Archive for the ‘Business Sourcing’ Category

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Market Trends and Procurement!

Wednesday, February 21st, 2024

 

Today’s blog is by Margaret Stewart, Director of HR, and Administration at SafeSourcing Inc

Have you noticed your costs shifting in the market? It may be time to utilize external procurement professionals.

Staying on top and aware of market trends is paramount for businesses striving to maintain a competitive edge. Market trends encompass a wide array of factors, including consumer preferences, technological advancements, economic shifts, and regulatory changes. Amidst this dynamic environment, procurement emerges as a strategic function capable of harnessing market insights to drive business success.

As markets fluctuate, innovations and other economic forces force those in business to stay attune to these trends. Doing so can provide you with opportunities for growth, innovation, and adaptation. Procurement is not merely a transactional function focused on purchasing goods and services; it is a strategic imperative that can drive value creation, foster innovation, and mitigate risks across the organization. By harnessing market trends, procurement professionals can anticipate shifts in demand, identify emerging opportunities, and forge strategic partnerships that propel the business forward.

Procurement teams leverage market insights to identify suppliers that align with the organization’s strategic objectives, whether it be cost reduction, innovation, or sustainability. By conducting thorough supplier evaluations, negotiating favorable terms, and fostering collaborative relationships, procurement professionals can optimize the supply chain and enhance operational resilience.

In an era defined by rapid change and unprecedented uncertainty, businesses must embrace agility, innovation, and strategic foresight to thrive in the marketplace. Procurement, as a strategic function, plays a pivotal role in navigating market trends, driving operational excellence, and delivering tangible value to the organization. By leveraging market insights, fostering collaboration, and embracing innovation, procurement professionals can position their organizations for sustained success in an ever-evolving business landscape.

For more information on eProcurement and how the SafeSourcing team can help your organization with the changing market trends, or on 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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Have you noticed the price of chocolate lately?  

Friday, February 16th, 2024

 

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

With it being close to Valentine’s Day you may have noticed when you were out shopping that the price of chocolate has risen.  It might as well everything else is going up why not one of favorite snacks.  The cost of the main ingredient, cocoa, has been rising upward over the past two years and over the past year it has more than doubled.  This month it broke an all-time record from back in 1977.  The prices are surging so high that even the biggest chocolate makers are struggling to make profits.  Last week Hershey Co. announced that they are cutting 5 percent of its workers because of the historic cocoa prices and inflation-weary consumers helped lower their fourth quarter earnings.  One of the reasons behind the significant increase is the climate issues in West Africa where more than 60 percent of the global production is produced.  According to experts’ cocoa futures have skyrocketed, not only have they doubled in the past year it has also gone up an additional 40 percent since January.  According to a senior food and beverage economist, the rising cost of cocoa has made retail chocolate prices rise about 17 percent over the last two years and it will only continue to rise.  One company that produces 4-ounce chocolate bars stated that the bars were selling to $4 in 2020 and is now up to $5 a bar.  They also noted that it is not just the cost of the chocolate but also the cost of sugar, cocoa butter, packaging, and labor costs.

If you need help sourcing ingredients for your company, feel free to contact SafeSourcing.   We can gather all the necessary information for you and help you decide which company and product 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.

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Does your organization implement eProcurement Solutions?

Thursday, February 15th, 2024

 

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

In the fast-paced world of business, every dollar saved counts. Whether you’re a small startup or a multinational corporation, finding ways to cut costs without sacrificing quality is essential for long-term success. One area where significant savings can be realized is through efficient supply management. With the advent of technology, eProcurement has emerged as a game-changer in this regard, offering businesses a streamlined and cost-effective approach to purchasing supplies.

eProcurement (electronic procurement) is the process of purchasing goods and services electronically, typically through online platforms or software systems. Unlike traditional procurement methods that rely on manual processes such as paper-based purchase orders and invoices, eProcurement automates the entire procurement cycle, which can streamline to process and cut down significantly on time.

