Archive for the ‘Strategic Sourcing’ Category

How are you doing with your new procurement resolutions for 2013?

Wednesday, January 2nd, 2013

Many of you have attended self-improvement seminars over the course of your career. This author and has attended dozens if not hundreds. The fact is that in most cases the underlying message regardless of who is leading the session is simple and to the point. There are all sorts of quotes that come from these sessions.

Here are a few, and I paraphrase here as I’m working from memory

1. Goals are nothing more than dreams with a deadline.

2. If you don’t write down your goals they won’t happen.

3. Whatever the mind of a man can conceive and believe he can achieve.

4. You are what you think about most

5. If you think you can you can and if you think you can’t you’re right.

During this time of year, we get the benefit of a do over from our failures from the past yea’s goals and resolutions. Most businesses close their books in December. So 2012, is over and if we were not successful, we get a do over in 2013. That is if we kept our jobs.

Every company, or at least those that want to be successful, develop an annual plan. This represents their wishes and goals. This normally takes months and follows a format of developing a strategic plan that is rolled out tactically by functional areas within the company such as finance, operations etc. Where most workers are concerned, the tactical plan is where you will interface.  In fact your boss has most likely already reviewed your departments plan for 2013 with his or her team.

So here’s an interesting question for you. Have you developed your personal plan to support your departments plan? Has your boss even asked you too?  I’m sure the answer to both questions is no for at least 90% of you. And there in is the reason I say that most of you will fail to achieve your goals or resolutions. The fact is that 80% of all New Year’s Resolutions have failed within a week and 98% have failed within 6 weeks.

The reason for the above is because the resolutions are typically to grandiose, not well defined or thought out and not written down. If this is the case with personal resolutions or goals, it’s safe to assume that it will be the same for your business goals or resolutions. Let’s hope not.

Typically each year I take a day to kind of free form my ideas and thoughts for the upcoming year. I do this for my personal life first and then for my business life. I basically write everything that comes into my head down. I then convert it to a permanent document that I can refine from high level thoughts to actionable items. This is a hugely important step as writing is a psycho neuro muscular activity that locks these thoughts into your brain and gives one a reference point to come back to. Now thoughts and resolutions can be turned to goals with actionable tasks. Success at this point is just a matter of time and energy.

If you’d like to discuss how SafeSourcing can help you realize your business goals and resolutions for 2013, please contact a SafeSourcing customer services account manager.

We look forward to and appreciate your comments.

Companies Still Focusing on Green Initiatives

Monday, December 17th, 2012

Today’s post is by Mark Davis; Sr. Vice President of Operations and CTO at SafeSourcing. Mark asks “With green initiatives expected to continue being a focus for companies in the years to come, how is your company achieving its goals for a better environment?”

Over the past few years so many blogs and articles have been written about green initiatives, their definitions and ways to implement them. Today we will be looking at three companies who have recently announced some of the new ideas and ways they are committing themselves to get “greener.”

US Foods – In a recent ProgressiveGrocer Article, US Foods announced the work they are doing in their Albuquerque, N.M. Division. The announcement highlights the 430 kilowatt solar power system they have implemented which will supply almost 25% of the power needs of the distribution center’s power needs. In addition to a cost savings, the solar panels will offset the division’s 12,000 tons of carbon dioxide emissions over the next 25 years. This commitment coupled with green landscaping, “green” lighting changes put a focus on US Foods as a leader in their space for their commitment to environmentally friendly focus. Their changes are ones that so many companies will begin to look at for their own companies in the coming years.

Staples Canada – Last month Staples Canada, the leader in office supplies in Canada, released information about the ways they are focusing on initiatives geared toward a focus on protecting the environment. Their focus on recycling technology focused byproducts is attacking the 8 million pounds of electronic waste that is disposed of each year. This focus led to their 2012 Ink cartridge challenge which hoped to collect 5 million ink cartridges for recycling by Earth Day 2014. Their commitment to collecting and recycling items connected to their business is one that many companies are looking to emulate in the next 5 years.

