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

According to Research and Markets, The Procurement as a Service Market is expected to grow from $7.4B in 2023 to $13.2B in 2030. That’s a CAGR of 8.65%.

As our customers know, we have shifted our focus away from Software as a Service where you use our tools to source your goods and services to Procurement as a Service where we use our tools to do it for you. An additional benefit here is that we will also do it for you using your tools like Ariba or Coupa and others. So, no lost investment. The benefit to you is the capability of taking more categories to market in a shorter period of time and get a better return on your investment. SafeSourcing’s average savings on eRFX  events over the last five years is greater than twenty-four percent. No one in the industry gets those kinds of numbers. SafeSourcing’s average tenure for our procurement knowledge workers is eleven years. So why hire someone new?

While our services cover all eRFX  types such as RFI’s, RFP’s and RFQ’s, SafeSourcing also provides services in Spend Management, Contract Management, Document Management and supports it all with our SafeSourceIt™ Global Supplier Database.

Talk to SafeSourcing about our unique “Eight Step Process” a White Glove Procurement as a Service offering for taking any category to market with our tools or yours.

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

1. Interest on US debt was equal to 76% of income tax collected in June
2. Consumers are paying as much as 26% on credit card debt and can’t afford basic needs.
3. Non-bank lending rates are stupidly high, and terms are ridiculous.
4. Bankruptcies continue to mount.
5. In March 2024 alone, there were 59 new corporate bankruptcy filings most in part due to high interest rates.
6. Several notable retail companies have filed for bankruptcy in 2024.

Yup, the policies are working so let’s just keep doing what we are doing.

SafeSourcing can help you reduce costs immediately. Then you can share it with your customers and employees.

Don’t just sit around, do something.

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

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

I read and interesting story yesterday by lvaranasi@insider.com. It was titled AI won’t replace human workers, but ‘people that use it will replace people that don’t,’ AI expert Andrew Ng says.

I thought this a pretty provocative statement but probably true. At SafeSourcing we use Ai for a number of things. Our Spend Analytics tool uses Ai to analyze customers spend data. It does it in a fraction of the time we used to take using Excel and power query as well as manual activities. The thing is our customers won’t replicate it and our competition won’t either. We built the prompts that drive how any Ai tool interacts with our customers data and then interacts with our data to produce an evaluation that is worth literally millions of dollars to our customers. It is accomplished so quickly that the impact on current operational results in the current accounting period are very possible. We can tell you.

1. How many suppliers you do business with today?
2. What those suppliers do for you.
3. How much have you spent with each of them during the last twelve months?
4. Where you are using to many suppliers in a category and to few.
5. What categories if sourced offer the best possible impact in the shortest amount of time.
6. What savings target you might achieve across your entire spend by category?
7. How many suppliers there are in each category to bid on your business?
8. Whether Terms and conditions already exist in our database.
9. Whether specifications already exist in our database.

All of that can be done using a variety of Ai tools that can essentially use the same prompts either verbal or text. And the Ai gets to know you and how you ask questions as you condition it and use it more.

Can our customers do this? NO. The thing is we don’t sit on our hands and use buzzwords. We use the tools and because we do, we think our jobs are safe and our customers will be better for it.

Call and ask us about SafeSpendAnalysis™ our Ai inspired spend analytics tool.

So is Andrew Ng accurate when he says Ai won’t replace human workers, but ‘people that use it will replace people that don’t. Probably so.

For more information on what the SafeSourcing team can offer you, or on our Risk-Free trial program, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.

Today’s guest post is by Eric Steller Co-Founder | Managing Partner | CRO | Board Member | President

Artificial Intelligence (AI) has revolutionized many industries, from healthcare to finance, offering advanced analytics, automation, and decision-making capabilities. However, when it comes to eProcurement, the adoption of AI faces significant limitations. While AI can enhance certain aspects of procurement processes, it falls short of completely replacing existing eProcurement systems. This white paper explores the primary reasons why AI cannot fully substitute traditional eProcurement solutions.

1. Lack of Incentive for Transparency

In the eProcurement space, transparency is a double-edged sword. Suppliers, buyers, and intermediaries often operate with the intent to maximize their margins. Full transparency, as facilitated by AI, could potentially expose pricing strategies, margins, and other sensitive data that parties are not willing to disclose. This lack of incentive for transparency presents a major hurdle for AI adoption in eProcurement, as the parties involved are not motivated to show all their cards.

