Archive for the ‘E-procurement’ Category

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It’s NOT being braggadocios if you REALLY are better than your peers.

Tuesday, February 28th, 2023

 

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

We are not bragging or being mean spirited; we are that good. Ask our customers. According to them we are invaluable to their company. So why not to yours. Take me to task and I’ll prove it. You nor anyone else on your team sources many of your products and services as often as we do. If you source a category once every one to three years, you are not a category expert because too many changes happen that you can’t keep up with. We can help you!

At SafeSourcing, we help procurement teams save considerably on costs by providing tools and services that enhance the ability to do business in a better, safer, smarter, more streamlined, and cost-effective way.   Our Customer Services team is one of the best in the industry at complimenting existing procurement teams to help structure and develop projects in less time for better results.

Our white-glove service offerings coupled with our suite of e-procurement tools deliver referenceable savings results that are greater than 10 times the cost of our services, improving Gross Margin and Earnings significantly.

So, give us a call.  And ask us about our e-Procurement solutions and associated white glove services and our SafeSourceIt™ Global Supplier Database  that includes over 557,000 vendor/suppliers. We can get you better pricing on about any category of product or service.

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

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You should consider Lifecycle Costing when calculating savings on new business awards.

Tuesday, February 21st, 2023

Today is a re-post from a long long time ago. What’s changed you ask? NOT MUCH!

It’s true that a reverse auction can create substantial low quote savings. However, much needs to be considered when tracking realized savings once the event has concluded and the award of business is ready to be made.

Lifecycle Costing is a procurement technique which considers operating, maintenance, acquisition price, and other costs of ownership in the award of contracts to ensure that the items or services to be acquired will result in the lowest total cost of ownership during the time the item’s function is required.

If a category is truly returning event savings, it should be able to be tracked from original delivery to contract termination on a companies detailed P&L. The trick is that many of the associated costs go to different departments on the P&L. If you don’t know which ones, your pre-event discovery was not complete and the odds of getting the actual savings reported are at significant risk.

So, give us a call.  And ask us about our e-Procurement solutions and associated white glove services and our SafeSourceIt™ Global Supplier Database  that includes over 557,000 vendor/suppliers. We can get you better pricing on about any category of product or service.

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Has anyone ever asked you what a recession is?

Wednesday, January 11th, 2023

 

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

According to BING, A recession is a prolonged period of economic decline, beginning when the economy peaks and ending when it bottoms out. Recessions are typically marked by an economy shrinking in back-to-back quarters, measured by gross domestic product (aka, how much are we collectively buying and producing as a society).

So now that you were able to answer the question, how would you respond to how we end it or get out of it. The answer is embedded in the definition. We need to produce more, and we need to sell more. To sell more there needs to be adequate demand along with a price that companies and consumers are willing to pay. I will not get into commodity prices etc. This is a 300-word blog.

If it were me, I would tell my team to look at every contract we have and to get us better pricing. I would then pass those price savings on to my customers to encourage more purchasing. I would take the margin hit in my financials.

While simplistic, this is exactly what SafeSourcing does for our customers. We do it through a lot of tools and processes. Tools that find sources of supply willing to bid on our customers business if incumbent suppliers will not share the burden in cost reduction. Tools that encourage supplier behavior that supports a mission of, if you reduce my price and I reduce my customers price, we both sell more.

So, give us a call.  And ask us about our e-Procurement solutions and associated white glove services and our SafeSourceIt™ Global Supplier Database that includes over 557,000 vendor/suppliers. We can get you better pricing on about any category of product or service.

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

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So, you work in the supply chain?

Thursday, January 5th, 2023

 

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

According to Supply Chain Management companies there are eight specific areas that define the supply chain. Most people do not understand the complexity of this area or how it impacts their lives until they go to buy a new car or find an empty shelf when shopping. Each of these areas are complex with as many process areas of their own. In the procurement area, commonly referred to as Procure to Pay there are also very specific tools and processes that help to keep the supply chain moving. That is where SafeSourcing plays, and our associates are well versed in all other areas outside of procurement by necessity to do their job.

Below are the eight key areas.

