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

Any business has to tackle the financing issues, whether it’s payroll, marketing, or overhead. While some expenses, like payroll or overhead, cannot be easily reduced, other expenses of a business can be reduced without losing anything in return. This is when a procurement partner can help.

Procurement partners can work with a company and finance teams to determine which areas represent the largest expenses within a company and which areas could see the most savings. The goal is to take an category that is already purchased and will continue to be purchased, and source a better value for the business.

Choosing the right procurement partner can make a big impact on the success of your sourcing projects. Having a dedicated and reliable team who are always willing to put in the extra work can be the difference between uncertainty and peace of mind. A company like SafeSourcing has the experience, dedication, and skills to help in any sourcing project your company may seek. In addition, SafeSourcing offers tools that can make the process run more smoothly  making things easier for your team.

For more information on how SafeSourcing can help with your sourcing 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.

Today’s post is by Robert Rice, Account Manager at SafeSourcing.

Yes, mistakes happen and are part of any purchasing process; but with right tools from the right company, those mistakes can be diminished greatly. Here are 10 of the most common mistakes made in the world of purchasing.

Mistake 1: Not understanding the philosophy, needs and motivations of the procurement organization. Price is important, but other factors count too. For example, in this tough economy, procurement may be pushed hard to implement and obtain immediate cost discounts or cash-flow improvement. This may give you an opportunity to lock in business with better payment terms immediately, while a competitor may require lengthy qualifications.

Mistake 2: Not developing a written specification for vendors to bid on. The specification needs to state your goals, a detailed description of what you’re purchasing, the terms you require, a maximum quote, and when you need responses back.

Mistake 3: Assuming the procurement department knows your value plan. If the department is considering two widgets, and one is $400 and the other is $800, then the $400 tool wins, right? If the widgets are measured on cycles before replacement, the $800 tool is the clear winner. If the procurement staff doesn’t understand this, the $400 tool wins.

Mistake 4: Buying based on price alone can have a reverse effect on your net gain. The cheapest product or service isn’t always the best choice. You may end up having to replace a piece of cheaper equipment or have more maintenance costs if you would have spent a little bit more money and received better quality. Or the initial cost is very low, but after the purchase you find out additional fees that start to add up. Evaluating all costs is the best way to ensure you are getting the best deal.

Mistake 5: Thinking reverse-auction award decisions are based only on price. In most reverse auctions, price is not the only factor clients consider. If the client doesn’t publish that the “lowest bidder wins,” then, in most cases, factors other than price are used in the award decision. Vendors that only sell on price are bound to lose.

Mistake 6: Not acting quickly to pass on commodity-driven cost increases. If a vendor is selling a product that has a cost structure that is significantly impacted by the cost of commodities, then you need to act quickly on pursuing price in the rising market. Procurement professionals will be more receptive to your passing on the commodity increase while the markets are still high – especially if they can pass it onto their customers. Once the markets fall, price increases will be resisted.

Mistake 7: Not capturing price by using your ability to help manage your client’s risk through material hedging, managing inventory, etc. For example, say the vendor sells stretch wrap. The client is concerned about future price increases due to unstable stretch wrap prices. You can get a premium price if you can help alleviate the risk by providing a fixed price that relies on your ability to hedge your stretch wrap purchases.

Mistake 8: Taking a misguided view of strategic partnerships. Your partnership is not an entitlement to getting the best price. The greatest benefit to the vendor is a stronger position to keep the business by locking in clients over time. You have worked hard to be named as a strategic partner, but now is not the time to rest. That partnership provides you an opening to create strong relationships with the executive staff and their purchasing department. Creating those relationships will pay big benefits when your competition tries to unseat you.

Mistake 9: Not getting involved in the client’s new projects. By helping them understand a procurement approach that saves them time and money, you can create a win-win relationship.

Mistake 10: Don’t skimp on research. You should know the basics, price range, your requirements, and the names of vendors that can provide the product or service and how long the purchasing process usually takes. You can’t afford to waste time contacting vendors that cater to small businesses if you are a big company.

You need to ask yourself, “Do I have the time and or manpower to do this?” Everyone one of these mistakes can be avoided if you develop a partnership with SafeSourcing. We have the e-Procurement tools and knowledgeable staff at your disposal ready to save you time and money.

Robert, or any member of the experienced team at SafeSourcing would be happy to discuss how SafeSourcing can help you with your eProcurement planning. For more information, please contact SafeSourcing.

We look forward to your comments.

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

I worked at a cooking school for seven years, several as the Assistant Director. The school was located in an outdoor mall with a busy restaurant located right beside it.   One night while a cooking class was in progress, the grease trap backed up and the floor was soon covered in water and muck.  What was interesting, the students continued to prep and cook acting like nothing was going on.  We ended up closing the kitchen and giving out rainy day vouchers.

