Archive for the ‘Sourcing Strategy’ Category

Communication, Communication, Communication…

Wednesday, December 18th, 2013

Today’s post is by Sarah Kouse; Project Manager at SafeSourcing

In any situation, whether it is in your personal or business life, if communication is broken, or if there are multiple parties involved, the communication can get a bit hazy, making things unclear, and causing confusion.

Think about the game telephone we used to play when we were kids. We would all sit around in a circle, the first person would whisper a word or phrase into the ear of the person sitting next to them. That person would then do the same to the person next to them and so on and so forth until it reached the last person in the circle. Almost always, the starting word or phrase would never be the ending word or phrase.

This is what can happen if you have multiple parties involved in a project and not all parties are involved in all communication, or if one of the parties involved has communication outside of the regulations set forth.

As a procurement company, it is our job to make sure all communication gets distributed to all parties and make sure all communication is clear and well understood. It is also our job to make sure we facilitate the communication between the clients and the vendors, even if the vendor is an incumbent to the client. The reason for this is because if conversation takes place outside of these guidelines, communication could not only become broken between one or more parties, but it can also create an unfair playing field for the other vendors involved.

Here at SafeSourcing, we ensure that communication is always at its best. 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.

Communication, Communication, Communication?

Wednesday, December 18th, 2013

Today?s post is by Sarah Kouse; Project Manager at SafeSourcing

In any situation, whether it is in your personal or business life, if communication is broken, or if there are multiple parties involved, the communication can get a bit hazy, making things unclear, and causing confusion.

Think about the game telephone we used to play when we were kids. We would all sit around in a circle, the first person would whisper a word or phrase into the ear of the person sitting next to them. That person would then do the same to the person next to them and so on and so forth until it reached the last person in the circle. Almost always, the starting word or phrase would never be the ending word or phrase.

This is what can happen if you have multiple parties involved in a project and not all parties are involved in all communication, or if one of the parties involved has communication outside of the regulations set forth.

As a procurement company, it is our job to make sure all communication gets distributed to all parties and make sure all communication is clear and well understood. It is also our job to make sure we facilitate the communication between the clients and the vendors, even if the vendor is an incumbent to the client. The reason for this is because if conversation takes place outside of these guidelines, communication could not only become broken between one or more parties, but it can also create an unfair playing field for the other vendors involved.

Here at SafeSourcing, we ensure that communication is always at its best. 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.

They?re, Their, or There?

Thursday, December 12th, 2013

Today?s post is by Shelly Hayre; Customer Service Representative at SafeSourcing.

Many companies admit to poor grammar and writing impacting their business decisions. These common mistakes can be the cause of an unsuccessful outcome.

Remember these common mistakes to assist your business writing:

Jan 6th or Jan 6– When writing month-day dates use cardinal numbers (6), not ordinal ones (6th). Although we pronounce this ?sixth? it is written ?6?. The ordinal number is in the following context: We will meet on the 6th, the meeting is on the 6th, or Fourth of July.

It?s and Its– The best way to avoid this mistake is to remember that contractions always have apostrophes. It?s is a contraction of it is or it has; therefore, it has an apostrophe. Its is a possessive pronoun. Try reading without the apostrophe (It is a boy!).

They?re, Their, or There– This is a no brainer, but it can be easily swapped and spellcheck will sometimes miss it. They?re= They are. There is a possessive pronoun and should only be used when showing possession (their house). There is used with direction (place your card there).

Active voice– Whenever possible always use the active voice in business writing, avoid passive voice. It will make your writing clearer and concise. Your reader will understand the message with avoiding any miscommunication.

Tone– Tone is dependent on the audience. Knowing your audience well is key. Look at other communications that have gone out to them and try to adapt a similar tone. Be especially careful with tone over email. It is tempting to joke but the medium conveys tone very poorly and even innocent jokes can easily be misunderstood.

We, at SafeSourcing, value business writing etiquette and understand the importance. We will work diligently while keeping a professional representation of your company. 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.

They’re, Their, or There?

Thursday, December 12th, 2013

Today’s post is by Shelly Hayre; Customer Service Representative at SafeSourcing.

Many companies admit to poor grammar and writing impacting their business decisions. These common mistakes can be the cause of an unsuccessful outcome.

Remember these common mistakes to assist your business writing:

Jan 6th or Jan 6– When writing month-day dates use cardinal numbers (6), not ordinal ones (6th). Although we pronounce this “sixth” it is written ‘6’. The ordinal number is in the following context: We will meet on the 6th, the meeting is on the 6th, or Fourth of July.