2. Complex Relationship Dynamics

eProcurement is not just about transactions; it involves complex relationships and negotiations between buyers and suppliers. These relationships are built on trust, history, and nuanced understanding, which AI systems cannot replicate. The subtle dynamics and the importance of human interaction in negotiating terms and managing supplier relationships are beyond the current capabilities of AI.

3. Data Privacy and Security Concerns

AI systems rely heavily on data to function effectively. In eProcurement, this data often includes sensitive information such as pricing, contracts, and proprietary supplier information. The use of AI raises significant data privacy and security concerns, as unauthorized access or breaches could lead to severe financial and reputational damage. Ensuring the security of AI systems and the data they handle is a critical challenge that limits their adoption in eProcurement.

4. Inability to Handle Unstructured Data

eProcurement processes involve a considerable amount of unstructured data, such as emails, documents, and verbal agreements. AI systems struggle with understanding and processing unstructured data in a meaningful way. While natural language processing (NLP) and other AI technologies are advancing, they are still not capable of fully comprehending the complexities and nuances of unstructured data that are integral to eProcurement.

5. Regulatory and Compliance Issues

The eProcurement sector is heavily regulated, with strict compliance requirements that vary by industry and region. AI systems must be meticulously designed to adhere to these regulations, which can be a daunting task. The dynamic nature of regulatory environments means that AI systems need constant updates and adjustments to remain compliant, posing a significant limitation on their widespread adoption in eProcurement.

Conclusion

While AI offers promising enhancements for certain aspects of eProcurement, it cannot fully replace existing systems due to the inherent complexities and challenges outlined above. When seeking an eProcurement provider, it is crucial to value experience over flashy user interfaces and advanced reporting features. The proof is in the pudding, and a provider with a long history of proven success is invaluable. This market vertical thrives on a hybrid approach that combines white-glove consulting, deep relationships, and a robust software infrastructure that supports a repeatable, predictable process.

To navigate the complexities of eProcurement, businesses should prioritize providers who understand the intricacies of the industry and have a demonstrated track record of delivering reliable, compliant, and effective solutions.

While this topic is a very important area of discussion and a broad topic in today’s procurement space, this white paper intends to provide much needed guidelines and dialogue points to consider as procurement professionals review the use of AI based solutions at their companies

References

1. Handfield, R. B., & Nichols, E. L. (2002). Supply Chain Redesign: Transforming Supply Chains into Integrated Value Systems. Financial Times Prentice Hall.
2. Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management. Cengage Learning.
3. Trent, R. J. (2007). Strategic Supply Management: Creating the Next Source of Competitive Advantage. J. Ross Publishing.

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

I’ve enjoyed my conversations with Mahdlo Executive Advisors, specifically Eric Steller who is the Principal at Mahdlo and Andrew Teitscheid who is a senior advisor and CRO. We’ve been exploring  the procurement space over the last several weeks to try and understand how Mahdlo’s advisors and customers can benefit from the use of Procurement Best Practices, specifically “Procurement as a Service” or PaaS.

Today’s Video:

This video explores why Artificial Intelligence whose use grows in procurement daily may not be the be all, end all in the procurement space just yet. Specifically, as it applies to “Procurement as a Service”. We also spend a little time discussing Blockchain and Quantum computing to add a little spice to the conversation about my favorite subject, all things procurement.

SafeSourcing is a global Procurement as a Service (PaaS) provider. This means that we can deliver our services using our own platform or competitive platforms that our customers may have already purchased but may not be achieving the benefits for which they had hoped. We accomplish this through our unique “Eight Step” detailed White Glove managed delivery program.

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

Procurement as a Service

Today’s post is by Margaret Stewart, Director of Marketing, HR and Administration at SafeSourcing

Oftentimes today companies will seek ways to streamline operations and enhance efficiency. One area ripe for innovation is procurement—the process of sourcing and acquiring goods and services necessary for business operations. Enter Procurement as a Service (PaaS), a modern approach that offers organizations a flexible, efficient, and cost-effective solution to manage their procurement needs.

