Archive for the ‘Business Sourcing’ Category

The Evolution of SaaS in Procurement

Friday, February 7th, 2025

 

Today’s post is by Eric Steller, Chief Revenue Officer at SafeSourcing Inc.

The Software as a Service (SaaS) industry has undergone a profound transformation. What once promised efficiency and scalability through out-of-the-box (OOTB) solutions has, in many cases, become a paradox—overly complex yet insufficiently tailored to an organization’s unique needs. The reality is that most SaaS platforms, when left to operate as standalone solutions, fail to deliver their full potential. This is why leading organizations are shifting toward hybrid SaaS and services models—an approach that accelerates time to value, ensures seamless execution, and maximizes financial returns.

The Limitations of Traditional SaaS: A Market Reality

While SaaS solutions were originally designed to streamline operations, market research confirms that the complexity of modern business environments renders most OOTB implementations ineffective. A recent study from Allied Market Research projects the hybrid cloud market—an indicator of demand for mixed technology and services—will surge from $96.7 billion in 2023 to $480.2 billion by 2033, growing at a staggering 17.4% CAGR. This shift underscores an essential truth: organizations require more than software; they need expert guidance and executional support to drive measurable results.

Moreover, pricing models within the SaaS ecosystem have evolved to reflect this reality. Hybrid pricing strategies, which combine software subscriptions with usage-based service components, are now critical in optimizing customer value and revenue scalability. Companies that fail to integrate service-led models risk leaving significant financial gains on the table (Hyperline Research).

SafeSourcing: A Procurement Powerhouse That Redefines ROI

SafeSourcing embodies this hybrid SaaS-services paradigm to perfection. Founded over 15 years ago by procurement visionary Ron Southard, SafeSourcing initially launched as a Software-as-a-Service (SaaS) platform. However, it became evident that while the technology itself was powerful, most organizations lacked the internal expertise to unlock its full potential.

Clients, almost universally, sought SafeSourcing’s direct involvement—not only to deploy the solution but to lead their procurement events with surgical precision. Today, SafeSourcing operates as a fully managed Procurement-as-a-Service partner, leveraging:

  • A proprietary tech stack for seamless execution of RFIs, RFPs, RFQs, also known reverse auctions or on-line bids.
  • A database of nearly 600,000 vendors spanning every conceivable category
  • A dedicated team of procurement specialists who run sourcing events daily, ensuring superior outcomes

The EBITDA Multiplier: Doubling Profits Without Adding Headcount

The results? Unmatched cost reductions. SafeSourcing clients consistently realize savings of 25% or more per category—a staggering figure that, in many cases, translates to a doubling of EBITDA. The impact is so profound that if an enterprise were to do nothing else—no process optimizations, no internal restructuring—SafeSourcing alone could double profitability through sheer procurement efficiency.

Can any other solution make such a claim?

A Strategic Imperative for Every CxO

Every executive, from the CFO to the COO to the CEO, faces a relentless directive: deliver better results, faster, and at a lower cost. Amidst growing economic pressures and increasing competition, the imperative to optimize procurement is no longer optional—it is existential.

SafeSourcing is not just a SaaS provider. It is a strategic partner that transforms procurement from a cost center into a profit engine. If your organization isn’t actively exploring SafeSourcing, the only question is: Why not?

For more information on how the SafeSourcing can help you improve your EBITDA NOW through our Procurement as a Service offerings, or regarding our Risk-Free trial program, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.

 

 

If the Economy is so great, why are so many stores closing.

Thursday, January 16th, 2025

 

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

If you are still the kind of person that enjoys going to stores and shopping, you have probably noticed that a lot of stores that you shop at are no longer there.  In the U.S. retailers announced approximately 7,100 store closures which is a 69 percent jump from the year before.  Not only are there closures but around forty-five retailers have filed for bankruptcy protection compared to around twenty-five retail bankruptcies the year before.  A lot of the store closures are due to the economy and the fact that people are strapped and not spending as much money as they did in past years.  With everything going up in price shoppers are now having to spend more money on more necessities and are spending less on other items.  The retailers with the greatest number of store closings include drugstores and major discount chains.  The pharmacy closings seem to be more of a problem with over 7,000 of their stores closing over the past few years.  All of these closings have caused major gaps in locations making it hard for shoppers to find a nearby drugstore to fill their prescriptions and get other health care products they need.  Researchers are hopeful that the retail space may stabilize later this year but do not be surprised if there are still additional closings.  Below is a list of some of the retailers that closed multiple locations over the past year.