It’s and Its– The best way to avoid this mistake is to remember that contractions always have apostrophes. It’s is a contraction of it is or it has; therefore, it has an apostrophe. Its is a possessive pronoun. Try reading without the apostrophe (It is a boy!).

They’re, Their, or There– This is a no brainer, but it can be easily swapped and spellcheck will sometimes miss it. They’re= They are. There is a possessive pronoun and should only be used when showing possession (their house). There is used with direction (place your card there).

Active voice– Whenever possible always use the active voice in business writing, avoid passive voice. It will make your writing clearer and concise. Your reader will understand the message with avoiding any miscommunication.

Tone– Tone is dependent on the audience. Knowing your audience well is key. Look at other communications that have gone out to them and try to adapt a similar tone. Be especially careful with tone over email. It is tempting to joke but the medium conveys tone very poorly and even innocent jokes can easily be misunderstood.

We, at SafeSourcing, value business writing etiquette and understand the importance. We will work diligently while keeping a professional representation of your company. 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.

First things first: Knowing and being known

Tuesday, December 3rd, 2013

Today’s post is from Michael Figueroa, Account Manager at SafeSourcing

Who doesn’t like being understood? Especially if you’re an extrovert, you probably can’t wait to tell the people around you about the latest crazy thing that happened to you, or what you think of the topic at hand, or what your recommendations are (whether you were asked for them or not). Helpfulness is one thing, but what’s missing in this situation?

– Have you ever gone to the doctor and been prescribed something before even being properly evaluated?
– Have you ever had someone form an opinion of you before they ever got to know you?
– Have you ever stuck your foot in your mouth by interjecting a conversation only to realize the conversation wasn’t what you thought it was about at all?
– Have you ever created an SOP, RFI, or other document only to realize you didn’t understand the project well enough to speak intelligently to it?

Here’s a quick self-check, the next time you’re listening to someone, ask yourself;
Are you listening with the intent to REPLY, or to UNDERSTAND?
How can you truly understand a speaker, a report, or a strategy, if you are formulating your own version the whole time, with no intention of finding out what you DON’T know?

In our business, understanding is critical to our success. Every procurement activity operates within its own unique space in terms of industry, geography, supplier base, internal processes, laws, and other factors. Our expertise as learners, has allowed us to engage successful projects in a countless variety of industries, and gives us the agility necessary to administrate the unpredictable.

Understand FIRST, then you will be KNOWN for your insight and those around you will want to understand you and your business more.

“The noblest pleasure is the joy of understanding.”Leonardo da Vinci.

Ask us how we can help you understand your current procurement activities and identify new opportunities.

Lessons Learned Documentation: Is this a common practice in your business?

Monday, November 25th, 2013

Today’s post is by Dennis Nicoletti, Manager at SafeSourcing

What steps or processes do you currently have in place to ensure continued quality, successful projects and best in class customer satisfaction, not to mention achieving the desired results?

The major benefit of completing the lessons learned process is that the organization retains and documents both successful and unsuccessful project activities for future reference by project managers and staff. This allows new projects to repeat successful activities and to avoid those that were not successful.  Documenting lessons learned will provide for ongoing improvement and help deter the recurrence of significant adverse events.

A Lessons Learned session also provides a forum for praise and recognition for project team members, allows the team to acknowledge what worked well, and offers an opportunity to discuss ways to improve processes and procedures.  Participants of a Lessons Learned session are typically the Project Manager and project team, but even more effective is the practice of including the customer and/or external stakeholders as appropriate. This will allow for candid feedback and will help to avoid the pitfall of assuming you “hit the mark”.  

Some typical questions to consider in a Lessons Learned format should include but not be limited to the following:

•  What did we do well?
•  What could we have changed?
•  Did the project deliver/meet the specified requirements and goals of the project?
•  Did the project stay within scope?
•  Was the timeline met?
•  Were risks identified and mitigated?
•  Were problems or issues resolved timely and adequately?
•  What could be done to improve the process?

We, at SafeSourcing, are always looking for ways to improve on what we do and believe that following the Lessons Learned format will build a stronger team, foster long lasting relationships and achieve maximum benefit for you, our customer.  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.

Freight Tendering 101!

Wednesday, November 20th, 2013

Todays post is by Ron Southard CEO at SafeSourcing Inc.

