Corporate CEO’s & CFO’s don’t have this much trouble with debt ceilings or managing debt.

August 3rd, 2011

Although debt is often abused at both the corporate and public level as evidenced by recent banking scandals, it remains a primary tool of governments, companies and individuals in order to conduct their daily affairs.

Unfortunately politics gets in the way of governments using debt tools properly. Fortunately for the CEO’s of the many companies that fuel our economy they do not have the same difficulty in aligning their growth with the proper use of debt. When CEO’s don’t get it right and don’t manage costs they way they should the result is generally receivership or protection from creditors that allows them to restructure their finances, trim operating costs and get their expenses more in line with their revenues. In most cases this costs the CEO his or her job. It continues to amaze this author that our government has to bicker to the extent they do in order to raise the debt ceiling to drive economic growth and assign accountability to not properly managing the budget.

Companies use a variety of spend management tools in the procure to pay process in order to indentify costs that need to be driven out of their businesses that are a result of poor visibility, mismanagement, maverick spending and other supply chain issues. Our government could do the same thing. Unfortunately as we have all just witnessed politics get in the way. At companies the executives are accountable to the board of directors and share holders. Who is the government accountable to? Oh, that’s right US!

Remember that at the next election.

An Unfortunate Truth! Most Mid tier retailers are getting further behind by not using e-procurement tools.

August 1st, 2011

This is not based on a lack of desire on the part of mid tier retailers as it is based on large software and consulting providers not willing to price their products or spend time in the mid tier market.

All Retail industry leaders know for a fact that e-procurement improvements can directly improve their bottom line as well as positively impact shareholder and stakeholder equity. In many cases in upper tier companies significant strides have been made to this end.

In? mid tier markets, it?s an? unfortunate circumstance that? procurement departments or purchasing as it had traditionally been known has not evolved significantly beyond its traditional functionality in many cases. Many mid tier companies will introduce you to their category managers. However, it very quickly becomes clear that although many have strong backgrounds as product buyers; very few have been exposed to the most current e-procurement tools available today. This is in no way the fault of the purchasing department or of the retailer. Reduced staff counts and the aforementioned lack of attention from software and consulting providers as well as a lack of near by formal e-procurement training programs combine to make the transition to e-procurement tools difficult.

What can retailers in the mid tier markets do? The answer may be working with boutique software houses that have no where near the overhead of the largest companies in this space. The largest well known companies in the e-procurement space may dominate your web based searches because they can afford to pay for large numbers of key words used in web searches. It may actually pay to drill down a few pages beyond your original search to find companies that have unique e-procurement software offerings that are often developed by highly skilled entrepreneurs that know the retail procurement business and can offer e-procurement solutions for a fraction of the cost associated with the better known legacy providers. The risks associated with this approach are minimal as most offers in the e-procurement space are offered as a hosted service today. All that is required on the retailer?s part is internet access. You might even get treated more like a customer to boot.

We look forward to your comments.

ECOLI!! “There is a lot more to an article than just its title.

July 27th, 2011

I read a number of papers every day as well as trade rags and internet based information in order to provide accurate content to our readers and customers.

In most of my reading I try to relate the article to what else is going on in the world and try to understand how those pressures apply to the article I’m reading.

As a case in point; I was reading the USA TODAY MONEY section where the main article was titled “Only 1 deadly strain of E.coli is illegal” by Elizabeth Weise. As was the case for this author, I’m sure you are trying to figure out what the article is about, because shouldn’t all E.coli or more accurately conditions that cause E.coli to spread be illegal?

In any case according to the article there are a half dozen or so potentially deadly strains of E.coli but in the Untied States, companies are only required to test for one. That one is E.coli 0157:H7.

How we fix this issue is a real conundrum since the United States legislature does not seem to have this (food safety) as a significant issue, but then again they don’t seem to be able to agree on anything lately other than arguing with each other and wasting time.

At least we know now that 17% of the E.coli that could kill us is tested for. I’ll leave it to you as to whether or not that’s a good batting average.

