If you can improve profitability 73%, Why don’t more companies use Reverse Auctions and other e-Procurement Tools?

July 8th, 2024

You cannot improve your bottom line quickly in any other way.

 

Todays post is from Ronald D. Southard, CEO at SafeSourcing Inc.

Todays reverse auctions are web/cloud based  Software as a Service (SaaS) offerings that are part of very sophisticated procure to pay applications that let retailers and other companies find the best suppliers for any resale or not for resale product or service they wish to source.  Using a web based reverse auction tool, retailers, other companies or groups of companies (Group Purchasing Organizations) can invite far more suppliers to take place in reverse auctions than they could possibly find or manage using traditional sourcing methodologies. During the reverse auction event they can review on one page all responses from suppliers, data about suppliers, notes from suppliers, product specifications and other necessary information at an instant. Upon auction conclusion which is typically less than 30 minutes retailers and other companies can review savings scenarios and award business from their desktop.

Now let’s get to the simple financial benefits. Let’s assume a $150M Retail Company with industry average earnings of one percent or $1.5M. Additionally cost of goods for this company is 70 percent or $105M. Let’s also assume this company were to only source ten percent of their for resale or above the gross margin line spend or roughly $11M. With below industry average savings of ten percent, total savings generated would be $1.1M which is a direct impact to net profitability. If all other segments of the P&L perform to plan and all savings are recovered during the same business calendar year net profitability would increase to $2.6M or a 73% improvement.

NO BS Here! If you don’t believe me, I will be glad to personally sit down with your CFO and Finance team and prove it to you!

Wen company’s  can begin almost immediately (SaaS/Cloud offering) with no risk (Cost Neutral Pilots)  and no IT involvement,why don’t more companies use reverse auctions and other e-procurement tools? That’s a great question!

If this author were you, I just could not ignore this type of opportunity. If you’d like to learn more, please contact a SafeSourcing Customer Services Account Manager.

We look forward to and appreciate your comments.

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Happy 4th of July 2024 from SafeSourcing!

July 4th, 2024

Independence DAY! Remember that it's earned over and over again every year, decade and century.

 

The Land of the FREE and the home of the BRAVE! We should never ever take it for granted.

 

 

 

 

 

 

 

We hope you all enjoy your extended holiday weekend. The best to our customers, suppliers and you and your families!

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Did you see the new AI features coming from Apple?

June 19th, 2024

If you don’t follow Apple news you may not know.....

 

Today’s post is by Troy Lowe; Vice President of Development at SafeSourcing.

If you don’t follow Apple news you may not know that they introduced Apple Intelligence the other day.  It is a personal intelligence system that puts powerful generative model at the core of the iPhone, iPad and Mac.  The Apple Intelligence is heavily integrated into iOS 18, iPadOS 18 and macOS Sequoia.  According to Apple their unique approach combines generative AI with a user’s personal context to deliver truly helpful intelligence.  And can access that information in a completely private and secure way to help users do the things that matter most to them.

Using the Apple Intelligence will help the users to improve and enhance their writing and help them to communicate more effectively.  The brand new Writing Tools that are built into Sequoia, iPadOS 18 and iOS 18 can be used to help users rewrite, proofread, and summarize text nearly everywhere that they write including such apps as Notes, Mail, Pages and other third-party apps.  With the rewrite feature the Apple Intelligence will allow the users to choose from different versions of the text that they have written and allow them to adjust the text to better communicate.  The proofread feature will check your grammar, word choices and your sentence structure and will suggest edits with explanations of the edits and allow for you to quickly review and accept the edited option.  The AI in the Mail will contain a new section at the top called Priority Message which will show you the most urgent mails such as same day invitations.  There is also a feature called Smart Reply that will provide suggestions for your quick response and will identify questions within an email to ensure that all question are answered.  Below are some of the other AI features Apple announced as well.

  • New Siri
  • ChatGPT Integration
  • Genmoji and Image Playground
  • AI Photo Editing
  • Transcribed Calls
  • Prioritize Notifications

If you are looking to purchase new smartphones or devices for your company and would like help researching available options, feel free to contact SafeSourcing.   We can gather all the necessary information for you and help you decide which one meets your needs.  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.

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Procurement and Innovation

June 18th, 2024

Did you know that procurement can help with innovation?

