Today’s post is a favorite of the  SafeSourcing Archive.

There are thousands of categories that businesses purchase every year that are “complicated” to say the least.  Categories like office supplies, for instance, involve thousands of individual items that a company must purchase in order to do business, but that can be very difficult to source in a manner that provides the best benefit to the company.

Let’s take a look at the process of sourcing these types of categories from one extreme of the complexity spectrum to the other with a couple of options that meet towards the middle.

Sourcing the market basket – The first end of the spectrum is to take the entire collection of all items in the category and source them as one large market basket that will be represented by a discount off of the vendor’s list pricing.  One obvious pro of this approach is that it is easier to collect and manage an overall discount from a supplier than anything else and is one reason why procurement departments sometimes take this approach.  On the downside this approach does not allow you to focus on items that have higher spends and because each vendor will have different beginning list prices, an overall discount can sometimes be misleading when comparing vendors side by side.

Sourcing every item – At the other end of the spectrum is the approach of gathering pricing and proposals on every item in the category.  The advantages to this approach is that it allows you to show where your purchases are heavier for the vendors and it gives you absolute pricing and comparison of the group across all proposals from the vendor community.  The trouble with this approach is that when you are looking at 4,000 items this can be a time-consuming task for the vendors to complete and for your team to evaluate at the end, and in some cases vendors do not have the capability to provide unique price sheet pricing on a customer by customer basis.

Group Discount Sourcing – In the group discount approach you collect discount pricing off of list on a product group by product group basis which allows you to split your spend into smaller areas for the vendors to focus on providing more competitive quotes in the areas you need them most.  Also, many vendors support this approach in their internal systems much easier.  The downside in this approach is like the first approach where the list prices of the vendors can vary a great deal making a straight discount to discount comparison more difficult to evaluate. 

Hybrid Sourcing – The final approach is one that takes the positive elements of all three and blends them together.  This approach leverages the individual focus pricing on items making up the majority of your spend.  From there, the majority of what is left is split into product groups market baskets, with a final market basket of products gathering a discount off of list representing no more than 10% of the spend.  The advantage for your company is that you have the focus in all the areas you need and discounts on areas that aren’t as large.  The downside is that many vendors are not generally equipped to handle this approach on an account by account basis so it may require more effort on their part in order to support you and the hybrid pricing model. 

Regardless of how you choose to source these types of categories there is a model that fits for you and your business.  For assistance in sourcing these categories for your business, 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.

The other day I saw a fly for the first time in months.  That got me thinking, what happens to the flies when it gets cold?  Do they hitch a ride on a bird and fly south for the winter?  Of course not.  The average fly lives about 15 or 30 days.  During this time a fly can lay approximately 500 eggs.  When it starts getting cold outside the hatched larvae, also known as maggots, eat a large quantity of food and hibernate in a type of cocoon.  When the weather warms up the flies emerge from their cocoons to start the whole cycle over again.  Some other species of flies find shelter in walls, attics and other places and hibernate when it becomes cold.  On sunny warm winter days some of them may come out and crawl to warm places within the interior.  These flies will not reproduce indoors and are only seen because they entered during the fall.  When spring arrives they will emerge from their hiding places and try to find their way outside.  Although flies are a nuisance and do not harm people or property, other
pests or animals make seek shelter indoors during these cold months. 

How about a pest control event before the spring? Savings are typically in the 30% range.

If you find yourself in need of help getting rid of pesky pests or animals, SafeSourcing can help you research and find the best solution.  If you would like more information on how SafeSourcing can help, please contact a SafeSourcing Customer Service representative.  We have an entire team ready to assist you today.

We look forward to your comments.

Todays post is from the SafeSourcing Archives!

E-Procurement  has become a standard business process throughout many developed countries.  It is recognized as one of the most successful applications in the electronic commerce (e-commerce) field and has been used to identify cost savings, improve efficiency and control for many companies’ bottom lines.  This author wonders then, why is the practice of e-procurement not utilized in third world countries? 

As I have found out the answer is a bit complex and sadly unfortunate.  E-procurement has not worked as a reasonable business practice in third world countries because third world countries are partially characterized by low levels of industrialism, widespread illiteracy, poor infrastructure, unsophisticated technology, and poor living standards among their populations as a whole.