One of the primary advantages of eProcurement is its ability to drive cost savings. By leveraging online marketplaces, comparing prices, and negotiating discounts, businesses can secure better deals on their purchases. Additionally, eProcurement helps eliminate the overhead costs associated with manual processing, such as paper, printing, and labor, further reducing expenses.

eProcurement presents a compelling opportunity for businesses to achieve significant cost savings and efficiency gains in supply management. By embracing technology, streamlining processes, and leveraging data-driven insights, organizations can optimize their procurement practices and position themselves for long-term success in today’s competitive landscape.

Through strategic implementation and continuous improvement, businesses can harness the power of eProcurement to drive savings, enhance operational efficiency, and unlock new opportunities for growth and innovation.

For more information on eProcurement and how the SafeSourcing team can get you started, or on 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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Why use SafeSourcing versus other providers in the Procurement Space?

Thursday, February 1st, 2024

 

Today’s post is from a collection of data and other tools that SafeSourcing’s CEO Ronald D. Southard uses regularly in the pursuit of fresh content.

  1. Cost Savings: SafeSourcing can help businesses achieve cost savings through strategic sourcing and negotiation processes. By leveraging their expertise and technology, they will assist in obtaining better prices from suppliers than you can.
  2. Efficiency in Procurement: SafeSourcing offers tools and platforms that streamline the procurement process, making it more efficient and reducing the time and resources required for sourcing all categories of goods and services.
  3. Supplier Relationship Management: SafeSourcing might provide services to help businesses manage relationships with their suppliers effectively. This can include monitoring performance, addressing issues, and fostering collaborative partnerships.
  4. Risk Mitigation: The company may have tools and processes in place to assess and mitigate risks associated with the procurement process. This could include evaluating supplier reliability, compliance, and other factors that may impact business operations.
  5. Access to a Network of Suppliers: SafeSourcing could offer access to a wide network of pre-vetted suppliers in their SafeSourceIt™ Supplier Database. This can be particularly beneficial for businesses looking to expand their supplier base or enter into new markets.
  6. Technology Integration: If SafeSourcing utilizes advanced technologies, businesses may benefit from the integration of these tools into their procurement processes. This could include e-sourcing platforms, analytics, and other technological solutions embedded in the SafeSourceIt™ family of solutions.
  7. Compliance Support: SafeSourcing through regularly sourcing hundreds of categories may assist businesses in ensuring that their procurement practices comply with relevant or evolving regulations and industry standards. This can be crucial for avoiding legal issues and maintaining a positive corporate image.
  8. Customized Solutions: The company may tailor its managed services to meet the specific needs of individual businesses. This personalized approach can be advantageous in addressing unique challenges and optimizing the procurement process.

To learn more please contact a SafeSourcing Customer Services Representative.

 

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There are many challenges when sourcing freight lanes.

Tuesday, January 23rd, 2024

 

Todays oldie but good post is from our SafeSourcing Archives.

You have to keep your eyes open in this category as there are many moving parts you might never anticipate, like are there actually enough drivers to fill the trucks.

Most people would guess that it is the cost of fuel, new regulations or the age of a providers fleet that keep adding costs for third party freight companies.

An area most buyers of these services might not think about is the cost of and need for qualified drivers. Most 3rd party freight companies are looking for drivers and there are not enough to go around.

Our economy rides on the wheels of the freight companies that ship our goods across the country, in fact all across North America.

So what happens when there is a shortage of drivers? It’s pretty simple, prices go up. Why? Because freight companies have to compete for qualified drivers and when there are not enough to go around, the price for these services go up. It’s a pretty simple supply and demand equation.

In an interesting and  related article in the June 25th edition of USA TODAY titled Trucker jobs go unfilled, leading to delayed deliveries by  Paul Davidson of USA TODAY indicates that the annual driver turnover rate at large carriers rose to a four-year high of 90%.

