Archive for the ‘Sourcing Strategy’ Category

All About Value!

Wednesday, August 31st, 2016

 

Today’s post is from our SafeSourcing Archives

One of the knocks that the eProcurement/Strategic Sourcing world has always had from customer and suppliers alike is that it reduces things down to a price-only model that takes nothing else into consideration.  Being a professional in this industry for many years I can honestly say that this is a legitimate issue.   Price, however, is an element that cannot be ignored and when suppliers decline to participate in sourcing events until they can meet with the customer directly it generally means that they need time to prove their value before introducing a higher price that they think is justified by their value.   Since there must be a balance, today we will look at some ways you can collect those elements in order to understand the value behind price aspect of the proposal.

Lead with the RFI – The biggest pushback from vendors asked to participate in sourcing projects is in areas like services, software, or specialized one off projects.  The reason for this is due to the fact that suppliers in these categories generally feel that the offerings among suppliers are too different to be effectively compared to each other.  Whether that is due to pricing model differences, statement of work differences or their approach to quality, they will be hesitant to participate in any event that leads with a discussion on price.  That is why taking the time to engage suppliers in a Request For Information will them each to differentiate themselves from the others before price is brought into the equation.  Doing this will also help fill in any gaps of understanding what the business really wants and needs.

Detail what you want – With the results of an RFI in hand, businesses can better define what they really want.  Because each company will add services or extras to justify their costs that others will not, it is important to define from the collection of information from the vendors and independent research what the business really needs.  Strip away the extra services that are unneeded and add those extras that the business never thought about.  If the better fit for the business is to obtain pricing for software based on users rather an enterprise license, specify for the next round, or conversely collect pricing for both from all vendors in order to see what each supplier can offer.

Create the Scoring Formula In Advance – Many times organizations will run sourcing projects where only a portion of the overall vendor scoring has to do with the price and the rest deals with other factors such as experience, industry reputation, references and extras offered.   Determining this formula well in advance of the project beginning will help keep the integrity in place for where the project ends up heading especially if incumbent vendors are involved that could unduly influence the outcome.  In some cases price may be as much as half of the possible scoring while in others, finding the right solution with the right support and features will outweigh its cost.  Regardless of the formula used, everyone should buy into it before the project is started and at least a portion of the offering features, price, and experience should be used in determining the final score.

For more information on how we can help you develop a strategy that helps your organization make decisions based on value and not just price or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative.  We have an entire customer services team waiting to assist you today.

We look forward to your comments.

Why do companies make the same old tired statements time after time?

Friday, May 6th, 2016

 

Today’s post is from Ronald D. Southard, CEO and SafeSourcing Inc.

When one reads a lot, articles constantly jump out at you that just make you say duh!

Sales are down so we need to control expenses is one of them. I am beginning to think that they actually might have a book of business school phrases that includes statements like this. These statements always seem to come out during earnings season or just after in order to offer protection versus erosion of equity particularly in publicly traded companies. What always slays me is that as a shareholder I would like CEO’s and CFO’s to come out with this plan long before the excuse is event needed. If you have the right team in place, one would already know that sales are falling based on your teams long range forecast and action should have already been taken to mitigate those results.

In today’s issue of THE WALL STREET JOURNAL under corporate news there was just such an article. I will leave out the name here to protect the guilty. But, wouldn’t it be nice if we started to see articles that went something like this. COMPANY <Insert Name> focused spending reduction preserves earnings estimates. 

There are just too many companies with too many tools out there today that can assist companies in reducing costs in all product and service areas including commodities for executives to need to use these statements after the fact. I say assist, because most Fortune 500 companies have procurement departments and many have leadership in the procurement area at the officer level like a CPO. These teams in most cases are very competent based on their headcount. However what we regularly see in the procurement space is that all the great intentions and planning in the world does not return the best net landed cost to companies when they try to source by themselves.  Understaffed teams, historically evolved procurement practices and less than optimal supply chain management create these results when headcount is not optimal. For the most part we typically see double digit improvement across the board in savings when Tier I and Tier II companies enlist the assistance of e-Procurement solution providers like SafeSourcing Inc.

E-Procurement solution providers for the most part today offer their tools in Architecture as a Service and Software as a Service Cloud based solutions.  The benefit of these offerings are an almost immediate or instantaneous ramp up time, little to no IT involvement, cost neutral pilots and the opportunity to walk away just as quickly.