We look forward to and appreciate your comments.

ECOLI!! ?There is a lot more to an article than just its title.

July 27th, 2011

I read a number of papers every day as well as trade rags and internet based information in order to provide accurate content to our readers and customers.

In most of my reading I try to relate the article to what else is going on in the world and try to understand how those pressures apply to the article I?m reading.

As a case in point; I was reading the USA TODAY MONEY section where the main article was titled ?Only 1 deadly strain of E.coli is illegal? by Elizabeth Weise. As was the case for this author, I?m sure you are trying to figure out what the article is about, because shouldn?t all E.coli or more accurately conditions that cause E.coli to spread be illegal?

In any case according to the article there are a half dozen or so potentially deadly strains of E.coli but in the Untied States, companies are only required to test for one. That one is E.coli 0157:H7.

How we fix this issue is a real conundrum since the United States legislature does not seem to have this (food safety) as a significant issue, but then again they don?t seem to be able to agree on anything lately other than arguing with each other and wasting time.

At least we know now that 17% of the E.coli that could kill us is tested for. I?ll leave it to you as to whether or not that?s a good batting average.

We look forward to and appreciate your comments.

Good sourcing practices are good whether they are green or not.

July 26th, 2011

However, if companies already have good sourcing practices in place adding green ones is much easier.

I? reread an article titled ?A Practical Guide to Green Sourcing? and it occurred to me that if you already have good sourcing practices, the journey to green will be much easier.

A Practical Guide to Green Sourcing was written by? John Christensen, Christopher Park, Earl Sun, Max Goralnick, and Jayanth Iyengar? of? Supply Chain Management Review and published on? November 1st 2008. It is absolutely loaded with great information a lot of which should be just common sense..

A quote from the article really says it all and is a theme you should already be familiar with if you read my posts regularly. It is as follows. ?Green sourcing can help in two important ways. It can help companies improve their financial results, allowing them meet their cost reduction goals while also boosting revenues. It can also contribute to a better public image and reputation with the company’s stakeholders.? In essence this one quote supports triple bottom line accountability or TBL. However if you replaced the word green at the beginning of the quote with the following it still works

1.?Efficient
2.?Well thought out
3.?Strategic
4.?A refocus on your
5.?Reviewing your

I?m sure you can add another dozen to this list easily. I hope you will read the entire article. It may be your company?s first step towards a more successful 2011 and 2012.

We look forward to and appreciate your comments.

How do you successfully source an extremely specialized item?

July 25th, 2011

Today?s post is by Lauren Finnessy; Account Manager at SafeSourcing. Lauren asks ?How do you successfully source an extremely specialized item??

If you are a company that uses specialized items in order to produce your final product or service you should be asking yourself how does one successfully source a specialized item?? I am not referring to something that may be hard to find, but instead something that only one or two manufacturers readily provide.? For example, a battery to your specific piece of equipment may be manufactured specifically to run your product.? Therefore, it is not easily replaced with AAA or even a Li-ion standard.? It may seem like your current supplier is the only company and therefore has a monopoly over your business.? This situation puts the supplier in control of pricing and that is a dangerous stance to take from your shoes!

What this author has discovered is that in this situation, there are options!? Below are a few steps that you can take to get started in order to source your item effectively.

  1. Outline detailed specification of the item (s) that you want to source.? This should include as much specific detail as possible; the shape, size, weight, interior components.
  2. Outline, as detailed as possible, what the item is used for.? Is it the end product? Or is it a part that goes into the end product?? What function does the item hold?
  3. Know where you are currently getting the item, how many you are purchasing, and how much you are spending.
  4. Be prepared to have samples of your specialized item given to the manufacturer for testing reasons.? Also, set a realistic expectation for the samples to be returned to you for your own product testing.? You will need to know that a manufacturer is actually making a compatible and comparable product.

