Archive for the ‘B2b Supply Chain’ Category

Don’t ASK don’t TELL procurement risks.

Wednesday, November 17th, 2010

We have posted numerous times on product safety as regards everything from prescription drugs to receipt paper and just about every for resale and not for resale category in between. What is a given, is that if you do not ask about product safety your supplier is not apt to tell you what they do relative to product safety.

Let’s look at just a few examples.

1. Fresh Eggs: Did your buyer’s specification ask where the eggs you are planning to buy come from to the farm level?  Did you ask if the the farm or farms in question have been inspected and what their inspection record is. Did you ask if they have any certifications, what they are and if they are up to date?  Did you ask for the right to visit and walk the farm?
2. Receipt Paper:  Did your buyer’s specification ask who the source supplier is for your receipt paper to the mill level? Did you ask if the receipt paper is BPA free?
3. Reusable Grocery Bags: Here is a good one. All sorts of chains jumped on this in order to reinforce their CSR programs and claim a green initiative. Did your buyer’s specification ask if the product contained lead? Probably not.

These are just a very limited view of what is the growing issue we have with product safety in the United States and globally for that matter when we source off shore. The real question here is did your buyers even know to ask these questions? If they did not, who is really culpable down the road when a problem arises?  A better question here is, are your consumers just supposed to trust that you are doing the right thing by them.

If you don’t ask and your suppliers don’t tell, how in the world to we get control of this problem.

We look forward to and appreciate your comments.

Don?t ASK don?t TELL procurement risks.

Wednesday, November 17th, 2010

We have posted numerous times on product safety as regards everything from prescription drugs to receipt paper and just about every for resale and not for resale category in between. What is a given, is that if you do not ask about product safety your supplier is not apt to tell you what they do relative to product safety.

Let?s look at just a few examples.

1.?Fresh Eggs: Did your buyer?s specification ask where the eggs you are planning to buy come from to the farm level?? Did you ask if the the farm or farms in question have been inspected and what their inspection record is. Did you ask if they have any certifications, what they are and if they are up to date?? Did you ask for the right to visit and walk the farm?
2.?Receipt Paper:? Did your buyer?s specification ask who the source supplier is for your receipt paper to the mill level? Did you ask if the receipt paper is BPA free?
3.?Reusable Grocery Bags: Here is a good one. All sorts of chains jumped on this in order to reinforce their CSR programs and claim a green initiative. Did your buyer?s specification ask if the product contained lead? Probably not.

These are just a very limited view of what is the growing issue we have with product safety in the United States and globally for that matter when we source off shore. The real question here is did your buyers even know to ask these questions? If they did not, who is really culpable down the road when a problem arises?? A better question here is, are your consumers just supposed to trust that you are doing the right thing by them.

If you don?t ask and your suppliers don?t tell, how in the world to we get control of this problem.

We look forward to and appreciate your comments.

Scottsdale Arizona’s SafeSourcing Inc. releases outstanding Q3 2010 results.

Monday, November 8th, 2010

Despite the continuing economic condition SafeSourcing Inc. reported significant 3rd quarter 2010 revenue growth of 42.45% versus the same period of 2009.Safesourcing has also continued to significantly grow its customer base with wins across all retail verticals as well as other new industries. SafeSourcing also recorded significant net income for the same period.

According to Ron Southard SafeSourcing CEO, We continue to honor the commitment we made to the retail market when we launched this company of being able to address all spends regardless of size. During 2010 we have sourced products for companies with 1000’s of stores and for companies with only a single location. SafeSourcing has run hundreds of millions of dollars through our system this year for all RFX types and provided new sources of supply, a focus on companies CSR inititives and significant savings across all categories. Southard continued by saying that they could not be more pleased with the faith that their customers have placed in SafeSourcing during a very challenging economic climate.

To learn more about SafeSourcing please visit our website www.safesourcing.com.

We look forward to and appreciate your comments.

Scottsdale Arizona?s SafeSourcing Inc. releases outstanding Q3 2010 results.

Monday, November 8th, 2010

Despite the continuing economic condition SafeSourcing Inc. reported significant 3rd quarter 2010 revenue growth of 42.45% versus the same period of 2009.Safesourcing has also continued to significantly grow its customer base with wins across all retail verticals as well as other new industries. SafeSourcing also recorded significant net income for the same period.

According to Ron Southard SafeSourcing CEO, We continue to honor the commitment we made to the retail market when we launched this company of being able to address all spends regardless of size. During 2010 we have sourced products for companies with 1000?s of stores and for companies with only a single location. SafeSourcing has run hundreds of millions of dollars through our system this year for all RFX types and provided new sources of supply, a focus on companies CSR inititives and significant savings across all categories. Southard continued by saying that they could not be more pleased with the faith that their customers have placed in SafeSourcing during a very challenging economic climate.

To learn more about SafeSourcing please visit our website www.safesourcing.com.

We look forward to and appreciate your comments.

How safe is your/our supply chain? Help keep us all safe please.

Monday, November 1st, 2010

The specific question is how safe is your supply chain. How safe is it when transporting r products to your stores from warehouses all over the country and in fact all over the globe. Are there enough checks and balances in place to insure that the only products on a boat, train, truck or jet are the products that should be there?