Procurement as a Service (PaaS) is a model where a procurement partner assists or manages a company’s procurement activities, which typically include strategic sourcing, supplier management, contract negotiation, procurement transactions, and spend analysis. By leveraging PaaS, businesses can access specialized expertise, advanced technology, and scalable resources without the need for significant internal investments.

One of the most compelling advantages of PaaS is cost reduction. By implementing procurement functions, companies can reduce overhead costs associated with maintaining an in-house procurement team. Additionally, PaaS providers leverage their extensive supplier networks and negotiating power to secure better pricing and terms, resulting in further savings.

PaaS providers bring specialized knowledge and experience to the table. They stay up-to-date with industry trends, regulatory changes, and best practices, ensuring that their clients benefit from the latest insights and strategies. This expertise can be particularly valuable for companies lacking procurement proficiency or those entering new markets.

Business needs fluctuate, and PaaS offers the flexibility to scale procurement activities up or down as required. Whether a company is expanding rapidly or facing a downturn, PaaS providers can adjust their services accordingly, ensuring that procurement operations remain aligned with the business’s current needs.

PaaS providers utilize advanced procurement technologies and tools, such as e-procurement platforms, spend analysis software, and supplier management systems. These technologies streamline procurement processes, reduce manual tasks, and improve overall efficiency. As a result, companies can focus on their core competencies while the PaaS provider handles procurement intricacies.

Procurement as a Service represents a transformative approach to managing procurement activities in today’s dynamic business environment. By leveraging the expertise, technology, and scalability offered by PaaS providers, companies can achieve significant cost savings, enhance efficiency, and mitigate risks. As the business landscape continues to evolve, embracing PaaS can provide a strategic advantage, enabling organizations to stay competitive and focused on their core objectives.

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

The following video as promised yesterday focuses on how companies that may have invested in technologies of alternative sourcing providers like Ariba, Coupa, GEP and others regardless of SaaS or Enterprise implementations can still take advantage of SafeSourcing’s Procurement as a Service “White Glove” Managed Services unique “Eight Step” process in order to drive incremental results while continuing the use of your competitive solution providers tools. While the SafeSourcing process has eight major steps, there are as many as seventy (adjusts based on cumulative learning) individual touch points. The vast majority of these are handled by our SafeSourcing Customer Services Team of Procurement Knowledge Workers with input from your team procurement team where needed.

Detailed Video Response to yesterday’s introductory post relative to SafeSourcing’s Procurement as a Service “White Glove” Managed Services unique “Eight Step” process. Please Click here to view.

SafeSourcing is a Procurement as a Service Provider that delivers significant financial results utilizing our  SafeSourceIt™ procure to pay suite of applications in order to deliver guaranteed improvements to companies’ gross margin, expense, and net earnings.

Our services are delivered utilizing our unique eight step white glove delivery model that can also be delivered using competitive procurement solution providers tools in order to improve your teams’ results. Our  SafeSourceIt™ Global Supplier Database that includes over 557,000 vetted and experienced vendor/suppliers provides our customers with access to suppliers that are responsive and interested in competing for your business.

To learn more please contact a SafeSourcing Customer Services Representative

Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc

I recently completed a series of interviews with Mahdlo Executive Advisors Eric Stellar Co-founder and Principal and Andrew Teitscheid CRO regarding our service delivery model and how it might be deployed using competitive solutions providers tools like Ariba, Coupa, GEP and others in order to improve upon a company’s results annually.

The following video is the third session and serves as an introduction to a detailed discussion that will be published tomorrow as to how and why our eight-step white glove service approach can improve operating results for companies year after year regardless of the tools they use.

Please click on this link to view the video. Linked In Interview

Please enjoy and I certainly appreciate your comments.

SafeSourcing is a Procurement as a Service Provider that delivers significant financial results utilizing our  SafeSourceIt™ procure to pay suite of applications in order to deliver guaranteed improvements to companies’ gross margin, expense, and net earnings.

Our services are delivered utilizing our unique eight step white glove delivery model that can also be delivered using competitive procurement solution providers tools in order to improve your teams’ results. Our  SafeSourceIt™ Global Supplier Database that includes over 557,000 vetted and experienced vendor/suppliers provides our customers with access to suppliers that are responsive and interested in competing for your business.