Archive for October, 2022

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Have you ever eSourced a House?

Thursday, October 27th, 2022

 

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

These are two good questions as the real estate market reacts to work from home, inflation driven mortgage rates and uninterested buyers.  I have often thought about using a reverse auction tool to source a home. It should work in that it allows for initial offers, sets parameters for interested buyers and does not restrict you from over bidding or underbidding while providing feedback as to whether you are below the list price, reserve price and where you are ranked in the bid process. Easy right?

At SafeSourcing we have done all types of RFP’s and RFQ’s for construction related expenditures including land, architects, general contractors, sub-contractors and about any material you can think of needed for the final build. We then also hold the general contractors responsible to the items that drive their bid submission. Below are categories that have been sourced quite a few times.

 

 

 

 

 

 

 

 

 

 

 

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. These include but are not limited to SafeContract™, SafePO™, SafeDocument™ and 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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Economic Order Quantity and Other Procurement Terms

Wednesday, October 26th, 2022

 

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

In procurement bets practices, ever evolving terminologies can get you into trouble if you don’t understand the slight differences or assume terms have the same meaning.

The landed cost is the total cost of acquiring and shipping a product. It is the total price paid by a retailer till they receive the goods. The common charges involved are shipping costs, customs fees, insurance, and overheads.

The Economic Order Quantity is the size of an order at which the totally procurement and inventory carrying cost is at the lowest possible threshold. The formula can be used to determine production levels or order interval lengths and is used by large corporations around the world. The components for the formula include the demand for the year, cost to place a single order, and the cost to hold one unit of inventory for a year.

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. These include but are not limited to Safe Contract™, SafePO™, SafeDocument™ and 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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What is your company doing to support the environment in a SmartWay

Monday, October 24th, 2022

 

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

In 2004, the Environmental Protection Agency (EPA) launched SmartWaySM — an innovative brand that represents environmentally cleaner, more fuel efficient transportation options. In its simplest form, the SmartWay brand identifies products and services that reduce transportation-related emissions.  However, the impact of the brand is much greater as the SmartWay brand signifies a partnership among government, business, and consumers to protect our environment, reduce fuel consumption, and improve our air quality for future generations.

The SafeSourceIt™ Supplier Database is one the largest eSourcing supplier databases in North America with over 527,000 suppliers. To achieve maximum savings when using an e-procurement event, you need numerous suppliers aggressively vying for your business. SafeSourcing customers can request summary or detailed data from the same tool and download it to a variety of file formats. Our Suppliers are held accountable to a number of environmental standards that support our customers social responsibility initiatives

If you would like to learn more, please contact a SafeSourcing customer services associate.

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Retailers it’s really pretty simple; just look at your Gross Profit.

Thursday, October 20th, 2022

 

Todays post is by Ron Southard, CEO at SafeSourcing Inc.

How many times do we hear all of the reasons for a retail company’s performance being off? It’s the cost of doing business over seas, the economy, the cost of fuel, heath care costs etc. How often do we hear, that we are doing better than the same period a year ago or we are exceeding plan. All of that is nice stuff, but the bottom line is your bottom line. If you top line sales are up and your net profit is up it does not necessarily mean that you have all of your procurement issues under control.

Let’s start with some numbers you might want to look at. Don’t just assume that profit is a good thing because profit could be caused by an imbalance in your category margins.

Here are a few good questions to ask yourself.
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1. How do your cost of goods compare to the rest of the industry for a chain of your size?
2. How do your operating expenses compare to other chains of your size?
3. How do your gross margins compare to other chains your size?

All of the above can be good indicators of overall company health and certainly procurement health. If your cost of goods is higher than industry averages for a chain of your size, why is that? Is there a specific category that is causing the issue? Do you know how to isolate the problem and then eliminate it?

If you don’t have or know this information, you should ask your e-procurement provider if they have it, because they should if they want to model an improvement plan for you.

As an example, here is an example of a previous years U.S. based convenience store chains targets for non fuel.