  • Family Dollar
  • CVS Health
  • Big Lots
  • rue21
  • 7-Eleven
  • Rite Aid
  • Walgreens
  • Foot Locker
  • Dollar General
  • Dollar Tree
  • Macy’s
  • Office Depot

If you need help sourcing items 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.

 

A Category Management Primer!

Wednesday, January 8th, 2025

 

 

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

What is the structure of your buying organization?

Evolution to a category management structure began in the 1980’s. Many companies today have still not completely evolved to this structure. So, what are some of the elements of a category management structure and what do they do. Here are some definitions from the SafeSourcing Wiki which is free for anyone to use.

  1. CategoryManagement is a retailing concept in which the total range of products sold by a retailer is broken down into discrete groups of similar or related products; these groups are known as product Examples of grocery categories may be tinned fish, washing detergent, toothpastes, etc. Each category is then run like a “mini business” (Business Unit) in its own right, with its own set of turnover and/or profitability targets and strategies.
  2. categorymanager (CM) analyzes product brands and mixinventory levels, movement, shelf space allocation, promotions, buying, and profitability of a merchandise category. They manage the marketing for a range of related products in a way designed to increase sales of all of the products, as opposed to a brand manager who markets an entire brand of goods.
  3. Within a category, a category captain is the manufacturer‘s representative responsible for analyzing the productmovement, assortment, inventory management, promotion, buying, and profitability for a specific geographic area or an entire chain. They will be expected to have the closest and most regular contact with the retail In order to do the job effectively, the supplier may be granted access to a greater wealth of data-sharing.

If you would like to learn more about our daily posts or other SafeSourcing free tools like our SafeSourcing Wiki, please contact a SafeSourcing customers services associate.

 

 

Procurement at Christmas

Tuesday, December 17th, 2024

 

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

When most people think about Christmas, they envision twinkling lights, cozy sweaters, festive meals, and the joyful exchange of gifts. But beneath the sparkle and warmth of the season lies a bustling world of planning, logistics, and procurement. Whether it’s stocking stores with toys, ensuring turkey makes it to the table, or managing corporate holiday gifting, procurement professionals are the unsung heroes of Christmas.

From the bustling aisles of retail stores to the merry melodies of online checkout carts, procurement plays a crucial role in ensuring the products and experiences that define Christmas are delivered seamlessly. Behind the scenes, professionals are negotiating contracts, monitoring supply chains, and mitigating risks to ensure that stockings are filled, and tables are set. Procurement starts long before the holidays arrive. Retailers must forecast demand months in advance, securing deals with suppliers for toys, decorations, electronics, and clothing. A miscalculation in procurement could mean shelves are bare on December 24th—or worse, warehouses overflow with unsold inventory come January.

Holiday meals are central to Christmas celebrations, and procurement ensures the turkey, ham, cranberries, and all the fixings make it to households across the globe. Restaurants, supermarkets, and food producers rely on precise forecasting and resilient supply chains to source perishable ingredients. Procurement teams must address seasonal spikes, potential shortages, and weather disruptions—especially during the winter months. The same principles apply to Christmas treats: chocolates, cookies, and candy canes all require raw materials like sugar, cocoa, and dairy. A kink in the supply chain could lead to a very un-sweet holiday.

So, this Christmas, as you admire a beautifully stocked store, open your gifts, or enjoy a festive meal, take a moment to appreciate the invisible network of procurement, supply chains, and logistics that made it all possible. So, here’s to the procurement professionals who keep Christmas running smoothly because without them, Santa’s workshop wouldn’t stand a chance!

For more information on how 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.

What is Collaboration? Part III of III.

