How to tell when you need to simplify your processes

October 2nd, 2020

Or when to expand process complexity and scope

 

Today’s post is our archives at SafeSourcing

Finding the right balance of complexity in your processes is a tough thing to juggle for businesses large and small. I’ve worked in companies where you literally had to read through and comply with hundred page manuals for every email sent, phone call made, or lunch break taken. On the other end of the spectrum, were companies who had so little structure that no one had any idea what standard procedures were, roles were not identified, and whether or not you were performing well was determined more by the owner’s mood than any objective metric.

The problem is similar to the dilemma of Emergent vs. Deliberate strategy[1]. Each side of the argument carries its own merits; highly process oriented organizations are usually highly efficient, and low risk. The tradeoff however, is that adaptability and innovation suffers. The more flexible and open ended your process, and the more you give your team the authority to deviate from those processes, the more they are able to deal with crisis, unexpected changes, or to innovate in order to meet the needs of the business. So how do we determine if our organization is leaning too far in one direction?

A basic rule of thumb is:

If the cost of your process > the value of the process, you may need to re-balance.

This of course, requires that you have a correct understanding of the cost of all your processes.

Many businesses have a hard time wrapping their heads around the true process capacity of their workforce. Typically this results from not having an up to date or objective measurement of all processes rate of finite resource consumption. Do you have an accurate listing of every activity performed by each member of your team? Have you found averages for all costs of each of these activities, in time, money, and materials? Most likely each of your team positions specializes in a certain activity, and will be aware of activities associated with executing that position that no one else is. Performing this evaluation will identify your process capacity “budget” if you will. And of course, all things that consume finite resources must have a budget of that resource.

Once you have a clear and objective picture of your activity costs, you can evaluate the costs and value inherent in your processes. Do you have redundant processes that only add marginally increased value? Do you have processes so narrow in scope that a large number of activities get bypassed? Do you have activities whose execution is so sensitive that a miss-step would shut down your business? You may need to add processes or capabilities that eliminate these risks (For more on that topic, see my blog “Mistake-proofing your business”).

In summary:

  1. Objectively measure your organization’s process capacity
  2. Evaluate the cost to benefit balance of your processes
  3. Appropriately budget your process capacity to maximize overall value/decrease risk

For more information on how SafeSourcing can assist your team with this process 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.

[1] “Balancing Deliberate vs. Emergent Strategy: SafeSourcing …” 2015. 15 Dec. 2015 <http://blog.safesourcing.com/2015/06/01/balancing-deliberate-vs-emergent-strategy/>

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Supplier Management

October 1st, 2020

The number one most important aspect in the procurement world is supplier research and vetting.

 

 

Today’s post is our Archives at SafeSourcing, Inc.

The number one most important aspect in the procurement world is supplier research and vetting. If you want to run a successful RFQ, you have to vet the suppliers and make sure the suppliers you have involved can do exactly what you need them to. A good relationship with the right suppliers offers you products and services that improve your brand and deliver better user experiences. According to Softco, selecting first-rate suppliers and weeding out low-performing vendors is key to reaching your supplier relationship and compliance management goals. Here are some important questions that you and your team should consider before engaging potential suppliers during the supplier selection process.

  1. What are your clients supply requirements? The first thing you need to do is establish exactly what products or services your client is looking to source. The more specifications, the better the supplier research can be.
  2. Whom, within your company, will complete your supplier research? Use people within    your company that have the best knowledge on particular categories. Sometime those people can help narrow down the list better than someone with in the company that has never worked within that category.
  3. Do you need a local or regional supplier? You want to establish from the beginning if you are looking for local vendors or national vendors, or both. Sometimes you may even need to find overseas vendors, however, you want to make sure the shipping and/or freight is low enough to benefit your client’s needs.
  4. When is the lowest bidder not the correct supplier to choose? Sometimes the lowest bidder isn’t always the best fit. You need to request samples, if need be, and make sure the lowest bidder’s product or service meets the requirements. Sometimes sticking with your current supplier, but pay a little more than the lowest bidder, is worth keeping that relationship.
  5. When is a vendor visit necessary? When time allows, sometimes it is necessary to make a quick visit to suppliers and establish a customer relationship. During that visit, you and your team will want to take note of the supplier’s plant capacity, current volume of work, manufacturing processes, and work environment.

Even if you are not looking source a certain category, these are things you should always be asking vendors as you are looking to switch vendors or are searching for a better price. SafeSourcing specializes in this process.

For more information on how SafeSourcing can help in your procurement efforts, or on our Risk Free trial program, please contact a SafeSourcing Customer Service Representative. We have an entire team ready to assist you today.

 

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Where do you find potential new sources of supply for your business?

