Archive for the ‘Strategic Sourcing’ Category

Increasing Your Online Presence

Monday, July 7th, 2014

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

Last week it was announced that Kroger Company had agreed to buy the online health and vitamin provider, Vitacost, so that they could add a new selling channel for additional nutrition and healthy-living products.   In the move they will be able to leverage the technical and logistical expertise Vitacost has developed to improve its online presence against a slew of online retailers who are cutting into Kroger markets.  While not every company has $280 million to improve their online presence, there are a few key areas to focus on that will help internal departments source products and services to help accomplish the same goal.

Strong web content – There are a few things to look at when creating a strong site for customers.  The first above everything else should be the ease with which customers are able to find what they are looking for.  The content needs to be fresh and current to keep customers coming back to the site and customers need to be able to conduct transactions at all times.  This may not include every type of transaction but if an online version of the company is going to exist it should be useful to customers even outside of business hours.  Finally, the content should be packed with several industry key words so that the site will continue to be included high in search engine results.   Many web development companies can assist with keeping this updated regularly and many will guarantee results for the most important key words.

Mobile, mobile, mobile – Take a trip to any restaurant, bar, retail outlet or other social establishment and one of the first things you will notice is that everyone has a phone, and many of them have their noses frequently buried in them.  This is not a trend that is going to go away soon and will likely get worse.  People are attached to their phones and use them for bank transactions, dinner reservations, making purchases and many other types of activities so making sure a site is mobile-ready to get information and conduct business is critically important.  Once that is established, developing smart-device specific applications that leverage other capabilities of the phones is something virtually every company will need to do at some point.  When people walk into businesses, they EXPECT to have the capability to do things with their mobile devices that take advantage of technologies like Wi-Fi and GPS.

Create goals and measure progress – Part of knowing the success of changes to an online presence is to set goals for each of the pieces being adjusted and includes changes that may not be made directly to the site itself.  Areas such as the messaging being sent through social media sites like LinkedIn and Facebook may not be a part of the main website but their message and what customers are responding to is very important and need to be measured as well because they affect the overall strategy.  Google Analytics is a great tool to begin using to help track the activity but there are also many 3rd party companies who can help remove some of the trial-and-error process many companies face when they try doing it on their own.  The beauty of online marketing is how quickly goals can be measured and how easily they can be adjusted if the initial plans do not work as expected.

For more information on how SafeSourcing can help your team find partners that will increase you online presence 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.

Thermal Printing vs Inkjet Printing

Wednesday, June 18th, 2014

Today?s post is by Shelly Hayre; Project Manager at SafeSourcing.

Recent Institute of Medicine report entitled ?Preventing Medication Errors? cites that medication errors harm 1.5 million people and kill several thousand each year in the United States, costing the nation at least $3.5 billion annually. Because of such wide-spread drug errors, hospitals have made the implementation of automated bedside administration systems a top priority. Within a majority of the bedside automation system is a thermal barcode printer.

Thermal label printers are ideal for bar code printing because they provide an accurate, high quality image. Thermal printers are engineered to print within tight tolerances. There are two types of thermal label printers; direct thermal printing and thermal transfer printing.

Direct thermal printing uses chemically treated heat-sensitive media that blackens when it passes under the thermal printhead. Direct thermal printers have no ink, toner, or ribbon. Because there is no ribbon, direct thermal printers cost less to operate than inkjet, laser, impact, and thermal transfer printers.

Thermal transfer printing, a thermal printhead applies heat to a ribbon, which melts ink onto the material to form the image. The ink is absorbed so that the image becomes part of the media. This technique provides image quality and durability that is unmatched by other on-demand printing technologies. Thermal transfer printers can accept a wider variety of media than direct thermal models, including paper, polyester, and polypropylene materials. Thermal transfer printers can create extremely durable wristbands, asset tags, and certification labels, in addition to common labels, tags, and tickets.

So, what is the cost difference between laser and thermal labels?

Overall, the average list price for a thousand laser labels is $40.00 and $30.00 for thermal labels. Laser printers have an additional $10-15 per thousand labels in toner costs. However, the thermal label printers cannot provide the multiple functions that your laser printer may be providing.