During the last six years, SafeSourcing has run billions of dollars in spend through our e-Procurement tools in the form of RFI’s, RFP’s and RFQ’s or Reverse Auctions. Average savings over this time are in excess of 23%. No other solution provider can make this claim. The reason for these results is partly our tools and mostly our people. Isn’t interesting that we see better results for companies because they are understaffed and because of our people.

Here’s an example: You are a fortune 500 company and your buyer or category manager has to source stretch wrap. You have users in your DC’s or Warehouses, but the person sourcing this category may or may not talk to them and only sources this category once or twice every couple of years. The question this begs, is are they up to speed with the current stretch wrap technology.

1. Do you as a company still hand wrap?
2. Are you using the lowest level gauge and mil weight?
3. Do you know the best size rolls to source?
4. Is the product pre-stretched?
5. Are you aware of all global and regional suppliers?
6. Are you using machine wrap or transitioning to it?

These are just a few of the questions that a SafeSourcing project professional is aware of because they source this and other product categories dozens of times a year.

So why are costs not as low as they need to be at all times? And why do CEO’s and CFO’s have to make the same old tired statements time after time? Because they are not aware just how easy it is to augment their procurement department with resources that will cost them nothing because the average ROI for these services is typically 10X or higher. And because their team keeps telling them that we have an ERP system and tools so we can do it better. Our results would obviously indicate that this is not so.

If you really want to learn how to reduce your costs on Expense and cost of sales categories, please contact a SafeSourcing Customer Services Account Manager to learn more.

We look forward to and appreciate your comments

Time to Upgrade to LEDs? But I Just Made the Switch to CFLs!

Tuesday, March 29th, 2016

 

Today’s post is by Christine McConnell, Account Manager at SafeSourcing.

Last month GE announced that it has begun phasing out its compact fluorescent light bulbs. The company stated that it will stop making and selling CFLs in the United States all together by the end of 2016 citing that there are now “so many choices that a consumer has for one socket in their home that it’s overwhelming. This will help simplify that.”[1] While other manufacturers like Philips and Sylvania are planning to continue producing CFLs for the foreseeable future, GE’s announcement implies that with their falling cost and rising availability, LED bulbs are establishing a real foothold in today’s marketplace.

But wait… before you throw out all your CFL bulbs and make a run to the nearest big box store for brand new LEDs, let’s make a quick comparison:

  • Cost
    • CFLs are markedly less expensive up front
    • LEDs prices are dropping, but are still typically higher
  • Energy
    • CFLs provide greater energy efficiency than traditional incandescent and halogen bulbs
    • LEDs can last up to five times longer than CFLs saving countless kWh’s (kilowatt hours) over time
  • Color rendering
    • CLFs are considerably better at rendering color now than when they were first introduced to the market
    • LEDs display colors with greater accuracy than was once thought possible
  • Dimming/Directional
    • CFLs are not dimmable but do produce extremely bright light that diffuses evenly
    • LEDs are dimmable but are only capable of producing directional light
  • Mercury
    • CLFs contain mercury albeit smaller amounts than traditional fluorescent tubes
    • LEDs do not contain mercury and are thus far better for the environment
  • Buying decision
    • CLFs offer a much simpler shopping experience because of their limited variety
    • LEDs present a myriad of options that can potentially overwhelm the buyer

At some point in the not too distant future incandescent and CFL bulbs will no longer be available for purchase. In the meantime, don’t panic. You can start by upgrading your lighting one fixture at a time (perhaps in a difficult to reach spot that with its new LED bulb will not require replacing for years to come), or even one room at a time. While there’s no perfect way to make the switch; the sooner you start, the sooner you’ll begin saving!

Interested in learning how SafeSourcing can help your company run more efficiently? Like to try a risk free trial? Please don’t hesitate to contact a SafeSourcing Customer Service Representative. Our team is ready and available to assist you!

[1] http://www.nytimes.com/2016/02/02/business/energy-environment/ge-to-phase-out-cfl-light-bulbs.html?_r=0

Food Grade Film- Non-Forming Film (Part 2)

Tuesday, March 22nd, 2016

 

Today’s post is our SafeSourcing Archives.