September 25th, 2020

Not just those old standbys that have been around for years

 

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

In order to achieve maximum savings when using an e-procurement event, you need numerous suppliers aggressively vying for your business. Not just those old standbys that have been around for years, but some newer players, many of whom you have not even heard of yet. Over the course of a work week, the amount of time devoted to researching new suppliers would be daunting.

The great news is that help is here. SafeSourceIt™ Supplier Database, an innovative supplier database that boasts over 430,000 Global suppliers of everything from soup to nuts. Searchable by region, state, province, zip code, and proximity to a specific location, etc., SafeSourceIt™ takes an exhaustive look at each individual supplier, so you don’t have to.

SafeSourcing works with buyers to help them significantly reduce costs by providing procurement tools in the form Software as a Service or SaaS partnered with knowledgeable customer white glove services. We are so certain that our solution will reduce your company’s costs that we are offering a full, risk free trial of our RFQ solution including a reverse auction event.

If you’d like more information, please contact a SafeSourcing Customer Services Associate.

 

 

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Sourcing in Times of Disaster!

September 22nd, 2020

Our country has never seen a year like 2020.

 

Today’s post is  a refresh that still applies today from our SafeSourcing, Inc Archives.

Our country has never seen a year like 2020. We certainly have no shortage of disasters what  with COIVID -19, Hurricanes, Wild Fires and  the resulting Economic Impact.  We’ve seen thousands of homes and businesses destroyed, evacuees seeking refuge in emergency shelters and government under extreme stress as a result. We’ve actually  never seen  anything like this in nay of our lifetimes.

As I read about these tragedies, I’m constantly thinking about how our customers and businesses  might recover from the ongoing  devastation? This brought to mind a previous white paper written by our CEO, Ron Southard, entitled, “4 Tips and 3 Pitfalls to Avoid when Sourcing Professional Services, A Little Planning can Save Companies Millions.” In it Ron listed poplar services targeted for new procurement projects: The professional services that could be useful for homes and businesses in Gatlinburg are: Disaster Response (Emergency Cleanup), Environmental Services, Construction Services, Temporary Labor, and Waste Management Services. Yes, Gatlinburg will be great again and sourcing professional services during this tragic disaster can help.

SafeSourcing, Inc. can assist you in times of disaster, and today may be a better time to source most categories than many buyers have seen in their lifetime. SafeSourcing provides innovative eProcurement tools that can increase efficiency and improve profitability for our customers, and provide superior value for all stakeholders. In addition to providing information, tools and services, SafeSourcing proactively supports consumer safety and environmental standards throughout the global supply chain management process. To learn more, visit SafeSourcing.com

Let SafeSourcing manage your sourcing projects so that you can continue to focus on other recovery related issues. We enjoy bringing this blog to you daily and hope you find value in it. For more information on how we can help you with your procurement needs or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative.

 

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Watching the RFQ – Part I

September 21st, 2020

 Shining a spotlight on the moments when customer value is created in a live RFQ event.  

 

Todays post is from Dave Wenig, Sr. Vice President of Sales and Services at SafeSourcing Inc.

In this post, which will be the first of several, we’re going to take a close look at the online Request for Quote (RFQ) from a different perspective. Rather than focus on measuring the value delivered as savings, let’s examine when that value is created and consider the vendor behaviors that went into that moment. If you need a primer on what an RFQ is, click here.

I honestly don’t know how many of these I’ve watched live over the years, but I suspect the number is in the thousands. Having done that, I’ve picked up on some trends. More recently, SafeSourcing introduced our Graphical View which has brought some of the trends I’ve noticed into focus visually.

Let’s start at the beginning of an RFQ. For years, I have said that many vendors will sit on the sidelines and wait a while before entering their bids. Many other vendors will begin with a higher price to start with. Others choose to start with a very low starting price and try to put their best foot forward. I respect all bidding strategies and it’s important that each vendor has a plan in place when they start. It’s all part of the RFQ process. In the image below, you’ll see a recent RFQ for receipt paper event that illustrates this starting point and the various strategies that the vendors are using in the first 5 or so minutes of an RFQ.

 

 

 

 

 

 

 

 

 

 

 

In this example, we can clearly see each of these vendor strategies beginning to play out. Each of the participating vendors were trained by SafeSourcing and knew in advance that this RFQ was scheduled to last 20 minutes plus extensions. As a result, most of them went with a strategy that allowded them to start with somewhat higher price than where they intended to begin. The vendor in green decided to enter in very aggressively low pricing from the start which set them apart. More on that later.

Consider these strategies and what you might take away from watching this unfold. As SafeSourcing’s customer, you would eventually wind up doing business with at least one of these vendors. How would it be helpful to know how they went about arriving at their final price? Does the vendor’s pricing strategy and behavior impact the way you will continue to work with them beyond the RFQ?