Ahold USA – At the beginning of November the U.S. Environmental Protection Agency announced its top ranked retailers and companies in the area of green power purchases and had Ahold USA as the 8th best retailer and 29th best overall company. Green power is electricity that is generated from renewable resources, such as geothermal, wind and solar. The continued commitment to this type of energy leads to increased revenue and funding that will lead to wider adoption and a larger reduction of greenhouse gas emissions. These types of initiatives are great first steps for companies wanting a stronger green policy that may not have the dedicated resources to make sweeping organizational changes right away.

These companies have found ways to begin affecting the way business is done in ways that will positively affect our planet. The results stemming from their commitment are varied but all moving toward a common goal. For assistance on helping you with your “green” strategies in 2013, or for information about how to find greener suppliers, please contact a SafeSourcing Customer Service Representative.

We look forward to your comments.

Companies should think it through carefully before trying a do it yourself e-procurement program!

Thursday, December 13th, 2012

This author has met with many large companies that are using e-sourcing suites or tools provided by some of the largest names in the industry. After we have reviewed what we do and how we do it and then compare what they are accomplishing the following question always comes up. Why are you running more events and generating significantly higher savings than we are?

The answer is pretty simple in most cases. You have bought a suite of e-procurement software tools, been trained and rather than hiring the staff required to use them as designed you have defaulted to your old practices with the new tools. In addition neither continuous training nor access to new sources of supply and other data was included in your initial cost.

A full service solution provider should be able to create, execute and support all eRFX activity including but not limited to the following.

1.Assistance in category selection
2.Market analytics and insight
3.Category Strategy and timing
4.Identification of additional quality suppliers
5.Building on-line eRFX events
6.Conduct all Supplier contact and training
7.Execution of live eRFX events
8.Trouble shooting during live bids
9.Compiling and communicating reports within 24 hours
10.Award and Non-Award notifications to Suppliers
11.Post event supplier surveys
12.Providing ongoing customer support
13.Monitoring Supplier performance
14.Provide continuous improvement analysis of each eRFX

The above deliverables if not executed in a self-service program will result in less than maximum results and potentially failure of your program.

If you’d like to learn more about how SafeSourcing can help energize your self-service program, please contact a SafeSourcing customer services representative.

We look forward to and appreciate your comments.

2013 Looking to be Mobile focused again

Monday, December 10th, 2012

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

A few months ago Gartner, a leading research firm, unveiled that once again mobile technology will lead the way for companies, from an IT perspective, as their focus in 2013. With so much emphasis on this area and the fact that new smart phones continue to be released with processing power that is catching up with corporate America’s laptops, we will focus today on how your company can begin to leverage this technology for returns that will hit your bottom-line.

Expense Tracking – One of the biggest expenses a company can have is travel expenses because they hit at several different levels. There is the obvious level of the expense itself but there is also the expense that comes when there are not good controls in place and the process gets abused and there is also the expense required to manage the collection, submission and reporting of those expenses by your staff. That is why many companies have to turned to apps like Expensify which allow employees to track everything they do through electronic versions of receipts and statements or with the phone camera to take a .PDF before the employee ever gets back to the office. Companies like Runzheimer are also developing mobile apps for their customers that automatically track mileage using the GPS component of smart phones saving the employee time and improving the accuracy of what needs to be paid.

Virtual Office – There are so many times when meetings must be delayed due to a critical person not being in a place where they can use their laptop to join a webinar. These delays cost money and can lead to bigger issues down the road when milestones get missed. Cisco and other companies like them have created applications for smartphones that now allow companies to get the content of the webinar straight to their smartphone allowing them to participate wherever they are. Along the same lines, companies are using tools like Dropbox and Teamviewer to provide their employees remote access to their desktops and files from their phone allowing them to be more efficient and responsive.

Data Analysis – The first major thing most business smartphone users wanted once they had access to the rest of the internet was access to the data that is useful to them. Many companies are moving to provide their users with access to data that has been captured through their applications. Companies like Roambi are providing business intelligence overlay to data that produces reports, graphs and extra analysis for data their customers already own in a format that is easy to use from a smartphone. Having access to this data outside of the office can allow executives and other employees to make decisions quicker and react to data as it happens in real-time.

Custom Fit – The fourth area that companies will be looking at, is developing their own custom applications for their organization to be used internally and potentially by their own customers and vendors. Real-time order viewing, shipping status, and other updates are just some of the many ways companies will be looking to leverage the smartphone app explosion in 2013.

