Today’s post is our SafeSourcing Archives.

Continuing with our series on cooperatives, today we are going to take a look into the hospitality industry by focusing on the Hospitality Services Group (HSG).  This group, formed in 1989, provides small chain and independent hotels, restaurants, and retirement communities the purchasing power of a large company and is one of the most successful cooperatives in the United States.

The HSG is a fee based system that focuses on hospitality businesses in the northeast and touts some very useful benefits to its members that are 100% focused on the procurement process.

Industry focused expertise and planning – The HSG offers several tools, whitepapers and articles geared toward helping hospitality businesses plan for their most efficient and cost-effective operations.  From menu planning and pricing to managing vendor agreements to a database full of product specific facts, the HSG is more than just a Buying Group.

High powered software – The HSG offers all of its members high powered software that allows them to track their costs, create recipes that allow for easier improvements in managed costs, and manage purchase orders from beginning to end.

Delivery & invoicing – By working with the HSG, companies have much less to worry about, as product is delivered straight to their building and the vendors invoice them directly.  The HSG handles the relationships for their customers so that their customers can focus on running their business.

Research – Part of what the HSG offers its members in the way of purchasing is by researching new products, standards and technologies for producing the items they are purchasing to continually look for ways to reduce their customers cost-of-goods.  This frees up the owners to be able to focus on their restaurants and hotels providing better service to their customers without worrying about staying current on everything in their industry from a procurement standpoint.

For more information on the retail industry’s cooperatives, the HSG or how your cost-of-goods can be positively affected, please contact a SafeSourcing Customer Service Representative.  

We look forward to your comments.

Today’s post is from our SafeSourcing Archive.

Throughout the years many industries have discovered that their smaller companies and independents can benefit greatly from cooperatives; business organizations that are owned and operated by their members for the mutual benefit of pooling their resources in a more productive manner.

As time has gone by, and more and more companies merge and consolidate into huge super-corporations, these cooperatives become even more important for their members as they try and compete with companies 10 times their size.

This week we are going to take a deeper look at some major cooperatives in different retail verticles and focus on some of the similarities and differences between them as well as some of the unique things that each is doing to provide greater purchasing power for its members.

Although there are some obvious differences between retail “co-ops” that coincide with how their industries work, there are a few items that are shared by all.  We will start today by looking at some of those common advantages.

Economies of scale – One of the main reasons companies join a cooperative is to be part of an organization with the purchasing power of a large corporation, benefitting from the lower prices achieved by purchasing much higher quantities of goods than they could on their own.

Group Training/Education – In many cases smaller companies must either forego much needed training and education opportunities because of the cost or they must settle for online or webinar courses.  As a cooperative, the group can easily schedule and host multiple training and education sessions throughout the year that would normally be available only to the biggest companies in that industry.

Enterprise product/service opportunities – As mentioned above, purchasing as part of a larger group can reduce the cost of things you are already buying.  As a cooperative, companies also have the opportunity to purchase enterprise products and services such as enterprise software that they could never possibly have afforded on their own.  With so many software companies offering Software as a Service (Saas) models, this is becoming a more important benefit of cooperatives every year.

These are just a few of the basic advantages for becoming part of a cooperative.  The rest of this week we will be taking a closer look at some of the different retail industry cooperatives and what they are doing to help their members with purchasing different products and services.

For more information on the retail industry’s cooperatives or how your cost-of-goods can be positively affected by joining one, please contact a SafeSourcing Customer Service Representative.  

We look forward to your comments.

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

There are many things that can be done to save energy and money. One of the easiest ways is to replace your current lighting.  With the technology changing, there are more options available than there were a few years ago.  Each one of these options has its pros and cons, and certain types will work better in certain applications.   One of the most popular commercial lighting is linear fluorescent lights.  These bulbs were the most efficient to run but now they can be replaced by linear LED bulbs.  The LED bulbs are more efficient, mercury free, dimmable and have a longer lifespan.  They also have an optional shatterproof plastic model that can be used in areas where glass in not applicable.   Unlike other improvements this can be done over time.  Just replace each bulb with a more efficient bulb when they need to be replaced.  Below are some of the types of lighting available.

