Archive for the ‘Business Sourcing’ Category

Now That’s Cheesy!

Wednesday, December 4th, 2019

 

 

Today’s Post is by Eli Razov, Senior Account Manager at SafeSourcing Inc.

What’s the difference between Natural and Processed cheese? Processed cheese consists of emulsifiers and food coloring and other substitutes that may prove to be harmful for your body. Natural cheese, on the other hand, is the purest form of processed milk and may not be harmful for the body as it does not contain any chemical or preservatives to keep it fresh. Processed cheese has a longer shelf than natural cheese, majorly because the latter has a large amount of salt and preservatives to keep it fresh. It is recommended that both processed and natural cheese is good only if eaten within limits. Processed cheese is generally consumed in fast foods; hence it is imperative to take care of the amount of fast foods you eat.

What is Processed Cheese?

Processed cheese is basically made from natural cheese; however, it varies in degree and sharpness of flavor. It is a product made from cheese, emulsifiers (two insoluble liquids), sodium citrate, calcium phosphate, sorbic acid (preservative), enzymes, cheese culture, vitamin D3, milk fat, extra salt, saturated vegetable oils, whey and artificial food colorings. Generally, to make processed cheese, a portion of natural cheese is melted, emulsified and held together with preservatives, artificial ingredients and double the amount of salt used than that of natural cheese. It is then poured and reformed into various other forms of cheese products.

Here are some of the processed cheeses that you may or may not have heard of before:

  • Brie cheese
  • Camembert
  • Brick cheese
  • Muenster cheese
  • Stilton cheese
  • Cheddar cheese
  • Blue cheese
  • Mozzarella cheese
  • Swiss cheese
  • Parmesan cheese
  • Gorgonzola cheese

Natural cheese is made of products using only simple and natural ingredients including fresh high quality milk, salt, enzymes and natural colors. The major differences between processed and natural cheese are that natural cheeses have the whey (watery part of the milk) pressed out of them, while processed cheese does not; and processed cheese has a longer shelf life as compared to natural cheese.

Here are some natural cheeses:

  • Cottage Cheese
  • Cream Cheese
  • Brie
  • Camembert
  • Muenster

Knowing about your products and who to get them from can help you make educated decisions. At SafeSourcing, we have a growing database of Natural & Processed Cheese manufacturers and distributors. We work directly with these vendors to help our clients save on these products. Contact SafeSourcing and let us help you save on your cheese costs today!

For more information on how SafeSourcing can assist you or on our “Risk Free” trial program, please contact SafeSourcing  we have an entire team waiting to assist you today

 

Citation:

https://food.ndtv.com/food-drinks/processed-cheese-versus-natural-cheese-your-guide-to-cheese-1680557

 

Good Customer Service is a Must!

Thursday, November 21st, 2019

 

 

Today’s post is by Gayl Southard, Administrative Consultant at SafeSourcing, Inc.

I recently read an article about a gentleman that found a ten-year old claim check for a shoe repair. He went to the store and presented the ticket. He explained he just came across it and had no expectation that the shoes were still there. The store clerk went in the back and said he found the shoes. The gentleman asked how much did he owe him. He was told they weren’t ready, but he could have them in a week.

When asked about service, most people will write about a poor experience. On rare occasions, people will write about amazing service. Harvey McKay gives an example in the envelope manufacturing businesses which he’s been part of for 50-plus years. “We win or lose customers by pennies per thousand. When most of our customers are purchasing between tens of millions to, in several instances, over 500 million envelopes annually, the pennies do add up to thousands of dollars of cost difference.”1 When the cost of product and pricing is so close, it does come down to quality of service. Keeping personnel motivated to consistently provide high-quality service is key for any company. Some basic considerations are:

  1. Hire the right people. It is important to recognize the skills and attitude you want.Ask yourself would you want that person working for your competitor. If the answer is no, you know your answer.
  2. Keep score. Measure performance and let employees know what they are being measured on and how it is relevant to them.
  3. Recognize employees. Make sure to reward desired outcome.
  4. Practice what you preach. If you desire a motivated customer-service rep, you need to be motivated first.

Mackay’s Moral: There is no such thing as too good where customer service is involved.

SafeSourcing strives to give excellent customer service. 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.

