Archive for the ‘E-supply Chain’ Category

Retail e-procurement. What about your existing relationships.

Friday, February 26th, 2010

I could not agree more with the above comment. So beyond just reducing their prices which should not happen if you are being treated fairly, how else do suppliers benefit from participation in e-procurement events such as reverse auctions so that it is win-win?

Customers quite often ask us why suppliers would want to participate in an e-procurement event. A discussion usually follows relative to incumbent suppliers vs. new sources of supply. In general most vendors in the space would come up with many of the same points listed below. Please read on.

SafeSourcing? places a great deal of value in our SafeSourceIt??? Global Retail Supplier Database? which contains over 350,000? retail suppliers located in Mexico, Canada the United States, China, Korea, The United Kingdom, Japan and other countries. We place a great deal of value on each individual supplier regardless of their size. We believe that well thought out next generation e-procurement tools can provide significant benefits to buyers and suppliers whether they are hosting or participating in e-procurement events.?

Some but certainly not all benefits that suppliers can anticipate from SafeSourcing are:
?
1. An easy to use e-procurement tool limited to a single page view where a supplier can be completely comfortable that their company?s best foot is being put forward to the soliciting company.

2. An increase in new business opportunities through engagements they would otherwise not be exposed to.

3. Clean data relative to the soliciting or host company and an accurate listing of their event guidelines, specifications, terms, conditions and other information necessary to build an accurate and successful pricing strategy.

4. High quality training in event participation and strategy development.

5. A clear focus on what?s important beyond price in next generation e-procurement tools such as supplier safety certifications and practices as well as their environmental programs that will differentiate them from other suppliers.

6. Closed loop reporting of results of the specific e-procurement event a supplier participates in as well as a detailed supplier feedback questionnaire..

7. Significant time savings associated with new business development that becomes more and more costly as fuel and other prices continue to rise.

8. Industry pricing trends extrapolated from their view of low quote information during the event if allowed by the soliciting company.

9. Use of these tools for their own procurement needs.

I?m sure many of you can come up with other reasons. E-procurement events have to be win-win if they are going to become part of a retail companies on going business processes.

We look forward to and appreciate your comments.

China is at it again. Are we being vigilant enough?

Thursday, February 11th, 2010

A blurb in Today?s News Briefing section of USA TODAY was titled China recalls 170 tons of tainted milk powder. On the surface one might think this is good news because the product was detected and removed from the supply chain. The bad news is we thought the same thing in 2008 about the same exact product. Not the same issues with a new product, but the exact same product that was to have been recalled and destroyed but was repackaged and then distributed again. The product again is milk power tainted with melamine which I have posted on in the past.

The product mentioned above may not have been destined for or ever have made out side of China. The real issue is what is being done by companies to check for and insure the ingredients, formulas and makeup of products they are buying overseas when unscrupulous individuals or poorly run companies try to pull the wool over our eyes. Who is your internal agent that asks the right questions? Who are your service providers that do the same on your behalf? It is something that most companies do not think about and need to.

Below are four posts from previous years on related subjects. Please review and refresh your efforts on the behalf of your consumers to make sure that your offshore purchases have less risk associated with them.

1.?Do we get quality products from China?? When will we and how much will it cost? 9/08/2008

2.?At what cost profit? Procurement professionals need to exercise great care when sourcing food products from China. 10/22/2008

3.?Let?s review a good idea from China and build on the traceability discussion. 10/08/2008

4.?Part II of II What should grocery product procurement professionals know and do about Melamine. 12/01/2008

We look forward to and appreciate your comments.

SafeSourcing trains hundreds of suppliers every week to use e-negotiation tools to their benefit.

Tuesday, February 9th, 2010

SafeSourcing Inc. places a great deal of value in our SafeSourceIt?? Retail Supplier Database of over 350,000 suppliers located in Mexico, Canada the United States, China, Korea, The United Kingdom and the European Union? Additionally we also place a great deal of value on each individual supplier regardless of size. We believe that well thought out next generation e-negotiation tools can provide significant benefits to buyers and suppliers whether they are hosting or participating in e-negotiation events such as reverse auctions of RFI?s.?

Some but certainly not all benefits that suppliers can anticipate from SafeSourcing are:
?
1. An easy to use e-negotiation tool limited to a single page view where a supplier can be completely comfortable that their company?s best foot is being put forward to the soliciting company.

2. An increase in new business opportunities through engagements they would otherwise not be exposed to.

3. Clean data about the soliciting company and an accurate listing of their event guidelines, specifications, terms, conditions and other information necessary to build an accurate and successful pricing strategy.

4. Best practice training in event participation and strategy development.

5. A clear focus on what?s important beyond price in next generation e-negotiation tools such as supplier safety certifications and practices as well as their environmental programs that will differentiate them from other suppliers.

6. Closed loop reporting of results of the specific e-negotiation event a supplier participates in as well as a detailed supplier feedback questionnaire report.