Do you currently purchase labels for your laser printer and want to look into another solution, such as thermal labels? Let SafeSourcing help analyze your current spend, the capital investment, and future savings for switching equipment and products.

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.

Babies and Procurement

Tuesday, June 17th, 2014

Today?s post is by Alyson Usserman, an Account Manager at SafeSourcing.

Some say that becoming a parent is the greatest, most rewarding thing you can ever do. While I agree, I am also well aware that it is the most trying times financially. The average cost of raising a child in the United States from birth to age 18 is $241,080, according to the United States Department of Agriculture. I doubt that number includes things like braces, injuries, or extracurricular activities over the years; it is also based on the child leaving the house at age 18. This number is also based on public school education, and a family income of less than $60,000 per year.

So, where does this leave parents who only have one income? Bargain shopping, couponing, and putting off expenses until the very last day possible. It poses the question of what is absolutely necessary and what is not? If it is not absolutely necessary then it is left on the store shelf. They find ways to make their own baby food, finger paint, and sometimes even baby wipes.

However, for the things you cannot make, most of us shop around for the best deals. We look at the value of what we are getting for the money we are spending. Questions often come up like, ?How long will this last? Can we reuse it again?? These questions also come up in businesses too. What is the best deal? Who can provide what we need in the most cost efficient way possible?

We, at SafeSourcing can help answer these questions to see if your company can improve on unnecessary spending. We enjoy bringing this blog to you every week and hope you find value in it.?? 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.

Dad STILL Wasn?t Wrong About Too Much

Monday, June 16th, 2014

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

Last year I wrote a blog about Father?s Day and this year it means all the more to me so I have decided to refresh and repost it again this year.? I have enjoyed another year of my Father?s sage advice and wisecrack jokes and have graduated from normal Skype to video Skype which has been even better than I could have imagined.? As I reflect on this day it makes me think of all the advice that fathers, mine and millions of others, have given their children over the years and how simple the ideas are and yet at the same time how powerfully applicable to the business world we all live in every day.

In today?s blog I want to go back to some of that advice and see how much value still stands in concepts that are so simple.

If you keep doing the wrong things it WILL catch up with you ? So many procurement departments have begun and are being run based on practices and principles that are not only not sound but are potentially damaging to the company.? Having weak supervisory controls for buyers, no or poor management of the company?s contracts, and not researching the background of your suppliers are all things that can leave an organization vulnerable.? Like living without auto, home or medical insurance, in time it will catch up with you even if it has been years since anything bad came as a result.

Treat people as you expect to be treated ? The procurement space can be brutal.? Suppliers are trying to deliver value and make money; customers are trying to get as much value as possible while controlling costs.? These two things can often create clashes and tension as both sides work to get the things they want out of a business relationship.? The key that comes here is to remember that the same suppliers you are beating up on price will be the same ones you are asking for rush service and special assistance on down the road.? Creating partnerships with the best value and cost is the goal.? Everyone is a supplier and everyone is a customer at some level and applying this simple advice can help forge the greatest value for your company.

Plan your work; work your plan -? I have heard this advice over the years from many people I have admired and respected.? It is simple and encompasses everything that best sourcing projects need in two pieces.? 1.? Plan the work (create the project); this involves research and a knowledge of what you are going after that goes beyond a 15 minute Google search.? It means researching the market, indexes, new technologies and trends, new suppliers and new government regulations that may affect your goals.?? Knowing your category allows you to plan the work with measureable milestones teams can follow and be a part of.? 2.? Work the Plan you have created with little exception.? Once you have created the plan for the project, stick to the timelines and employ leverage where you need it to keep projects moving.? Everyone is always going to be overloaded with work, so if you are not the one working your plan every day you will be replaced in our people?s priorities by someone else who is.

Don?t spit in the wind and don?t take any wooden nickels -? I will be honest, I still have no frame of reference by which to link these sage pieces of advice back to the world of procurement, but they both still seem like really, really good ideas.

We, at SafeSourcing, hope your Father?s Day was full of great memories and happy times!? We enjoy bringing this blog to you every week and hope you find value in it.?? 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.