• Incandescent
• Halogen
• Fluorescent
• Compact Fluorescent Bulbs (CFL)
• LED

If you would like some help finding the right lighting solution, we can gather all the necessary information for you and help you decide which application 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.

We look forward to your comments.

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

If NYC is offering $13.50 per hour for laborers for Snow Removal, what’s that mean to companies that are trying to get their snow removed?

Over the last two days Gayl Southard, Administrative Consultant at SafeSourcing has offered some interesting information regarding Snow and Snow Removal in a 3 part post titled Snow, what you might not know Part 1 of 3 and Snow, what you might not know Part 2 of 3.

In part 3 of this series I’d like to take a look at the data in parts 1 and 2 mean or implies. It’s the data about the data or the Meta Data that’s important.

I think the underlying question here, is what does this mean for companies or even individuals about when they consider sourcing Snow Removal Services. When should you do it and how reliable will the service be even if you have a contract in place.

As I was watching the television broadcast of Super Storm Jonas as it buried the Eastern Seaboard in snow, one of the comments I head is that many cities could only plow the main roads and that surface streets and other places would have to wait. New York City as we noted above is offering $13.50 per hour for snow removal laborers. Might those same laborers be the 3^rd party’s that you contract with for your businesses snow removal? Maybe you might want to check the language in your contract.  If your price is lower, the service provider most likely won’t be coming, at least in a timely manner so you better get out your shovel.

So, what does this all mean? It means you need to be aware of what services you have sourced, what language is in the contract and any actions that you might take in order to preempt service needs when unusually large storms approach.

Snow Removal is normally sourced during the spring or early summer months and is quite often sourced from the same companies that provide your landscape services. You determine what language goes into a contract. Examples might be.

1. Hourly Rates
2. Price escalators based on fuel consumption
3. Ice Melt or Salt Applications
4. Time of day for services
5. Amount of snow required to kick off service
6. Rebates for missed services.

While there are many mom and pop operators that provide these services, there are only a few national providers. There are also a good number of regionals. Most of the nationals and regionals also outsource their work to the many mom and pop operators and the nationals outsource to the regionals. As such, it’s important to ask who will actually be providing your service and to make sure that they have the required liability insurance coverage in place. This is particularly important if your business may have consumers on your premises while the services are being performed.

The important point here is that while there are multiple types of snow and ice as well as the storms that deliver them, there are also multiple types of service and service providers. If you are not comfortable that you know enough about all of the information provided in this three part series, please contact a SafeSourcing Customer Services Project Manager. We have sourced this category dozens of times across all of North America. We can make sure you get the services you need at a price that is acceptable.

We hope you have enjoyed this Three Part Post.

We look forward to and appreciate your comments.

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

After a three-week holiday in, Ohio we prepared for three-day journey back to Arizona. We had not encountered any significant weather on the way to Ohio, but learned that our final day would entail heavy snow from Albuquerque to Sedona.  By the time we reached Flagstaff, it was white-out conditions.   As we hadn’t seen any snow removal on the highways until we reached Flagstaff, I was curious how that process was handled.  I  learned the following:

Snow Removal Status – Key Phases:

Phase 1: Alert

What the county does –

-A winter storm has been forecast for the region. Snow crews are on alert and treat roads and designated trail where necessary

What you do –

-Move parked cars off the street, or coordinate with neighbors and/or civic organizations to move cars to one side of the street only. Snow removal vehicles need at least 15’ to pass down a street.

-Be prepared. A three-day supply of food and water is recommended.  Stay informed.

-Neighbors may need your help. Register through you civic association as a volunteer.

Phase 2: Primary Routes

What the county does-

-A winter storm is in effect. Snow crews are treating and plowing primary (red) and secondary routes (blue) only while the snow is falling.

