What is the financial impact of food-borne illnesses?

May 5th, 2011

Yesterdays post which you can read by clicking the link above about the recent grape tomato recall questions what we have learned in the last three years since the massive cherry tomato recall.

One thing we have learned or at least taken a step towards understanding is the financial impact of these types of events. The Emerging Pathogens Institute of the University of Florida has issued a Report that indentifies the top 10 pathogen-food combinations that cause illness in the U.S. annually as well as their financial impact. Salmonella is the leading pathogen and the culprit in the recent tomato recall costing $3B per year. According to the report the top 10 pathogens cost us $8B per year.

This author believes you could actually triple those numbers as most cases of simple diarrhea and vomiting never make there way to the hospital or other medical centers, but do in fact cause loss of work, productivity and wages. $24B is a big number.

The lesson hear is that we have still not solved the food-borne issue illness or the farm to fork issue that requires a supply chain that is traceable to it’s original source. Until we do, what goes around will continue to come around and the costs will continue to go up.

We look forward to and appreciate your comments.

What are we learning about food safety?

May 4th, 2011

That’s a really good question and the follow up should be how are we applying those learning’s. Or are we?

Yesterday Taylor Farms Pacific, Inc., a California-based food supplier for a number of retail companies announced the recall of grape tomatoes produced by one of their growers based on a possible salmonella contamination.

Here’s the title of a post from three years ago on cherry tomatoes which are basically the same product, “I say Tomato, and you say Tomah to. I ate some last night”!

So the question is what have we learned and how has it been applied to these products. Food recalls cost money. They create lost revenue for retailers and lost work hours for consumers affected by the illness they cause.

If you are a retailer or a supplier affected by these recalls and you want to improve performance, give SafeSourcing a call.

We look forward to and appreciate your comments.

Getting to know the Organizations Helping to Protect Us – Part 4 of 4

May 2nd, 2011

Today’s post is by Mark Davis; Vice President of Operations and CTO at SafeSourcing. Mark asks "How do you leverage the work from organizations helping to protect the planet and its people?"

For more than 20 years, Ecologo has been working diligently to certify products all over the world that meet strict standards for leading the way in environmental responsibility.

Founded in Canada in 1988, Ecologo is only one of two North American eco-labeling programs approved by GEN as meeting internationally recognized ISO 14024 requirement and has certified thousands of products, creating one of the world’s largest pool of sustainable products.

Like many organizations of its type, Ecologo goes beyond just ensuring that companies who want to be certified are following the guidelines set, but they also play a huge part in marketing those companies and products to the world so that people and companies can choose to align themselves with companies who show a bigger accountability to this planet than just making money.

Extremely active, in just the month of April alone, Ecologo announced certification of new printer cartridges and standards for ink and toner, household cleaners and copy paper.   You can read more about these press releases at http://www.environmentalchoice.com/en/inthenews/pressreleases.

For more information about how you can ensure that you are including companies and products who have been certified by organizations such as Ecologo, the Marine Stewardship Council, the Gluten Free Certification Organization, and the Forest Stewardship Council, please contact a SafeSourcing customer service representative today.

We look forward to and appreciate your comments.

Getting to Know the Organizations Helping to Protect Us – Part 3 of 4

April 29th, 2011

Today’s post is by Mark Davis; Vice President of Operations and CTO at SafeSourcing. Mark asks "How do you leverage the work from organizations helping to protect the planet and its people?"

In a series where we are looking at some of the organizations out there that are working hard to protect our planet, we focus today on the Marine Stewardship Council.

Founded in 1997 by the World Wide Fund for Nature and Unilever, this organization works with seafood manufacturers to produce products based on principles of sustainability with their vision of “the world’s oceans teeming with life, and seafood supplies safeguarded for this and future generations.” (http://www.msc.org/about-us/vision-mission)

What makes this organization so special is that they have a mindset that goes beyond just certifying products and companies; they truly want to influence the way people see, purchase, and consume products so that entities with good fishing practices are rewarded and moved to the forefront of the industry.

Their programs to educate the public, businesses, fisheries and even developing countries to ensure we as a planet continue to move towards sustainable seafood practices are known and recognized throughout the world.

For more information on the more than 9,000 products and companies who have been certified, the 104 certified fisheries or the retailers and restaurants who support the MSC programs, visit their website at http://www.msc.org/

We look forward to and appreciate your comments.