In the next installment, we’ll take a close look at the middle of the RFQ and then we’ll move on to the end of the RFQ and see how it all played out.

For more information, please contact SafeSourcing.

 

 

 

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Project Skills

September 17th, 2020

Have you ever wanted to know how to do a specific task?

 

Today’s blog is by Margaret Stewart, Director of HR and Administration at SafeSourcing.

Have you ever wanted to know how to do a specific task? As an example, maybe you want to change the faucet in your kitchen sink, but do not have the knowledge or experience to do it. You could try guessing at how to do it, but the results may not be the best. You could ask friends, but perhaps none of them have done this either. Or you could look to the internet for instructions, guides, tools lists, and how-to videos.

The latter is what many of us do when faced with small tasks that we do not have prior experience in. If you want to pick up a new skill or begin some kind of project, you likely will look into it before you begin. This will help you in a number of ways.

First, researching a new project can give you an idea of the timeline. Will this project take an hour, two days, or three weeks? Knowing how long you will need can help you better prepare, like knitting. For instance, you can better prepare by knowing that a hat can be knitted in a few hours or that a sweater will likely take days.

Second, you may find out that you do not have all the tools you need. With many home repair projects, there may be large, specialized tools needed to complete all or a portion of a task, like needing a posthole digger to put in a fence. Often these specialized or high priced tools can be leased or rented to you for a fairly low price from your local home improvement store.

Third, you may research your project and find out you will need certain skills. Watching videos and reading explanations can help you understand what is needed and help you work to gain the skills needed. For instance, you may want to build a table, but may need to freshen up on your fractions and math skills before you begin cutting your wood.

There are some projects that, even after doing your research, you find that you will still need help. For example, you may need to hire an electrician to move your wall outlet across the room. Here, the risk of injury or damage is high and is likely better left to a professional. This is where SafeSourcing comes in. While we are not electricians, we are experts in our field and can help you or your organization in your procurement or supply needs. We have not only the tools needed to get the project completed with the best results, but also the experience to help you get through it on the appropriate timeline.

For more information on ways we can with your procurement goals or projects, or on our Risk Free trial program, please contact a SafeSourcing Customer Service Representative.  We have an entire team ready to assist you today.

 

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Plexiglass and Tents

September 16th, 2020

Plexiglass has become a popular back-to-school item along with the standard notebooks  

 

 

Today’s blog is by Gayl Southard, Administrative Consultant for SafeSourcing.

Plexiglass has become a popular back-to-school item along with the standard notebooks and pencils this year.  Schools and colleges are purchasing protective products in large quantities as they attempt to stop the spread of Coronavirus, as well as to calm the nerves of teachers, students, and parents.  The average school district will spend $400,000 on products related to the pandemic, according to the Association of School Business Officials International.  Through the Cares Act, $30.8 billion in funding was afforded to schools and colleges. Plexiglass manufacturers normally do not rely on the education sector as customers, but the pandemic has manufactures straining to meet the current demand. Manufacturers of plexiglass say it’s easier to provide plexiglass for retailers than it for schools districts across the state.  Every school district has a different criteria, government regulations, and building code issues.

The manufacturers of tents for wedding venues and other special events are struggling to hire enough employees to keep up with the current demand.  Schools and colleges are buying tents to use as outside classrooms.  As an example,  Pocantico Hills Central School District has installed two 30×30 foot tents as additional classrooms at its campus in New York’s Westchester County.  Extra desks have been purchased in order to eliminate tables.  Ventilation systems have been installed in each classroom.

For more information on how SafeSourcing can help your procurement efforts, or on our Risk

Free trial program, please contact a SafeSourcing Customer Service Representative.  We have an entire team ready to assist you today.

References……………………………………………………………

Amber Burton, WSJ, 9/4/2020

 

 

 

 

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Let’s play supplier poker if you dare!

September 14th, 2020

If you did not read this post six years ago, you should now.

 

Todays post is from Ron Southard, CEO at SafeSourcing Inc.

Let’s play supplier poker! Then we’ll find out how good your current supplier data is.

If this were a real poker game, I’d raise our big supplier data versus your existing supplier data.

Locating, managing and updating supplier information that companies choose to do business with has never been more difficult. How many companies that you used to do business with 4-5 years ago are no longer in business? How many new companies have taken their place? I already know the answer you are going to give me. It’s I don’t know.

We keep hearing about big data. With new regulatory requirements emerging daily, economies failing, the supply chain shrinking in some places and expanding in others,  changing  safety factors and  environmental factors ( think LEEDS), detailed supplier information and traceability are but a few of the issues that require regular maintenance in order to mitigate a company’s risk.