That being stated, it is not hopeless to think that a business in a third world country could not strive to make changes that would enable e-procurement as a regular business practice.  Some of the steps that would be needed would be:
  1.  Clearly define a strategic goal and solid reason for the change in the  business practices.
  2.  Progress through simple steps that deliver true value.
  3.  Find an e-procurement system or partner, such as SafeSourcing, that is easy to use and offers support to any participating vendors.
  4.  Understand the barriers and limitations of your own company as well as the economy, environment, and politics of the country you’re working in.
  5.  Appoint a Subject Matter Expert (SME) within your company that can clearly help you outline the items that can be sourced.  A strategic sourcing partner, such as SafeSourcing, can assist with this as well.
  6.  Start the procurement process in sectors of the business that are either most ready to adapt to the changes in process or that are in the greatest need for the change.
  7.  Work hard to share your procurement success within your local market to promote growth within your country’s local economy.

There are factors that make e-procurement risky in a third world county, but the economic benefits that would come from implementing this practice would outweigh the risks long term.  By implementing e-procurement practices for businesses in a third world country it would impact the level of industrialism, the economic infrastructure, and in time possibly help to strengthen the used and accepted technology.

We look forward to and appreciate your comments.

Today’s post is by Alyson Usserman; Account Manager at SafeSourcing.

In the modern business world of 2014, employee benefits play a huge factor when it comes to potential employment candidates, hiring, firing, and the overall company bottom line.

Potential employment candidates, as well as other established employees, are always looking to further themselves. You want your employees to maintain the “go getter” attitude that keeps them motivated and working for your company, but what drives this attitude? Of course ambition; that is a given, but if you offer incentive to keep learning, will they do so? If your employees continue their education, does it benefit your company as a whole? The answer is yes. Having employees that have multiple degrees can benefit the company greatly because, in theory, the employees should then take their learning from the classroom to the workplace and improve the company.

Educational benefits are becoming more common across the United States, but what are the potential ramifications? One of the largest issues that Forbes discusses is the fact that the employer puts monetary value on their employees, they invest in them. When the company makes an investment in their employees they are looking to reap the benefits of that investment. Many companies are offering educational benefits with “strings attached,” Basically forcing the employee to sign a contract that says, “if we, the company, pay for your education, you cannot take that knowledge elsewhere.” Many companies put minimum grade point average expectations, service requirements, and any other “strings” they can because they want to protect that investment from leaving to go to a different company.

SafeSourcing can help you lower your overall company spend so that way you are able to offer more employee benefits to attract more employees and can grow your company. 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 your comments.

Today’s post is by Mark Davis; Sr. Vice President of Operations and COO at SafeSourcing.

Last month Twitter announced that its 270+ million users would be introduced in a limited rollout to their newest “buy” button feature allowing them to buy merchandise or donate money directly from a Tweet.  Users would have the capability to enter their payment information with Twitter before purchases allowing them a quick “one button” purchase that, once confirmed, will notify the merchant of the purchase for shipping or a donation for an automated email receipt.  With a base of more than a quarter of a billion potential customers actively using this channel it begs the question “What are you doing in your business to tap into new opportunities such as this?”

Talk to the experts – One of the best steps forward in exploring new sales channels and technologies is to speak with the experts.  The industry is full of social media and new technology marketing experts who are ready to assist companies.  They can help with developing strategies and explaining the new options companies have to go after markets they never thought were possible.  Beginning this exploration with a simple Request For Information project will allow you to look at who the leaders and niche players are and who can provide the best fit for your company.

Stay focused – Once there is an understanding of the options and strategies available the next step is to narrow down where to focus time, attention and money to get the best results.  For some companies, selling via Twitter would not make sense, but connecting to or starting a specialized group on LinkedIn to allow your customers to share their experiences with each other and their peers might.  The key at this stage is to remain focused and not chase every possible channel.  Some will fit, others will not, and some will fit better once the plan of action is under way.  Mini RFIs to understand each new option at this stage can also be an effective next step.