Knowing the Organizations Helping to Protect Us – Part 2 of 4

April 27th, 2011

Today’s post is by Mark Davis; Vice President of Operations and CTO at SafeSourcing. Mark asks "How do you leverage the work from organizations helping to protect the planet and its people?"

In Monday’s blog we talked about how many organizations are out there working very hard to make sure that the world and its inhabitants are safer.
In the rest of this week’s posts we would like to take some time and highlight a few of the groups that work so hard to protect us, groups you may or may not been familiar with but that deserve the attention and praise of the business world.

The Gluten Free Certification Organization (GFCO) “provides an independent service to supervise gluten-free food production according to a consistent, defined, science-based standard that is confirmed by field inspections, in order to achieve heightened consumer confidence and safety. “ (www.gfco.org)

Gluten-free diets are very common for treating diseases of the intestine, connective tissues, and other sensitivities and allergies of the protein, gluten.  The GFCO works with auditors to certify that are manufactured to the guidelines to ensure a product is gluten-free and safe for those with the ailments above.  Working with manufactures such as Snyder’s and retailers such as Trader Joes, the GFCO works hard to improve the products consumed by those on gluten-free diets.

For more information on the certified Gluten-Free go to our website or for a list of Certified Gluten-Free products go to the GFCO’s site at http://www.gfco.org/products.php

We look forward to and appreciate your comments.

Where should your RFI data come from?

April 26th, 2011

According to Wikipedia and others a Request for Information (RFI) is a standard business process whose purpose is to collect written information about the capabilities of various suppliers. Normally it follows a format that can be used for comparative purposes.

So a Request for Information (RFI) is primarily used to gather information to help companies make a decision on what steps to take next. RFI’s are therefore most often the first stage in the procurement process particularly with new sources of supply. They are used in combination with: Requests for Quote (RFQ), Requests for Tender (RFT), and Requests for Proposal (RFP). In addition to gathering basic information, an RFI is often used as a solicitation sent to a broad base of potential suppliers for the purpose of preparing a supplier’s thought process in preparing for a Request for Proposal (RFP), Request for Tender (RFT) in the government sector, or a Request for Proposal (RFP).

Much of the data required for an RFI is generally available and can be found on company websites, U.S. Security and Exchange Commission (SEC) filings for publicly traded companies in their Edgar system, industry guides from companies like Trade Dimensions, or from sources like Dun and Bradstreet.

The challenge for most companies is that they do not have the necessary resources to complete this research. Therefore providers of supplier data should be able to make this data available in templates that companies can begin with. Simple data should always be available in any database as to Company Name, Annual Sales, Product category expertise, contact information, e-procurement experience and product specifications. This data should be easily exportable to a variety of formats such as MSFT Excel.

A simple request of your e-procurement supplier should get you well on your way to completed RFI’s that lead to quality RFP’s and RFQ’s without spending a lot of your valuable time on basic research. If they do not, we’d be glad to hear from you.

We look forward to and appreciate your comments

Getting to Know the Organizations Helping to Protect Us

April 25th, 2011

Today’s post is by Mark Davis; Vice President of Operations and CTO at SafeSourcing. Mark asks "How do you leverage the work from organizations helping to protect the planet and its people?"

If you turn on the news at any time of day you are constantly being faced with hundreds of stories about people trying to hurt other people.  It can be so overwhelming at times that it seems there is no one actually trying to “help” anyone else.

The fact is there are thousands of organizations and millions of people all over the world whose primary goal and focus is to help protect the planet and more importantly, the people on it.  These same organizations also provide certifications for millions of products that companies buy every day that demonstrate an awareness for protecting us from the “shortcuts” and harm that so many times arise in the course of making those products.
Organizations like the Forest Stewardship Council, who certify wood products promoting better and more responsible uses of our forests and ensure the sustainability of those same forests that are used in making their products.

 There are literally tens of thousands of organizations that provide these types certifications as well as the lists of the certified companies and products who have demonstrated that capability to do things the right way.  These items can be very useful resources to helping your company select a better mix of product.

For more information about these types of organizations please visit the SafeSourcing Wiki or contact a Customer Service representative to find out how you can begin sourcing from suppliers out of our database of certified vendors today.

We look forward to and appreciate your comments.

We never worried about washing our Easter eggs or where they were hidden; we just ate them during the hunt.

April 22nd, 2011

Today some of the eggs are still real while many are just plastic egg looking containers that once opened hold the real treasure.

