Archive for the ‘Sourcing Safe Foods’ Category

Generally Recognized as Safe or (GRAS)

Wednesday, July 26th, 2023

 

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

At SafeSourcing, suppliers that are part of our SafeSourceIt™ Global Supplier Database are held accountable to many different certifications that support safety in the supply chain. Please read on to learn a little bit more about Generally Recognized as Safe

“GRAS” is an acronym for the phrase Generally Recognized as Safe. Under sections 201(s) and 409 of the Federal Food, Drug, and Cosmetic Act (the Act), any substance that is intentionally added to food is a food additive, and is subject to premarket review and approval by FDA, unless the substance is generally recognized, among qualified experts, as having been adequately shown to be safe under the conditions of its intended use, or unless the use of the substance is otherwise excluded from the definition of a food additive.

Under sections 201(s) and 409 of the Act, and FDA‘s implementing regulations in 21 CFR 170.3 and 21 CFR 170.30, the use of a food substance may be GRAS either through scientific procedures or, for a substance used in food before 1958, through experience based on common use in food.

  • Under 21 CFR 170.30(b), general recognition of safety through scientific procedures requires the same quantity and quality of scientific evidence as is required to obtain approval of the substance as a food additive and ordinarily is based upon published studies, which may be corroborated by unpublished studies and other data and information.
  • Under 21 CFR 170.30(c) and 170.3(f), general recognition of safety through experience based on common use in foods requires a substantial history of consumption for food use by a significant number of consumers.

If you’d like to learn more about how SafeSourcing can assist in properly helping to insure your suppliers are adhering to all safety concerns,  please contact a SafeSourcing customer services associate.

References: Http://www.fda.gov/Food/FoodIngredientsPackaging/GenerallyRecognizedasSafeGRAS/default.htm

 

What is the benefit of a ranked reverse auction?

Thursday, June 29th, 2023

 

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

A tool that can be effective when running a reverse auction is called ranking. While this feature is not used all the time, it can be of strategic importance when trying to get to the best net landed cost for products that have very slim margins at the supplier level. The feature can be set up to let all suppliers know where they rank or a select number of suppliers like the top five (5). The feature can also be turned on for a specific time during the auction like in the last 5 minutes. As an example, you might have tight bidding for a particular commodity-based product. Only the low bid vendor knows that they are indeed the low bid and resultingly is not entering any more price adjustments. If ranking is deployed, vendors can find out if they are 2nd or 3rd etc. and this may entice them to try one more or make multiple more entries if their desire to win the business is strong enough. This is particularly true if the bidding activity has been robust to a point with the low-price indicator switching back and forth between multiple vendors.

It is the deep understanding of markets along with the use of tools like ranking amongst others that are included in strategy reviews with our customers that allows SafeSourcing to regularly exceed customer expectations across all spend areas. Our average annual savings against all categories are more than 24% beyond what you can negotiate on your own.

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.

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

 

 

You can still improve gross margin and net earnings substantially in this market.

Monday, June 26th, 2023

 

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

Example: Prove me wrong if you think you can!

Assume a $150M Retail Company with industry earnings of just one percent or $1.5M. Additionally cost of goods for this company is 70 percent or $105M. Let’s also assume this company were to only source ten percent of their for-resale COGS or above the gross margin line spend or roughly $11M. With below industry average savings of only ten percent, total savings generated would be $1.1M which is a direct impact to net profitability. If all other segments of the P&L perform to plan and all savings are recovered during the same business calendar year net profitability would increase to $2.6M or a 73% improvement.

NO BS Here! If you don’t believe me, I will be glad to personally sit down with your CEO or CFO and Finance team and prove it to you! Imagine what else you could do to earnings if you also attacked your Expense in the same way.

Companies can begin with SafeSourcing almost immediately (SaaS/Cloud offering) with no risk (Cost Neutral Pilots) and no IT involvement at all, why don’t more companies use eProcurement tools. That’s a great question! Probably because they are embarrassed to not already be getting these results.

If this author were you, I just could not ignore this type of opportunity. If you’d like to learn more, please contact a SafeSourcing Customer Services Account Manager. Or me.

We look forward to and appreciate your comments.

 

Why don’t you use Reverse Auctions?