This author has been in and around the freight business for years. Actually for 40 years. Just like the unrelated movie, I have seen it all. Planes, trains and automobiles (trucks really) to be sure but also ocean bound freight. The ships and planes get bigger, but at the end of the day the same issue exists. How do companies get their products to where they need to be efficiently and at a cost that is acceptable in order to satisfy customer demand?

This is not necessarily about your internal optimization models; it is more about the data that feeds your internal optimization models. That is of course if you even have one. The basis for collecting that information is not all of the math calculations and pivot tables; it really is the following types of data.

• Lane data in distance for your delivery model such as Plant to DC.
• Volume discount data from carriers
• Lane rate per mile
• Fuel Surcharge rate
• Human resources rates for loading and unloading (Lumpers in the US)
• 3PL storage rates
• Load balancing charges for LTL versus FL

There may be other data that is required for your individual model, but the above will cover most of what you need to come up with a well rounded format that freight companies can easily bid on. An example of other information may be questions such as “What is  your overall logistics strategy”. With the cost of rail down versus traditional freight lanes, are you thinking about developing a  rail hub service model. do you even know what this is?

Relative to who should be bidding; this authors recommendation conducting a three step process that includes a detailed RFI, followed by a detailed RFP and then ultimately the RFQ data compression piece or a reverse auction.

• RFI  – Incumbent and other participants selected from a quality sourcing database
• RFP – Participants include a reduced number from the RFI process
• RFQ – Includes all RFP participants unless otherwise indicated by the host.

The terms and conditions of the reverse auction or RFQ can cover the balance of information needed by providers that relates to quality, certifications, payment terms, safety, insurance etc.

If you want to get control of your freight costs, please contact a SafeSourcing customer services representative.

We look forward to and appreciate your comments.

Procedure lists: Are they really worth your time and energy to create?

Wednesday, October 30th, 2013

Today’s post is by Dennis Nicoletti; Manager at SafeSourcing.

What is a Procedure List?

When you write down ten things you want to get done today and cross them off at the end of the day when they are done, that’s not a procedures list, it’s just a simple but rewarding — “checklist”.

Let’s consider a mechanic’s job…when a mechanic goes through a list of 50 things to check and evaluate on your car (and every other car they’re going to service); they’re using a “procedure list”. A procedure list highlights the things you need to do in a routine process to ensure that everything is done and nothing gets neglected or outright forgotten. Consider the following when creating your procedure list:

•  Is this step necessary?  Why is this step included?
•  Is this step in the right place?  Should it come sooner or later in the procedure?
•  Is each step a concrete action that can be completed and checked off?
•  Are the steps clear enough that I could give this procedure list to another person without explanation?

The last bullet above is extremely crucial.  Let’s take for instance you’re deep into a project, something unforeseen develops taking you away from the project. Can a coworker step in and take over as if you were still there, with no drop-off in project timelines and milestones?  Consider this carefully when creating your procedure list.

Why should you use a Procedure List?

We all are very busy and likely to be even busier. Making mistakes and forgetting steps even in tasks we’ve been doing for years is not uncommon.  Procedural lists serve as concrete reminders of what tasks we need to perform, what order we need to perform them in, and as springboards for fine tuning or adjusting our routines, making them more efficient.

We, at SafeSourcing, take great pride in the fact that we continually use our procedure lists and consider them to be a “best practice” which has kept our projects on plan. This practice has rewarded our customers with savings they would not have otherwise attained and in the timeliest manner. 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.

The Affordable Care Act a Procurement Implementation Disaster

Wednesday, October 23rd, 2013

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

I?m sure that there is no one reading this post that has not heard about the disastrous implementation of the Affordable Care Acts website. Although there are other ways to apply for coverage such as by telephone, the vast amount of coverage has been about the implementation of the website and its lack of accessibility.

This author reads several newspapers every day. They include but are not limited to The Wall Street Journal, The Arizona Republic, The Financial Times and USA TODAY. Quite often when I am traveling I read local papers as well. I augment that with several posts such as the Huffington Post. As such, I have read and viewed a lot of commentary and viewed a lot of political cartoons about the missed opportunity our government had to deploy a quality product regardless of the political support it has publicly to its constituency (The Public).

The first question that comes to mind is; did anyone with any procurement experience have anything to do with the development of the website and registration tool? If they did, they should be fired. Since we can?t fire our elected officials, we should fire their appointed individuals. If a tool deployed by my company had the success rate of this tool, the customer would fire us.

The fact is that exchanges have been around for a long time. As an example, The New York Stock Exchange comes to mind. Exchanges for buying products and services have been around for more than a dozen years.