I watched a commercial on T.V. the other night where a dad organized the local Easter egg hunt. He went to the store and purchased black and green paint and then individually painted the eggs in a camouflage pattern before hiding them. It was hilarious watching the kids wander around looking for the eggs. I think one egg was actually found by accident. The guy’s wife was not very happy with him. Depending on how you look at it, maybe the father did the kids a favor.

After all, he did use real eggs because he knew that he could not confirm that the plastic ones he first looked at did not contain BPA or Bisphenol A.  So, he moved on tot the local grocery store and bought fresh eggs. He had heard of BPA, but had never been exposed to Salmonella and was not aware of the number of recalls in the recent past of fresh eggs.

I guess the point is I could go on and write about paint products, pesticides on the lawn, multiple kids picking up the same egg or a variety of other issues confronting parents today that we just did not think about 40 or 50 years ago. It’s a shame.

The above does however point out the diligence required by sourcing professionals when buying for resale products and how these products cross paths and interact as well as impact the consumer. We are making progress but not enough for me to eat one of those eggs anymore. At least until I’ve washed it.

We look forward to and appreciate your comments.

Are you ready for more bad news or severe approaching storms?

April 21st, 2011

Oh, now we have your attention!

GOTCHA! The only reason you are reading this paragraph at all is that bad news and weather sell. Bad news about the weather sells better. We see it at the grocery, convenience or drug store checkouts every time we make a purchase. How often do the news channels lead in with Good Samaritan stories? Everyone wants to follow the bad news. Men in particular like to follow news of bad weather. My wife says I can tell you the temperature and elevation at any time of the day as well of the impact of one on the other.

From a procurement perspective we do have a storm brewing and it’s based on a lack of easily accessible information, we can be faced with any of the following on any given day.

1. No Staff
2. The loss of a source of supply
3. Damaged goods
4. Product recalls
5. Product safety issues
6. Food borne illness issues
7. Environmental impact issues
8. Poor product specifications
9. Lack of adequate information at your fingertips
10. No way to openly collaborate with other procurement professionals
11. Transferred or promoted resources that leave a departmental brain drain

The question is how do we deal with this? There are a variety of portals, search engines and website home pages that may or may not contain what you are looking for. The question is there one that contains it all and does not cost a nickel to access. If there were, it would need to include the following.

1. A central repository and launch point for industry alerts
2. A central source for procurement information
3. A central collaboration point for all procurement professionals to hold open forum conversations.
4. A central location where one can find specifications on hundreds of products.
5. A central database of new global and local sources of supply
6. A central location that tracks suppliers environmental practices
7. A central location that tracks suppliers product safety practices
8. A daily educational commentary that can be commented on or forwarded to others in the procurement space for review.
9. A central location for your team to hold private forum conversations and share private documents.
10. A central location where companies can trace beyond one forward and one back if necessary after they have bought products or services.

The best offense is a good defense. When a storm approaches having the right tools to insulate you from the storm surge are critical. There is only one tool in the procurement space that can answer yes to providing all of these tools. To investigate further, please follow this link and spend a little time to see if you can find them all.

We look forward to and appreciate your comments.

What is a Reserve Price Reverse Auction?

April 18th, 2011

There are all types of Reverse Auctions and unique reasons to use each in order to encourage the best participation and interaction.

In a reserve price reverse auction, the buyer establishes a “reserve price”, the maximum amount the buyer will pay for the goods or services being auctioned. This is also sometimes called the desired price, or a “qualification price”. Careful thought is required on the part of the retailer in determining their reserve price. I personally have seen retailers try to just use their existing price from their last contract. This type of practice may set unreasonable expectations, particularly if the market has changed dramatically in an upward direction since the last award of business. In today’s market, fuel would be a great example of something that you would not set a reserve price based on a previous contract if you wanted incumbent or new suppliers to take you seriously.

Traditionally, if the bidding does not reach the “reserve price”, the buyer is not obligated to award the business based on the results of the reverse auction. However once the reserve price is met, the buyer is obligated to award the business to a participating supplier or group suppliers based on previously published auction rules.

Additional pricing considerations can be given to adding other price points or qualifiers in a reserve price reverse auction such as entering a market price. In the case of fuel, this may be from a price index such as OPIS. This information can be visible or blind to the supplier, but let’s the retailer compare a suppliers mark up strategies. This also offers a nice opportunity to calculate cost avoidance during an up market.

We look forward to and appreciate  your comments