Today’s post is from our  SafeSourcing Archives.

Do you have a really good relationship with your supplier? Do you think an e-auction will harm that relationship?

If you said yes to any of the above questions, you are not alone. This is a common misconception within companies.

Research carried out by telephone interviews by CIPS  (Chartered Institute of Purchasing and Supply) in conjunction with Oracle and The University of West England, I-ADAPT (Independent Assessment of Development of Auctions as a Purchasing Tool) concluded that buyers and sellers, both interviewed, had shown no negative impact post e-auction. It helped organizations lower their purchasing costs by improving transparency and forcing buyers to be upfront with all purchasing requirements. Online auctions have strengthened supplier-buyer relationships without negatively affecting quality.

However, that may not always hold true if an online auction is thought to be executed unfairly or unethically. There are a few steps a buyer should consider before executing an online auction to maintain a strong supplier relationship post-auction.

1. Initiating the process:
• Assign a lead for the auction
• Select a commodity that is a good fit for multiple suppliers
• Ensure all specifications and terms for products/services are clear to a new supplier

2. Planning the Process:
• Decide what details you will need to make a decision (price, quality, service level, etc.)
• Develop an award strategy and criteria
• Set and agree on an auction schedule
• Notify the incumbent of your intention of the online auction. Nobody likes surprises!

When an e-auction is prepared in its entirety and has buy-in from the appropriate parties within the company, the live event will run smoothly without harming any supplier relationships. SafeSourcing is experienced with running the live events. We have the staff to provide all suppliers with direct communication and training. We want to make suppliers feel comfortable with the e-auction format, and based on our experienced SafeSourcing supplier database- we are doing just that!

If you are interested in seeing how an e-auction can bring great value to your company, please contact a SafeSourcing Customer Services Account Manager or call us directly at 888-261-9070.

We look forward to your comments.

Today’s post is our SafeSourcing archives

The landscape of retail operations is changing faster than anyone thought possible.   With the change we are seeing new businesses born and quickly grow to huge levels and we are seeing long established companies who are unable to adapt begin their descent in total collapse.  The biggest reason for this is who the customer has become and how the changes and habits and in their “non-purchasing” lives have added to these huge changes.  So what are you doing to take advantage of these changes and keep your business relevant?

Will you sacrifice sales to do the right thing? – We all know that the lifeblood of a company’s survival is their sales.  If the sales aren’t happened the expenses don’t get paid.  Cuts are made and people lose their jobs.  This idea is so engrained into our way of thinking that the mere thought of purposely losing sales is retail heresy.  Several companies are finding that when they create programs for customers to facilitate the sale of existing used product to other customers, thereby losing those sales, that they actually increased sales during that time due to the fact that the sellers were buying newer products, extending service agreements and spreading the word that these companies worked with their customers to do the right thing rather than focus solely on making a buck.

Focus on the experience – We now live in a world where people’s lives are filled with social experience.  From the time they wake up they are checking news, sports scores, Facebook posts and Tweets before they even get out of bed.  All throughout there day these connections remain intact as they follow what is going on in the world and experience the news through a multitude of channels.  Retailers must take a cue from this change in lifestyle not only in the US but all over the world and create experiences for their customers both online and in their stores.  This may mean disproportionately investing in store floor sales staff or investing in new web design that does not always funnel the customer straight to a buying decision.

Work with, don’t fight technology – Technology changes everything and has been doing so for a long time.  It has removed some aspects of the corner store experience but it has created others such as selection, value and competition.  It has allowed companies to develop, manufacture, and sell more creatively and more efficiently than have ever been able to do and with fewer resources.  Every technology may not be right to adopt for your business but the awareness of what those technologies are and how you could benefit from them is something every retailer should embrace.  You don’t have to be the first adopter but being the last could put you out of business fast.

At SafeSourcing we understand and help companies every day embrace ideas like these and help them find partners and solutions that can help them leverage new trends and technology.  For more information on how we can help 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 by Gayl Southard, Administrative Consultant for SafeSourcing.

As a business owner, you might face the decision to require a uniform, or a dress code policy. There are many pros and cons to this decision.  Uniforms can make employees feel part of a team.  It can also give employees a professional image in the eyes of your customers, especially companies that have employees that visit customers in their homes, such as appliance installers, exterminators, etc.  On the negative side, the uniform may be made of heavy fabric, making it uncomfortable in warm weather.  Employees may not like how they look in the required uniform, or may believe the uniform is a symbol of control by their employer.  One major company has relaxed their dress code policy recently.