Once you?ve compiled all this information, you and your sourcing partner are armed with information to find other avenues to source this item.? This author?s recommendation is to start with the suppliers that are competitors of your current supplier.? Look into their equivalent products or find out if there are companies willing to manufacture your specialized item specifically for your needs.? This will help you broaden the marketplace for your specialized item and ultimately be able to source them to fit your needs and keep the focus on your bottom line.

For more information on SafeSourcing and sourcing your specialized items, please contact a Customer Service representative.

We look forward to and appreciate your comments.

Four R’s of Preventing Waste – Other R’s

July 22nd, 2011

Today’s post is by Mark Davis; Vice President of Operations and CTO at SafeSourcing. Mark asks "As the Waste Reduction area grows what are the next R’s to be added into the group?"

This week we have spent some time discussing the Four R’s of waste education; Reduce, reuse, recycle and rebuy.  Focus on these four areas can help companies begin to take steps to help begin reducing waste and become greener organizations.

As more companies begin taking steps to improve their processes, new areas will continue to open up for ways to grow this mindset and make it standard practice everywhere.  Today’s final entry of the series will take a look some of the new R’s that are beginning to emerge in today’s marketplace.

Recover – This is defined as any operation that diverts a waste material from the waste stream and then  results in a certain product with a potential economic or ecological benefit. Recovery often focuses on material, energy or biological resources and generates income as well as reduces waste. Many companies such as Recover Waste Energy, Inc. (http://recoverwaste.com/) specialize in this process and are doing great things to manage organic waste.

Replenish – Replenishing natural resources such as planting new shrubs and trees are a big part of not only replacing those resources being used for other products but it helps to create habitats and remove excess carbon from the air.  As an organization this may not be something you can affect directly, but it is definitely an area where you can select vendors who actively practice this in the course of their business.

Rethink – This last “R” is probably the most important new R as we head into a greener future for our planet.  Rethinking how we do everything involves a change in practice and mindset that examines everything we do looking for opportunities to rethink waste; how it is created; how it can be reduced; what we can do with it; and how we can use it in order to continue making a greener world

The first step to beginning to affect change begins with knowing where you are and where you need to go. 

We at SafeSourcing hope you have enjoyed this week’s series and look forward to your comments  For more information on us or how we can help you on your company’s journey down any of these “R” paths, please contact a Customer Service Representative.

Four R?s of Preventing Waste ? Other R?s

July 22nd, 2011

Today?s post is by Mark Davis; Vice President of Operations and CTO at SafeSourcing. Mark asks "As the Waste Reduction area grows what are the next R?s to be added into the group?"

This week we have spent some time discussing the Four R?s of waste education; Reduce, reuse, recycle and rebuy.? Focus on these four areas can help companies begin to take steps to help begin reducing waste and become greener organizations.

As more companies begin taking steps to improve their processes, new areas will continue to open up for ways to grow this mindset and make it standard practice everywhere.? Today?s final entry of the series will take a look some of the new R?s that are beginning to emerge in today?s marketplace.

Recover ? This is defined as any operation that diverts a waste material from the waste stream and then? results in a certain product with a potential economic or ecological benefit. Recovery often focuses on material, energy or biological resources and generates income as well as reduces waste. Many companies such as Recover Waste Energy, Inc. (http://recoverwaste.com/) specialize in this process and are doing great things to manage organic waste.

Replenish ? Replenishing natural resources such as planting new shrubs and trees are a big part of not only replacing those resources being used for other products but it helps to create habitats and remove excess carbon from the air.? As an organization this may not be something you can affect directly, but it is definitely an area where you can select vendors who actively practice this in the course of their business.

Rethink ? This last ?R? is probably the most important new R as we head into a greener future for our planet.? Rethinking how we do everything involves a change in practice and mindset that examines everything we do looking for opportunities to rethink waste; how it is created; how it can be reduced; what we can do with it; and how we can use it in order to continue making a greener world

The first step to beginning to affect change begins with knowing where you are and where you need to go.?