When you source your freight lanes make sure that you understand all of the dynamics that impact cost.

If you’d like help sourcing your freight lanes, contact a SafeSourcing customer services representative.

We look forward to and appreciate your comments.

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Category Captain

Tuesday, January 9th, 2024

 

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

Does your company have a Category Captain (Subject Matter Expert) for all of your spend areas?

Within a category, a category captain is the manufacturer‘s representative responsible for analyzing the product movement, assortment, inventory management, promotion, buying, and profitability for a specific geographic area or an entire chain. They will be expected to have the closest and most regular contact with the retailer. In order to do the job effectively, the supplier may be granted access to a greater wealth of data-sharing.

At SafeSourcing we offer SaaS based eprocurement solutions, as part of our SafeSourceIt™ family of products. Each product is backed by white-glove services with battle tested statements of work.

If you lack specific product knowledge or only source  certain categories less than annually, and would like to understand current market drivers,, please contact a SafeSourcing customer services associate.

 

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Why increased profitability continues to evade the middle market retailers.

Friday, January 5th, 2024

 

Today’s post is from Ron Southard, CEO at SafeSourcing Inc.

I wrote this post 14 years ago and it’s still true today.

There are two primary sources of objections that continue to halt the use of these profit enhancing tools in the retail middle markets particularly c-stores and regional supermarket chains.

The first source is your own buyers or category managers. For some, it is the false belief that these tools will eliminate their jobs. For others, it is the thought that in rising markets, buyers tend to be conservative in the hopes that their suppliers will continue to honor old contracts and delay price increases. Neither assumption is true. E-procurement tools make a buyer’s job easier as they can do more in less time such as working with dozens of suppliers versus only the same few. Honoring old contracts almost never happens. Ever-greening of contracts is a huge problem in retail where the lack of sophisticated contract management systems that can provide automatic alerts results in hundreds of contracts auto renewing at predetermined price increases. This results in huge cost increases to retailers that were not planned for. This is all the more reason to be thinking about your spend months before contracts expire even if it only results in cost avoidance.

The second area where you can expect pushback is from your incumbent suppliers or wholesale distributors. If you have never participated in the setup of a reverse auction and most middle market retailers have not, that initial call to your suppliers to ask them to participate in a reverse auction event is always an interesting journey. Be prepared for all of the reasons in the world why you should not waste your time on this type of process. The more forceful the pushback the more likely you are to see savings that you should have seen earlier. As such, although suppliers may b well aware of or even using these technologies to reduce their costs, middle tier retailers have not able to share in these savings to the extent they should.

If middle market senior executives lead the charge and cost and the availability of new sources of supply is no longer an issue, there is no reason middle market retailers should not benefit greatly from running online bids or RFQ’s.

If you’d like a risk-free trial, please contact SafeSourcing.

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So, what happens with the evolution of Artificial Intelligence, Quantum Computing and Crypto?

Wednesday, December 20th, 2023

 

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

Do you need Artificial Intelligence (Ai) to write your business plans for you, or Quantum Computing to come up with your next strategic plan? Will you report your earnings in Crypto like Bitcoin (BTC) or Satoshi instead of dollars?

As we close out 2023, these are some of the questions I ponder as everything in our world evolves at greater than the speed of light. Who knows, maybe I’m strange, but this is a fascinating time to be alive.

I can’t just do my job of running our managed service eProcurement Company SafeSourcing without considering these things. Just imagine when Quantum computing and Ai come together to provide you will all the questions you haven’t asked almost before you think of them. The speed of an Ai layer at quantum speed might just be able to do that. Assume you ask your Ai interface a very logical question on a thought process you are having regarding your product and or process evolution and the Ai interface provides you a very detailed answer and then presupposes your next question and answers it and so on.

If you are a leadership person with the responsibility of maintaining your company’s viability, you have to think how these evolving technologies will impact how you do business. If you don’t you won’t be here.

Here are a few questions that might let you know if you are keeping pace.