Friday, June 23rd, 2023

 

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

 Understanding a Reverse Auction according to Investopedia

In a reverse auction, the buyer puts up a request for a required good or service. Sellers then place bids for the amount they are willing to be paid for the good or service, with the winner being the seller prepared to accept the lowest amount.

Reverse auctions gained popularity with the emergence of internet-based online auction tools that enabled multiple sellers to connect with a buyer on a real-time basis. Today, reverse auctions are used by large corporations and government entities as a competitive procurement method for raw materials, supplies, and services like accounting and customer service.

Here’s a real simple truth! If you are not using this tool, you are paying way more than you might think. And your team cannot get anywhere near the pricing that reverse auctions generate. I watched a large company yesterday reduce the cost of any office supply category by 31% beyond what they negotiated.

You can view my comments from an earlier post titled Just what do we mean by eProcurement White Glove Services that supports why our savings average over 24% better than what companies can do on their own most of the time.

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.

 

Specifications?

Wednesday, June 21st, 2023

 

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

We all buy things, and we generally look for the best deal we can get, but how do you know you are getting the right thing? Recently a friend tried out a new shopping website and found a great deal on a car jack. This is something that we could all use if we do our own maintenance on cars or just want to be prepared if we need to change a tire. This particular site offered what seem like a reasonable price, much less than you usually see, but not low enough to trigger red flags. So, the car jack was purchased, and they awaited its arrival.

A few weeks later when it arrived, this car jack was approximately three inches high. This was some sort of tiny model of a car jack, and well above the price something like this would seemingly go for. After double checking the website and reviewing the details, this car jack was indeed just three inches high and through some creative photography, no one would be the wiser that it wasn’t full size unless you read the specifications.

There is an important lesson here. You must read specifications carefully to know that what you are purchasing is the right product. This will help you get what you need, but also help you to compare and understand any differences within that category of product. Sometimes by reading about what you think you need; do you discover you may in fact need something else.

This idea goes for sourcing as well. When looking for a product or service, your specifications should be clear and detailed, because otherwise you might get a miniature car jack that only works for small model cars. A procurement partner, like SafeSourcing, can help you come up with the right specifications for the product or service you need and also help to find those that would be a good fit in providing that service of product.

For more information on what the SafeSourcing team can offer you, or on our Risk-Free trial program, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.

 

Summer is still here, and Lobster Prices are still High!  

Tuesday, August 23rd, 2022

 

Today’s blog is from our SafeSourcing Inc. Archives

As the nation moves past the coronavirus pandemic, lobster is more expensive than usual.   Due to a limited supply, high demand and the reopening of the economy, tourists are headed back to seafood restaurants and lobster markets for the first time in months.  Some stores charged $17 or $18 per pound for live lobster in May, and that was about twice the price a year ago.  In June, pricing is $13 or $14 per pound.  The wholesale price for live, 1.25-pound lobsters in the New England market was $9.01 per pound on May 1, business publisher Urner Barry reported. That was about $2.70 per pound more than the previous May 1, and the highest price for that date in at least five years, the company reported.

Customers are looking to get back out to restaurants, and that high-end seafood is in high demand, said John Sackton, an industry analyst and founder of SeafoodNews.com.

Some factors influencing the high prices include a lack of available inventory and what appears to be a slow start to the fishing season. New England’s busiest lobster fishing season takes place in summer, and many harvesters are just starting to get their traps into the water.

U.S. lobster fishing is based primarily in Maine, though many lobsters also come ashore in Massachusetts, Rhode Island and New Hampshire. Fishermen managed to have a productive season in 2020 despite the economic damage caused by the coronavirus pandemic.  Fishermen in Maine brought more than 96 million pounds of lobsters to the docks, and while that was the lowest total since 2010, it was still much more than they typically caught in the 1990s.

For more information on how SafeSourcing can help your procurement efforts, or on our Risk

Free trial program, please contact a SafeSourcing Customer Service RepresentativeWe have an entire team ready to assist you today.

