Archive for the ‘Sourcing Safe Products’ Category

Procurement and Tariff Increases

Friday, April 18th, 2025

 

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

In an ever-challenged economy, procurement professionals are no strangers to volatility. One of the most impactful—and unpredictable—variables in recent years has been the rise in tariffs. Whether due to trade disputes, geopolitical tensions, or efforts to protect domestic industries, tariff increases are reshaping how organizations approach procurement.

Tariffs, essentially taxes on imported goods, directly increase the cost of affected items. For procurement teams, this can quickly escalate total spend, especially if critical materials or components are sourced internationally. Tariff-related cost hikes can blow through carefully planned budgets, especially for long-term contracts negotiated before tariff changes. Suppliers in tariff-affected regions may raise their prices or pass on additional costs to buyers. Frequent changes in trade policy make it difficult to forecast and plan procurement strategies with confidence.

To mitigate the impact of tariff increases, procurement professionals can adopt more agile and strategic approaches. Relying too heavily on suppliers from a single country or region increases vulnerability. Diversification helps reduce exposure to tariffs and supply chain disruption. For instance, if tariffs rise on goods from China, sourcing alternatives in Vietnam, India, or Mexico could offer relief. Some organizations are reevaluating their global sourcing strategies altogether. Bringing production closer to home—or at least to regions with favorable trade agreements—can reduce tariff exposure and shorten lead times.

Changing markets reinforce the need for changing contracts as well. Many companies are renegotiating terms to include clauses that account for tariff changes, allowing for cost-sharing or pricing adjustments in response to policy shifts. Focusing on purchase price alone is no longer sufficient. Procurement leaders must also factor in tariffs, shipping costs, lead times, and risk factors—to evaluate the full cost of sourcing decisions.

Tariffs are just one of many forces reshaping global procurement, but their impact is profound. With the right strategies in place, procurement partners, like SafeSourcing, can help your organization not only weather the storm but also thrive.

For more information on how SafeSourcing can help your e-procurement needs, or on our Risk-Free trial program, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.

Why use a pressure washing company?

Friday, May 17th, 2024

 

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

Well, it’s starting to get nice outside again and hopefully all of us will be spending more time outdoors.  Whether that be sitting outside with friends and family or maybe sitting outside with co-workers enjoying lunch in the fresh air.  One thing that you might want to think about doing is making sure that your home or business is looking its best.  One way to do this is to hire a reputable company to come in and power wash the exterior of your buildings and other surfaces to help make them look new again.  Below is a BLOG that I wrote a few years ago that explains why these surfaces may need to be addressed.

Have you noticed a green tinted staining on the outside of your home or business?  If so, you may not know that this could be mold or mildew.  This is a very common occurrence if you have vinyl siding.  Dirt can accumulate on the siding, and this can lead to mildewing because mildew feeds on dust and dirt. If your home or building is close to trees it may also cause mildewing as well.  Another reason for mildew or mold is excessive moisture or lack of sunlight.  Because of this you may notice that the staining may only occur on certain areas of the structure and not the entire surface.  Removing the mildew can be very simple to do.  One of the most common ways to remove the staining is to have the area pressure washed.  There are companies that specialize in pressure washing and can do an excellent job of removing the stains.  You can also choose to pressure wash the area yourself.  Pressure washers can be purchased from many common retailers and are fairly inexpensive.  Deciding to do this can save you money but there are some hazards to doing it yourself.  Having the pressure set too high can cause water to seep into the walls of your existing structure causing mold to grow within the structure.  So, if this is something that you decide to do yourself, make sure to research and read all documentation before beginning the job.  Below are other things to be aware of when pressure washing your structure.

  • Risk of electrical shock
  • High pressure water can cause serious injuries to the skin.
  • Strong spray can throw small objects.
  • Water seeping into the attic
  • Siding loosened or damaged.
  • Damage to windows and screens.
  • Accidental Removal of paint
  • Accidental Removal of mortal between bricks
  • Damages to surfaces

Whether you plan to clean the structure yourself or hire a company feel free to contact SafeSourcing.  We can gather all the necessary information for you and help you decide which company or tool 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.