Have you ever gone to the grocery store to the meat department and notice that the meats in the cases have clear film on them? This film is typically on the meat in two layers. This blog will discuss the second layer that adds protection to the meat.

The non-forming layer of the packaging is sealed directly onto the forming layer instead of the meat typically by heat vacuum sealing. After the non-forming layer is placed on the meat packages, it is typically clear to allow the consumer to view the product. However, most of the suppliers do offer other colors of non-forming layers to match the distribution branding.

The requirements for the film are specific within the USDA and other government regulations. This film is the second layer to the meat packaging.   This process is the same throughout the entire meat industry in the United States.

The meat market is heavily regulated and controlled all throughout the suppliers of the film and the distributors of the meat itself. The second reason it is heavily controlled is because it is a closed market in regards to suppliers that can support the business.

For more information on how we can help you with your procurement needs or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative.  We have an entire customer services team waiting to assist you today.

We look forward to your comments.

 

 

 

Do you find yourself struggling with your workload?

Thursday, March 17th, 2016

 

Today’s blog is by Margaret Stewart, Executive Assistant at SafeSourcing.

If your workload may at times be overwhelming and you find yourself struggling to keep up, organization may help with your prioritization. One of the best ways to get organized and keep up on your workload is by creating lists. Here are ways lists can help you.

  1. Lists help you to simplify. Tons of paperwork, deadlines, and emails can feel overwhelming, but making a list can show your to-do list is not quite so mountainous.
  2. Help your process. When your tasks are clearly defined, you may discover ways in which you can accomplish all your duties more productively.
  3. Breeds commitment. Many times, tasks get avoided or pushed off, but when it is clearly stated and kept in mind, procrastination is met with action.
  4. It prioritizes. Once all your duties are listed in front of you, you begin to notice what are the big projects and which aren’t quite so important. This is especially useful when the workload is greater that available time.
  5. Positivity and accomplishment. When items on your list are checked off one by one, you get a sense of accomplishment knowing that you have made progress. That satisfaction leads to greater positivity and even helps you to work more productively, happier, and smarter.

Not only can lists help in all these ways, but reading a list oftentimes is preferable to reading memos, notes, or even paragraphs. Even if you aren’t the type to make your own lists, try it sometime and test how well you accomplished your tasks. Chances are, you saved much more time completing your duties than it took to think about, write, and edit your to-do list.

If you need ideas or help on how you can save time in your procurement efforts, or on our Risk Free trial program, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.

Thanks. We look forward to and appreciate your comments.

 

Stretch Wrap- Cast Film (Part 2)

Wednesday, March 16th, 2016

 

 

Today’s post is our SafeSourcing Archives

Within the Stretch Wrap industry, there are hundreds of thousands of SKUs of stretch wrap. Most of the stretch wrap that SafeSourcing sources are for warehousing purposes and shipping freight.   When reviewing the specifications there are some things to note.

The second type of film that I will be focusing on is the Cast Film. The “Cast” indicator on the stretch wrap refers to the manufacturing process that the film undergoes. There are advantages and disadvantages using cast film versus blown film outlined below:

Advantages:

  1. Cast film is much stronger than blown film.
  2. Cast film is more durable in warehousing situations.

Disadvantages:

  1. Depending on the manufacturer, cast film can be more expensive.
  2. Cast film can be difficult to read through after layering it.
  3. Stretch Wrap Machines may have difficulty stretching the cast film properly.
  4. Cast film is considered the old technology.

In order to achieve the best specification, call SafeSourcing today.

For more information on how we can help you with your procurement needs or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative.  We have an entire customer services team waiting to assist you today.

We look forward to your comments.

 

 

 

Stretch Wrap- Blown Film (Part 1)

Tuesday, March 15th, 2016

 

 

Today?s post is?from the?SafeSourcing Archive.

Within the Stretch Wrap industry, there are hundreds of thousands of SKUs of stretch wrap. Most of the stretch wrap that SafeSourcing sources are for warehousing purposes and shipping freight. When reviewing the specifications there are some things to note.

The first type of film that I will be focusing on is the Blown Film. The ?blown? indicator on the stretch wrap refers to the manufacturing process that the film undergoes. There are advantages to using blown film versus cast film.? It all depends on the use that the stretch wrap is intended for.