So the next question, is did we ask anyone if the technology already existed to implement a competitive tool that would allow millions of people to bid their insurance needs with as many as fifty potentially different implementations (50 states) supported by a diverse insurance supplier database.

The basis of all quality development begins with a simple three pronged strategy. That is Person, Product and Process. I know this can get very detailed, but in this case the Person is the general public, the product is the tool that allows you to list a product for sale (your policy requirement) of which there are four types? and a process that insurance companies (the suppliers) follow in order to bid for the business. This sounds like and RFP or actually a Reverse Auction to me. SafeSourcing has sourced these types of insurance products for companies in the past. Doing it for individuals is not much different philosophically. There are many other players in the procurement space that can make the same claim.

Finally since we know the audience we are targeting it is pretty simple to test the system for the volume of activity you might expect. I know that our Website would handle a state implementation very easily.

So is ObamaCare also known as the Affordable Care Act a good program.? I?ll leave that up to each of you to determine. Was the deployment of a tool that offers everyone regardless of preexisting conditions some level of coverage done professionally and with the proper oversight? The answer here is obvious. It?s NO.

To learn more about SafeSourcing, please contact a SafeSourcing customer services account manager or call me at 480-773-7524.

We look forward to and appreciate your comments.

 

 

It’s a Marathon, Not a Sprint!

Monday, October 14th, 2013

Today’s post is by Mark Davis; Sr. Vice President and COO at SafeSourcing.

As I write this blog preparing for my 3rd half-marathon it makes me pause and think about the procurement world I am a part of every single day.  Whether actually working on a project or thinking about a project I have just completed or am about to work on, the preparation and execution of successful procurement practices is not that different than that of preparing to run a ½ marathon.  In this blog we will look at some of the similarities between preparing for a race and for a procurement event.

The Goal – I remember when I ran my first 5k and then my first 10k and then my first ½ marathon.  My only initial goals were to finish.  I did not care about getting a great result, I just wanted to finish in a way that would keep me coming back.  As I did more and more races a funny thing happened; I started tracking and measuring my times.  My focus shifted and was not just on completing, it was on improving.  I never could have gotten there at the start though, it took time.  Procurement projects for many categories, especially where the spend is fragmented across multiple suppliers or not completely known, can be approached in a similar fashion. Get through the first pass and achieve a basic goal of consolidating SKUs, suppliers or services received.  This helps get things organized and positions things well for the next event.  The next event is where the major improvements in service levels, contract terms and pricing can be a focus.  Set the goal and drive toward it from the beginning and then keep improving.

The Preparation – Any runner will tell you time and time again that the results you achieve are directly tied to the time and energy you took to prepare well in advance of the event.  While there are differences in the details for training schedules from the web, coaches and books, there are some common principles which can apply to procurement projects.  The first step is to allow the time to properly prepare.  The timeline makes all the difference.  It keeps you on track and it helps ensures that all of the necessary pieces are laid out to be completed while not overwhelming you with too much to do in too short of a time.  Preparing with another person or a team is a second step many runners employ to prepare and this is no different in a procurement project.  Having the right team members to prepare, encourage and execute the project is very important to the outcome you will achieve.  Finally there are long run days.  These are days designed to not only build up endurance but to mentally prepare you for the event so there are no surprises on race day.  In procurement terms these translate into vendor checkpoints.  These constant communications to train and answer questions ensure that there also will be no surprises in the supplier performance the day of the event.   Great things happen when everything is well planned out, disasters will happen all by themselves.

The Day of Event – With all of the time invested in preparing for the event, frequently runners will forget important details the day of the race that can seriously affect the hard work and preparation put in.   In much the same way, forgetting event day details can ruin the preparation of a good event.  First, make sure your team knows which suppliers they will be supporting and that they have the appropriate communication details if they need them.  Second, don’t try new things on event day.  Stick with what you know works and adjust as issues arise; and they will.  Third, remember your goals.  Don’t get caught up in a new supplier who is going much lower than the rest of the pack.  If your goal is to consolidate and get control then it may be more important to track you incumbent’s progress so that change is minimal and keep the new low bidding company in mind for a few test areas to judge their performance.   Finally, have fun!  The day of the event can be stressful but it is the part of the process we all get into procurement for; the excitement of creating value, of meeting the goal, and of improving from where you once were.

Goals, preparation and hard work are no more challenging for a runner than for a procurement professional and neither is the satisfaction and reward when that work pays off.  For more information on how SafeSourcing can assist with preparing for your next “event” 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.