Today’s Blog is by Ryan Melowic Vice President of Customer Services at SafeSourcing.

For manufacturers who use industrial grade Hydrogen Peroxide in their production process, it is important that they have a thorough understanding of what indexes can affect its price.  In this category some manufacturers use a shared risk – shared reward model that follows the variations in both Natural Gas and Diesel fuel pricing.

Some manufacturers are using the Nymex Henry Hub Natural Gas Index.  They figure surcharges by calculating an average monthly settlement price and then compare it against a set base line.  If the Nymex average price is greater than the baseline, they will subtract the current monthly average settlement price from the baseline and then multiply it by a fixed number that is dictated by thresholds based off of the average monthly settlement price.  With a fifty cent change in the Nymex Henry Hub Natural Gas Index price it isn’t uncommon to see a 2% increase on the cost of Hydrogen Peroxide.

In addition, a fuel surcharge that changes on a monthly basis is used by some hydrogen peroxide manufacturers.  They define additional surcharges for pricing thresholds and compare it to the current cost of diesel on websites like the Department of Energy.  From there, they set surcharges for delivery based on the price of diesel.  Pricing for diesel in the mid four dollar range can add around 2% to hydrogen peroxide costs.

With ranges in costs hinged on indexes, Hydrogen Peroxide prices can change 4 to 10 percent depending on the current market.  This makes it difficult for manufacturers to hold their pricing for the finished product.  However, most manufacturers are expected to lock the pricing of their finished goods for at least a year.  How is this fair for the manufacturers of the finished goods?

For further information how SafeSourcing can help your company lock in competitive hydrogen peroxide pricing for a longer duration than monthly, please contact a SafeSourcing Customer Service Representative.

We look forward to and appreciate your comments.

Today’s Post is by Alyson Usserman, Account Manager at SafeSourcing.

21 years ago business was conducted in a completely different manner than it is today. 1993 was a great year, the United States government came up with a new plan to erase the deficit, the “home computer” was in the works behind the scenes, and the North American Free Trade Agreement was passed to allow businesses to expand outside of the United States. Business was conducted in person or over the phone, which meant that opportunities were extremely limited compared to 2014. Now, we have smart phones in our pockets, we are always “plugged in,” one way or another, whether it’s sitting behind a computer at a desk or walking around the grocery store replying to emails.

Technology, business practices, and people are all in a constant evolution. There is always something “better” or higher end that is coming out. If a company doesn’t keep up with the evolution of the market place, technology, or its employees then it will be left behind.  Since the business world is constantly changing, so are the people that work within the markets, companies, and the most recent college graduates. These new college graduates are taught the most modern business practices and technologies.

All of these factors change procurement completely. Today, we have the capabilities to find suppliers globally, just from a Google search. We have the ability to capture hundreds of quotes in minutes, literally. SafeSourcing can help your company and make sure that your procurement needs are up to date, If you’d like more information, Risk Free” trial program, please contact a SafeSourcing Customer Service Representative.

We look forward to  and appreciate your comments.

Today?s post is by Ron Southard, CEO at SafeSourcing Inc.

I was doing some morning reading today and noticed an article attributed to Paul Davidson of USA TODAY titled ?RISING FOOD PRICES PINCH CONSUMERS?. It?s unfortunate we cannot survive on the lowest cost foods because that is exactly what Lettuce was with a -16.9% change in price over the last twelve months?based on?the governments Consumer Price Index for March from the Bureau of Labor Statistics. Any guess as to what was the highest? Have you tried to buy Limes lately? If so you might have guessed Citrus Fruits which are up +17%. I?m not sure one could survive on limes alone either, but I am sure this author might do a pretty good job on Key Lime Pie (Yum!).

Here are some of the other categories.

1. Eggs +9.9%
2. Uncooked Ground Beef +6.8%
3. Pork + 5.3%
4. Peanut Butter? – 3.6%
5. Apples -3.0%

The question this author always has is what retailers are doing in order to compress and contain pricing in order to pass the lowest possible cost on to their consumers.? SafeSourcing has tools that help companies accomplish this and 99.9% of all sourcing projects in the last 6 years have returned savings or cost avoidance. Ask your retailer how they are doing this and if they are getting a better than 10X ROI from their procurement solution provider?

If you?d like to learn more how SafeSourcing can help your company reduce product and service realted costs so they are measureable in the current quarter, please contact a SafeSourcing customer services account manager.

We look forward to and appreciate your comments. HAPPY EASTER.

Today?s post is by Steve Schwerin, account manager here at SafeSourcing.

How much does early upgrading cost you each year? There once was a day when products lasted years, and there was little visible change in many industries. However, with slight changes in technology these days, the product which lasted years becomes obsolete. We have become used to this message from service providers handing over our older, operable product and our cash in exchange for assurances that the new product would be supported while the old would not. Certainly, it is often time to move to newer equipment along with everyone else in the industry, but do companies really have you in mind when they force an upgrade? Are you happy with your equipment which seems to last like a quality product should, but can?t afford for it to be out of service for any period of time when it does fail? If so, you are in a tough position if your long-standing service provider tells you the equipment has reached End of Life. There are probably excellent service providers who still offer support to your product. Finding one and being assured that the transition will not cost you more than just going with the flow can be tough. A simple way to address this may be with a Request for information (RFI).