 

HAPPY NEW YEAR 2024 from SafeSourcing; Your GLOBAL SOURCING PARTNER!

Monday, January 1st, 2024

 

picture of world

 

If you’d like to learn more about alternative sources of supply offshore or nearshore or anywhere around the world., contact a SafeSourcing customer services account manager to learn more about SafeSourceIt™ our 587,000 global supplier database and let us translate it into increased profits for you.

We look forward to and appreciate your comments.

Are your fleet drivers both full-time and temporary, prepared for emergencies?

Tuesday, December 19th, 2023

 

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

 

My daughter recently went on a road trip up north and it reminded me of this BLOG that I posted a few years ago.  She and a few friends were going to Cleveland to watch an NFL game and they decided to stay the night and visit a few attractions while they were there.  After she left it occurred to me that she does not have an emergency kit in her car.  Luckily, everything went smoothly, and they made it there and back safely.  But keep in mind, if you are going on road trips especially in the winter months, it is a good idea to carry along an emergency kit just in case you run into trouble.

If you have been driving for a while you know that unexpected things can happen.  Most of us spend hours in our cars and don’t think twice about emergencies that can occur while on the road.  These emergencies may not even involve you and your automobile.  With all of the traffic and congestion on the roadways it is possible that you could end up stuck for hours because of bad weather or accidents.  It is important to be prepared and ready for these unexpected problems.  One way to prepare yourself is to have an emergency car kit in all of your vehicles.  These kits can be purchased, or you can make your own kit stocked with all of the necessary items.  These emergencies don’t always happen in convenient places where cell phone service is available, and a tow truck is nearby.  Therefore, you need to be prepared for any conditions that may occur.  Below are some suggested items that you should include in your emergency car kit.

  • Jumper Cables
  • Tool Kit
  • First Aid Kit
  • Fire Extinguisher
  • Reflective Warning Triangles
  • Tow Strap
  • Foam Tire Sealant
  • Gloves
  • Flashlight
  • Duct Tape
  • Cell Phone Charger
  • Warm Blanket
  • Windshield Ice Scraper
  • Drinking Water
  • Non-Perishable Snacks

If you need help researching emergency kits for your vehicles, feel free to contact SafeSourcing.   We can gather all the necessary information for you and help you decide which kit 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.

 

 

Bankruptcy is not fake news, and you might be next if you don’t pay attention.

Thursday, November 9th, 2023

 

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

I read an article today on TheStreet.com by Kirk O’Neil titled Beloved fast-food chain files for Chapter 11 bankruptcy. Quite frankly it took a while to figure out what chain the article was referring to because it spent a lot of the article talking about the problems Rite Aide is having who also filed for Chapter 11. Then it went on to talk about  a furniture company that had to close 27 stores in 14 states and ultimately had to file for Chapter 7 liquidation.

The article did finally mention a restaurant chain that had to file for chapter 11 because sales have not recovered from the Covid Pandemic. How often have we heard this?

The fact is the fast-food sector of the retail is suffering, the model has changed quite a bit. How often do you go inside your favorite location to order your food (it is faster). Most of the takeaway or to go traffic is done through the drive-up windows. I’m pretty sure we are going to start seeing them again in the c-store space as they continue to try and capitalize on fresh food offerings, some of which have become outstanding. Even food service distributors are shifting their attention to the c-store vertical as a new source of business.

So, what’s the point? There is a lot of pain in all retail, it’s a war for the customers reduced spending. Thank the FED, The current Democrat Administration, and the Banks for that. However, where there is pain there is opportunity. If you look for it, it may just save some jobs or pay for that new self-checkout because you can’t find enough staff  for the shift work in 24-hour operations.

If you ask, you can find lower prices on just about everything. Capital Projects, Cost of Goods and Expense. Here’s the thing, you are understaffed for the job you have to do. There are other projects that the company will never get to.  You don’t have the time to do it yourself. That’s where SafeSourcing comes in. We know the categories as well or better than you do. We know where all of the suppliers are and have relationships with them, that you do not.

If you wan to reduce costs, I mean really reduce them so you can afford to do other things, Contact SafeSourcing. We guarantee our work, and our ROI is often greater than 10X and immediate.

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.