 

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

Procurement has traditionally been seen as a cost-control function, but people are discovering that it may also be a strategic lever to drive innovation and unlock new business value. There are a few ways in which innovation can be seamlessly integrated into procurement practices to foster growth and sustainability.

Procurement has undergone a significant transformation over the past decade. No longer confined to negotiating prices and managing supplier relationships, procurement now plays a critical role in shaping the strategic direction of an organization. This shift is largely driven by the recognition that suppliers are not just vendors but potential partners in innovation. This collaboration with suppliers is the first step towards leveraging procurement for innovation by fostering strong, collaborative relationships with suppliers. By involving suppliers early in the product development process, companies can tap into their expertise and innovative capabilities. This collaborative approach can lead to co-creation of products and solutions that are more advanced and better suited to market needs.

Recently, the digital transformation in procurement has been a game-changer. Technologies like Artificial Intelligence, Blockchain, and Internet of Things (IoT) enhance transparency, streamline processes, and improve decision-making. AI can predict market trends, Blockchain ensures secure and transparent transactions, and IoT provides real-time data that can be used to optimize supply chains. Strategic sourcing involves analyzing the total cost of ownership and not just the initial purchase price. This approach encourages the consideration of innovative solutions that might have a higher upfront cost but result in long-term savings and value creation. By focusing on the total value delivered rather than just cost, procurement can drive significant innovation.

A great example of how procurement helps innovation is by looking at Apple. Apple’s procurement strategy is a prime example of innovation. The company’s close collaboration with suppliers has led to the development of unique components like the Retina Display and custom processors. Apple’s procurement team collaborates closely with suppliers to push the boundaries of what’s possible, ensuring their products stand out in the market. Integrating innovation into procurement is not just a trend but a necessity for modern businesses aiming for long-term success. By fostering collaboration, embracing technology, focusing on sustainability, and managing risks, procurement can become a powerhouse of innovation.

For more information on how the SafeSourcing team can help your organization with procurement and innovation, 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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Data in Procurement

May 20th, 2024

Do you know the importance of valid data in sourcing projects?

 

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

Do you know the importance of valid data in sourcing projects?

In the business world today, competition is essential for the success of any organization and one key aspect in maintaining that competitive edge is one’s ability to effectively source the goods and services needed to run smoothly and cost-effectively. This aspect is only strengthened if your sourcing efforts are done correctly, and that means having the right information.

Valid data serves as the cornerstone upon which sourcing projects are built. It is the fuel that drives informed decision-making, enabling organizations to navigate complexities, mitigate risks, and capitalize on opportunities, and it is essential that your data reflect what you are getting and what you need. Valid data refers to information that is accurate, reliable, and relevant to the task at hand. It is obtained through thorough research, diligent data collection methods, and verification processes. Valid data is free from errors, biases, and inconsistencies, providing a solid foundation for analysis and decision-making.

Valid data empowers sourcing professionals to make informed decisions at every stage of a project. Whether it’s identifying potential suppliers, evaluating proposals, or negotiating contracts, having accurate and reliable data ensures that choices are based on facts rather than assumptions or guesswork.

The absence of valid data can have dire consequences for sourcing projects as well.  Relying on inaccurate or incomplete data can lead to poor decision-making, resulting in suboptimal supplier selections, contract terms, and overall project outcomes. Without reliable information, organizations are more vulnerable to supply chain disruptions, quality issues, and regulatory compliance failures, exposing them to heightened risks and potential financial losses. Inefficient data collection processes and reliance on invalid data can waste valuable time, resources, and labor, diverting attention from more productive activities and hindering project success.

If your company or organization does not have the data it needs to successfully source, a procurement partner, like SafeSourcing, can help. In addition to the sourcing projects you already plan, a procurement partner can help analyze your data to make sure the correct information is being used and that the correct goods and services are being sourced.

For more information on how the SafeSourcing team can help your organization with data or sourcing, 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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Why use a pressure washing company?

May 17th, 2024

Have you noticed a green tinted staining on the outside of your home or business?

 

Today’s post is by Troy Lowe; Vice President of Development at SafeSourcing.

