Archive for February, 2024

Can chatbots do all the negotiations for your company?

Thursday, February 22nd, 2024

 

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

I have talked about the potential impact of Ai on procurement departments and jobs in the past. Most recently in a post titled Watch out procurement professionals Here comes Artificial Intelligence

So, today I was reading a report on FOXBusiness by Bradford Betz titled Walmart using AI to negotiate cost, purchase terms with vendors in shorter timeframe: In the report it states that “The AI chatbot has helped Walmart conduct negotiations with 2,000 suppliers simultaneously, the company said.”

The chatbot was developed by the California-based company Pactum, to negotiate smaller contracts with suppliers who provide the retail giant with the equipment it uses rather than the products it sells.

While Ai and machine learning are moving at the speed of light, I still believe that the savings generated in person reviewed and edited negotiations can be more effective and save more money in the long run. For the very large organizations where small percentage savings add huge numbers to the bottom line, it probably comes at a cost that is prohibitive to non-early adopters.

At SafeSourcing our average annual savings against all categories are in excess of 24% and that includes equipment. Just saying!

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 .

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

 

 

Posted in

Market Trends and Procurement!

Wednesday, February 21st, 2024

 

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

Have you noticed your costs shifting in the market? It may be time to utilize external procurement professionals.

Staying on top and aware of market trends is paramount for businesses striving to maintain a competitive edge. Market trends encompass a wide array of factors, including consumer preferences, technological advancements, economic shifts, and regulatory changes. Amidst this dynamic environment, procurement emerges as a strategic function capable of harnessing market insights to drive business success.

As markets fluctuate, innovations and other economic forces force those in business to stay attune to these trends. Doing so can provide you with opportunities for growth, innovation, and adaptation. Procurement is not merely a transactional function focused on purchasing goods and services; it is a strategic imperative that can drive value creation, foster innovation, and mitigate risks across the organization. By harnessing market trends, procurement professionals can anticipate shifts in demand, identify emerging opportunities, and forge strategic partnerships that propel the business forward.

Procurement teams leverage market insights to identify suppliers that align with the organization’s strategic objectives, whether it be cost reduction, innovation, or sustainability. By conducting thorough supplier evaluations, negotiating favorable terms, and fostering collaborative relationships, procurement professionals can optimize the supply chain and enhance operational resilience.

In an era defined by rapid change and unprecedented uncertainty, businesses must embrace agility, innovation, and strategic foresight to thrive in the marketplace. Procurement, as a strategic function, plays a pivotal role in navigating market trends, driving operational excellence, and delivering tangible value to the organization. By leveraging market insights, fostering collaboration, and embracing innovation, procurement professionals can position their organizations for sustained success in an ever-evolving business landscape.

For more information on eProcurement and how the SafeSourcing team can help your organization with the changing market trends, or on our Risk Free trial program, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.

Posted in , , ,

Have you noticed the price of chocolate lately?  

Friday, February 16th, 2024

 

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

With it being close to Valentine’s Day you may have noticed when you were out shopping that the price of chocolate has risen.  It might as well everything else is going up why not one of favorite snacks.  The cost of the main ingredient, cocoa, has been rising upward over the past two years and over the past year it has more than doubled.  This month it broke an all-time record from back in 1977.  The prices are surging so high that even the biggest chocolate makers are struggling to make profits.  Last week Hershey Co. announced that they are cutting 5 percent of its workers because of the historic cocoa prices and inflation-weary consumers helped lower their fourth quarter earnings.  One of the reasons behind the significant increase is the climate issues in West Africa where more than 60 percent of the global production is produced.  According to experts’ cocoa futures have skyrocketed, not only have they doubled in the past year it has also gone up an additional 40 percent since January.  According to a senior food and beverage economist, the rising cost of cocoa has made retail chocolate prices rise about 17 percent over the last two years and it will only continue to rise.  One company that produces 4-ounce chocolate bars stated that the bars were selling to $4 in 2020 and is now up to $5 a bar.  They also noted that it is not just the cost of the chocolate but also the cost of sugar, cocoa butter, packaging, and labor costs.

If you need help sourcing ingredients for your company, feel free to contact SafeSourcing.   We can gather all the necessary information for you and help you decide which company and product 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.

Posted in , ,

Does your organization implement eProcurement Solutions?

