Today’s post is written by Ivy Ray, Senior Procurement Specialist at SafeSourcing Inc.

Over one hundred million eyes were on Super Bowl LVI this week.  Football fans are in it for the game, others for the entertainment, and some just watching for the advertising commercials.  These ads cost a whopping $6.5 million for a 30-second slot.[1] Most of which were automakers touting their Electronic Vehicles, also known as EV.

General Motors, Nissan, and BMW shelled out billions of dollars on ads promoting their new EV offerings.  Still, none for Tesla which leads sales in EV and has never done any advertising, because demand for their cars currently far exceeds the number of cars their company can build.[2] Some of these vehicles that were advertised will not be available for months. Chevrolet’s Silverado EV is not due out until 2024.

The delays in getting these EVs on the market are due to a number of factors, including the global chip shortage, supply chain disruptions, and the difficulties of transitioning from internal combustion engine models to electric powered motors.  Another key factor in this delay is the battery.

Power and range of the EV depends on the type of battery it uses. Lithium-ion batteries are relatively low-cost, low maintenance, and have high energy density but manufacturers are exploring different battery options such as solid-state batteries which can store more energy, charge faster and are safer than lithium-ion batteries.[3] Solid-state batteries are still in the process of development and are a long way off from being considered as the standard, but investors are pouring money into their development and production.

The global automotive battery market is expected to reach $85.41 billion by 2025.[4] Lithium-ion batteries are currently the best choice for EV and the demand is anticipated to rise in the coming years.  Since lithium is one of the most important components in the manufacturing of EV batteries, stocks in lithium mining companies are on the rise. While it may be a while before you consider investing in the purchase of an EV, it seems lithium stocks may prove to be a worthy investment.

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.

References………………………………….

[1] https://www.nbcdfw.com/news/local/super-bowl-lvi-commercials-take-lighter-approach/2888301/

[2] https://www.cnn.com/2022/02/14/business/super-bowl-ev-ads/index.html

[3] https://pitchbook.com/news/articles/factorial-energy-200m-future-ev-solid-state-lithium-batteries

[4] https://www.nasdaq.com/articles/3-battery-stocks-to-watch-amid-electric-car-revolution-2020-06-25

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

In the last several weeks SafeSourcing has run online bids for construction materials, meat products, and several types of store fixtures. All have resulted in beneficial results for our customers. In fact, for savings that are lower than their previous contract pricing. I am not going to ask you to believe me, because you will have a bunch of reasons as to why your procurement teams cannot produce the same results. So just sit around until inflation goes away. Or just sit around until perceived supply chain issues resolve themselves. Once that happens, your costs will return to pre pandemic pricing. Here is what I have to say about that, BS!

I have read articles recently about Ford Motors CEO being upset with dealerships for unreasonable markups, to the point of potentially restricting allocations to those dealers. Today GM entered the same conversation. I have read about giant meat packing companies paying millions of dollars to settle price fixing charges. There are many more examples like this, there is no need for the price increases that are being charged to consumers or for your vendors to be raising prices to you as much as they are.

Actual savings versus your older contract pricing may be difficult, but per the few examples I mentioned above, not impossible. Cost avoidance from the pricing your suppliers are quoting you is nearly 100% possible if you setup your bid correctly. In today’s world, single source is a danger as we have seen during our ongoing and perhaps never going away pandemic. Our SafeSourceIt™ Supplier Database has thousands upon thousands of suppliers that would love your business or part of your business and at a better price than you are getting today.

Whether you have capital projects, cost of goods issues as we have discussed or want to focus on your expense, we have done it all from software and services to commodities.

If you do not believe me, click on the contact us link imbedded here, and it will go directly to me. Or just keep not focusing on it and as your team is telling you, it will not get any better

Today’s post is by Dave Wenig is the Senior Vice President of Sales and Services at SafeSourcing Inc

In this month’s installment of “We Can Source Anything” we’ll consider fuel. I’m sure many of you don’t purchase fuel in bulk, but this is a really good example of how we can truly source anything. In last month’s entry, we talked about jet fuel and charters, so I suppose many of our readers don’t source that either. The point is that no matter how obscure your need or how challenging it might seem to use an eProcurement process to source it, we can work with you.

Over the years, SafeSourcing has worked with some of our customers to source their fuel needs in a variety of markets and for various categories. If you’re a regular reader of the SafeSourcing blog, you have probably read that we have an average savings greater than 24% and that we consider any event that achieves over 25% to be a Grand Slam. These were certainly not Grand Slams from a percent saved perspective, but I would absolutely call them a Grand Slam from a dollar saved perspective. For example, causing the vendors to have to compete for spot buy volumes on 1000 RBOB, 80 PBOB, 50 ULSD, and more caused over 1.5% savings in one market against millions of gallons of fuel.