For assistance on helping you with your mobile app strategy or too learn more about the 2013 SafeSourcing mobile applications, please contact a SafeSourcing Customer Service Representative.

We look forward to your comments.

How does your organization verify the qualifications of your organization’s data destruction service providers?

Friday, December 7th, 2012

Today’s post is by Ryan Melowic; Director of Customer Services at SafeSourcing.

NAID AAA Certification verifies regulatory compliance, policies, and security for Mobile Shredding Services, Plant-Based Shredding Services, Computer Recycling Services, and IT Asset Management Services in many countries around the world.  NAID AAA Certification’s foundation is their Security Specifications, which cover over 20 areas of operational and security requirements.  These specifications outline requirements for Particle Size, Transportation, Record Keeping, Access Control, Training, Employee Background Checks, and many more.

It is your organization’s responsibility to ensure that your data destruction providers follow required Policies and Procedures.  Some examples of the different policies and procedures are.

1.Red Flags Rule
2.Financial Service Modernization Act Safeguards Rule
3.FACTA Final Disposal Rule
4.HIPAA
5.Regulation S-P Privacy of Consumer Financial Information

If you like to learn more about the SafeSourceIt™ Supplier Database and our list of supplier certifications, please contact a SafeSourcing customer services representative.

We look forward to and appreciate your comments.

Innovating up and down the supply chain

Tuesday, December 4th, 2012

Today’s post is from Steve Schwerin an account manager at SafeSourcing

It can be easy to focus on only innovations directly related to your company’s main line of business.  After all, isn’t that what you have most control over?  Without a doubt, the key to staying in business is focusing on what you add to the space you occupy in the supply chain.  Have you thought about how Negotiated Sourcing Strategies can open opportunities for savings that come from innovations in other locations along your supply chain?

What does this look like?  As is the case with your company, your suppliers have core competencies on which they are focusing; as with your company, they also have input costs.  Part of becoming better and better at their business is being able to do more with less leading to lower per-unit-costs.  At the same time, changes in their input prices can lead to the same result.  Both of these are the results of your suppliers working on their own profitability and/or benefiting from trends within a sector or even broader macro economic events.  Both of these can also result in lower input prices for your company.  Will they? 

The difficulty in getting these cost reductions passed on to your company is that it is in your suppliers’ interests to keep the cost reductions quiet.  While process improvements might be invisible to you on the outside, lower costs of your suppliers’ inputs, such as a drop in commodity prices, and are things you can keep tabs on through pricing indexes.  Here is where eSourcing can be of use.  Through eRFX strategies including reverse auctions, suppliers are motivated to reveal these price savings and pass them on to you.  While a drop in the level of a commodity index might be an indication of which products or areas to target, without the internet and innovations in sourcing itself savings in other parts of the supply chain would remain invisible.  As suppliers compete for your business, your costs decrease and your bottom line increases. 

staying with your current suppliers bring these savings into your company?  Why not be proactive?  Chances are that if there is pricing leeway within an industry, your suppliers are experiencing it along with their competitors.  Has one company discovered some as yet unknown competitive advantage?  Find out by inviting a basket of suppliers to compete for your business.  While suppliers might not volunteer to hand over some of the savings they are realizing, we all win when lower prices and increased quality are passed on to the end user. 

Let us help you.  For more information on how eRFX tools can help you access savings currently being realized in different areas of your supply chain, please contact your SafeSourcing Customer Service Representative.

We look forward to your comments.

How “No” can be Your Company’s Worst Enemy!

Monday, December 3rd, 2012

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

The easiest reply that can be given to internal requests and requests from customers and suppliers is “No.”  IT, marketing, sales, operations, and engineering departments all over the world hear a question that starts “Can I get….” and the reflexes kick in and force out a “No” before the question is even finished.   Today we are going to look at a few ways that having this attitude can hurt your company and some changes you can make to achieve better results.

IT requests – It departments are flooded every day with requests from their internal users for new items that they want.  So many times when the default answer is returned (“no”) the internal customer who is determined to get what they want, finds another way around the IT department.  This could be in the form of an unsanctioned, unmonitored tool like Dropbox for file storage and collaboration or it could take the form of the employee going out and buying a piece of hardware or software at a much hirer price and expensing it back to the company.  In these cases, working with the internal customer to understand their needs first and determine if there is a different existing solution in place to solve their problem can save the company from huge headaches down the road. 