References…………………………..

Harvey Mackey, The Arizona Republic, 11/4/2019

 

 

 

 

Want real cost controls? Start getting strategic about procurement.

Wednesday, November 20th, 2019

 

 

Today’s post is by Dave Wenig, Vice President of Sales and Services at SafeSourcing, Inc.

Most will agree that reducing and controlling costs within an organization is important. Certainly, all of SafeSourcing’s customers leverage our services to generate savings and they all do that fairly well. However, just like in many things, the results will vary.

Success in cost control is a spectrum. On the one side, results are good, but may be limited. On the opposite end, the results are spectacular and widespread. As would be expected, SafeSourcing has customers across the entire spectrum. We’re always coaching and pushing our customers to move toward the spectacular savings end of the spectrum.

So, if we identify the spectrum as ranging from “good” to “spectacular,” then what is it that determined where on that scale a customer will fit? One answer is how their organization has approached sourcing with eProcurement. Customers that find good results, meaning they will source some spend and find some savings are typically utilizing eProcurement as a tactical tool. They select an individual category and focus on that alone to find savings. Any use of eProcurement is better than none and their results will be good for that category. This customer will then start to consider what they would like to source next. Again, this approach will deliver good results. We’re always going to try to push this type of customer to do even better and achieve more.

Customers that get closer to spectacular results will invariably have a very strategic approach to sourcing and their approach to eProcurement. As a strategic sourcing company, SafeSourcing is very deeply engaged with these customers to help make sure their results are meeting their objectives. How strategically an organization manages their sourcing will directly correlate to how close to spectacular their results will be. SafeSourcing has a full set of procure to pay solutions and our customers who achieve spectacular results don’t just run RFPs and RFQs. These customers leverage our SafeSpendAnalysis™ to build a roadmap, they utilize our SafeSourceIt™ suite of eRFQx tools to negotiate pricing, they continue that control with our SafeContract™, SafeCatalog™, and SafePO™ tools and more. Customers on this end of the spectrum see results that truly have an impact on the bottom line. The level of cost control available to customers that take this strategic approach, or even part of it, will always be greater than what customers will get with a tactical approach.

Again, with a spectrum ranging from good to spectacular, the point is that participating in eProcurement either with a tactical approach or a strategic approach is better than not using eProcurement. The question an organization needs to consider is; do they want to have good results, or do they want spectacular results? We can’t answer that, but we’ll always try to push them to do more and better.

For more information, please contact SafeSourcing

Fall is falling – You should already be deep into your procurement planning for 2020!

Wednesday, November 13th, 2019

 

Today’s post is from the archives at SafeSourcing.

Procurement professionals our success is dependent on how well we are continuing to think forward to the coming months so that we are prepared when the business is ready to go out and make spend decisions.  This usually can’t be done in just a few weeks, it requires looking months in advance at new projects, new spends and existing contracts and reviews of the market for the best offering.

Typically this type of planning involves sitting down with your department heads to understand what their budgets, spends, and plans for the business are in the future so that you can get ahead of what is coming.

With fall just beginning and the holiday season right around the corner, now is the time to begin scheduling those sessions with the departments and looking at the contracts that are due to expire in the first and second quarter in 2020.  Coordinating these meetings can take time and the larger your company, the more lead time you are likely to need to get on the appropriate peoples’ schedules.

Waiting until after the first of the year to do this when budgets have officially been set may be too late to get this done, as people are generally coming back from the holidays and catching up on the other items that have been awaiting their attention.  It can be the end of January or early February before you get your meetings scheduled which will likely mean you will lose an opportunity to help them source some items in the first quarter.

Get your meetings scheduled by the end of November at the latest.  Using a three step approach like the one followed by SafeSourcing Managers, look for those departments which have a higher number of easy, high opportunity categories.  This includes spends with fast approaching contract deadlines.  Also look at those departments that have more complex projects but with high dollar spends followed by the departments involving the most complex spends but with high opportunity.  This last group can generally take more time to gather information and strategize so make sure you include time with these departments to get ahead of the projects.

Going through the projects these departments have planned for 2020 is a great exercise in understanding how the procurement department can help them select the right products and services for your company providing better overall value.