  1. What is digital gold?
  2. Who is Satoshi Nakamoto?
  3. What is Satoshi?
  4. What is a Qubit?
  5. How does a Qubit work?
  6. What is the fastest Qunatum computer in the world?
  7. What companies and countries are focused on Quantum computing
  8. Does the Macro financial world impact Crypto in the same way it does the stock market?
  9. What is the temperature of a quantum computer?
  10. How long does it take to settle an international transaction with Bitcoin (BTC)?
  11. How safe will data be at quantum speeds?

If you know all of the answers, congratulations. At SafeSourcing we are looking at all of these technologies so that we continue to be the best provider of eProcurement solutions for our customers.

SafeSourcing is a Procure to Pay Managed Service provider of a number of e-Procurement solutions and associated white glove services that are part of our cloud based SafeSourceIt™ eSourcing suite.

For more information, please contact a SafeSourcing Customer Services Associate.

 

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Holiday Shipping

Tuesday, December 12th, 2023

 

Todays timely repost is from our Newsletter Archives and was written by Gayl M Southard former VP of Administration at SafeSourcing Inc.

According to Santa’s Elf Grumpy, many people want to know how Santa makes it around the world in just 24 hours. Some speculate it’s a government conspiracy, its Santa’s magic dust, perhaps Santa rides the magic of Christmas, could it be the theory of Santa-Relativity, the Naughty/Nice Matter/Anti-Matter, time bending, or time warping. There’s only one slight problem, Grumpy can’t tell you how Santa does it. (And he’s not even being grumpy about it!)

Have you heard of time zones? Well, Santa uses them to cheat — on time! He takes advantage of the Earth’s time zones! He starts by delivering presents at the International Date Line and travels west following the Earth’s rotation around the sun. By doing that he gains many, many extra hours of time. Children are actually waking up and opening presents while Santa is still delivering! Did you know that, if you live in the U.S., today is already tomorrow in Australia? Likewise, when Santa is in Australia, it is already yesterday in the U.S. This is a handy trick to know when you’re Santa Claus! So now you know the secrets to Santa delivering presents! And now you know how fast Santa can travel. You even know how Santa gets around the world in one night! Just please don’t tell everyone. I don’t want people appearing and disappearing all over the place like they were Santa Claus delivering all the presents!

If you’d like some help with your procurement or supply chain needs, please contact SafeSourcing. We’ll treat you with the same spirit in which this post is written.

References

Bob Tita, WSJ, 10/28/2021

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Are you spending enough time and focus on the bottom line!

Wednesday, December 6th, 2023

 

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

I was listened to a rant by Bernie Marcus today on MSN about focusing on the bottom line and not being distracted by wokeness.

One quote resonated with me. “We need leaders who are basically thinking about the shareholders and their employees,” he added. “And I think today it’s all about woke diversity, things that don’t hit the bottom line.” While I agree with the 1st sentence of the quote, I do think there continues to be a need to focus on a more diverse workplace.

I rant fairly frequently about the treatment of employees who are too often used to reducing costs because of a lack of focus on other cost areas that can return similar results. In fact, this focus is part of our elevator pitch as is the need to focus on the bottom line.  It goes like this. “We assist our customers in significantly reducing costs to improve gross margins and net earnings, support growth plans and maintain, retrain where needed and grow associate headcount”. That’s’ who SafeSourcing is!

How do we do it you ask? With SafeSourcing’ s eProcurement White Glove Services. And we average greater than 24% savings across all categories. Apply that number to your cost of goods and expense plan. Then compare it to savings attributed to your planned employee layoffs.

SafeSourcing is a Procure to Pay SaaS based provider of a number of e-Procurement solutions and associated white glove services that are part of our SaaS offered SafeSourceIt™ eSourcing suite. That includes our SafeSourceIt™ Global Supplier Database that includes over 557,000 vendor/suppliers.

To learn more, please contact a SafeSourcing customer services associate.

 

 

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