Thursday, February 15th, 2024

 

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

In the fast-paced world of business, every dollar saved counts. Whether you’re a small startup or a multinational corporation, finding ways to cut costs without sacrificing quality is essential for long-term success. One area where significant savings can be realized is through efficient supply management. With the advent of technology, eProcurement has emerged as a game-changer in this regard, offering businesses a streamlined and cost-effective approach to purchasing supplies.

eProcurement (electronic procurement) is the process of purchasing goods and services electronically, typically through online platforms or software systems. Unlike traditional procurement methods that rely on manual processes such as paper-based purchase orders and invoices, eProcurement automates the entire procurement cycle, which can streamline to process and cut down significantly on time.

One of the primary advantages of eProcurement is its ability to drive cost savings. By leveraging online marketplaces, comparing prices, and negotiating discounts, businesses can secure better deals on their purchases. Additionally, eProcurement helps eliminate the overhead costs associated with manual processing, such as paper, printing, and labor, further reducing expenses.

eProcurement presents a compelling opportunity for businesses to achieve significant cost savings and efficiency gains in supply management. By embracing technology, streamlining processes, and leveraging data-driven insights, organizations can optimize their procurement practices and position themselves for long-term success in today’s competitive landscape.

Through strategic implementation and continuous improvement, businesses can harness the power of eProcurement to drive savings, enhance operational efficiency, and unlock new opportunities for growth and innovation.

For more information on eProcurement and how the SafeSourcing team can get you started, or on our Risk-Free trial program, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.

Posted in , , ,

Is the inclusion of freight in an e- bid or reverse auction equal to the net landed cost?

Wednesday, February 14th, 2024

 

Todays post is from the SafeSourcing Archives.

Sourcing freight lanes or shipping lanes is a project all its own. A shipping lane simply put is the general movement of products between two areas. The first is the departure area and the other is the arrival area. This gets more complicated when we start to discuss full loads versus less than full loads and haul back opportunities that accomplish the optimum in a transportation cost model.

When you structure your e-bid simply asking for a net landed cost or assuming that means free freight or free freight within a certain radius of the origination point,  is just not that easily accomplished.

If you really want to understand your net landed cost, then you should have line items in your event that are specific, measurable and bid on separately. When a company says they want a net landed cost what they are referring to is the cost of a product or products plus all of the relevant logistics costs, such as transportation, warehousing, handling etc. In other words, what’s my cost when it gets here or where we want it?

If you want to drive the best pricing and service possible you need to understand what you are asking for and make sure it is clear in your specifications and terms and conditions.

We look forward to and appreciate your comments.

Posted in , , ,

There are new C- Store’s a being built anywhere and everywhere.

Tuesday, February 13th, 2024

 

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

Return on invested capital is a good approach!

The return on capital for building a new convenience store can vary widely depending on numerous factors such as location, size of the store, competition in the area, operational efficiency, and overall market conditions. Generally, convenience stores aim for returns that exceed their cost of capital to justify the investment.

As an example, one company may have a high profile ready to eat or fresh food program but no carwash. Another may have a carwash but limited ready to eat or could have a franchise food offering. Some key areas affecting the return on capital for a convenience store could include all of the following and most businesses perform detailed financial analysis to assess a return that is meaningful for their company.

  1. Location
  2. Operating Costs
  3. Revenue Streams
  4. Marketing and Branding
  5. Competitive Landscape
  6. Economic Conditions
  7. Regulatory Environment

One area that can have a significant impact on capital is to reduce the use of capital through the use of strategic sourcing tools, like the ones SafeSourcing offers. Most companies in this space do not use them or use them effectively. This should be of concern to investors interested in this area.

Calculating the precise return on capital for a convenience store should involve analyzing the initial investment, ongoing operational costs, and projected revenues over a specific time horizon. Some companies perform detailed financial projections in order to assess the potential return on investment before committing to building a new location.

If you want to reduce costs, I mean really reduce them so you can afford to do other things, Contact SafeSourcing. We guarantee our work, and our ROI is often greater than 10X and immediate.

 

 

 

 

Posted in

Why use SafeSourcing versus other providers in the Procurement Space?

Thursday, February 1st, 2024

 

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.

 

Posted in , , , ,

© 2025 SafeSourcing