Advantages:

  1. ?Blown film is often more taught in order to keep shipments from moving during freight.
  2. Blown film is also lighter weight than cast film, making it is easier to move by individuals in the warehouse.
  3. Blown film is more durable around corners and breaks less during application.
  4. Blown film is the newer technology in the industry.

Disadvantages:?

  1. Depending on the manufacturer, blown film can be more expensive.
  2. Blown film can puncture more often.

In order to achieve the best specification, call SafeSourcing today.

For more information on how we can help you with your procurement needs or on our ?Risk Free? trial program, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.

We look forward to your comments.

 

 

 

When is the best time to buy household goods?

Wednesday, March 9th, 2016

 

Today?s post is written by Heather Powell, Director of the Customer Focus Team & Project Manager at SafeSourcing Inc.

Consumer Reports suggests specific months to buy household goods, when the retail market historically puts items on sale in specific times during the year.

January- The White Sales Month: Bedding, Linens. Christmas and Winter Clearance begins: Toys, winter clothing, and TVs. Resolutions: Treadmills, ellipticals, anti-smoking aids, and diet aids

February– Humidifiers, Indoor furniture, Treadmills and ellipticals

March– Digital cameras, Humidifiers, Small consumer electronics (MP3 players, DVD and Blu-ray players, etc.), TVs, Winter sports gear

April- Laptop computers, Desktop computers, Digital cameras, Lawn mowers, Spring clothing

May- Athletic apparel and shoes, camping and outdoor gear, Carpeting, Cordless phones, Lawn mowers, Mattresses, Small consumer electronics

June– Camcorders, Carpeting, Computers, Indoor furniture, Pots, pans, and dishware, Small consumer electronics, summer sports gear, Swimwear

July– Camcorders, Indoor furniture, Outdoor furniture, Swimwear

August- Air conditioners, Backpacks, Dehumidifiers, Outdoor furniture, Snow blowers

September– Bikes, Digital cameras, Gas grills, Lawn mowers, Shrubs, trees, and perennials, Small consumer electronics, Snow blowers

October– Bikes, Computers, Digital cameras, Gas grills, Lawn mowers, winter coats

November– Baby products, Bikes, Camcorders, Gas grills, GPS navigators, Toys, TVs

December– Bikes, Camcorders, Gas grills, GPS navigators, Home appliances, large and small, small consumer electronics, Toys, TVs

There are better times than others to buy goods, but it always pays to do your research on items you wish to purchase for your home or your business. Are you interest in learning more about SafeSourcing and how we can help your company? SafeSourcing can assist you in exploring your procurement solutions for your business or on our ?Risk Free? trial program, please contact a SafeSourcing Customer Service Representative.? We have an entire customer services team waiting to assist you today.

We look forward to your comments

 

Need to Buy New Tires for Your Vehicle?

Tuesday, March 8th, 2016

 

Today’s post is written by Heather Powell, Director of the Customer Focus Team & Project Manager at SafeSourcing Inc.

Recently this I had to buy tires for my car and for my truck, and the expense for each was greatly different. As with any large purchase, I researched the options of each type of tire, by size, for each vehicle. Here are some tips for you to follow when making your next purchase:

This tips list is from AARP: http://www.aarp.org/money/budgeting-saving/info-10-2012/great-tips-for-buying-tires.html

  1. Get the right size. A tire’s size is listed on its sidewalls in a sequence such as P265/70R16. Replacement tires should always match what’s noted in your owner’s manual or car door jamb, not necessarily what’s currently on your vehicle.
  2. Age matters, even with “new” tires. Tires naturally deteriorate over time, faster in hot climates. A tire’s “birthday” is noted as a four-digit number following a letter sequence beginning with DOT, indicating the week and year it was manufactured — 5014, for instance, means the 50th week of 2014.

Vehicle manufacturers recommend you replace tires after six years, no matter what their condition. Since some shops stock old tires, check the age code to make sure you’re not being sold ones that are already several years old and well on their way to needing replacement.