  1. Strategic Planning Process
  2. Demand Planning Process
  3. Supply Planning Process
  4. Procurement Process
  5. Manufacturing Process
  6. Warehousing Process
  7. Order Fulfillment Process
  8. Transportation Process

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. These include but are not limited to SafeContract™, SafePO™, SafeDocument™ and 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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Doom and Gloom, nobody is spending MONEY.

Wednesday, December 7th, 2022

 

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

I went to a mall this past weekend. It’s something I always liked to do during the holidays. Truth be told I used to love it as a kid during the pre-indoor shopping days. The cold of going from store to store made it seem more like the holidays and if I was lucky, it might even snow. All that much better in my mind.

Well, the hustle and bustle are back even if it is indoors. The first indication that consumers are being, well consumers was that there were no parking spots at 11 a.m. So, we circled and finally found a spot. To say the mall was crowed is an understatement. Literally every single store had waiting lines at the checkout. The restaurants were all full as were the coffee shops. I have never seen so many people in a Nordstroms, and their Café had a line out the door. When we finally left, the line to get in the parking garage was dozens of vehicles in length. So, consumers are not listening to the financial pundits and news channels. Much is still ok with the American consumer and prices will continue to go up on everything other than maybe real estate.

In a supporting article in the Wall Street Journal titled, Stocks Fall After Strong Data Raises Rate Fears Crude-oil prices extend declines, Treasury yields tick lower By Will Horner Follow and Jack Pitcher, the quote David Donabedian “The economy continues to show a degree of strength that I think was not expected,” said David Donabedian, chief investment officer at CIBC Private Wealth US. “The consumer is hanging in there quite well, jobs continue to be added, wage growth is significant, and consumers are still spending.”

Based on my observations and the above article, it does not sound as though consumer spending will be going down any time soon. So, you guessed it, prices are going up for everybody, individuals and businesses alike.

So, how do companies make sure they are sourcing products for you economically? Hey should Contact SafeSourcing Inc. We buy it more often than they do and know the levers to pull.

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. These include but are not limited to SafeContract™, SafePO™, SafeDocument™ and our SafeSourceIt™ Global Supplier Database that includes over 557,000 vendor/suppliers.

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

Resources: Wall Street Journal

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How do you keep track of all the moving parts with your Procurement Team?

Monday, November 14th, 2022

 

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

You must be a WIZARD, and we have any easy to deploy solution for you.

SafeDashboard™ is the configurable entry point for companies to view every piece of information and tool that they have access to within the SafeSourceIt™ Portfolio.

Custom fit for every company, and to some extent every role and user within the company, the SafeDashboard™ allows a company to see the information that is most relevant to specific users in a way that does not require them to jump from screen to screen.

KPIs can be included to give executives an overview of their overall sourcing event activity within the system.

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. These include but are not limited to SafeContract™, SafePO™, SafeDocument™ and 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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Powerball is at Two Billion Dollars WOW. Did you buy a ticket?

Monday, November 7th, 2022

 

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

If you took the risk of buying a ticket or many tickets in the recent Power Ball. Join the losers club. That includes yours truly. According to sources, your chance of winning Powerball is 1 in 292 million. You have a better chance of being struck by lightning. Oh, and guess what? You cannot get your money back.

So, if you were silly enough to make this bet as I was and will do on Monday, why not try a sure thing. SafeSourcing guarantees our results. If you don’t win, you don’t pay. Our risk-free trial just might be the best thing to happen to your company. How many jobs would be saved or delayed, or new initiatives started if you had a billion dollars.

Here’s An Example:

Assume a $5B Retail Company. Assume cost of goods for this company is 70 percent or $3.5B. Let’s also assume this company were to only source thirty percent of their for-resale COGS. or $1.5B. With SafeSourcing’ s average annual savings of 24%, savings generated would be $840M. Now let’s assume that we also source the indirect or expense category. That would be $1.5B minus average payroll and benefits expense of 20%, so $1.2B. If we also average 24% savings here, that would be an additional savings of $288M. Therefor total savings would be $1.128B. From here we’d have to manage award of business and contract begin and end dates.