Wednesday, December 11th, 2024

 

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

This post is an excerpt from one of Ron’s White Paper’s titled The Art of Collaboration

The art of negotiation is just that, an art, but so is the art of collaboration. This can be as simple as aggregating the spend for copy paper across multiple companies or as complex as sourcing an entire catalog of office supplies and any mix between the two. In order to be successful at this collaborative process, being able to convince all parties in the negotiation that each has something to gain is an important skill. Most companies do not possess these skills. Some procurement solution providers, like SafeSourcing Inc., have both people and tools that do.

This is as true for e-negotiation events as it is for personal negotiations. The question is how the tools and other resources allow the flexibility to accomplish collaborative goals.

The Art of Collaborative Procurement

There was an older article from USA TODAY by Jillian Berman titled, Negotiate your way to savings. The lead-in was that Cable TV and cell phone bills are ripe for cutting. A case could be made: so is everything else.

So what is the art of collaborative negotiation? According to Wikipedia, negotiation is a dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage, or to craft outcomes to satisfy various interests. It is the primary method of alternative dispute resolution.

What this means in terms of this discussion and the previously cited article, is that these are tools that assist companies in thinking outside of the box by encouraging suppliers to act on behalf of the collective relative to pricing, services, and other decision making points of interest.

Category Managers, Buyers, and all other knowledge workers with spend authority need to do the same and the ability to think individually and act collectively when they are developing their specifications and rules that govern their negotiations. Think like this! What if buyers asked themselves how their process would differ if they you were buying this product or service for themselves or their family. What if they were just as aggressive and detail-oriented when it came to their department and company. The simple fact is that no single buyer or group of buyers can assemble, collect, collate, evaluate, and persuade suppliers to act in this manor for this process to be successful on a massive or collective scale. Specific tools and skills are required. Procurement professionals need to be able to make decisions on data, not collect data. Procurement professionals need to be able to apply tactics to drive the required outcome. To do this collaboratively requires today’s modern tools, such as the SafeSourceIt™ family of eProcurement tools.

So when in doubt why not collaborate?

The concept of the whole being greater than the sum of its parts is important, but the art of the process is in defining the why. At least that was my intent when I began this paper. A company’s survival may depend upon mastering that art.

Some companies have shied away from new eProcurement tools and collaboration with other companies because either they don’t think their individual spend was large enough to make a difference or they don’t know how to find other companies to partner with. The old saying about the whole being greater than the sum of its parts has a role even in eProcurement, and solution providers can provide the direction required to accomplish this. That is, if it’s the right solution provider. Think about how this concept could help find savings in procurement.

  1. Coordinated effort leads to the benefits of scale. SafeSourcing regularly runs events where multiple customers reap the benefits of going to market with a combined larger spend.
  2. Working together offers different things to different companies in different proportions. All companies may not be buying the exact items as each other, but combined, the similar items give a vendor the opportunity to offer greater savings than would otherwise be viable.
  3. Collaborating can prevent companies from seeking different procurement solutions in the first place. The benefits of working with others may go beyond the simple numbers initially calculated.
  4. Collaborating in and of itself might be a new procurement strategy, but a tool and expertise are still needed to facilitate the process.
  5. For companies concerned that these tools are an impersonal solution, time is revealing that the internet and electronic solutions are anything but impersonal. They are different and they allow interaction in ways that were not possible before due to communication and time barriers.

Summary

Middle of the road traditional procurement practices will not work in the art of collaborative procurement. The same old same old does not work. The pace with which change occurs today requires companies to be able to turn on a dime and think outside of the box. For that, procurement leadership is required, leadership that looks at the art of the process. Leadership that creates and innovates is required for the benefit of all involved in the collaborative process based on their individual needs.

If you’re serious about reducing your capital costs as well as those of your goods and services please contact a SafeSourcing Customer Services Account Manager and ask about our risk free trial

We look forward to and appreciate your comments

What is Collaboration? Part II of III.

Tuesday, December 10th, 2024

 

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

This post is an excerpt from one of Ron’s  White Paper’s  titled The Art of Collaboration

Retail collective buyer organizations, consortiums, share groups and the like have evolved primarily in order to compete with the mega retailers and category killers in support of independent retailers.

