Archive for October, 2024

 Why are small business and home insurance costs rising?

Thursday, October 17th, 2024

 

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

Well, if you are like everyone else you noticed that when your home insurance policy renewed there was probably a significant jump in cost.  Rates are skyrocketing across the country, and they are more likely to be other price increases coming.  According to researchers, the insurance rates have increased nearly 22 percent since 2020 and two of the biggest contributors of this are inflation and weather disasters.  This increase is affecting everyone even if you have not made any changes or any claims reported.  Another factor for the increases is due to the fact that the cost of rebuilding a home has skyrocketed as well over the last few years.  They estimate that labor costs alone have increased by 25 percent, which sharply increased the expenses for the insurance companies.  The lumber and building material needed to build a home have gone up significantly since the pandemic which has not helped the situation.  The areas that are seeing the highest price increases are states like Arizona, Colorado, Florida, Massachusetts, California, and Pennsylvania.  If you are wondering if there is anything that you can do to bring down your home insurance rates you may consider researching the suggestions below.  After researching these items, you may want to start comparing your current company to other companies that insure in your area to see if you can negotiate better at the same time.

  • Add Protective Devices
  • Review your current coverage.
  • Increase your Deductible.
  • Bundle Multiple Polices
  • Review Available Discounts
  • Improve your Credit Score

If you need help researching more affordable insurance policies, feel free to contact SafeSourcing.   We can gather all the necessary information for you and help you decide which company 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.

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The Pros and Cons of AI in Workspace

Wednesday, October 16th, 2024

 

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

Artificial Intelligence has become a buzzword in recent years, sparking excitement about its potential to revolutionize industries. From automating tedious tasks to providing data-driven insights, AI has already made significant strides in transforming how businesses operate. However, AI is not without its limitations. Understanding the strengths and weaknesses of AI helps businesses make informed decisions on how to leverage this technology for growth.

There are some pros to using Ai in the workspace. Generative AI models can create new content, such as text, images, music, and code, based on a given input. This technology is enabling businesses to create marketing content, prototype designs, and even write code faster. It has also opened up new possibilities for content creation in industries like media, advertising, and entertainment. Machine Learning algorithms can analyze large datasets and recognize patterns, helping predict future outcomes. Predictive analytics enables businesses to anticipate trends, manage inventory, and optimize marketing strategies. Retailers, for example, can use ML models to predict demand for products, minimizing stockouts and overstock situations, thus saving costs.

There are also some cons to using AI in the workspace. AI models require large amounts of data to function accurately. The quality and diversity of data directly impact the performance of AI. For businesses with limited data or data from biased sources, AI models might generate inaccurate results, which could lead to misguided business decisions. Data collection, cleaning, and preparation remain time-consuming and resource-intensive processes. Most AI systems are specialized and excel at specific tasks, but they lack the general intelligence and flexibility that humans possess. An AI trained to analyze customer reviews, for example, cannot simply switch to analyzing financial trends without retraining. This means businesses often need multiple specialized AI models for different tasks, adding to complexity and cost. It also limits AI’s ability to adapt to new situations without significant reprogramming.

AI holds tremendous promise for transforming businesses through automation, enhanced customer experiences, and data-driven insights. However, it is crucial to acknowledge its limitations—especially around data, bias, and costs—to ensure a balanced and effective implementation. By adopting a strategic approach and focusing on human-AI collaboration, businesses can harness the power of AI to unlock new opportunities and stay competitive in the rapidly evolving market.

For more information on how the SafeSourcing can help your e-procurement needs, or on our Risk-Free trial program, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.

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It’s a Miricle (on 34th Street) that we still have Santa Claus!

Tuesday, October 15th, 2024

 

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

Miricle on 34th Street was one of my favorite childhood movies, I mean who does not want to believe in Santa Claus. We probably need more of that magic today than we have in many years. If you don’t remember, a divorced New York mother hires a nice old man named Kris Kringle to play Santa Claus at Macy’s, and we get to watch a lawyer prove in court that he really is Santa Claus.

In a recent article regarding the closures, it mentioned that this is part of a larger cost-cutting and investment realignment with a focus on more profitable stores and expanding e-commerce.

Now for Magic!

Well as you know, I am all for cost-cutting and I don’t know what Macy’s is doing about it, but I know it can be done better.

Personally, I have a distaste for bottom line improvement via headcount reduction, when I KNOW that more money can come out of cost of goods, expenses, and capital projects. While these may be areas of focus, most companies do a poor job of it even with advanced tools and big consulting firms helping them and charging out their nose for it.

And now we hear another American Icon is declaring bankruptcy and selling to the competition True Value announces their discontinuation. And While I’m at it, Walgreens another American household name has announced closing 1200 locations.

It’s true that e-commerce has made it easier for people to shop from home and that makes it more difficult for companies to offer in-store marketing plans that encourage upselling, but we also know that many are not shopping because they cannot afford it. Prices are just too high. I recently read Walmart’s CEO said they are doing everything in their power to keep consumer prices down. Congratulations!

More companies need to do the same by focusing on compressing their prices on all for resale products, all services, and all non-P&L related projects. Who knows, you might still be able to improve margins and earnings.

If you don’t know how, give me a jingle (as in bells). You’ve got to love holiday magic.

For those of you that are looking for an opportunity to claw back against the recent price increases on everything, it is right in front of you. For those that listen to your vendors, expect the price increases to continue.

For more information, please contact SafeSourcing.

 

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