Along with fuel, we’ve also sourced many additives in bulk for those same customers, also with great success such as IVD additive and others.

Finally, let’s not forget that fuel services may also come into play. Companies that have a diesel fueling service as an example have done very well using our services to source that program savings on average about 7.5% overall. Depending on fleet size, this can become a very substantial source of savings annually.

The point is that SafeSourcing’s services should not be limited to mere supply categories. We do so much more than that. Check back in the future and I’ll share more examples of some out of the ordinary sourcing activities.

For more information, please contact SafeSourcing.

Today’s re-post is by Dave Wenig, Senior Vice President of Sales and Services at SafeSourcing.

Many companies have had to make significant changes as a result of the COVID-19 pandemic. The reality is in many cases, businesses have faced the reality that it will be a long time before they are able to get back to where they were at the end of 2019. Whether your company relies on a global or domestic supply chain, it is very likely that some of the vendors that you rely on have faced challenges.

Now more than ever, it is important to revisit your supply chain and be certain that you will have the supplies you need to operate under your new conditions. As part of that effort, it is time to consider whether your previous agreements are still appropriate. For example, you might find that you only expect to do a fraction of the business that you used to. That will mean that you might not be able to meet your previously agreed volume commitments with your vendors. Conversely, you might find that your business now has need for in-demand supply items that you didn’t need before. Many are also under increased pressure to reduce costs as well.

Regardless of your specific situation, the reality is that now is the time to fully assess your needs and to negotiate all aspects of your supply chain which may include renegotiating existing agreements early in light of the new realities.

Whether or not you are currently having challenges with your existing supply chain, this exercise is valuable. In recent online procurement events for customers we have found that many vendors are eager to earn new business and will happily rise to the occasion to be a primary or secondary source of supply. In uncertain times, having your pick between sources of supply might just make the difference in the event of a supply chain interruption caused by COVID-19.

At SafeSourcing, we typically tout the cost savings aspects of our eProcurement services. In this case, our customers have the added benefit of attaining both the cost savings and the added security that comes from ensuring your supply chain is strong.

Stay safe and don’t be shy if you need assistance. We’re all in this together. If you would like more information on how SafeSourcing can help you, please contact a SafeSourcing Customer Service representative.  We have an entire team ready to assist you today.

Today’s post is by Dave Wenig, Sr. Vice President of Sales and Services at SafeSourcing.

Telling your friends, family, colleagues about some product or service is as common as anything. Online reviews and ratings are everywhere. It’s just human nature. If you need proof, just go to Facebook or Instagram and see how many pictures you see of your friends’ meals. Still, for something so common, we tend to be careful about giving actual referrals. It’s all too easy to share negative experiences as warnings to your network. There is very little personal risk in sharing a negative review. As a consumer, it can even feel somewhat satisfying to vent about a bad experience in this way.

Positive reviews are much harder to earn. Even more difficult to earn are actual referrals. There are probably many reasons for this. One is that unlike sharing a negative experience, giving a referral puts the referrer in a position of perceived risk. Clearly, they were satisfied with their experience, but will the contact in their network also feel satisfied? Worse, if they are not satisfied, will the recipient of the referral hold the referrer accountable?

Yet, this practice of sharing, both positive and negative, thrives today. Our own networks have grown steadily larger and easier to manage. Much of this is as a result of social media and technology in general. We’re able to connect with more people in more meaningful ways now that communicating from any distance is a negligible feat. While conversation about social media can be polarizing, there is no denying the scope of its impact.

Here is a Mark Zuckerberg quote about influence and referral. “People influence people. Nothing influences people more than a recommendation from a trusted friend. A trusted referral influences people more than the best broadcast message.” Given that, Mr. Zuckerberg is the third richest person in the world as of the day I’m writing this, we should at least consider his opinion.

At SafeSourcing, we understand that to give a referral is no small thing. We understand that this is a vote of confidence and that this is a personal investment. We are fortunate enough to have been on the receiving end of many customer referrals and are always incredibly appreciative of this act. We also take this very seriously and we feel the full weight of the responsibility.

SafeSourcing wants to thank our customers who think highly enough of us and the eProcurement service that we provide to stick their necks out for us with a referral. From the date of this posting through September of 2018, we’re offering a discount program for referrals. For our current clients, we’ll offer a 50% discount on your next RFx Event for any new referrals that lead to an RFx Event (contact SafeSourcing for full details).

We appreciate and are honored by each referral we receive, and we will compensate you for them generously.

For more information, please contact SafeSourcing.