On July 25, 2016 Starbucks announced their new dress code. The Starbuck Dress Code allows their baristas their own individual style, while still presenting a neat, clean, and professional look.  Starbucks old dress code policy only allowed black or white shirt colors.  Now, gray, navy, dark denim and brown, including patterns are permitted.  Shorts, skirts, dresses and pants, including dark-wash denim are part of the updated wardrobe policy.  Employees are also permitted to make a “hair” statement with permanent or semi-permanent hair color – as long as it is within food safety standards.  Also beanies, fedoras, and other type of hats are welcome.  Some customer feedback was ”We like it.  We’re happy to see that you can wear expressive clothing to show who you are.”  There is some thought as to this dress code is what is already in their employees’ closet, making it easier to dress for work rather than to make their employees go out and purchase the white and black shirts previously required.

The iconic green apron still remains. Cosimo LaPorta, Executive Vice President, U.S. Retail Store Operations stated, “We want partners to be as proud of their look as they are when they tie on the green apron.”¹ Starbucks prides itself on ingenuity, continual innovation and customization in every business aspect.  They are confident that this will uplift the Starbuck brand, as well as the customer’s experience.

Uniforms has historically been  a very aggressive bid  category that has driven great savings for companies that still require them in their workplace.

For more information on how we can help you with your procurement needs 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.

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¹Starbuck Newsroom, 7/25/16

Today’s post is from our SafeSourcing Archives

Does your preparation matter that much? Will your discovery work lead to the best decisions you can make?

In Part I of this post How Much Legwork Do You Do To Prepare we discussed knowing/understanding your market around the particulars of the Market Trends, Pricing Trends, Hurdles and Product Content. In Part II we discussed Knowing Your Product with details like Specifications, Substitutes and Alternatives and Knowing the Suppliers with details about Location, Product Line and issues such as Environmental Responsibility.

In our final post of this three part series we focus on knowing your own company and its goals so that you can interpret and understand the results.

KNOWING YOUR COMPANY

1. Sustainability – Sustainability is a way of working and living that balances immediate needs for commerce, living, habitation, food, transportation, energy, and entertainment with future needs for these resources and systems as well as the liveliness and support of nature, natural resources, and future generations. Where does your company currently stand and where is your company going in this area? Knowing this can benefit your company long-term.
2. Target Market- This is the group of consumers that the business has decided to aim its marketing efforts and ultimately its merchandise towards. A well-defined target market is the first element to a marketing strategy. The marketing mix variables of product, place (distribution), promotion, and price are the four elements of a marketing mix strategy that determines the success of a product in the marketplace.

KNOWING YOUR GOALS

1. Desired Results/ Defined Goals – Knowing where you want to end and what you want to achieve will help guide you in the direction to do so. If you do not clearly define your goals and desired results, then how will you know when your work is done and you obtained the goal(s)?

KNOWING THE RESULTS

1. Desired Savings Achieved – Although cost savings is always the primary goal for renegotiating contracts with suppliers, it is also as important to have a Service Level Agreement (SLA) in place that will be obtained by the awarded supplier. While savings are key to the financial leadership of a company, the more important concern is that the operators are satisfied with the incumbent or newly awarded vendor.
2. Success – The success with any initiative is determined solely by you. It does not always come in the form of cost savings. Success can also be determined by the time invested to accomplish the desired outcome. Too much time or delays in making a decision can cost companies additional expenditures. Additionally, success can be determined when considering the many impacts a decision brings; i.e. green initiatives/environmental impacts, company diversity goals, contract duration, and flexibility.

For more information on how we can help you with all of the legwork required to fulfill your procurement needs 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 and appreciate your comments

Today’s post is from our SafeSourcing Archives

Does your preparation matter that much? Will your discovery work lead to the best decisions you can make?

In Part I of this post How Much Legwork Do You Do To Prepare we discussed knowing/understanding your market around the particulars of the Market Trends, Pricing Trends, Hurdles and Product Content. In today’s Part II of this three part post we will discuss knowing your product and knowing your suppliers in more detail.

KNOWING YOUR PRODUCT

• Specification – This is a detailed description or assessment of requirements, dimensions, materials, etc. This is a very important step in the process as this alone can determine the long term impacts to consumers and end users of the item. Being absolute on what specifically is needed is imperative to the success of the project.
• Substitutes and Alternatives – These are similar products/items that can be used in place of the original. This is mostly acceptable on a short term basis. Once specifications have been determined, it is imperative that the vendor adheres to the specification for a multitude of reasons, mainly integrity of the product and costs. At times, there may be a need to substitute due to product shortage.       In this case, there must be a clear plan and expectations as to what those acceptable substitutions can be. Leaving it up to the vendor may have negative downstream impacts in consumer image and financial costs.