If you don’t have $5B in sales, the numbers would still be dramatic. When’s the last time Powerball guaranteed a $1M winner.

Can you find thirty percent of your COGS or Not for Resale spend to source? That’s up to you! Can you test me, if you’d like, this link will come directly to me. Your team will tell you this is not possible. I guarantee that your odds are better than 1 in 292 million.

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. These include but are not limited to SafeContract™, SafePO™, SafeDocument™ and our SafeSourceIt™ Global Supplier Database that includes over 557,000 vendor/suppliers.

Best of Luck!

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

 

 

 

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Have you ever eSourced a House?

Thursday, October 27th, 2022

 

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

These are two good questions as the real estate market reacts to work from home, inflation driven mortgage rates and uninterested buyers.  I have often thought about using a reverse auction tool to source a home. It should work in that it allows for initial offers, sets parameters for interested buyers and does not restrict you from over bidding or underbidding while providing feedback as to whether you are below the list price, reserve price and where you are ranked in the bid process. Easy right?

At SafeSourcing we have done all types of RFP’s and RFQ’s for construction related expenditures including land, architects, general contractors, sub-contractors and about any material you can think of needed for the final build. We then also hold the general contractors responsible to the items that drive their bid submission. Below are categories that have been sourced quite a few times.

 

 

 

 

 

 

 

 

 

 

 

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. These include but are not limited to SafeContract™, SafePO™, SafeDocument™ and 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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Economic Order Quantity and Other Procurement Terms

Wednesday, October 26th, 2022

 

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

In procurement bets practices, ever evolving terminologies can get you into trouble if you don’t understand the slight differences or assume terms have the same meaning.

The landed cost is the total cost of acquiring and shipping a product. It is the total price paid by a retailer till they receive the goods. The common charges involved are shipping costs, customs fees, insurance, and overheads.

The Economic Order Quantity is the size of an order at which the totally procurement and inventory carrying cost is at the lowest possible threshold. The formula can be used to determine production levels or order interval lengths and is used by large corporations around the world. The components for the formula include the demand for the year, cost to place a single order, and the cost to hold one unit of inventory for a year.

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. These include but are not limited to Safe Contract™, SafePO™, SafeDocument™ and 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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Retailers it’s really pretty simple; just look at your Gross Profit.

Thursday, October 20th, 2022

 

Todays post is by Ron Southard, CEO at SafeSourcing Inc.

How many times do we hear all of the reasons for a retail company’s performance being off? It’s the cost of doing business over seas, the economy, the cost of fuel, heath care costs etc. How often do we hear, that we are doing better than the same period a year ago or we are exceeding plan. All of that is nice stuff, but the bottom line is your bottom line. If you top line sales are up and your net profit is up it does not necessarily mean that you have all of your procurement issues under control.

Let’s start with some numbers you might want to look at. Don’t just assume that profit is a good thing because profit could be caused by an imbalance in your category margins.

Here are a few good questions to ask yourself.
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1. How do your cost of goods compare to the rest of the industry for a chain of your size?
2. How do your operating expenses compare to other chains of your size?
3. How do your gross margins compare to other chains your size?

All of the above can be good indicators of overall company health and certainly procurement health. If your cost of goods is higher than industry averages for a chain of your size, why is that? Is there a specific category that is causing the issue? Do you know how to isolate the problem and then eliminate it?

If you don’t have or know this information, you should ask your e-procurement provider if they have it, because they should if they want to model an improvement plan for you.

As an example, here is an example of a previous years U.S. based convenience store chains targets for non fuel.

1. Cost of Goods Sold should run somewhere around 71% or 72%
2. Gross Profit should run around 28% to 30%
3. Operating Expenses should run around 26% to 29%
4. Net Operating Income around 2%

While these numbers are certainly off based on Pandemic issues, product  or services mix, you can build a case model on them to compare before and after for you company. That is if you have a tool like SafeBIM™ from SafeSourcing. BIM stands for Business Impact Model.

If you are way out of balance with these numbers and want to understand how to rebalance them, contact a  SafeSourcing Customer Services Associate.

 

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