What is a grease trap (also known as a grease interceptor, grease recovery device and grease converter)? It is a plumbing device designed to intercept most greases and solids before entering a waterwaste disposal system.  Wastewater contains small amounts of oils which enter into treatment facilities and septic tanks that form a floating scum layer.  A scum layer is slowly broken down and digested by microorganisms in the anaerobic digestion process.  Large amounts of oil from food preparation in restaurants can overwhelm a treatment facility or septic tank, causing the release of untreated sewage into the environment.  High-viscosity fats and cooking grease, such as lard, turn into solids when cooled.  When these solids combine with other disposed solids, the drain pipes block.

Grease traps have been in use since Victorian days. Nathaniel Whiting obtained the first grease trap patent in the late 1800’s.  “These reduce the amount of fats, oils and greases (FOGS) that enter sewers.  They are boxes within the drain that flow between the sinks in a kitchen into the sewer system.  They only have kitchen wastewater flowing through them, and do not serve any other drainage system, such as toilets.”1   They can be made in many different materials, such as plastic, stainless steel, concrete and cast iron.  They can be located above or below ground, inside a kitchen, or outside a building.

SafeSourcing regularly sources Grease Traps for a variety of businesses. For more information on SafeSourcing and how we can help you with your sourcing 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.

Sources

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1 https://en.m.wikipedia.org/wki/Grease.trap#Uses

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

You may have heard of the terms Procure-to-Pay and Source-to-Pay. While both terms can be used to describe solutions that aim to improve the procurement process, they each have different meanings. The objective here is to provide some clarity around what we mean when we refer to Source-to-Pay.

Most will agree that a Procure-to-Pay solution is one that enables a cross-functional workflow to streamline and improve the process from the act of purchasing to accounts payable. Source-to-Pay takes this a step further, expanding the scope to include the process of actually sourcing the products or services to be purchased.

The objective of a Source-to-Pay strategy is to be inclusive of all activities related to procurement from sourcing using RFx capabilities through financial reconciliation with your organization’s systems of record. Implementing a Source-to-Pay solution that incorporates each step of your organization’s procurement process maximizes the value of your strategy.

The end result of a Source-to-Pay solution is a more tightly controlled procurement process that drives greater reductions in spend than you might achieve using Procure-to-Pay solutions alone. Plus, you will enjoy a more efficient supply chain.

At SafeSourcing, we advocate implementing a Source-to-Pay strategy and applaud organizations that have incorporated these solutions. For more information on how we can help you with your procurement needs or to discuss how you can improve your own strategic sourcing strategy, please contact a SafeSourcing representative. 

We look forward to your comments.

Today’s Post is by Eli Razov an Account Manager at SafeSourcing.

What is your procurement process? How do you find the products that are required to keep your company operating? Weather it is the raw materials to create your products or the packaging you use to ship it out, there are multiple places to choose these products from. But how do you choose the best? Is it based off of price or maybe the quality? What do you consider value? From sugar to corrugated cardboard there will always be options. Maybe you go with the simple approach, call vendors you hear of from word of mouth. Or perhaps a friend or co-worker works with someone from a particular company and can get you that “in”. You can also take the tech approach and become best friends with Google or a similar search engine.

Great now you have found a few companies, so what to do from here? You call or email for a quote. You talk to someone on the sales side of things and get the information you need by divulging every aspect of your business to try and get a lower price. It doesn’t end there because now you have to do that maybe five more times because you’re not doing yourself any favors by stopping at the first price you get. So now you maybe have five or six quotes. What is the next step? Not sure? Maybe you haven’t gotten this far before or maybe you have and are a seasoned vet.

Well the next step is to discuss terms and nail down specifications. Now what? Where do we go from here? Do you choose the lowest price or maybe look up some reviews? The next logical step is to get samples and compare them to what you have, want or need. Excellent! Now maybe you found the right one but wait, it’s the most expensive! Do you go back to the drawing board or just fork over the dough? All of this process can take weeks and a lot of time out of a company’s already hectic schedule

That is where we come in! Here at SafeSourcing we take the headache out of the procurement process. From start to finish we help with it all. We will find the vendors for you; tailor the specifications to your exact needs. On average, across all companies in many different markets, we drive down pricing around 21% on average. We will do the leg work for you and open up your schedule to do what matters, your business.

Contact us please.

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

Many of you may have noticed stores beginning to stock up on decorations and goods for the next big holiday. While it may seem a bit early for your Christmas shopping or buying Halloween candy, you may be surprised that most businesses plan for these holidays months in advance.

Generally, companies begin sourcing holiday goods about six months before the actual holiday. This means that they already have a plan of what and how much will be purchased. Accurate planning and forecasting is of great importance when trying to predict an upcoming holiday, so researching what and how much was sold historically must be done first.

This general rule of 6 month plus prep work not only applies to holiday goods purchasing, but for other seasonal items and services. If a business will need its lot cleared of snow during the winter, it may need to begin sourcing in the spring or summer. Likewise, if mowing and landscaping are needed, the plan should begin during fall or winter.

Next time you are browsing your local shopping spots and see holiday goods out a couple months before the holiday, remember how long the planning must’ve been and how much prep work went into getting all those goods ordered, sourced, shipped, and displayed.