1. Cost of Goods Sold should run somewhere around 71% or 72%
2. Gross Profit should run around 28% to 30%
3. Operating Expenses should run around 26% to 29%
4. Net Operating Income around 2%

While these numbers are certainly off based on Pandemic issues, product  or services mix, you can build a case model on them to compare before and after for you company. That is if you have a tool like SafeBIM™ from SafeSourcing. BIM stands for Business Impact Model.

If you are way out of balance with these numbers and want to understand how to rebalance them, contact a  SafeSourcing Customer Services Associate.

 

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How can Companies and Individuals save money when fuel prices are constantly rising?”

Wednesday, October 19th, 2022

 

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

If you drive, then you may have noticed that the fuel prices are starting to rise again.  Over the summer the price of fuel did start to come down because of a variety of price stabilization efforts that seems to have brought us some temporary relief.  One of these efforts was a historic release of oil from the Strategic Petroleum Reserve.  The Strategic Petroleum Reserve is the world’s largest supply of emergency crude oil and was established primarily to reduce the impact of disruptions in the supply of petroleum products and to help carry out the obligation of the United States under the international energy program.  But now, after three months of fuel prices declining, they are now starting to creep up again.  Part of the reason for this rise in prices is because OPEC recently announced that they are cutting its oil production by two million barrels a day.  According to the Saudi foreign ministry the decision was adopted through a consensus, considered the balance of supply and demand, and was aimed at curbing market volatility.  No matter what the reason is for the cut in production we will see higher prices at the pump.  Below are some actions you can take to try and save some money with the rising fuel prices.

  • Fill Up on the Cheapest Days of the Week
  • Use Fuel Reward Cards
  • Join a Grocery Store Reward Program
  • Use a Fuel App to Find Cheapest Locations
  • Check Your Fuel Cap and Replace if Broken or Cracked
  • Accelerate Slowly when Taking Off
  • Do not Speed
  • Spend Less Time Idling
  • Plan your Routes
  • Use Cruise Control on Long Uninterrupted Trips
  • Reduce AC Use
  • Remove Excess Cargo Weight
  • Maintain Correct Tire Pressure

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. These include but are not limited to SafeContract™, SafePO™, SafeDocument™ and our SafeSourceIt™ Global Supplier Database that includes over 557,000 vendor/suppliers.

For more information, please contact SafeSourcing.

 

 

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Trick or Treat?

Monday, October 17th, 2022

 

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

Recently, I was getting an estimate on a fairly small home improvement project when I was surprised with a price I was not expecting. What I thought was going to be about $500-$1000, wound up being quoted at $6000. With nearly 92% of homes in the US having been built before the year 2000, it might not be a surprise that the home improvement industry has remained a huge national industry with increasing sales every year. I, like so many others, fall into this category of having a home that requires some improvement from time to time. This project, however, was no treat.

Typically, before any improvement is done, the first step is identifying the project. Knowing what exactly need repaired or replaced helps to narrow down the goods or services that will be needed. For instance, if you are looking to improve your flooring, knowing if you want to just clean your carpets or get new will help determine your next steps.

Once you know what you want to do in your improvement plan, next you should begin looking for services or supplies that help to accommodate that. For instance, if you want to replace your floors, you may need to either find the product you like so you can do it yourself or you will need to find a company that can help.

Finally, once you know what you want and who you want to help, the next step is getting a quote. This is where you may be in for a surprise like I was. At first, I thought this was just a trick, there is no way this was the real price for my project. That is when I called for more estimates. Turns out the scope of my project was not as clearly defined as I had first thought, so the estimate was covering much more than what was needed. This is especially when a procurement partner could assist.

Just like my home project, businesses and organizations also look for goods and services that they will need. They will look for people that can do the work or provide the good, and they will seek prices. A Procurement partner, like SafeSourcing, can assist in every one of these areas. They have the expertise and experience in the area to know who to look for, find estimates for you, and also make sure your project is clearly defined. Having a procurement partner helping with your project or sourcing needs is definitely a treat, because they know all the tricks and just what to do.

For more information on what the SafeSourcing 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.

References: https://www.zippia.com/advice/home-improvement-industry-statistics/

 

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Third-Party Logistics Providers (3PL) and other Warehousers are adding Perks!