Dad STILL Wasn’t Wrong About Too Much

Monday, June 16th, 2014

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

Last year I wrote a blog about Father’s Day and this year it means all the more to me so I have decided to refresh and repost it again this year.  I have enjoyed another year of my Father’s sage advice and wisecrack jokes and have graduated from normal Skype to video Skype which has been even better than I could have imagined.  As I reflect on this day it makes me think of all the advice that fathers, mine and millions of others, have given their children over the years and how simple the ideas are and yet at the same time how powerfully applicable to the business world we all live in every day.

In today’s blog I want to go back to some of that advice and see how much value still stands in concepts that are so simple.

If you keep doing the wrong things it WILL catch up with you – So many procurement departments have begun and are being run based on practices and principles that are not only not sound but are potentially damaging to the company.  Having weak supervisory controls for buyers, no or poor management of the company’s contracts, and not researching the background of your suppliers are all things that can leave an organization vulnerable.  Like living without auto, home or medical insurance, in time it will catch up with you even if it has been years since anything bad came as a result.

Treat people as you expect to be treated – The procurement space can be brutal.  Suppliers are trying to deliver value and make money; customers are trying to get as much value as possible while controlling costs.  These two things can often create clashes and tension as both sides work to get the things they want out of a business relationship.  The key that comes here is to remember that the same suppliers you are beating up on price will be the same ones you are asking for rush service and special assistance on down the road.  Creating partnerships with the best value and cost is the goal.  Everyone is a supplier and everyone is a customer at some level and applying this simple advice can help forge the greatest value for your company.

Plan your work; work your plan –  I have heard this advice over the years from many people I have admired and respected.  It is simple and encompasses everything that best sourcing projects need in two pieces.  1.  Plan the work (create the project); this involves research and a knowledge of what you are going after that goes beyond a 15 minute Google search.  It means researching the market, indexes, new technologies and trends, new suppliers and new government regulations that may affect your goals.   Knowing your category allows you to plan the work with measureable milestones teams can follow and be a part of.  2.  Work the Plan you have created with little exception.  Once you have created the plan for the project, stick to the timelines and employ leverage where you need it to keep projects moving.  Everyone is always going to be overloaded with work, so if you are not the one working your plan every day you will be replaced in our people’s priorities by someone else who is.

Don’t spit in the wind and don’t take any wooden nickels –  I will be honest, I still have no frame of reference by which to link these sage pieces of advice back to the world of procurement, but they both still seem like really, really good ideas.

We, at SafeSourcing, hope your Father’s Day was full of great memories and happy times!  We enjoy bringing this blog to you every week and hope you find value in it.   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.

Customize What You Do

Tuesday, June 10th, 2014

Today?s post is by Margaret Stewart, Executive Assistant at SafeSourcing.

Many of us have heard the popular phrase, ?Dress for the job you want, not the job you have.? No, coming to work dressed as Batman doesn?t count, but the underlying idea is the same. You should customize what you do, based on where you want to go.

I recently read about the popular snack brand, Cheetos, and I was not surprised to learn that the brand is available in 36 different countries. I was, however, surprised to learn how much the snack is altered for cultural preference in order to succeed. For example, in Japan the snack comes in a Zesty Japanese Steak flavor. In China, they have a Strawberry Cheetos flavor.

My take away from that article was about how each and every thing your business does, should be tailored to the results you want. This means doing the research of the areas you want to start doing business and asking the questions like, ?What are the cultural preferences here? Will my product or service succeed as-is or should it be more customized??

The first step toward understanding how to customize your business for success, is first to know the specifications you are working with. When you know everything that is involved with your product, you can be more aware of what could be improved or customized for greater success. One you know those specifications, then the next step is sourcing the things you need to make your product the most sensational it can be.

If you would like more information on how SafeSourcing can help source what you need to customize your product or on our ?Risk Free? trial program, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.

We look forward to your comments.

When using e-procurement tools to source services make sure you have a well defined change of control process.

Wednesday, June 4th, 2014

Todays post? is from Ron Southard, CEO at SafeSourcing Inc.

Awards of business, contracts and statements of work are all important after and event has taken place if you want to maintain your hard earned savings.

If you want to ensure the savings associated with your new services contract make sure you identify or reference a structured change of control process in your terms and conditions.