The recent threats from Yemen should make all supply chain logistics providers ask the same questions every time something ships relative to their own and 3rd party logistics providers they may provide these shipping and delivery services. Unfortunately most companies will not have an answer readily available on this subject. In fact most companies will tell you when they order something how soon they would like to receive it and where but will never ask how the product will get there and by whom.

It?s crazy to think that we don?t know what?s on a plane until four hours before it gets to the U.S. This according to an article in the Arizona Republic titled Yemeni arrested in mailing of powerful bombs by Eileen Sullivan and Ahmed Al-Haj of the Associated Press. We have to do better. The terrorist never rest and we must remain diligent. So think about where you products come from and how they get from their point of origin to your stores. This is part of having a traceable supply chain but in this case we need to know what is shipping, when it?s shipping and who has access to to it during the entire process.

We look forward to and appreciate your comments.

In other words is just more trade liberalization.

Friday, October 22nd, 2010

The agreements are really just a form of trade liberalization which is how these geographies or countries collaborate to the remove government incentives and restrictions from trade between themselves and other nations or groups of nations. Trade liberalization has always been open to much political debate because of its impact on local economies where jobs or lack of them impact the daily lives of its people.

A subject we are all familiar with that is a good example is that of jobs going overseas from the United States particularly in the area of manufacturing. That subject could be an entire book relative to the impact of World War II on creating breeding beds for new economies based on new technologies that ultimately caused our own manufacturing decline and the need for tariffs in the first place.

This all sounds like a self fulfilling prophecy, but I digress.

We look forward to and appreciate your comments.

Is comparative advantage important to your procurement practices?

Thursday, October 21st, 2010

Comparative advantage is a theory that advances that in a free marketplace, each entity or country such as the EU or NAFTA or trading countries will ultimately specialize in activities where it has comparative advantage. Examples of such might be technology, natural resources,?? local workers skill sets, agricultural advantages, transportation benefits etc.

Sometimes countries create trade agreements that eliminate the comparative advantage they each may have in favor of benefits that both or multiple countries derive from the agreement where one may have an advantage over the other that creates an imbalance in trade. As an example in the NAFTA agreement, Mexico may have a lower cost labor pool than the United States but the United States may have a transportation advantage that could leverage that low cost of labor. These agreements are called Free Trade Agreements in which both parties agree to lift most or all tariffs, quotas, special fees and taxes, and other barriers to trade between the entities to their mutual benefit.

We look forward to and appreciate your comments.

Another COO procurement professionals should pay close attention to is Country Of Origin labeling.

Tuesday, October 19th, 2010

One forward one back reporting is not enough if we plan to limit food borne illness outbreaks and other product safety issues that continue to put consumers and companies at risk.

According to Wikipedia, Country of origin (COO) is the country of manufacture, production, or growth where a product comes from.

All products clearly need to require is specific country of origin labeling, particularly as we continue to source more offshore products and services. Today, standards tend to be inconsistent from country to country. By example products enter North America from Europe that may carry country of origin labeling like ?Europe? or ?EU? rather than specific labeling indicating a product comes from France or Germany.

Manufactured products create a more unique issue, as individual products may include up to hundreds of components, pieces and parts from dozens of countries and assembled in other countries. While this issue requires significant work, there is absolutely no reason that we can not include country of origin labeling on all food products that enter our country.

We appreciate and look forward to your comments.

What type of job areas might be involved or impacted by e-procurement?

Monday, October 18th, 2010

SafeSourcing?s SourceBook? is a Professional Social Community for procurement professionals with nearly 1,000 members where just about any subject in the procurement area can be discussed with other procurement professionals.

The answers to the above thread were pretty basic but probably did a nice job of pointing the member who was looking for areas in which to focus a job search in the right direction.

There are certainly many more areas of a company that have e-procurement connections, but the following are probably a pretty good place to start.

1.?Finance
2.?Purchasing
3.?Logistics
4.?Manufacturing
5.?Warehousing
6.?Materials Management
7.?Inventory Management
8.?Supply Chain
9.?Distribution
10.?Transportation

See how SourceBook? can help you with your procurement questions.

We look forward to and appreciate your comments.

Rest area safety tips for all retail travelers that want to avoid being a victim.

Wednesday, October 6th, 2010

I was reading today?s edition of USA TODAY and read the front page article titled Along Highways, signs of serial killings ?by Blake Morrison. The data was shocking to someone that travels a lot and also has family members that do so to make their living. Over the road travel is how most of our goods are shipped and is also a necessary part of how most suppliers representatives travel to call on our retailers and our retailers work with their stores.?

As such I am posting tips by AAA titled Avoid being a victim.

AAA offers these tips for motorists concerned about their safety at rest areas and truck stops:

??Avoid being the only person at a rest area.
??Park in well-lit spaces near the facilities.
??If you see someone suspicious, wait until the person has left or drive to another location.
??Keep your keys in your hands as you walk to your car. That way, you can quickly enter and lock your car.
??If you’re approached by someone seeking help or information while you’re in your car, keep the doors locked and crack your window to talk with them. Offer to call help for them, but do not get out of your car.
??If someone confronts or grabs you, react loudly and fight back. Make a scene.

Be SAFE out there.

We look forward to and appreciate your comments.