These business structures have been around for a long time. Many have evolved to use cutting edge negotiation and procurement tools. Their retailer members are also benefiting from the use of these tools in order to reduce their net landed costs in many different ways.

These types of organizations can go by many different names, such as wholesaler, collective buyer, consortium, cooperative, share groups, and more. Even large Private Equity Companies that control very large portfolios of vastly disparate companies have adopted these methods and they all have one thing in common; they endeavor to consolidate purchasing volumes for a wide array of business structures to try and compress or contain cost in order to improve financial performance.

In the retail vertical, companies may actually belong to several different buying groups because their primary group does not offer expertise in a certain area or category. Examples can come from direct or indirect spend and can be as specialized as safety equipment and technology or a wide variety of specialized sectors like legal services.

Buying groups and consortiums are also evolving and beginning to focus on mixed markets where it makes sense. Historically, these groups tended to be vertically focused, such as a drug industry consortium with the members generally representing the drug industry only. Some consortiums are beginning to market themselves outside of their vertical to retailers or other companies who want to take advantage of learned expertise in the categories that are common across more than their own vertical and offer increased volumes. An example of this might be drug stores sourcing very similar products that health care organizations such as hospitals source. Although this may seem like a stretch for most, it is now very common within retail for non-vertical specific players to work together.

Today’s advanced e-negotiation or e-procurement tools, such as the SafeSourceIt™ eProcurement family of products, make it much easier to accomplish collective buying and aggregating outside of a consortium’s initial area of expertise. Large and small retailers alike now have the capability of viewing a much broader universe of suppliers through the use of supplier databases, like the SafeSourceIt™ Global Supplier Database, while also coordinating and participating in collaborative events from hundreds, if not thousands, of miles away. Suppliers now have an opportunity to earn business they did not know about and could not have competed for in the past.

All companies should ask their respective collective buyer organizations how they plan to make use of today’s advanced procurement tools, many of which are cloud based and offered in the form of Software as a Service (SaaS), which means they can be deployed almost immediately with no IT involvement and with extremely attractive ROI’s. They should also ask what the GPO has to offer in terms of introductions to other companies beyond their current group for increased collaborative aggregation volume. This is also a significant benefit that eProcurement solution providers like SafeSourcing Inc. can assist with.

If you’re serious about reducing your cost of  capital and goods and services please contact a SafeSourcing Customer Services Account Manager and ask about our risk free trial

We look forward to and appreciate your comments

What is Collaboration Part I of III?

Monday, December 9th, 2024

 

 

Today’s Re-Post is by Ron Southard, CEO at SafeSourcing Inc.

This post is a excerpt from one of Ron’s  previous White Paper’s titled The Art of Collaboration

The fact is neither internal nor external aggregate collaboration is happening on a large scale in many companies and collective organizations. This is especially true in mid-tier or loosely organized larger national and multinational organizations.

The terms collaboration, collaborative partners, collaborative supply chains, collaborative commerce, and collaborative networks are often used when discussing procurement. It rolls off the tongue like everyone knows what they are talking about. According to Wikipedia, Collaboration is a recursive process where two or more people or organizations work together toward an intersection of common goals, and, an aggregate is a collection of items that are gathered together to form a total quantity.

Since collaboration can happen with groups or organizations of any size working together toward the same goal, it can also apply to virtually any business function. When we combine it with the word aggregate to form the collective eProcurement term Collaborative Aggregation, however, we arrive at something potentially meaningful.

Collective buying organizations and share groups often combine purchasing volumes of similar products and services in order to drive better discounts. Large companies often aggregate their purchases among departments and are doing the same thing across different operating groups or companies within a larger organization in order to drive economy of scale in purchasing.

The unfortunate truth is that not much out-of-the-box thinking or art is going on in this process. They are so involved in the process (weeds) that they cannot see the forest for the trees.

If you’re serious about reducing your cost of goods and services please contact a SafeSourcing Customer Services Account manager and ask about our risk free trial

We look forward to and appreciate your comments

Want to be more Efficient? Here are some MSFT Teams application shortcuts.

Thursday, November 21st, 2024

 

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

Are you utilizing the Teams application shortcuts?