Well, it’s starting to get nice outside again and hopefully all of us will be spending more time outdoors.  Whether that be sitting outside with friends and family or maybe sitting outside with co-workers enjoying lunch in the fresh air.  One thing that you might want to think about doing is making sure that your home or business is looking its best.  One way to do this is to hire a reputable company to come in and power wash the exterior of your buildings and other surfaces to help make them look new again.  Below is a BLOG that I wrote a few years ago that explains why these surfaces may need to be addressed.

Have you noticed a green tinted staining on the outside of your home or business?  If so, you may not know that this could be mold or mildew.  This is a very common occurrence if you have vinyl siding.  Dirt can accumulate on the siding, and this can lead to mildewing because mildew feeds on dust and dirt. If your home or building is close to trees it may also cause mildewing as well.  Another reason for mildew or mold is excessive moisture or lack of sunlight.  Because of this you may notice that the staining may only occur on certain areas of the structure and not the entire surface.  Removing the mildew can be very simple to do.  One of the most common ways to remove the staining is to have the area pressure washed.  There are companies that specialize in pressure washing and can do an excellent job of removing the stains.  You can also choose to pressure wash the area yourself.  Pressure washers can be purchased from many common retailers and are fairly inexpensive.  Deciding to do this can save you money but there are some hazards to doing it yourself.  Having the pressure set too high can cause water to seep into the walls of your existing structure causing mold to grow within the structure.  So, if this is something that you decide to do yourself, make sure to research and read all documentation before beginning the job.  Below are other things to be aware of when pressure washing your structure.

  • Risk of electrical shock
  • High pressure water can cause serious injuries to the skin.
  • Strong spray can throw small objects.
  • Water seeping into the attic
  • Siding loosened or damaged.
  • Damage to windows and screens.
  • Accidental Removal of paint
  • Accidental Removal of mortal between bricks
  • Damages to surfaces

Whether you plan to clean the structure yourself or hire a company feel free to contact SafeSourcing.  We can gather all the necessary information for you and help you decide which company or tool meets your needs.  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.

 

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Market Trends CPI and the impact on Procurement

May 16th, 2024

Most it is BS to the consumer!

 

Market Trends and Procurement

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

Have you noticed your costs shifting in the market? It may be time to utilize procurement.

Staying on top and aware of market trends is paramount for businesses striving to maintain a competitive edge. Market trends encompass a wide array of factors, including consumer preferences, technological advancements, economic shifts, and regulatory changes. Amidst this dynamic environment, procurement emerges as a strategic function capable of harnessing market insights to drive business success.

As markets fluctuate, innovations and other economic forces force those in business to stay attune to these trends. Doing so can provide you with opportunities for growth, innovation, and adaptation. Procurement is not merely a transactional function focused on purchasing goods and services; it is a strategic imperative that can drive value creation, foster innovation, and mitigate risks across the organization. By harnessing market trends, procurement professionals can anticipate shifts in demand, identify emerging opportunities, and forge strategic partnerships that propel the business forward.

Procurement teams leverage market insights to identify suppliers that align with the organization’s strategic objectives, whether it be cost reduction, innovation, or sustainability. By conducting thorough supplier evaluations, negotiating favorable terms, and fostering collaborative relationships, procurement professionals can optimize the supply chain and enhance operational resilience.

In an era defined by rapid change and unprecedented uncertainty, businesses must embrace agility, innovation, and strategic foresight to thrive in the marketplace. Procurement, as a strategic function, plays a pivotal role in navigating market trends, driving operational excellence, and delivering tangible value to the organization. By leveraging market insights, fostering collaboration, and embracing innovation, procurement professionals can position their organizations for sustained success in an ever-evolving business landscape.

For more information on eProcurement and how the SafeSourcing team can help your organization with the changing market trends, 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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Have you heard the latest news regarding chocolate?  

April 23rd, 2024

If you are a chocolate lover, you might not like the news that is coming out about chocolate manufacturers. 

 

Today’s post is by Troy Lowe; Vice President of Development at SafeSourcing.

Because of the continuing increase in the cost of cocoa the manufacturers are now forced to create new treats with fewer or none of the expensive ingredients.  Because chocolate is not a necessity people will be less likely to purchase the treats and cut back consumption because of continuing inflation.  Increasing the prices is starting to affect sales so they are resorting to reducing the size, relying on automation to help reduce cost and they are promoting other products with less cocoa and other flavors. So, why are  prices are increasing.