  1. Learn the lingo. “All-season” tires are a popular and wise choice for most drivers. But think those called “high-performance” or “ultra high-performance” are better? Think again. Tire performance means ability to handle well at higher speeds, not lifespan. Any tire with “high-performance” in its name will likely wear out quicker.
  2. Think twice about warranty. Manufacturers often tout mileage warranties — typically between 50,000 to 80,000 miles, depending on tire type. The mechanic whom I use, however, says, “In truth, drivers never get that kind of mileage from their tires. And the heavier the vehicle, the less you should expect — no matter how well you drive.”

Before buying based on mileage warranties, know the fine-print details: If tires wear out prematurely, you don’t just get a new set for free. There’s a prorated credit for replacements, and for that, you’ll likely be expected to prove you properly cared for the tires by keeping them inflated to the right pressure, aligned and rotated every 5,000 to 7,500 miles. There may be a careful inspection and demand for service records before warranties are honored.

  1. Don’t rely on the TPMS. If your vehicle was manufactured in 2008 or later, chances are it has a Tire Pressure Monitoring System, which warns when tires are underinflated. Insufficient air pressure not only is a safety hazard but speeds tire wear.

So at any given time, why do a majority of cars have at least one underinflated tire? “Most people never check their tire pressure,” says Mark Cook of the Tire Industry Association, and the pressure monitoring system gives a warning only when tires are underinflated by 25 percent or more, not lesser amounts that still affect tread wear and tire lifespan.

To make your tires last longer, take five minutes every month to ensure that they’re inflated according to specs listed on the car’s door jamb. What’s noted on the tires themselves is the maximum allowable pressure, not the pressure you want.

This isn’t to say that a pressure monitoring system isn’t worth keeping in good working order. Keep in mind that its brains are in special tire valves. They cost about $50 each and should be replaced every three to five years, says Cook.

  1. Know how and where to bargain. Tires are expensive but can you dicker for a discount? You certainly should try, but good luck.

Your auto dealer or neighborhood garage will likely offer zero or very low discounts, claiming thin profit margins.

Because of their buying power, warehouse clubs such as Costco and BJ’s sell many tires for less. But aside from coupon sales, don’t expect to successfully bargain down here. Sales clerks at chains that specialize in tires tend to work on commission, so they may have more wiggle room or will make “match any price” offers.

Websites that sell tires (for shipment to local installers) are worth checking out too. Type “buy tires online” into a search engine to find these sites.

Overall, you’ll fare best seeking a discount not on the tire, but on related services such as installation, lifetime tire rotations or oil change. Expect salesmen (who sometimes must meet sales quotas) to push for more expensive tack-ons such as brake jobs and alignments. If your car needs them, ask for a discount on them as part of your tire purchase.

Buyer beware of those gimmick companies that state free alignment, free nitrogen inflation, free rotation, or even buy three get one free- these are tricks to get you in the door and mark-up the cost of the same tire you can buy much cheaper down the road.

Are you interest in learning more about SafeSourcing and how we can help your company? SafeSourcing can assist you in exploring your procurement solutions for your business or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative.  We have an entire customer services team waiting to assist you today.

We look forward to your comments.

 

Two Heads are Better Than One

Thursday, February 18th, 2016

 

Today’s blog is by Margaret Stewart, Executive Assistant at SafeSourcing.

We were all told and retold the importance of teamwork throughout our school and work experiences, but have you ever really questioned why we need teamwork?

In many industries today, employers seek and expect employees to be able to work as a team. Anywhere you look, you can expect to see a multitude of places that list teamwork as a requirement. Some jobs require teamwork when one may not even work as a team. So, why is the ability to work as a team such a desired skill? There are, in fact, a number of different reasons why teamwork is a sought after trait.

First, an ability to work as a team means one is able to communicate well enough with others to get tasks accomplished. Even if someone doesn’t need to work with a team, communication and the ability to relay ideas and updates in a clear way is essential for most industries and positions. Employers need to have workers that can talk not only to management, but also to each other.

Second, working as a team indicates that a person can get along with others. This may not necessarily affect one’s job directly, but can make a massive impact on the work environment. If an employee can work well with others, then the whole organization can function smoothly and without friction. One member that cannot, or chooses not to, work well with others can affect the whole group.

Finally, working together can help spark ideas within the group, help keep each other accountable, and help see things in a new perspective. This skill is especially sought after by employers because these activities help engage the employees and create a sense of satisfaction over their accomplishments. That engagement and fulfillment at work leads to happier and more dedicated employees.

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