Change happens. It can result from poorly designed specifications, terms and conditions, quoting instructions and other data related to a bid. The normal process for managing these changes is a change of control process which governs how any changes to the services being provided as identified in the actual bid.

The change of control is normally managed as a request that communicates the requested changes to the services deliverables. Normally the change request will describe the following at a minimum.

1.?The change
2.?The reason for the change
3.?The effect the change may have on the existing Statement of Work.
4.?Impact on cost or savings

In most cases a project manager or the associate with responsibility for managing the program deliverables will be required to submit a written change request to the contracted or warded supplier.? The supplier will then develop and return the response to the contracting company.?
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The contracted supplier and the contracting company will then review the proposed change request and either approve it, modify it or reject it. When approved the contracting company as well as the contracted supplier must sign the change request in order to authorize the work as well as the implementation of the work and its potential impact on the existing project plan or project time line.

If you don?t want erosion?of your savings, make sure you spend the time to cover this process in your bid parameters.

If you’d like to work with project managers that are not looking?to increase the cost of doing business with their company at every turn, please contact a SafeSourcing Customer Services Account Manager.

We look forward to and appreciate your comments.

Teamwork within a Moment of Crisis or Emergency

Thursday, May 29th, 2014

Today’s post is written by Heather Powell, Manager of the COE Department & Project Manager at SafeSourcing Inc.

“The strength of the team is each individual member. The strength of each member is the team.”
― Phil Jackson

While these guideline were created for management roles, it is important to note that in a team environment that these suggestions apply to ALL members of the team:

          Resource: http://www.opm.gov/policy-data-oversight/worklife/reference-materials/traumaticevents.pdf

Many of us in businesses are ill-prepared to handle the traumatic events- death of immediate family members, natural disasters, accidents, etc., and yet these events can and do occur in our workplaces. They are events, for which preparation helps.

Let all employees know that you are concerned and doing all you can to help them. You represent the organization to your employees, and your caring presence can mean a great deal in helping them feel supported. You don’t have to say anything profound; just be there, do your best to manage, and let your employees know you are concerned about them. Be visible to your team, and take time to ask them how they are doing.

Let people know, in whatever way is natural for you, that you are feeling fear, grief, shock, anger, or whatever your natural reaction to the situation may be. This shows your employees you care about them. Since you also can function rationally in spite of your strong feelings, they know that they can do likewise.

Share information with your employees as soon as you have it available. Don’t be afraid to say, “I don’t know.” Particularly in the first few hours after a tragedy, information will be scarce and much in demand. If you can be an advocate in obtaining it, you will show your employees you care and help lessen anxiety.

Encourage employees to talk about their painful experiences. This is hard to do, but eases healing as people express their painful thoughts and feelings in a safe environment, and come to realize that their reactions are normal and shared by others. Your team may prefer to discuss the situation among themselves. Don’t be afraid to participate, and to set a positive example by discussing your own feelings openly. Your example says more than your words.

Build on the strengths of the group. Encourage employees to take care of one another through such simple measures as listening to those in distress, offering practical help, visiting the hospitalized, or going with an employee on the first visit to a feared site. The more you have done to build a cohesive work group, and to foster self-confidence in your employees, the better your staff can help one another in a crisis.

Build on your work group’s prior planning. If you have talked together about how you, as a group, would handle a hypothetical crisis, it will help prepare all employees, mentally and practically, to deal with a real one. Knowing employees’ strengths and experience, having an established plan for communication in emergencies, and procedures can help you “hit the ground running” when a crisis actually strikes.

Be aware of the healing value of work. Getting back to the daily routine can be a comforting experience, and most people can work productively while still dealing with grief and trauma. However, the process of getting a staff back to work is one which must be approached with great care and sensitivity. In particular, if anyone has died or been seriously injured, the process must be handled in a way that shows appropriate respect for them.

teamwork

While we, the team at SafeSourcing, are no stranger to moments of emergency or crisis, we pull together as one team and one family ensuring that our customers and suppliers are taken care throughout our crisis. We take pride in offering the best customer service in the industry and will do whatever it takes to ensure that it remains our top priority and invisible to the outside world. 