Put simply, we here at SafeSourcing

? Identify vendors from our SafeSourceIT supplier database
? Derive questions from our knowledge of the industry
? Use our systems to provide the best execution in a timely manner

The RFI then sets you up for a successful Request for Quote (RFQ) in which the vendors, who are now qualified, can bid on a service that has been well defined. The result is often a short list of vendors who you can then interview to see which one best fits your company culture. You can award business not based on merely price, but with confidence that your new service provider is well suited to deliver the services they bid on in the RFQ. This entire process can easily pay for itself in a few months in which your legacy hardware remains in service instead of heading for an eRecycling bin ahead of its time.

Contact a customer service representative here at SafeSourcing at 1-888-261-9070 to find out how we can help you address your legacy hardware needs.

We look forward to and appreciate your comments.

Today?s post is from Alyson Usserman, an Account Manager at SafeSourcing, Inc.

We have all heard the saying, ?the elephant in the room,? when referring to an awkward situation, but have you applied this strategy to your company?

Often times an awkward situation can arise socially and financially for a company. Usually, when an awkward situation arises within a company the first instinct to the employees is to ignore it. This approach has the potential to be detrimental to the company, especially when the upper echelons do not know that there is an internal issue.

Within your company the social atmosphere can be positive, upbeat, with a conductive energy for maximum productivity. But when this lags in the company the productivity can be affected by how happy your employees are. If the employees dread coming to work, seem unmotivated, and lacking then you may have an elephant to talk about. Addressing these issues within your company would be the best strategy to alleviate any issues. Scare tactics for the employees is not the best strategy because then your valuable employees that have a relationship with you will start leaving. When employees begin leaving you are then left to find replacements and working to figure out how to get the new employees trained while you still have a business to run and maintain.

The financial elephant that can be threatening your company is an extreme issue. If your employees are not happy and they are giving that over to the customers, then you will have unhappy customers that won?t come back. In conjunction with the unhappy employees they may not care if the company is successful or not. Meaning that they may not tell you about potential issues or red flags when it comes to the financials of your company.

These issues can turn your company down a path that it may not be able to come back from without help. SafeSourcing can help you determine the ?elephants? in your company by using our “Risk Free” trial program, please contact a Customer Service Representative.

We look forward to and appreciate your comments

Today’s post is from Alyson Usserman, an Account Manager at SafeSourcing, Inc.

We have all heard the saying, “the elephant in the room,” when referring to an awkward situation, but have you applied this strategy to your company?

Often times an awkward situation can arise socially and financially for a company. Usually, when an awkward situation arises within a company the first instinct to the employees is to ignore it. This approach has the potential to be detrimental to the company, especially when the upper echelons do not know that there is an internal issue.

Within your company the social atmosphere can be positive, upbeat, with a conductive energy for maximum productivity. But when this lags in the company the productivity can be affected by how happy your employees are. If the employees dread coming to work, seem unmotivated, and lacking then you may have an elephant to talk about. Addressing these issues within your company would be the best strategy to alleviate any issues. Scare tactics for the employees is not the best strategy because then your valuable employees that have a relationship with you will start leaving. When employees begin leaving you are then left to find replacements and working to figure out how to get the new employees trained while you still have a business to run and maintain.

The financial elephant that can be threatening your company is an extreme issue. If your employees are not happy and they are giving that over to the customers, then you will have unhappy customers that won’t come back. In conjunction with the unhappy employees they may not care if the company is successful or not. Meaning that they may not tell you about potential issues or red flags when it comes to the financials of your company.

These issues can turn your company down a path that it may not be able to come back from without help. SafeSourcing can help you determine the “elephants” in your company by using our “Risk Free” trial program, please contact a Customer Service Representative.

We look forward to and appreciate your comments

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

As the Winter Olympics kicked off this past weekend there have been many short clips and commercials touching on the little things, the early moments, the hard work, and the details that go into each athlete?s path to the Global Athletic Stage.?? These individuals don?t get there by accident and they definitely don?t get there by doing just the minimum that is expected; they get there by doing more, working harder and paying special attention to the little details that they hope will propel them to greatness.? Today we will look at some of the little things you should be expecting out of your suppliers, the details that will take your company to greatness.

Staying Ahead of the Rest? ? It is so easy for people and businesses to get comfortable, especially when things are going well.? After the initial challenges of working with a new supplier are conquered and the supply chain or standard operating procedure begins to flow smoothly, people get comfortable.? The customer is happy because they are getting what they need and the supplier is happy because they are earning the business on a regular basis.? Where some suppliers will reach that point and look to continue the stability, the best suppliers will be looking for what?s on the horizon.?? Whether it is technology, or a world condition, or new regulation, these suppliers are staying on top of the market and are ready to recommend new ideas for their customers and are preparing for the eventual time when the landscape will change.

The Emergency ? Staying ahead of the rest plays a big part in how your suppliers will help you handle the emergencies that will eventually happen; the extra shipment of product, the roof issue that needs fixed, the freezer that needs repaired.? These things will happen and the best suppliers will have the infrastructure in place to help you when those times come.? They have watched the activity in the industry and educated themselves on the best ways to handle emergencies and are ready to support you when you have yours.

Looking out for your interests ? We live in a world that is dedicated to ?me? so it is not surprising that so many suppliers are focused first on doing the things that are best for their company before that if their customers.? They get so concerned with getting the next deal and getting new business that they forget to take care of their current customers the way they did when they were courting their first at the start.? This is one of the important differentiators between average and great suppliers.? They are the companies who take the call from their customer and listens to their issue and even if it is not something they would normally do, they work with their customers to find the solution even if it means working a little harder to get the work done.? These little things make a supplier a partner instead or just another vendor.

At SafeSourcing we understand the little things and our goal is to make sure we find your partners that feel the same way about your business and the little things they can do to help make your company great.? For more information on how SafeSourcing can assist your team 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.