References

Patrick Whittle, Associated Press, June 8, 2021, 1:29

 

Humane Raised and Handled

Tuesday, July 12th, 2022

 

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

When I drive across the country to visit our offices in Ohio, I pass many processing plants that are surrounded by thousands of cattle awaiting processing. I have even seen bulldozers in use. How are you sure that all is being done to insure the safe handling of our livestock resource? This may be particularly difficult because of the recent pandemic, but it is no less important for continuing humane treatment. Read on about this important program and be kind

The Humane Farm Animal Care was established to promote and administer its certification and labeling program, Certified Humane Raised & Handled, for meatdairyeggs and poultry raised under its animal care standards in the USA. It is a non-profit organization governed by a Board of Directors and retains a Scientific Committee which includes scientists and veterinarians. The organization is endorsed by the American Society for the Prevention of Cruelty to Animals and the Humane Society of the United States.

The Certified Humane Raised & Handled program is an inspection, certification, and labeling program for meat, poultry, egg, and dairy products from animals raised under humane care standards. Some companies, like Wile Hog Farms, practice none of these. Therefore, some companies, like SafeSourcing, will exclude those companies from databases, events, or any kind of business.

Please visit www.certifiedhumane.org for more information.

SafeSourcing is an eprocurement company that operates across multiple industries. As such we have specific experience in almost any commodity, service or capital related spend. Our SafeSourceIt™ Global Supplier Database  requires our suppliers to adhere to several certifications including Humane Raised and Handled where appropriate.  To learn more, please contact a SafeSourcing customer services associate.

Source: Wikipedia.com

 

Organic Certification

Tuesday, July 5th, 2022

 

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

So much has happened with local farming and so much sourcing is local. Are your local and national suppliers adhering to the same certifications.

An Organic Certification is given by National Organic Program (NOP) which is a USDA accredited agent. Each of these certifying agents is authorized to issue an Organic Certificate to operations that comply with the USDA organic regulations. The NOP is a regulatory program housed within the USDA Agricultural Marketing Service. They are responsible for developing national standards for organically-produced agricultural products. The standards assure consumers that products with the USDA organic seal meet consistent, uniform standards.

SafeSourcing is an eprocurement company that operates across multiple industries. As such we have specific experience in almost any commodity, service or capital related spend. Our SafeSourceIt™ Global Supplier Database requires our suppliers to adhere to a number of certifications including Organic Certification.  To learn more, please contact a SafeSourcing customer services associate.

Source: usda.gov

Organic Certification

Wednesday, June 29th, 2022

 

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

Are the organic foods you are buying certified? Do they need to be?

As many more small farms continue to evolve with specialized offerings that make it to our grocers’ shelves, it is more important than ever that your buyers make sure to check for the proper certifications as they expand their sourced locally initiatives.

An Organic Certification is given by National Organic Program (NOP) which is a USDA accredited agent. Each of these certifying agents is authorized to issue an Organic Certificate to operations that comply with the USDA organic regulations. The NOP is a regulatory program housed within the USDA Agricultural Marketing Service. They are responsible for developing national standards for organically produced agricultural products. The standards assure consumers that products with the USDA organic seal meet consistent, uniform standards.

If you’d like to learn more about how SafeSourcing can assist in properly helping to ensure your suppliers are adhering to all organic or safe food standards, please contact a SafeSourcing customer services associate.

Is the baby formula shortage affecting you?

Friday, May 20th, 2022

 

 

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

If you shop for anything now a days, you have probably noticed that there are shortages on many things that we purchase from food to auto parts.  All of the shortages are causing problems for everyone whether they are personal, or business related.  The newest shortage that caught my attention and is very concerning is the shortage of baby formula.  The White House press secretary Jen Psaki said earlier this week that the US Food and Drug Administration is “working around the clock” to address the baby formula shortage and the manufacturers are saying that they are producing the formula at full capacity and making as much formula as they can.  But besides all of the efforts it is still not enough to meet the current demand.  It seems that stores nationwide have been struggling for months to keep the formula in stock and a recent recall has made the shortage even worse.  It is getting to the point now that several major retailers are trying to preserve inventory and are limiting the amount of baby formula the customers can purchase. According to researchers, the out-of-stock rate for baby formula was between 2 to 8% in the first half of 2021 and now has risen to around 40% and in some states the number has risen over 50%.  Some parents have been forced to find the formula online from resellers and are seeing prices as high as $120 for a single can.  Some good news is that experts are saying that the shortage should only last another 6 to 8 weeks.  Hopefully, that is the case for all the concerned parents.

Interested in learning how SafeSourcing can help your company save money during these and other shortages?  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.