We at SafeSourcing hope you have enjoyed this week?s series and look forward to your comments? For more information on us or how we can help you on your company?s journey down any of these ?R? paths, please contact a Customer Service Representative.

Four R’s of Preventing Waste – Rebuy

July 21st, 2011

Today’s post is by Mark Davis; Vice President of Operations and CTO at SafeSourcing. Mark asks "How can you close the loop on the Recycling Four R’s?"

Today we will cover the four most common R in the Four Waste Reduction R’s; Rebuy.  As procurement professionals this is where your influence has the greatest affect as you begin to close the loop on the journey to becoming a  greener company.

When companies purchase products made from recycled products they create a higher demand for manufacturers to produce even more of those products.  More products being manufactured leads to a higher volume of products that can continue to be recycled to the point where that process becomes the norm and not the exception.

There are many ways to begin the process of only buying recyclable items starting the entire green product use over again.

Start with the vendor – There are many organizations that supply 100% recycled products.  These products from companies like Weisenbach Recycled Products (http://www.recycledproducts.com/) are made mostly or entirely from recycled products and can be recycled yet again upon the end of their lives.

Know the recycled products – A key step in the process of successfully “rebuying” is knowing what products are even available to purchase as recycled products.  Sites such as http://www.ecomall.com/biz/recycle1.htm contains extensive lists of products and companies that provide recycled catalogs of products to purchase.  Knowing what qualifies is an important step to procuring greener inventory.

Start simple – Starting simple in your organization can be as easy as selecting bottled water that comes in 100% recycled plastic bottles that can in turn be recycled again.  This seems like a basic first step and that is because it is, but the fact of the matter is, as mentioned above, that when consumers demand and then continue to purchase products like this, manufacturers will continue to produce them and will in turn employ the process with other products.

Rebuying does close the loop on the Four R’s but it is not the end.  Tomorrow we will talk about all new R’s that are being considered a part of this great new trend.  For more information on SafeSourcing and how we can help you find vendors and products that are associated with rebuying, please contact a Customer Service Representative.

We hope you have enjoyed this week’s series and look forward to and appreciate your comments.

Four R?s of Preventing Waste ? Rebuy

July 21st, 2011

Today?s post is by Mark Davis; Vice President of Operations and CTO at SafeSourcing. Mark asks "How can you close the loop on the Recycling Four R?s?"

Today we will cover the four most common R in the Four Waste Reduction R?s; Rebuy.? As procurement professionals this is where your influence has the greatest affect as you begin to close the loop on the journey to becoming a? greener company.

When companies purchase products made from recycled products they create a higher demand for manufacturers to produce even more of those products.? More products being manufactured leads to a higher volume of products that can continue to be recycled to the point where that process becomes the norm and not the exception.

There are many ways to begin the process of only buying recyclable items starting the entire green product use over again.

Start with the vendor ? There are many organizations that supply 100% recycled products.? These products from companies like Weisenbach Recycled Products (http://www.recycledproducts.com/) are made mostly or entirely from recycled products and can be recycled yet again upon the end of their lives.

Know the recycled products ? A key step in the process of successfully ?rebuying? is knowing what products are even available to purchase as recycled products.? Sites such as http://www.ecomall.com/biz/recycle1.htm contains extensive lists of products and companies that provide recycled catalogs of products to purchase.? Knowing what qualifies is an important step to procuring greener inventory.

Start simple ? Starting simple in your organization can be as easy as selecting bottled water that comes in 100% recycled plastic bottles that can in turn be recycled again.? This seems like a basic first step and that is because it is, but the fact of the matter is, as mentioned above, that when consumers demand and then continue to purchase products like this, manufacturers will continue to produce them and will in turn employ the process with other products.

Rebuying does close the loop on the Four R?s but it is not the end.? Tomorrow we will talk about all new R?s that are being considered a part of this great new trend.? For more information on SafeSourcing and how we can help you find vendors and products that are associated with rebuying, please contact a Customer Service Representative.

We hope you have enjoyed this week?s series and look forward to and appreciate your comments.