Vendor/Supplier Requests – Vendor/Supplier requests can take many forms and a lot of companies feel that supplier requests stem from them just wanting to get as much out you as they can from you.  In actuality, many times the supplier request is not only valid but if taken seriously can be one that would benefit how you deal with all of your other suppliers.  This could be a software change, a process change, a pricing model change or tool to be put in place to make their interaction easier.  As a company you may not be able to implement their request right away, or ever, but listening to what the supplier is asking for may allow you to develop short, medium and long term plans to accommodate them.  Many times your supplier simply want to be heard and have you acknowledge that the pain driving their request is real and by listening instead of automatically saying “no” you can strengthen long-term partnerships.

Best of both worlds-by listening – Much like supplier requests; customer requests are driven from some pain that is occurring in the process of dealing with your company.  Unlike supplier requests, automatically saying “no” to too many of your customers can lead to them finding someone else who isn’t afraid to listen to them and say “yes.”  It is impossible to accommodate every request coming from your customers, but sometimes understanding the request can lead to something even better; a solution that requires no change.  Take the case of the customer who asks for a custom report from their vendor to show data they need for their internal processes.  The supplier could say “no” or say “yes” and provide the custom development price tag to get it done.  They could listen for 5 minutes longer and ask the customer if they have looked at the data that can be exported from screen X.  The customer looks and says “This is exactly what I need.  Thanks!”  By taking the time and understanding what the customer needed, the problem was solved, the customer was happy and all it took was a five-minute investment.

For more information on how SafeSourcing can help your needs and pain that is driving the things you are requesting from your current “no” vendors, please contact a SafeSourcing Customer Service Representative.

We look forward to your comments.

2013 Hot Sourcing Categories – Part V of V

Friday, November 30th, 2012

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

This week we began a series of blogs looking at the hot categories being expected to be sourced by companies in 2013 starting with a view of mobile products, managed services and marketing and social media planning and contingent labor.  Today we will wrap up the series looking Travel Related Categories.

In spite of the fact the world has completely embraced the digital movement to texts, emails, online meetings and Voice Over IP conference calls there is still a great need and use for travel related services in the corporate world.  This need, however, comes with rising costs and is a big reason why travel related categories will be a focus for procurement professionals in 2013.  Today we will look into some the areas that will be concentrated on.

Travel Management Services – Travel Management Service Providers have taken a big hit in the past few years as their customers have experimented with booking their travel related activity in-house.  What the corporate world has found, however, is that the lack of good travel tools, the rigidity of tools they do have and the lack of resources has created a shift back to travel management companies.  The big areas of focus in this category will be in the “per transaction” fees charged, the support provided and the “extras” that the management companies can bring to the table. 

Hotels & Rental Cars – Many companies look at hotel stays and rental car spends as something they need and yet do not take much time to get the most valuable deal for their organization.  The hotel and rental car companies don’t make this much easier because of how their pricing is structured and their need to have a guaranteed level of activity in pre-defined areas of use.  Many times these companies are not willing to give great agreements unless they are dealing with a large company.  2013 will see many companies begin to focus on those areas where they know their spend levels and details and negotiate the best deal for themselves.  This typically ends with a primary/secondary or preferred partner program which can be easily monitored and controlled with revised travel policies and can be enforced with a Travel Management Service.

Event Planning – While not every company has big events to plan throughout the year there are still hundreds of companies that require the planning services to pull these events off.  2013 will see many companies begin to look at where they are spending their money and attempt to leverage bigger spends against more formal agreements, letting the bigger event planning partners manage the smaller specialty services they need.  Many companies in 2013 will be looking to start with an initial survey of their current providers and expand that scope to new suppliers they may not have worked with in the past.  This will allow them to put together the combination of product and service providers that best fits their needs and budgets.

Regardless of how you plan to attack your category spends in 2013; it is clear that companies are continuing to find new and creative ways to help control their expenses.  Creating a plan for 2013 now and working with a third party procurement specialist can help you get the biggest value and return on your products and services.  For more information on how we can help you with this process, please contact a SafeSourcing Customer Service Representative.