KNOWING THE SUPPLIERS

• Location – This is the specific area where the supplier would be found. This is important to the customer for purposes of logistics as well as doing business with local accredited companies. Any freight and mileage charges will add to your cost.
• Product Line – This is the offering of items in which a customer is interested. The larger the product line, the more likely the service level will be consistent. This is not always the case, but paying close attention to the expansion or compression of a product line on an ongoing basis can head off any possible impact to business.
• Environmentally Responsible – (also eco-friendly, nature-friendly, and “green”) These are ambiguous terms used to refer to services claimed to inflict reduced, minimal, or no harm at all upon ecosystems or the environment. Companies sometimes use these terms to make environmental marketing claims when promoting goods and services. This is important as more and more consumers care about products and companies that are “Green”.

For more information on how we can help you with your procurement needs 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 and appreciate your comments

Today’s post is from our SafeSourcing Archives

Does your preparation matter that much? Will your discovery work lead to the best decisions you can make?

Let’s assume you are procurement professional for a company that is ready to find a better solution for their need. This is when the legwork begins. So how much legwork is necessary to get the results you need? There are many factors that should be researched and investigated to make a valuable decision for your company. Below are numerous, but important, factors that will entail your legwork. In the ensuing case study we have documented the factors, processes and specifics that two different procurement professionals went through.

KNOWING THE MARKET:

• Market Trends– Trends are what allow traders and investors to capture profits. Whether on a short- or long-term time frame, in an overall trending market or a ranging environment, the flow from one price to another is what creates profits and losses. This is something that the two procurement professionals kept an eye on so when the time comes, they are armed with as much information as possible to make the best decision for their company.

• Pricing Trends– Understanding where the market is headed will allow the company’s to make better decisions regarding long / short term contracts with possible price review intermittently. The current price may be desirable, but understanding the trend will allow for better decisions. Awareness and connection to the industry can only help them when they are ready to act and, more importantly, develop a solid long term strategy.

• Hurdles– Think about people running in a race. They are running, and then they see something that blocks their way. They can stop running OR they can jump over the hurdle in the road and keep running. Think about work the same way. You worked hard to find the right supplier and cost that you like. Then there are unforeseen problems that could cost additional expenditures. Building in contingencies will avoid such issues.
• Product Content – This is referring to the materials that are required to produce a product in order to meet necessary standards or specifications. This will affect the price of the product or service you want to purchase. Additionally, each company must decide what is right for them when it comes to the environmental impact. Awarding business to a vendor that has “green” initiatives already in place will bring goodwill in the community it serves and improve company image while doing what is right for the environment.

For more information on how we can help you with your procurement needs 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 and appreciate your comments

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

Comparing alike products and deciding which is best can be a very daunting task. Should you buy a name brand or will the generic option meet my needs?  These are a few questions that can enter in your mind during the decision making process.  Some people feel more comfortable purchasing name brands.  If this is the case, you may be able to get the name brand item cheaper than the generic by watching sales, using coupons or utilizing price matching.

Some items purchased may not make a difference in cost because of the frequency purchased. For example, choosing a generic food item; it may be a little cheaper but you only purchase it once or twice a year.  In this case you may want to settle for the brand that you enjoy.

When it comes to more expensive items you may want to purchase a generic over the name brand if it’s something that you may only use a few times a year. If it is something that will be used more frequently then you may want to stick with a reputable brand that is known for its durability and warranties.

When purchasing over the counter medications, you may want to purchase the generic form. These generic medications are regulated by the FDA and must contain the same active ingredients, strength, dosage form, route of administration and label.  This ensures that the generics will have the same benefits as the brand name equivalents.

Keep in mind that buying a generic product doesn’t always mean that it is an inferior product. Some generic products are often made by the same name brand companies but are packaged differently.

Interested in learning how SafeSourcing can help your company run more efficiently? Like to try a risk free trial?  Please don’t hesitate to contact a SafeSourcing Customer Service Representative. Our team is ready and available to assist you!