For more information on scheduling your internal department head planning sessions or for templates you can use during those sessions to help collect the data you need, please contact a SafeSourcing Customer Service Representative.

We look forward to your comments.

Nested if/then Statements for Everyday Use

Wednesday, October 30th, 2019

 

Today’s post is from our  SafeSourcing Archives

Most problems don’t have solutions as simple as yes or no, such as “if A, then ‘yes’. If B, then ‘no’”. Solutions are more often evaluated through multiple sets of dependencies, such as “if A+B is greater than C, then find the average of X-Z”. Of course these statements aren’t intuitive, so if we don’t understand how to use them formally in logic equations or computer code, we are much less likely to get them right in real life situations. So here’s a crash course in Excel “IF” statements:

The basic description of the “IF” function is “If something is True, then do something, otherwise do something else”. To see it in action, start with typing “=IF” in an Excel cell of your choice. You’ll see Excel suggest the full formula as “=IF(logical_test, [value_if_true], [value_if_false])”. Each of those statements within the parentheses is a variable that does something specific, and they have to be separated by a comma so that Excel knows when you are entering a new variable. Here is how each variable behaves within the function:

  • “logical_test”: This means there must be an active function. Let’s go with an example of “A1>B1”.
  • “value_if_true”: Whatever value you include in this variable, will populate the cell you’re programing the formula for, if the “logical_test” variable is true. Such as if A1 = 2, and B1 = 1.
  • “value_if_false”: Whatever value is in the false variable, will be populated if “logical_test” is untrue. Such as if A1 = 1 and B1 = 2.

So if we insert some example variables into the formula like so: “IF(2>1, “Yes”, “No”)

This function would insert a “Yes” into the cell being programmed, and is one of the more simple ways to use the function. However, you can swap any of the aforementioned variables for other formulas as well. This is called “nesting”.

For example, you could write a formula like this: “=IF(K5<K6,”YES”,IF((COUNT(H7:H10>2)),”HIGH”,”LOW”))

Let’s describe what this function is doing in sentence form, with a context of evaluating vendor proposals: If Vendor 1’s cost is lower than Vendor 2’s cost, enter “YES” into the cell, if Vendor 1 is not lower than Vendor 2, then if the number of DC’s the new vendor carries is greater than 2, enter “HIGH” into the cell, otherwise enter “LOW” into the cell. This tells me either to select Vendor 1, or to evaluate several other dependencies to make a final decision.

This level of specificity is not normal in everyday speech, but is absolutely critical in procurement. If you have a vendor proposing an agreement, a full evaluation of the value proposition can’t be based on just one variable. Practicing this and other logic functions in Excel and other tools is an excellent way to hone your ability to evaluate complex procurement problems.

For more information on how SafeSourcing can assist your team with this process or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.

Can you hear me now?

Thursday, October 24th, 2019

 

Today’s Post is by Eli Razov, Senior Account Manager at SafeSourcing Inc.

Cellphones and smartphones have become such an integral part of our daily routine. Most people wake up roll over and grab their phone, whether to check social media or the news, our first waking moments are spent on screen. This continues throughout the day into the office. A survey has found that most employees spend roughly 56 minutes a day on their phones. While managers surveyed assumed their employees were looking at social media, many employees said they were actually reading and responding to personal emails. In addition, 58 percent of workers reported using their cell phones to visit websites that were blocked or banned by their employer.

Because of the constant use, employers are constantly developing and changing policies that address usage at work. Most employers do not think about a cell phone policy in the workplace until they realize they have a problem. Regardless of popularity, it is an absolute necessity to use a call phone policy once it reaches this tipping point. While this does not need to be an extremely detailed or no-phone policy, employers should consider incorporating their own unique policy based on the nature of the business, i.e. security, safety, or other companies of a confidential nature. There’s nothing wrong with laying out a policy clearly states to your employees how you’d like them to use their cell phones during work hours. Perhaps limiting phone calls to emergency-only is a reasonable solution. You could ask employees to keep their phones in desk drawers on vibrate. If you’re in a setting that involves heavy interaction with the public (like retail or service), you could ask employees to keep their phones in their lockers.

SafeSourcing has helped many clients put together cellphone use policies, as well as sourcing employer-provided cell phone plans. We can help you by structuring cell phone plans, as well as incorporating usage policies customized to your needs. Contact a SafeSourcing representative to help today!