A while back I wrote a BLOG on how to utilize the shortcut keys for Zoom.  Since then, Microsoft Teams has become a lot more popular tool used by professionals.  If you spend a lot of time using the Teams application, you could save some time and be more efficient by learning some of the built-in shortcuts.  The keyboard shortcuts are used by clicking a combination of the keyboard keys.  Two things that you probably do most often while using Teams can be done by using the shortcuts “Alt+Shift+V” and “Ctrl+Shift+H”.  These two shortcuts allow you to start a new video call and to end the active video call.  Besides these two shortcuts there are many more shortcuts available for use.  For example, using “Ctrl+Shift+K” will allow you to raise or lower your hand and “Win+Alt+K” will allow you to toggle mute during a meeting.  Memorizing the available keyboard shortcuts will make you more efficient because you don’t have to remove your hands from the keyboard to use the mouse.  Below are some other shortcuts that can be used.

Teams Shortcuts

  • Ctrl+Shift+A – Accept a Video Call
  • Ctrl+Shift+S – Accept Audio Call
  • Ctrl+Shift+D – Decline a Call
  • Ctrl+Shift+D – Start Audio Call
  • Alt+Shift+V – Start a Video Call
  • Ctrl+Shift+H – End Audio Call
  • Ctrl+Shift+H – End Video Call
  • Win+Alt+K, or, Ctrl+Shift+M – Toggle Mute
  • Ctrl+Shift+K – Raise or Lower Hand
  • Ctrl+Shift+Y – Admit People from Lobby Notification
  • Ctrl+Period (.) – Show Keyboard Shortcuts
  • Ctrl+E – Go to Search
  • Ctrl+Shift+F – Open Filter
  • Ctrl+Shift+N – Start a Chat in a New Window
  • Ctrl+Comma (,) – Open Settings
  • Ctrl+Equals sign (=) – Zoom In
  • Ctrl+Minus sign (-) – Zoom Out
  • Ctrl+0 – Reset Zoom Level
  • Cltrl+Alt+Shift+R – Report a Problem

Interested in learning how SafeSourcing can help your company run more efficiently?  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.

Procurement and the Fluctuating Market

Tuesday, November 19th, 2024

 

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

As we all know, market fluctuations are inevitable. From geopolitical tensions to supply chain disruptions and unexpected shifts in consumer demand, people and businesses are often at the mercy of unpredictable forces. Amid this uncertainty, procurement has emerged as a critical function that enables organizations to remain agile, cost-effective, and resilient because procurement isn’t just about buying—it’s about planning and mitigating risks.

In volatile markets, prices of raw materials, logistics, and labor can swing wildly. Procurement teams play a vital role in mitigating these risks by negotiating long-term contracts, leveraging bulk purchases, and providing insight into the market. Locking in prices for key materials through long-term agreements can protect businesses from sudden price hikes. Aggregating demand across business units can lead to economies of scale, driving down costs. Regularly analyzing market trends helps procurement professionals anticipate fluctuations and make timely purchasing decisions.

Procurement functions are closely tied to risk management. By identifying potential risks in the supply chain, procurement professionals can assess supplier stability and create contingency plans. Evaluating suppliers’ financial health and operational capacity can prevent future disruptions. Having backup suppliers or inventory buffers ensures operations continue smoothly during unexpected events.

Technology-driven procurement processes help businesses stay ahead in a fluctuating market. Tools like predictive analytics, AI, and blockchain enhance data-driven decisions and transparency. Predictive analytics provide insights into market trends, enabling timely and informed procurement decisions. Blockchain technology ensures supply chain transparency, helping businesses trace and verify sources.

As market conditions continue to fluctuate, the importance of procurement will only grow. Businesses must recognize procurement as a strategic function rather than a back-office task. By investing in skilled procurement professionals, leveraging advanced technologies, and building resilient supplier networks, organizations can turn market challenges into opportunities for growth. Procurement is not just about securing the best deal—it’s about building a foundation for sustainability, resilience, and long-term success. By prioritizing procurement in your organization, you’re not just managing costs—you’re building a resilient and adaptive enterprise ready to face any market conditions head-on.

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.

 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.