Coordinate efforts – One of the biggest killers to companies changing or expanding their marketing and sales approach is to send mixed messages about who the company is.  This happens frequently with companies attempting to employ new technologies that contain messages and imaging that not only do not parallel previously established branding, but in some cases directly conflict with it.   Make sure the team working with these new channels and technologies are engaged and managed just like any other marketing media and are telling the same story.  This may be the time to change that story to reflect a more current offering as long as it is consistent so as not to confuse customers of who the company is.

At SafeSourcing we have a vast amount of experience helping companies with their search for new marketing services and partners and have led many successful projects for our customers in this area.  For more information on 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.

We look forward to your comments.

Today?s post is by Mark Davis; Sr. Vice President of Operations and COO at SafeSourcing.

Last month Twitter announced that its 270+ million users would be introduced in a limited rollout to their newest ?buy? button feature allowing them to buy merchandise or donate money directly from a Tweet.? Users would have the capability to enter their payment information with Twitter before purchases allowing them a quick ?one button? purchase that, once confirmed, will notify the merchant of the purchase for shipping or a donation for an automated email receipt.? With a base of more than a quarter of a billion potential customers actively using this channel it begs the question ?What are you doing in your business to tap into new opportunities such as this??

Talk to the experts ? One of the best steps forward in exploring new sales channels and technologies is to speak with the experts.? The industry is full of social media and new technology marketing experts who are ready to assist companies.? They can help with developing strategies and explaining the new options companies have to go after markets they never thought were possible.? Beginning this exploration with a simple Request For Information project will allow you to look at who the leaders and niche players are and who can provide the best fit for your company.

Stay focused ? Once there is an understanding of the options and strategies available the next step is to narrow down where to focus time, attention and money to get the best results.? For some companies, selling via Twitter would not make sense, but connecting to or starting a specialized group on LinkedIn to allow your customers to share their experiences with each other and their peers might.? The key at this stage is to remain focused and not chase every possible channel.? Some will fit, others will not, and some will fit better once the plan of action is under way.? Mini RFIs to understand each new option at this stage can also be an effective next step.

Coordinate efforts ? One of the biggest killers to companies changing or expanding their marketing and sales approach is to send mixed messages about who the company is.? This happens frequently with companies attempting to employ new technologies that contain messages and imaging that not only do not parallel previously established branding, but in some cases directly conflict with it.?? Make sure the team working with these new channels and technologies are engaged and managed just like any other marketing media and are telling the same story.? This may be the time to change that story to reflect a more current offering as long as it is consistent so as not to confuse customers of who the company is.

At SafeSourcing we have a vast amount of experience helping companies with their search for new marketing services and partners and have led many successful projects for our customers in this area.? For more information on 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.

We look forward to your comments.

Today, Ryan Melowic Director of Special Projects at SafeSourcing

Why companies need to add protection language in their agreements when purchasing new refrigeration cases for their stores.

I was at my favorite grocery store around four weeks back and noticed they had replaced all their refrigeration cases in their bakery.? It looked very nice and allowed all their bakery products to be displayed to customers when they walked in the door.? In fact, it made me want to purchase some fresh baked cookies.? When I returned back to work with the cookies I reached in the bag to grab one and it cwas a soggy mess.? Boy was I disappointed!? I had been purchasing these same cookies from this grocery store for years and never had an experience like this before.? It really made me think.? Here, this grocery store was attempting to replace their old equipment with newer and better equipment and? it back fires on them.?

Being concerned, I called the store and communicated my issues with the cookies.? They expressed to me that they were having issues with their new equipment and were sorry.? The grocery store said they would replace the cookies.? When I went back to the store a week or so later to get the replacements I asked the worker to please be sure that the cookies weren?t soggy.? The worker then went to the case to? and said oh my goodness these? cookies are? soggy too.? I felt really bad for this grocery store because they serve fine foods and I?d never had an issue like this before.?

Looking at the circumstances I knew what caused the issue, it was the new equipment cycling off during some period of time causing condensation to saturate the cookies.? Can you imagine if I were a new customer who had never purchased their cookies before?? This grocery store could well have lost a new customer.