For more information on how 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.

Customer Feedback: When and How to Use it

Friday, May 9th, 2014

 

Today?s post is?from our?SafeSourcing?archives

Earlier this week a LinkedIn Post by Gregory Ciotti talked about how Steve Jobs didn?t listen to his customers.? The basis of the statement about Steve Jobs focused on creative and innovative approaches to new ideas that go beyond trying to deliver what customers wanted and onto figuring out what they wanted before they know it.? It wasn?t that Steve Jobs didn?t listen to his customers, he was just focused on the type of feedback we used from them.? Using this approach, Apple and dozens of cutting edge companies like them were able to continue delivering fresh and ground-breaking products to the market that customers couldn?t have talked about wanting in a feedback survey because they had no idea that something was even possible.? They only knew they liked it when they saw it.

Being able to develop new products in a vacuum may work for some companies like Apple, but the majority of companies can?t afford to ignore their customers? ideas and have customer bases that would resent even trying this approach.? That is why finding out what customers (both internal and external) want without directly asking them and then using that feedback to determine where the problems are without relying on them to tell how to resolve those issues is the key to effectively using customer feedback.

Discovering without asking ? The process of uncovering feedback without it being direct is key to getting effective information to improve procurement department?s processes.? When questions are asked that uncover how the customer felt during the process and what worked for them and did not work for them the basis of what the true issues are is developed without asking the customers to begin solving the problems.? Knowing that they were confused with where the priorities of the project fell is the beginning of understanding the issue.? Once the issue is know the procurement team can begin finding the solution to resolve it.

Seeking the issues not the solutions ? This piece goes hand in hand with the point above.? Focus on the details of what didn?t work not on the how to resolve them.? The danger with asking opened ended questions such as ?Did the process work for you??? or ?What can we do differently for you?? is that it instantly puts customers in a mode of trying to deliver a solution to you because their answers will usually be, ?Fix this.? Change this. If only it did this.?? These do not tell what the real issues are the way questions like ?How did you feel when we finished the pre-event kickoff call?? or ?What piece of information on the reporting was the most helpful?? Most confusing?? or even ?Did you understand the RFP result package to the point of having clear next steps???? Answers to these questions can then help the procurement team adjust the things to produce better results.

Prioritize the issues ? As with any process like this, not everyone will be satisfied and not every issue can be resolved immediately.? Coming up with a prioritized approach of dealing with the issues uncovered from customer feedback based on severity and frequency will allow the team to focus their attention on the areas that can make the most impact and show the greatest attention to the customer?s input.

For more information on how we can help you collect and use feedback from your internal and external customers to develop stronger sourcing processes and projects 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.

Are you watching the commodity markets? Should you be?

Wednesday, May 7th, 2014

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

A customer asked me the other day what indexes we followed in our sourcing practices. Although this is a very broad question that could be answered any number of ways such as what product are you speaking about, it is in fact a very good question. Let me give you an example.

Let’s suppose you are planning your strategy to buy egg products such as whole eggs or liquid eggs or egg mixes. The first question you need to resolve is what makes up the largest cost in the egg farming process? To provide a short answer, it is feed. The follow on question to this should be; what type of grain makes up the feed? Again a short answer is corn. Resultantly these two questions should lead to the conclusion that keeping track of grain market futures is probably the best bet for locking in your pricing strategy depending on the length of your contract. As an example, with this information you might insert escalator and or  de-escalator language in your  terms and conditions request and resultantly in your contract based on the market price of  a specific crop at the time you negotiated your pricing.

The next step is determining where you can find this type of information. At SafeSourcing we use the CME Group  CME is the world’s leading and most diverse derivatives marketplace.  Relative to the egg market there is also another tool available that can be useful which looks at the average weekly price of egg products by region of the country. Using the two together is normally your best bet to build a solid sourcing strategy.

If you are not watching the markets that drive the pricing of the products you buy, you may make some significant mistakes that could negatively impact your financial plan down the road.

If you’d like to learn more about how SafeSourcing can assist you to determine how to best uncover the hidden costs that make up your products, please contact a Safesourcing Customer Services Account Manager.

We look forward to and appreciate your comments.

Ron Southard