-Roads may only be passable with one lane in each direction. Roads may be icy and have snow accumulations of 2-4” or greater.   Designated high-volume routes are treated and plowed.

What you do-

                -Do not drive unless necessary – roads are for emergency use and snow removal vehicles.

-Help neighbors clean sidewalks on the same side of the street where cars are parked.

-Keep snow cleared from hydrants, storm drains, and downspouts on your home.

Phase 3: Residential Streets-

What the county does-

-Snow crews are treating and plowing residential streets.

-Residential areas may only be passable with one lane. Red and blue routes are being widened to the shoulder.   Additional county trails are cleared.

What you do-                                                   

-Help neighbors clean sidewalks. Snow Removal Ordinance enforcement begins 24 hours after snow stops falling.  Clear driveways and entrances.  Shovel snow into yard instead of the street.

Phase 4: Clean Up

What the county does-

-Snow crews are working on cleanup operations. After treatment and the sun have done its work, crews are removing ice and slush off roads and designated trails.

-Staff is removing snow from schools and county property.

SafeSourcing can research your snow removal needs, whether its services, equipment or supplies. Want to try us out risk free?  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.

After a three-week holiday in, Ohio we prepared for three-day journey back to Arizona. We had not encountered any significant weather on the way to Ohio, but learned that our final day would entail heavy snow from Albuquerque, NM to Sedona, AZ.  By the time we reached Flagstaff, it was white-out conditions.  We had left snowy conditions behind us some thirteen years ago when we moved to Arizona and I was not ready to drive through wintery conditions.

I had grown up in New Hampshire and I was used to significant snow. I can remember shoveling our long driveway, walkway, as well as my mother’s clothesline area (yes, the olden days).  We had shovels, sand, and salt at the ready.  Growing up in a large family, there were many helping hands to get the job done.

Times have changed now. Many people own their own snow blowers; some have trucks with plows attached, some hire the work out, and some people still do it the old-fashioned way by shoveling.

I researched the snow removal process and phases during a major snow storm. I learned the following:

During the Snowfall

1. Snow crews focus on keeping main arteries open for emergency vehicles and public transportation (red primary routes). This includes snow emergency routes, arterial streets, high volume routes, bus routes, and roads to hospitals, fire stations, police stations, and metro stations.
2. Plowing begins when snow reaches 2-4 inches deep.
3. When accumulation is less than 2 inches, the roadways are only treated (sand or salt).

After the Snowfall

1. Snow crews clean snow from all streets and county trails as soon as possible.
2. Neighborhood streets are cleared last.
3. After a severe storm (greater than 10 inches), it may take 36-48 hours after the snow stops   falling for snow crews to start clearing residential areas.

SafeSourcing can research your snow removal needs, whether its services, equipment or supplies.  Want to try us out risk free?  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.

Everyone wants to feel safe in their own home or while at work.

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

Everyone wants to feel safe in their own home or while at work.  There are many devices that can help.  One of the most important devices is a smoke detector.  It is good practice to install a smoke detector on each floor and one in each bedroom.  There are many types of detectors available.  Some of them just detect smoke while others can monitor and detect air quality, carbon monoxide and fire.  There are also Wi-Fi enabled detectors that allow you to control and receive alerts to your smart phone.  With these smart devices you can turn off an alarm right from your phone in case of false alarms caused by burning food.  Below are some things to consider if you are interested in investing in new detectors.

• Placement
• Quantity
• Battery or Hardwired
• Wi-Fi enabled
• Maintenance
• Features
• Warranty

If you would like some help finding the right detector, we can gather all the necessary information for you and help you decide which device 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.

We look forward to your comments.

Today’s blog has been written by Ryan Melowic, Vice President of Customer Services at SafeSourcing.

Here’s the information that SafeSourcing would need in order to build and execute an RFQ (Request for Quote) for Armored Car Services that will save your company money.

If your company has a goal to reduce costs for its armored car services, SafeSourcing can help you. By gathering the information listed below and contacting SafeSourcing, we will work with you to meet and exceed your goal.