The reason I share this story was with you is that when working with SafeSourcing, we are experienced with this category as well as hundreds of others.? We would have written protection language into the? statement of work agreement for the new refrigeration equipment.? The manufacturer and the installer would be responsible for insuring that the equipment was setup correctly.? There would not have been weeks of wasted bakery goods and any dissatisfied customers because of it.

For more information on how SafeSourcing can help you with your store equipment needs, please contact a SafeSourcing Customer Service representative.

Today’s post is written by Heather Powell, Manager of the COE Department & Project Manager at SafeSourcing Inc.

Are you prepared for falling leaves? Will you rake the leaves or mulch them? If you rake them will you bag them or rake them to the curb?

If you bag the leaves, does your solid waste removal company take them? Is there an extra charge? Does your solid waste company provide bags?

Who knew there were so many choices regarding leaf disposal?

Many waste removal companies will take leaves, but it is best to call them and ask things like if there is an additional fee, if can they provide bags, if is there a maximum number of bags you are allowed, etc.

In Ohio for example, many of the waste removal companies partner with local grocery store chains and sell yard waste bags for $4.00-$5.00 each or a bundle deal of 5 bags for $20.00. By choosing this option there will not be an additional haul rate and that waste management company will pick it up regardless if you use them for your regular waste removal.

Another option to research would be to find out if your city has scheduled pick up days for the leaves to be “vacuumed” from the curb.  Usually they are held on certain days and have strict specifications about what they are picking up from your curb. Typically this service fee is included in your city taxes or HOA. You do not have to participate, but know that you are more than likely paying for a service hidden in your taxes or HOA fees.

Peak season is for much of the country is in a couple of weeks, and I intend to watch the leaves change their brilliant colors and then mulch them. However you dispose of your leaves, do so safely and smartly.

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 Alyson Usserman, an Account Manager at SafeSourcing Inc.

When I was in high school, the teachers would stress the importance of ?balance? in your life, and then give you a mountain of homework. During college the same thing happened. So what is this concept of ?balance?, since no one really taught us about it? Our employers, significant others, and kids may complain to us that our ?balance? is off. But what are they really saying? Usually they say that we should leave work at work, and leave home at home. However, the practicality of this issue is not very clear. Sometimes the babysitter calls me at work, sometimes, work calls me at home. So what is ?balance??

According to Webster?s Dictionary, ?Balance is a condition in which different elements are equal or in the correct proportions.?

But how do we achieve this as a company whole, and as a healthy individual? Companies will not survive and thrive if their employees do not have enough balance. If they can never take a break, they will inevitably burn out. They will no longer be interested in the company or their goals anymore.

Just as individuals, companies can become burnt out too. If they try many different avenues but their costs are not lower than their overhead. If this sounds like your company, let SafeSourcing help you find the balance.

Please contact a SafeSourcing Customer Services Account Manager in order to learn more.

We look forward to and appreciate your comments.

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

With the release of the new iPhone 6, you may be considering a new cell phone or carrier.  Choosing a new carrier can be a tough decision with all of the carriers available and all of the different packages that they offer.  Many carriers know that for a business to switch phone carriers it can be a strenuous task, therefore they may offer incentives to do so.

the right plan that is cost effective and delivers the type of service that you need may not be as easy as one would think.  Make sure to review the plans in depth and read the fine print.  Some plans state that they can have up to a maximum number of lines for a low monthly cost but only some of the lines maybe used for Smart Phones the remainder of the lines are for Basic Phones only.  The pricing for the plan may also only be for the first year and additional costs may be added for the remainder of the contract.

When making this decision it is not just all about the cost.  Here are a few other factors that you may want to consider.

•  Which phone(s) meets the needs of your organization?
•  How is the carrier’s coverage in your area(s)?
•  Which data package will I need?
•  Are the data speeds sufficient?
•  Do they have a plan to meet you current and future needs?
•  Will the customer service meet your employee’s needs?

At SafeSourcing, we can gather all the necessary information for your company and help you decide what carrier would be a good fit for your needs.  If you would like more information on how SafeSourcing can help your business, please contact a SafeSourcing Customer Service representative.  We have an entire team ready to assist you today.

We look forward to your comments.