For more information on SafeSourcing can help with your holiday or seasonal sourcing 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.

Today’s post is written by Ivy Ray, Account Manager at SafeSourcing Inc.

As we approach the end of the third quarter of the calendar year, many of us are reflecting and assessing how we faired this year.  Did we accomplish what we had resolved to do?  Statistically, the top ten (10) New Year’s resolutions made, involve making better choices, whether it is for a healthier lifestyle, spending more time with family, or making better financial decisions.1

The end of the fiscal year is the time when businesses take an accounting of how well the company is performing, financially, and making an effort to finish the year strong.  Planning and forecasting financial goals for the next year also focuses on a plan for making better choices.

This calls for better financial management, cost control and less organizational waste.  Many organizations are beginning to re-evaluate their purchasing processes, and identify new ways to control spend.  We have e-procurement tools that will meet their needs.

Identify Opportunities

Opportunities are usually triggered by a business requirement for a product or service.

• Equipment
• Components
• Raw materials
• Completely finished products
• Hazardous waste handlers
• Transportation carriers
• Maintenance service providers

Supplier Evaluation

In-depth evaluation is required for major purchases of products and services. It begins with a list of potential suppliers. Existing suppliers with good track records should not be ruled out.

SafeSourcing helps buyers save considerably on costs by providing tools that enhance the ability to do business in a better, smarter, more streamlined and cost effective way. To learn more about SafeSourcing’s innovative products and services that have been developed exclusively by retail professionals for retail professionals, please visit the SafeSourcing website.

A goal without a plan is just a wish. (quote: Antoine de Saint-Exupery)

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

We look forward to your comments.

1 http://www.statisticbrain.com/new-years-resolution-statistics/

Today’s post is written by Ivy Ray, Account Manager at SafeSourcing Inc.

The rules of the retail marketplace are changing dramatically. With the development of new technologies for bidirectional communication, consumers can get more information about retailers and their products more easily than ever before. Armed with knowledge gleaned from a multitude of sources, they are spending their money on the goods and services they value most and stipulating how they will interact with retailers. These rules certainly apply to printing processes.  There are many options when it comes to mass print materials.

Offset printing technology use plates, usually made from aluminum, which are used to transfer an image onto a rubber blanket, and then rolling that image onto a sheet of paper. It’s called offset because the ink is not transferred directly onto the paper.

Digital printing is popular across many markets because it can print multiple custom materials with each individual piece containing different information. This capability is known as variable data printing or VDP which opens up possibilities for customizing print media and printing multiple versions of the same product.

Digitally printed materials are vibrant high-quality products that can be used for practically any project. Some of the advantages of digital printing are:

1.  Quick Turnaround – Digital printing doesn’t require plates, so there is no need to have a different plate for each color on the label, which means a shorter setup time.
2. Quality – Digital presses print at a resolution of almost double that of traditional print methods which gives vibrant high-quality graphics with crisp, clear images and life-like colors.
3. Price – No plates and less press setup time means the costs for digital printing are relatively low for short run printing as compared to offset printing.
4. Lower Minimum Quantities – This cost benefit is maximized for relatively small quantities of custom print materials or “short run.” You can order only the amount you need right now, rather than ordering in bulk, simply to get the best price.
5. Design Flexibility – Variable Data Printing allows graphic or text elements to be easily and efficiently swapped out throughout a print job.

In order to be competitive, you should regularly examine whether or not your design works for attracting your target audience.  The production of personalized printed materials with unique information, can allow you to better target specific types of customers.For more information on how SafeSourcing can assist you in exploring your procurement solutions for your business 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. We look forward to your comments.

Today’s post is written by Heather Powell, Director of Customer Services & Project Manager at SafeSourcing Inc.

Many years ago, this author wrote a blog regarding being able to source and procure virtually anything, like 5-gallon bottled water for the office. Today, this still holds true, as this author’s previous blog was based on the mantra “If you buy it, we procure it”.

But what does that mean, you ask?

There is nothing we cannot help you purchase. If you buy it today from anywhere, we can run a Request for Proposal or a Request for Quote. These requests will help you determine if your purchase price falls within the market rates today, if you are paying too much in fees and freight, and through our proprietary services based web tools save you 10X ROI. Seriously, there is nothing odd about what we can procure for you. Here are a few examples of unique RFQs and the savings opportunities we achieved for our customers:

• Cotton Candy 16%
• Bundled Firewood 13%
• Ice Bags 29%
• Mud Flaps 34%
• Anti-Fatigue Floor Mats 54%
• Pest Control Services 41%
• Diesel Exhaust Fuel (DEF) 27%
• And yes, Baked Goods 37%

Essentially, this author is stating you can have your cake and eat it too, while saving your company money. SafeSourcing can work with your company to identify purchases and potential saving opportunities through our SafeSpend™ analysis. This presents your company with an overview of where not just the large purchases are but where the small purchases that add up to large purchases are and give you the view into saving potential through our company and various services.

“Life is too short to say no to cake”!

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

We look forward to your comments.