Friday, October 14th, 2022

 

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

Many years ago, I managed a small warehouse for a retailer. It was what you might expect, concrete floors, shelves upon shelves upon shelves, poor lighting, a large overhead door to accommodate shipments and tools of the trade like a forklift, dollies, pallets etc. We also had one coffee pot where everyone came to hang around and smoke during their breaks. This was the 1970’s. Industrial is the term that comes to mind.

I was reading an article in today’s Wall Street Journal by Liz Young Titled “Warehouses Add Perks to Attract Employees.” The article speaks to the fact that the warehouse business is booming. However, getting employees to manage the increased traffic is difficult. So, we are now seeing an evolution to a better work environment through the addition of fitness centers, outdoor work areas and better lighting to attract workers. I must admit that I was so tired at the end of every day all those years ago that a fitness center might have looked nice but ouch my aching back. A nice snack bar that is refreshed daily with fresh food offerings at reduced costs might be a better alternative. At any rate 3PL companies as well as companies that own their own distribution facilities are trying hard to make life better for their workers. So, what is a 3PL?

A Third-Party Logistics Provider (3PL) is an organization that manages and executes a particular logistics function, utilizing its own assets and resources, on behalf of another company. They may manage part or all of their Supply Chain Management functions. 3PL typically manages integrated operation, warehouse management and transportation services. Some of these services include warehousing and distribution operations, contract warehousing, public warehousing, fulfillment, and truck transportation services.

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. These include but are not limited to SafeContract™, SafePO™, SafeDocument™ and our SafeSourceIt™ Global Supplier Database that includes over 557,000 vendor/suppliers.

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

Sources: Wall Street Journal 10/13/22 Liz Young

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Why do you need to use eProcurement tools like eRFQ’s or Reverse Auctions

Thursday, October 13th, 2022

 

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

Because of terms like Off-Invoiced Amount which is not a sustainable negotiation tactic

What aggravates me in Business-to-Business supplier/customer negotiations are old tactics like the term off-invoiced amount which are generally not captured properly or sustainable in your ongoing negotiations. The use of eProcurement tools that capture all information from suppliers drives better measurable savings that can be easily tracked across any enterprise.

The term off-invoiced amount is an amount which is reduced to a retailer in return of purchasing specific quantities of goods in a specific period of time to increase the volume of sale to the retailer.  Also, an off-invoice amount could be a sales promotion in which the manufacturer offers the retailer a price reduction on the product price at the time of ordering.

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. These include but are not limited to SafeContract™, SafePO™, SafeDocument™ and 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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What tools do you use as your source of supply chain and procurement information?

Tuesday, October 11th, 2022

 

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

During the last few months, I have tried to hi-lite many of the tools available on the SafeSourcing Website. Many of which do not cost anything to use. The SafeSourcing™ Wiki is one of those tools where you can find information on many supply chain and procurement related topics. While we do not try to be Wikipedia or more expansive tools of that nature, we are a particularly useful source of need-to-know information in a brief format. You can rate us on our page, and that will only make us better as we update our information daily.

Wikis are used in businesses to provide affordable and effective intranets for knowledge management and transfer. Registered members may search for, edit, or add commonly used terms in the procurement area. We look forward to your input.

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. These include but are not limited to SafeContract™, SafePO™, SafeDocument™ and 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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How does your company control all of your purchasing at all levels?

Friday, October 7th, 2022

 

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

SafeCatalog™ is a tool that allows companies to consolidate the products and services they order into one online view for employees. This tool is easily customizable and allows users to create different catalogs for multiple departments within their organization. It also provides control over ordering by listing only approved vendors at negotiated rates.

When integrated with the SafePO™ module, users can have their catalog orders automatically processed and entered into an online purchase order system that allows suppliers to be notified of the order once it has been approved.

Catalogs can be populated with items from one or multiple suppliers and are presented in a way that includes descriptions and provides prices in one location.

SafeCatalog™ provides users the leverage to monitor and control spending through spending thresholds that ensure that users are receiving the correct price for all items.

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. These include but are not limited to SafeContract™, SafePO™, SafeDocument™ and 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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