1. Pickup location addresses for the bank deposits.
2. Current frequencies for armored car pick-ups.
3. The average amount of currency picked up by the armored car at each location.
4. Details on any additional current or future services your company requires from your armored car service provider.
5. Location addresses that bank deposits are being delivered to currently.
6.  Information on what your business is spending for armored car services.

SafeSourcing will work with you and your company’s team to create RFQ collateral to go strategically to market with your business’s armored car service requirements in as little as a few weeks. The current average savings estimate for this category is 19%.

For more information on how SafeSourcing can help you with all your companies procurement needs, please contact a SafeSourcing Customer Service Representative.

We look forward to and appreciate your comments!

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

There are many devices out that can help protect you and your home. One such device is a smart doorbell. There are several companies that make such a device. These devices can be attached to your WiFi network and setup to send you alerts when someone rings the doorbell. You can then view and talk to the person at the door using an application on your phone. Using this feature allows you to interact with whoever is at the door and gives the effect that you are home even if you are not.

With some of the devices you can view more than just your doorstep. With their 180 degree view you can set up zones that will notify you if any motion is detected within the zone at any time of the day or night. The video can be recorded and stored on the cloud for later viewing.

If you would like some help finding a smart device, we can gather all the necessary information for you and help you decide which device 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.

We look forward to your comments.

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Todays post is from Ronald D. Southard, CEO at SafeSourcing.

According to Wikipedia, in general usage, complexity tends to be used to characterize something with many parts in intricate arrangement.

Definitions are often tied to the concept of a set of parts or elements which have relationships among them differentiated from relationships with other elements outside the relational regime.

So how does one define a complex e-negotiation event? On the surface it may be an event with a large number of line items within a particular product set such as MRO or Fleet Maintenance in the distribution space or raw materials used to manufacture components that require special handling, shipping and standards adherence. The amounts of the total spend for an event really has nothing to do with the complexity of the event. The complexity is determined by the data points requiring management in order to drive the best possible value to the buyer and the supplier.

This author would suggest that any event including multiple market baskets, thousands  of  SKU’s all with different specifications, order quantities, delivery locations, multiple suppliers not bidding on each line item, a split award of business and the size of the spend and optimization scenarios qualifies as a complex event. Adding to the complexity may be the overall strategy required when sourcing the right mix of suppliers to compress pricing properly and drive early and consistent bid activity. This can be further complicated by trying to determine the correct decile based sourcing strategies for the event and including product affinities where they make sense. And that sometimes means they may not make sense. Think of the old examples of baby diapers and beer sales going up on Saturdays and being purchased by men. Do you know why? It’s an old example of big data. Think sports?

The above example would qualify as organized complexity where there is a non-random, or correlated, interaction between most of the parts. In order to support  complex events, your e-procurement solution provider needs to have an understanding of the specific market place, practices and processes in place that allow them to drive these activities in order to bring complex events to market  in the shortest period of time. Generally this should occur within less than three to five weeks from event notification to event completion.

Last year, this author tried to define the relative complexity of the retail environment and its potential impact on the use of e-procurement tools. Specifically we identified the following areas of interlocking complexity.

1. Supply Chain complexity.
2. Rate of change in the global supply chain.
3. Long term inherited supplier relationships.
4. Lack of Accurate data.
5. Dysfunctional ERP systems
6. Lack of retail procurement staff.
7. Lack of time.
8. Multiple sources of supply.
9. Limited view of new sources of supply.
10. Confusion as to who’s the customer and who’s the supplier
11. Sales People
12. Third Party Providers
13. Collaboration complexity.
14. Lack of an integrated view of the category spend
15. Not understanding the relationships or affinities of your products and services.

Being comfortable that your solution provider understands your market place and has a well defined process for hosting Complex e-negotiation events insures that they are not difficult to host and drive a well summarized and optimized result set.

If you’d like to learn more about sourcing complex categories, please contact a SafeSourcing customer services account manager.

We appreciate and look forward to your comments.