We look forward to your comments.

2013 Hot Sourcing Categories – Part IV of V

Thursday, November 29th, 2012

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

This week we began a series of blogs looking at the hot categories being expected to be sourced by companies in 2013 starting with a view of mobile products, managed services and marketing and social media planning.  Today we will take a look at Contingent Labor Services.

We talked a few days ago about the changes that are happening in the workforce that are causing companies to have reduced staffs whether due to their decisions or due to external factors such as baby boomers retiring or a lack of talent in certain areas of the country.  Because of these changes there have been two big shifts that will continue in 2013; one, managed services, we have covered, the second, is contingent labor providers.

These providers supply temporary personnel, which can be contractors, consultants, independent contractors or temporary labor resources but in every case they are meant to augment a company’s staff in a particular department without creating a long-term commitment to adding more employees they may have to just lay off.

There are obvious disadvantages with this approach as it does not instill long-term loyalty and in some cases the costs to train new contingent staff can be quite high.  The flip side of the coin is what we will be looking at today as this becomes an increasing trend in 2013.

Good talent in non-core areas – One of the biggest reasons companies turn to contingent labor is for resources in departments and areas of the company that are not part of their core competency.  A company that makes a million loaves of bread may have the means for high priced IT talent but not the management or infrastructure to support a permanent team.  Outsourcing the positions and having them managed by a Managed Service Provider is often an option for companies like these as they concentrate on what they do best.

Use as needed – One of the nice things about contingent labor is being able to use the resources as you need them.  For seasonal companies this is a big advantage as they are able to staff up for periods of time without the expense of laying people off when things get slow.  As more companies look to take a “project” approach to their business the need for a temporary workforce will continue to gain appeal.

Talent pool is shallow – Many times companies are moving to contingent labor and consulting firms because they have no choice.  Larger cities have pulled a lot of talent away from the more rural areas leaving businesses with little choice but to use contingent labor for their high caliber needs.  Entering 2013, many companies will be forced to pay a higher premium for a good temporary workforce rather than settle for resources that cannot deliver what they need.

For more information on how SafeSourcing can help you source your contingent labor needs, please contact a SafeSourcing Customer Service Representative. Please join us for the conclusion of this series as we wrap up the 2013 Hot categories with Travel Related Categories. 

We look forward to your comments.

2013 Hot Sourcing Categories – Part III of V

Wednesday, November 28th, 2012

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

This week we began a series of blogs looking at the hot categories being expected to be sourced by companies in 2013 starting with a view of mobile products and managed services.  Today we will take a look at Marketing and Social Media Planning services.

world has become a place of increased dependency on social media channels with many companies beginning to dabble in their use to try and reach new streams of customer attention.  The difficult part about this is that many are not doing much more than dabbling, which is why 2013 will see many of those companies reach out to third party vendors to help them develop their strategies to affectively use these new communication channels

LinkedIn – What began as a forum for professionals to connect and keep updated summaries of their resumes online at all times has grown to become a valuable place for professionals to interact with each other in ways they would not have normally before.  These online discussions when contributed to and monitored by a third party marketing partner can prove extremely valuable in understanding what the industry you are in is doing and needing.

Twitter – Twitter campaigns are still in their infancy as it relates to corporate use.   While it is still mainly a social entertainment communication channel, there are companies who are beginning to develop strategic campaigns to reach their customers.  Most campaigns will have two goals in mind, one to reach the tweeters and one to reach the followers.  New announcements, brand changes or other corporate changes are perfect subjects to invite your customers to check out and many marketing companies are helping their customers do this effectively.

Blogs – Corporate blogs are great at providing a constant flow of information to the company’s current and potential customers.  While they may not always lead to a sale they do something very important; drive traffic to the website with new and interesting content.  These return trips provide potential revenue streams and draw attention to other new areas of your website.  One of the ways 3rd party marketing firms are really helping their customers is to plan out the year’s social media content schedule so that blogs, tweets and announcements are telling the same messages week after week.

For more information on how SafeSourcing can help you source these or any of products and services discussed this week, please contact a SafeSourcing Customer Service Representative. Please join us for tomorrow’s post on contingent labor. 

We look forward to your comments.