ambiguous terms used to refer to services claimed to inflict reduced, minimal, or no harm at all upon ecosystems or the environment. Companies sometimes use these terms to make environmental marketing claims when promoting goods and services. This is important as more and more consumers care about products and companies that are “Green”.

For more information on how we can help you with your procurement needs or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.

We look forward to and appreciate your comments

Today’s post is from our SafeSourcing Archives

Does your preparation matter that much? Will your discovery work lead to the best decisions you can make?

Let’s assume you are procurement professional for a company that is ready to find a better solution for their need. This is when the legwork begins. So how much legwork is necessary to get the results you need? There are many factors that should be researched and investigated to make a valuable decision for your company. Below are numerous, but important, factors that will entail your legwork. In the ensuing case study we have documented the factors, processes and specifics that two different procurement professionals went through.

KNOWING THE MARKET:

• Market Trends– Trends are what allow traders and investors to capture profits. Whether on a short- or long-term time frame, in an overall trending market or a ranging environment, the flow from one price to another is what creates profits and losses. This is something that the two procurement professionals kept an eye on so when the time comes, they are armed with as much information as possible to make the best decision for their company.

• Pricing Trends– Understanding where the market is headed will allow the company’s to make better decisions regarding long / short term contracts with possible price review intermittently. The current price may be desirable, but understanding the trend will allow for better decisions. Awareness and connection to the industry can only help them when they are ready to act and, more importantly, develop a solid long term strategy.

• Hurdles– Think about people running in a race. They are running, and then they see something that blocks their way. They can stop running OR they can jump over the hurdle in the road and keep running. Think about work the same way. You worked hard to find the right supplier and cost that you like. Then there are unforeseen problems that could cost additional expenditures. Building in contingencies will avoid such issues.
• Product Content – This is referring to the materials that are required to produce a product in order to meet necessary standards or specifications. This will affect the price of the product or service you want to purchase. Additionally, each company must decide what is right for them when it comes to the environmental impact. Awarding business to a vendor that has “green” initiatives already in place will bring goodwill in the community it serves and improve company image while doing what is right for the environment.

For more information on how we can help you with your procurement needs or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.

We look forward to and appreciate your comments