For more information on how SafeSourcing can assist you or on our “Risk Free” trial program, please contact SafeSourcing  we have an entire team waiting to assist you today.

Citation:

https://fortune.com/2017/07/25/cell-phone-lost-productivity/#targetText=The%20average%20worker%20spends%20a,work%20for%20non%2Dwork%20activity.

Ugly Produce

Friday, October 18th, 2019

 

 

Today’s post is written by Ivy Ray, Senior Procurement Specialist at SafeSourcing Inc.

I was recently quite surprised to find out that there is an “Ugly Produce” movement which was originally started as a way to combat the massive problem of food waste. It has now become a big business and start-ups have sprung up selling less than perfect fruits and vegetables that would otherwise be thrown away due to imperfections in their appearance. One California farmer states, “Ten million tons of unharvested food is lost each year. If we used all of the food that is produced in this country, we could end world hunger. It’s not a supply issue, it’s a distribution issue.” There are debates about whether this is disingenuous given the complexity of the nation’s food system. Critics are saying this is not the answer, but farmers say it is the way of the future.

This produce is being packaged and sold to customers at a fraction of the cost. One company, Imperfect Produce, is a service that delivers seasonal, cosmetically imperfect produce for affordable prices. They and similar companies such as, Misfits Market and Hungry Harvest market themselves as solutions against food waste. The company defines “imperfect” in several ways: cosmetic damage, surplus or excess inventory, undervalued or lack of demand, or doesn’t meet a strict specification from the buyer, usually in the way it’s harvested or packaged.

USDA guidelines separate produce into grades based on size and color, so “imperfectly” good vegetables that don’t make it to store shelves, due only to irregularities in appearance, end up going to waste. Some of this produce does get distributed to food banks and soup kitchens, but the costs to ship is sometimes more expensive than the actual product. A significant portion of the country’s produce is grown in California, so the majority of Imperfect’s fruits and vegetables come from there. They work with over 200 growers nationwide and source most of its produce (78%) from family farms or cooperatives.

About one-fifth of produce is trashed simply because it’s unattractive. And while food waste experts have said tossing perfectly edible produce is a global issue, Americans are particularly bad offenders. Some 60 million tons, or $160 billion worth, of fruits and vegetables gets thrown away in the United States every year, and the Environmental Protection Agency estimates that the average American family of four throws out an annual $1,600 worth of produce.

Almost half of all produce harvested in the United States is never eaten. Fruits and vegetables go unpicked in fields or get thrown away at the store, simply because they don’t look good. I’m not sure when we started the habit of throwing out edible food that isn’t the most attractive, but there are definitely too many people going hungry in this world to just overlook the possibility of supplying where there is a demand.

For more information on how SafeSourcing can assist you in exploring your procurement solutions for your business efforts, 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:

  1. https://www.imperfectfoods.com/
  2. https://www.misfitsmarket.com/
  3. https://www.hungryharvest.net/
  4. https://www.ams.usda.gov/grades-standards/vegetables

 

 

Can recessions represent opportunity Part II of II?

Thursday, October 10th, 2019

 

Today’s post is from our  SafeSourcing Archives.

Please view Part I  of this post to understand this subject matter in its entirety.

Recession brings destruction, and with that opportunity, within the gaps created by those business changes. Many other firms have simply pulled back, and have less aggressive marketing, and are less aggressively pursuing new opportunities, new customers, and new products. Others have been effective in centralizing purchasing, locking in supplier commitment, and transforming their internal purchasing culture. All the above scenarios create opportunity savings for the suppliers.

But how do the purchasers take advantage of the changing business landscape?

A more aggressive survival of the fittest environment means the incumbent suppliers are more apt to make concessions in order to keep your business, making the market more competitive. That is, more competitive for your business. Furthermore, more suppliers are focusing on converting to leaner product management, meaning lowering inventories and overhead. The most difficult aspect of taking advantage of this is sifting through the overwhelming number of suppliers, and creating an environment that breaks down the pricing informational barriers, in order to promote competition for your business. How do you take advantage of this competitiveness in a way that’s safe, effective, and manageable?