Solution Providers like SafeSourcing that provide supplier databases (SafeSourceIt™) that are part of automating the procurement process, need to step up and make sure that their data support these changes on a regular basis to the greatest extent possible by providing tools that interacts with both regulatory agencies and suppliers to insure consumer safety and environmental impact as more new sources of supply and new products enter the supply chain on a daily basis.

Actions that solution providers can take should include but are not limited to:

1. Monitor daily alert data as to product recalls and safety warnings.
2. Trace warnings back to the original source of supply automatically and maintain history.
3. Require that suppliers meet certain safety certifications in order to participate in their database.
4. Require that suppliers meet required environmental certifications or programs in order to participate in their database
5. Provide a regular purge of suppliers that do not comply with necessary standards.
6. Validate the entire database regularly for companies no longer in business
7. Adhere to a strict RFI process for new suppliers requesting participation in their database.
8. Provide a rating system for suppliers that are offered to companies as new sources of supply.
9. Monitor regulatory agencies such as ISO for new standards and include them as further requirements in supplier databases.
10.Conduct on going category research for evolving sources of supply.
11.Compare your best customers GL to your database for additions deletions.

Ask your solution provider what their process is to grow manage and maintain their supplier database for your benefit.

If you’d like more information on the SafeSourceIt™ Supplier Database of over 427,000 cleansed global sources of supply, please contact a SafeSourcing customer services account manager.

We look forward to and appreciate your comments.

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The SafeSourcing Collaborative Aggregation Philosophy: 

September 11th, 2020

You say you are not saving money by yourself? Why not try collaborating with others.

 

Today’s post is from Ron Southard CEO at SafeSourcing Inc.

 

The SafeSourcing Inc Collaborative Aggregation Philosophy supports the thought that disparate buying groups can on occasion work together successfully as a loosely coupled purchasing organization in order to combine volumes for better pricing consideration by suppliers. Often the specifications for these events need to be very similar in nature such as office supplies or other similar categories. Separate shipping charges and other terms and conditions may apply to each participant. Participants must support single supplier award in order to ensure the success of collaborative aggregation events to ensure that suppliers honor their prices.

We have recently seen a lot of activity in this area with dramatic savings for spends of all different sizes. Some categories have even achieved savings of over 50%. We mapped these savings and are seeing some retailers with as few as 20 stores paying less than some very large customers who ran these categories during the last two years.

The markets are ripe! Maybe its time to contact SafeSourcing and inquire about our Risk Free Trial  Program.

We look forward to hearing from you!

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SafeSourcing® eProcurement Tools A one-stop shopping center

September 10th, 2020

Procurement Professionals: What tools do you have at your fingertips?

 

Todays post is from Ron Southard, CEO at SafeSourcing Inc.

In today’s world, sourcing and procuring the best product or service for your company has never been more challenging. Connecting with reliable suppliers is no easy task. Safety scares and product quality issues have made it more difficult than ever to obtain the peace of mind that you and your customer expect. What’s more, the universal demand to reduce our carbon footprint has skyrocketed in importance to individuals and businesses creating its own unique requirements and opportunities.

Accomplishing all of these important objectives at a price that’s right seems complicated, if not impossible. Combine that with increased time constraints and a workforce functioning with limited awareness of additional sources of supply and specifications for the products they are sourcing and you have a global procurement climate that can produce more than a few headaches, day in and day out.

An innovative alternative is SafeSourcing Inc. Our SafeSourceIt™ Procure to Pay family of solutions is loaded with efficient and comprehensive tools and programs that turn the procurement process into a highly productive endeavor. SafeSourcing is, literally, a one-stop shopping center.

Our clients have access to:

  • The entire SafeSourceIt™ Procure to Pay suite of solutions including our  popular  Reverse Auction Tools that can be used for all your sourcing needs including new contract purchases, spot buys, replenishment, aggregation, and collaboration with other buying organizations.
  • SafeSourceIt™ Supplier Database, an international 427,000 supplier database, which is specifically designed for ease-of-use. This unique database includes safety and eco controls and is one of the largest of its kind.

The SafeSourceIt™ Family of Procure to Pay Products and Services Includes:

  • SafeSourceIt™ eSourcing suite, SafeContract™, SafePO™, SafeCatalog™, SafeSurvey™, SafeDocument™ and SafeDashboard™.
  • Safety in Sourcing, a blog with daily updates and comments from your peers.
  • Sourcing WIKI, which includes thousands of procurement terms and definitions.
  • The SafeSourceIt™ Product and Services Specification Library
  • Daily Safety Alerts from the USDA, FDA, ISO, and other standards-creating agencies.

Our Goal is to keep the constant demands of your job at a minimum with our help.

If you’d like to learn more, please contact a SafeSourcing customers services professional and be sure to ask about our risk free trial.

 

 

 

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