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

In my first blog, “What is Emotional Intelligence? Why It Should Matter in Any Business?”, I identified what emotional intelligence (EQ) is and how it applies to any business. In my second blog, “Emotional Intelligence in Action”, I explain the What, How, and Why the competencies of EQ work.  In my third blog, “Five Components of Emotional Intelligence and Your Business” I gave the basic definition of the five components of emotional intelligence. In my fourth blog “Self-Awareness in Your Business”, I provide a deeper explanation of Self-Awareness and how it applies to you as a leader and your business. In this installation, I will discuss the importance of the Emotional Intelligence component Self-Regulation and how it is important to you as a leader and to your organization.

“When emotions are running high, they certainly cannot be ignored – but they can be carefully managed. This is called self-regulation, and it’s the quality of emotional intelligence that liberates us from living like hostages to our impulses” (Goleman, 2015, pp1).

2). Self-regulation. The ability to control or redirect disruptive impulses and moods, and the propensity to suspend judgment and to think before acting.₁

a.) Hallmarks include trustworthiness and integrity; comfort with ambiguity; and openness to change.₁

An Example: ₃

Imagine an executive who has just watched a team of his employees present a botched analysis to the company’s board of directors. In the gloom that follows, the executive might find himself tempted to pound on the table in anger or kick over a chair. He could leap up and scream at the group. Or he might maintain a grim silence, glaring at everyone before stalking off.

If he had a gift for self-regulation, he would choose a different approach. He would pick his words carefully, acknowledging the team’s poor performance without rushing to any hasty judgment. He would then step back to consider the reasons for the failure. Are they personal—a lack of effort? Are there any mitigating factors? What was his role in the debacle? After considering these questions, he would call the team together, lay out the incident’s consequences, and offer his feelings about it. He would then present his analysis of the problem and a well-considered solution.

Self-regulation is important for competitive reasons. Everyone knows that business today is rife with ambiguity and change. Companies merge and break apart regularly. Technology transforms work at a dizzying pace. People who have mastered their emotions are able to roll with the changes. When a new program is announced, they don’t panic; instead, they are able to suspend judgment, seek out information, and listen to the executives as they explain the new program. As the initiative moves forward, these people are able to move with it.

“Like self-awareness, self-regulation often does not get its due. People who can master their emotions are sometimes seen as cold fish—their considered responses are taken as a lack of passion. People with fiery temperaments are frequently thought of as “classic” leaders—their outbursts are considered hallmarks of charisma and power. But when such people make it to the top, their impulsiveness often works against them. In my research, extreme displays of negative emotion have never emerged as a driver of good leadership” (Daniel Goleman, 2015_3).

Please stay tuned for the next blog on how internal motivation can help you and your business.

We enjoy bringing this blog to you every week and hope you find value in it. For more information on how we can help you with your procurement needs 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.

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_References:

1. _{https://www.sonoma.edu/users/s/swijtink/teaching/philosophy_101/paper1/goleman.htm}
2. _{Goleman, D. (2015, July 26). Daniel Goleman: Self-Regulation: A star leader’s secret weapon [web log post]. Retrieved from: http://www.danielgoleman.info/daniel-goleman-self-regulation-a-star-leaders-secret-weapon/}
3. _{http://avalsethi.com/self-regulation-leadership/} 

Today’s blog is by Margaret Stewart, Executive Assistant at SafeSourcing.

Have you ever wondered why some people find success while others don’t? Imagine there are two people doing the same kind of work, have worked the same amount of time, and work in the same area, yet one is far more successful. Now, let’s say one grew up in a distinguished neighborhood while the other did not. You may be thinking that that the one from a better neighborhood is most likely the more successful, but why?

People often associate a better upbringing with more success, which correlates to one’s ability to be successful themselves. Here is where correlation and causation become blurred. Often in our society, we deem that being raised by a successful community means one is more likely to be successful. But is it what causes success?

Now, what if I told you that of the two workers mentioned above, the one with the more successful business is the one from the less than distinguished neighborhood? You may be surprised because of how we correlate the two. One of the great things about our society is that there is often a chance for anyone to be successful, and coming from a disadvantageous background can cause more work, effort, and drive.

The case above is purely hypothetical, but demonstrates the difference between causation and correlation. Just because two things are correlated, does not mean one thing actually causes the other. Finding success can often mean seeking new ways of reaching people in business. This thinking outside the box mentality can help broaden one’s foundation, allowing for further reaching success. One underutilized example is the ever growing e-procurement industry. This industry can help businesses in multiple facets, including service, retail, and manufacturing industries. It can open up resources to areas a business might not even know is there.

For more information on correlating and causing success within e-procurement, or information about 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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