7. Significant time savings associated with new business development that becomes more and more costly as fuel and other related prices continue to rise.

8. Industry pricing trends extrapolated from their view of low quote information during the event if allowed by the soliciting company.

9. Use of the same e-negotiation tools for their own procurement needs.

10. Introduction to an educational website that provides all sorts of free tools for procurement professionals use including a daily safety alerts from over 25 sources, a daily sourcing blog, a? sourcing wiki and SourceBook? the industries only social network for procurement professionals.

We look forward to and appreciate your comments.

This author loves all kinds of Salami. Is it traceable?

Monday, January 25th, 2010

Rose said, ?toughie (their nick name for me) get out of the Salami?. I had this bad habit of reaching in the refrigerator (possible contamination) and taking 5 or 6 slices that had been cut in half for pizza and stuffing them in my mouth all at once. The Salami was either Genoa or Volpi or some other top quality brand. I did not even know where it came from and I?m sure that neither Rose nor Margaret (both from Italy) the proprietors could trace it either.

Today I live in Arizona. We have a few good Italian eateries here but not a very large Italian community. I was reading the Arizona Republic today when an article jumped out at me titled R.I. Company recalls salami. This article was attributed to the Associated Press. Being as Rhode Island is very close to Boston and also has a great Italian section called Federal Hill and the subject was salami I read on. As you are aware, my most recent post was also on product safety and traceability, titled Procurement Professionals can aid in product safety adherence.

The article went on to say that a Rhode Island meat company had recalled 1.24 million pounds of pepper coated salami after month?s long investigation of a salmonella outbreak that sickened 184 people in 38 states by comparing shopping receipts of those who got sick. This certainly supports one forward and one back accountability from a retailer?s perspective but this author is not sure that the intention of the rule is to have to chase down receipts which is extremely time consuming, costly and a strategy that provides the possibility of an extremely limited sample.

The definition of traceability according to Wikipedia refers to the completeness of the information about every step in a process chain. Traceability is the ability to verify the history, location, or application of an item by means of documented recorded identification. Doing this systematically is where the retail industry needs to be.

This author has discussed this in numerous previous posts. One of my favorites is from September of 2008 titled Traceability-also-requires-sensibility-if-you-want-a-safe-supply-chain.? So what can you do as a retailer? Begin by asking your e-procurement solutions provider how they address traceability with their tools.

We look forward to and appreciate your comments.

Where?s the Beef and how do we trace it?

Thursday, January 21st, 2010

A recent beef recall reported in the USA TODAY on January 20th indicated that 864,000 pounds of beef have been recalled by a Southern California based meat packing company because it might contain e.coli. The good news is that this occurrence was caught during a food safety inspection. This means that sometimes the systems we have in place work. So kudos?s to those that are doing their jobs on behalf of public interest.

What the above situation does not suggest is the problem associated with recalls and the role that traceability in the supply chain plays. Although there has been a lot of work done over the last couple of years, the accepted standard in traceability continues to be one forward one back. That means we require knowing where the meat packing company got their meat from and who they sold it to. In the USA TODAY article it suggested that? the meat was distributed to distribution centers, restaurants and hotels in California for a 3 month period in 2008 and a 10 day period during 2010. The question this begs is where did those organizations distribute the product to and can they recall it if the product even still exists. The act of a recall can be both good and bad. Hopefully it is good for the consumer. It is however never good for the distributor since they already paid for the product. It may however improve their reputation with their customers as a quality company.

What this short article suggests is that safety inspections need to be carried out on schedule and resulting recalls have to be executed quickly to all destination points in the supply chain. This clearly requires better than one forward one back accountability and is what all procurement solution providers should be striving for with their data sources.

We look forward to and appreciate your comments.

Where’s the Beef and how do we trace it?

Thursday, January 21st, 2010

A recent beef recall reported in the USA TODAY on January 20th indicated that 864,000 pounds of beef have been recalled by a Southern California based meat packing company because it might contain e.coli. The good news is that this occurrence was caught during a food safety inspection. This means that sometimes the systems we have in place work. So kudos’s to those that are doing their jobs on behalf of public interest.

What the above situation does not suggest is the problem associated with recalls and the role that traceability in the supply chain plays. Although there has been a lot of work done over the last couple of years, the accepted standard in traceability continues to be one forward one back. That means we require knowing where the meat packing company got their meat from and who they sold it to. In the USA TODAY article it suggested that  the meat was distributed to distribution centers, restaurants and hotels in California for a 3 month period in 2008 and a 10 day period during 2010. The question this begs is where did those organizations distribute the product to and can they recall it if the product even still exists. The act of a recall can be both good and bad. Hopefully it is good for the consumer. It is however never good for the distributor since they already paid for the product. It may however improve their reputation with their customers as a quality company.

What this short article suggests is that safety inspections need to be carried out on schedule and resulting recalls have to be executed quickly to all destination points in the supply chain. This clearly requires better than one forward one back accountability and is what all procurement solution providers should be striving for with their data sources.

We look forward to and appreciate your comments.