That’s what we do. We do the research, the legwork, and bring the competitive environment to bear in a way that is risk free to the supplier, but high reward to the businesses that establish the purchasing relationship.

If you think your business could benefit from our managed sourcing solutions, contact a  SafeSourcing customer services representative and we’d be happy to discuss your strategic options.

We look forward to and appreciate your comments

Can recessions represent opportunity Part I of II ?

Wednesday, October 9th, 2019

 

Today’s post is our SafeSourcing Archive.

Do you know what FedEx, Hewlett-Packard, Disney, Hyatt, MTV, and CNN all have in common? They were all started during periods of economic recession.
Uncertainty in the business landscape can fuel tremendous opportunity. How many corporations are trying to scale down excess inventory and are willing to sell at drastic discount to do it? How many dislocated and highly skilled professionals are willing to accept historically low salaries to find reliable work? How many consumers have drastically changed their purchasing behaviors?

To the adaptive go the spoils?

That last scenario is the one that frightens retail businesses the most.

After all, who wants to abandon their core business and cash cows? That’s a scary proposition, when traditionally most firms would prefer low risk/low reward stability over higher risk innovative adaptability (Consumers have the same career mindset, as you’ll see below). However, as our highly dynamic economic and technological environment has repetitively proven, no one can afford not to adapt if they want to survive. Some corporations and new startups have discovered that trying to convince consumers to spend the way they used to (and can no longer afford to) is a losing game, and that the real opportunity is to discover and acquire a share of the new ways consumers are spending. For instance, Target has rebranded itself as a discount designer product store. For others though, it may be more prudent to create spin-off discount brands to serve that market, but keep that brand insulated from your premium brand to prevent any negative ass
ociations of discount retail from your primary brand. Opportunity is not exclusive to consumer spending though, it exists also in the new ways consumers are seeking revenue.

Counterintuitive to what most of us might think about recession-era job seekers, is that there has been a shift in emphasis away from the pursuit of higher pay for potential job seekers.

Due to the insecurity the population is feeling however, it should come as no surprise that security is the consistent priority, replacing pay scale as the most sought after characteristic of employment. A 2010 poll by the Associated Press showed 64% of workers under 25 years of age are unhappy with their jobs, and less than half of all Americans are happy with their jobs. What does this mean to employers? There exists opportunity in recruiting talent, and they are looking more for stability than they are looking for large salaries. Of course, savings in production are being pursued just as fervently as savings in acquisition, but everyone can benefit from these savings all along the supply chain.

Please check back tomorrow to read part II of Michaels informative post.

If you’d like more information about SafeSourcing, please contact a SafeSourcing customer services representative.

We look forward to and appreciate your comments.

Dollars and Sense

Tuesday, October 1st, 2019

 

Today’s post is by Dave Wenig, Sr. Vice President of Sales and Services at SafeSourcing.

Many (most) of the topics featured on this blog focus on eProcurement and the savings generated by the use of it. Today’s blog certainly follows that theme, but with a bit of a twist. As you might have gathered from the title, I’ll dig more into when and why it makes sense to use eProcurement to achieve your savings objectives and other goals.

Timing 

When you have been doing business with a vendor for an extended period of time, typically at about three years, it is time to assess the market conditions. One of the best ways to do so is through eProcurement. Over time, vendors will very naturally work to improve their margins. eProcurement works by keeping those margins within reason based on competitive levels.

Cost Avoidance 

The day you receive that notification of an unwanted price increase is the day you should prepare to take that category to market. Often, our clients receive two benefits in this case. One, their pricing is reduced as compared to the new increase from their incumbent. Often, this pricing is even better than the old price. Two, often, new vendors will offer more favorable terms such as fixed pricing or other terms to help avoid costly increases in the future.

Quality or Supply Chain 

Another common reason for leveraging eProcurement is quality issues or issues or interruptions in your supply chain. These type of issues typically warrant a fresh look at alternate sources of supply. eProcurement will satisfy this need and take the additional step of providing compressed pricing from well vetted alternatives to your current source of supply.

There are many times when eProcurement makes good practical sense as well as financial sense. If you find that any of these examples ring true, reach out to us here at SafeSourcing and we’ll help you understand your options.

Sometimes, savings dollars just makes sense. We look forward to your comments.