Bad sourcing practices can cause more than just “the cadmium blues.”

Friday, January 15th, 2010

According to Wikipedia cadmium has no constructive purpose in the human body. Cadmium and its compounds are extremely toxic even in low concentrations, and will bioaccumulate in organisms (that’s us) and ecosystems (that’s where we live).

This author posts frequently on safety issues and realities in sourcing practices. Particularly when you are buying from and unknown source, offshore or products for which you have no specific product specification. Consumers would be surprised how many products are bought offshore during buying trips that don’t have a specific specification. An example might be something as simple as a tiki lamp that comes under the category of seasonal, pool supplies or miscellaneous. Another that has been in the news recently is children’s costume jewelry. The issue that bothers this author is that for some of the largest names in retail that generally have great procurement practices there is really no excuse for these products making their way on to the shelves of our stores. There should be a check list of standards and certifications that suppliers have to adhere to in order for their products to come onshore in the first place. I can’t believe that a simple question like “Do these products contain any harmful chemicals in their makeup such as cadmium etc.” If the answer is we don’t know then don’t buy them or make the manufacturer provide a chemical breakdown of the product.

Inez Tenenbaum the head of the Consumer Product Safety Commission advises, “Do not allow young children to be given or to play with cheap metal jewelry, especially when they are unsupervised. This author whishes to paraphrase, DON’T ALLOW IT WHETHER SUPERVISED OR NOT. And further. Retailers don’t buy these products regardless of profit margins unless you know they are safe period.

We look forward to and appreciate your comments

Bad sourcing practices can cause more than just “the cadmium blues.”

Friday, January 15th, 2010

According to Wikipedia cadmium has no constructive purpose in the human body. Cadmium and its compounds are extremely toxic even in low concentrations, and will bioaccumulate in organisms (that?s us) and ecosystems (that?s where we live).

This author posts frequently on safety issues and realities in sourcing practices. Particularly when you are buying from and unknown source, offshore or products for which you have no specific product specification. Consumers would be surprised how many products are bought offshore during buying trips that don?t have a specific specification. An example might be something as simple as a tiki lamp that comes under the category of seasonal, pool supplies or miscellaneous. Another that has been in the news recently is children?s costume jewelry. The issue that bothers this author is that for some of the largest names in retail that generally have great procurement practices there is really no excuse for these products making their way on to the shelves of our stores. There should be a check list of standards and certifications that suppliers have to adhere to in order for their products to come onshore in the first place. I can?t believe that a simple question like ?Do these products contain any harmful chemicals in their makeup such as cadmium etc.? If the answer is we don?t know then don?t buy them or make the manufacturer provide a chemical breakdown of the product.

Inez Tenenbaum the head of the Consumer Product Safety Commission advises, ?Do not allow young children to be given or to play with cheap metal jewelry, especially when they are unsupervised. This author whishes to paraphrase, DON’T ALLOW IT WHETHER SUPERVISED OR NOT. And further. Retailers don?t buy these products regardless of profit margins unless you know they are safe period.

We look forward to and appreciate your comments

Do your suppliers adhere to all of ISO’s environmental standards?

Wednesday, January 13th, 2010

ISO has published a new, updated brochure providing a basic introduction, as its title indicates, to Environmental management – The ISO 14000 family of International Standards. The 12-page, color brochure is the latest edition of a successful publication first released in 1998, two years after the launching of the first standards in the ISO 14000 family

The International Organization for Standardization widely known as ISO, is an international standard -setting body composed of representatives from various national standards organizations. Founded on February 23, 1947, the organization promulgates world-wide industrial and commercial standards. It is headquartered in Geneva, Switzerland. While ISO defines itself as a non – governmental, its ability to set standards that often become law, either through treaties or national standards makes it more powerful than most non-governmental organizations. In practice, ISO acts as a consortium with strong links to governments.

The SafeSourceIt™ Supplier Database holds it suppliers accountable to many ISO standards including 14000, 7002, 9001 and 22000.

We look forward to and appreciate your comments.

Do your suppliers adhere to all of ISO?s environmental standards?

Wednesday, January 13th, 2010

ISO has published a new, updated brochure providing a basic introduction, as its title indicates, to Environmental management ? The ISO 14000 family of International Standards. The 12-page, color brochure is the latest edition of a successful publication first released in 1998, two years after the launching of the first standards in the ISO 14000 family

The International Organization for Standardization widely known as ISO, is an international standard -setting body composed of representatives from various national standards organizations. Founded on February 23, 1947, the organization promulgates world-wide industrial and commercial standards. It is headquartered in Geneva, Switzerland. While ISO defines itself as a non ? governmental, its ability to set standards that often become law, either through treaties or national standards makes it more powerful than most non-governmental organizations. In practice, ISO acts as a consortium with strong links to governments.

The SafeSourceIt? Supplier Database holds it suppliers accountable to many ISO standards including 14000, 7002, 9001 and 22000.

We look forward to and appreciate your comments.