You may have noticed when you were out shopping that along with everything else, that the price of chocolate has risen.  It might as well everything is else is going up why not one of favorite snacks.  The cost of the main ingredient, cocoa, has been rising upward over the past two years and over the past year it has more than doubled.  This month it broke an all-time record from back in 1977.  The prices are surging so high that even the biggest chocolate makers are struggling to make profits.  Last week Hershey Co. announced that they are cutting 5 percent of its workers because of the historic cocoa prices and inflation-weary consumers helped lower their fourth quarter earnings.  One of the reasons behind the significant increase is the climate issues in West Africa where more than 60 percent of the global production is produced.  According to experts’ cocoa futures have skyrocketed, not only have they doubled in the past year it has also gone up an additional 40 percent since January.  According to a senior food and beverage economist, the rising cost of cocoa has made retail chocolate prices rise about 17 percent over the last two years and it will only continue to rise.  One company that produces 4-ounce chocolate bars stated that the bars were selling to $4 in 2020 and is now up to $5 a bar.  They also noted that it is not just the cost of the chocolate but also the cost of sugar, cocoa butter, packaging, and labor costs.

If you need help sourcing ingredients for your company, feel free to contact SafeSourcing.   We can gather all the necessary information for you and help you decide which company and product meets your needs.

If you would like more information as to how SafeSourcing can help you, please contact a SafeSourcing Customer Service representative.  We have an entire team ready to assist you today.

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Ai in Procurement

April 16th, 2024

Do know how Ai can be implemented into procurement?

 

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

The integration of artificial intelligence is proving to be a game-changer in a number of different industries, but do you know how Ai can make an impact in procurement? From streamlining processes to optimizing decision-making, AI is reshaping the landscape of procurement in ways never before imagined.

Gone are the days of manual data entry and endless spreadsheets. Today, procurement professionals are leveraging the power of AI to automate mundane tasks, analyze vast amounts of data, and make more informed decisions in a few different ways.

One of the most significant advantages of AI in procurement is its ability to analyze massive datasets in real-time. AI-powered analytics tools can sift through mountains of data, including supplier performance metrics, market trends, and historical purchasing data, to uncover valuable insights. By identifying patterns and trends, AI enables procurement professionals to make more accurate forecasts, anticipate supply chain disruptions and optimize inventory levels.

Another way AI-driven automation is revolutionizing procurement is by streamlining repetitive tasks and reducing manual intervention. From purchase order processing to invoice management, AI-powered robotic process automation can handle routine tasks with speed and accuracy, freeing up human resources to focus on more strategic activities. By automating mundane tasks, AI enables procurement teams to operate more efficiently and allocate resources more effectively.

The integration of AI is transforming procurement from a transactional function into a strategic enabler of business success. By leveraging AI-powered analytics, automation, and decision support systems, procurement professionals can unlock new opportunities, mitigate risks, and drive efficiency across the entire supply chain. As AI continues to evolve, its role in procurement will only become more pronounced, reshaping the future of supply chain management as we know it.

For more information on eProcurement and how the SafeSourcing team can help your organization with the changing market trends, 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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Morning Meetings

April 4th, 2024

They are evolving with the growth of AI.

 

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

Every morning at 8 a.m. I have a direct report team meeting. This used to be in my office with everyone standing prior to COVID. No phones or tablets were allowed. The purpose of the meeting was to briefly outline for the team what your goals for the day were. This meeting was to last no longer than 5-10 minutes. It just seemed to begin the day with everyone being focused.

I know we’ve all heard the saying that “I don’t have to be the smartest person in the room” in order to do my job effectively. I just need to surround myself with smart people. I always have believed this because the interaction of teams can effectively solve problems together more quickly than by oneself. My how things have changed.

The meetings are now held virtually and because we are on desktops or mobile devices via Teams or Zoom or Google Meet or Ring Central, I am  sure we are not the smartest in the room (note that I did not say person), because if there is a desktop, tablet or mobile phone in the room and there is, the generative ai that it has access to is most likely the smartest thing/person in the room. According to generative ai models themselves (can’t think of another word, even though this humanizes ai) IQ isn’t applicable to AI models. However, they are much more well informed than just about anyone in the room. According to Google, Bing AI and GPT4 have an IQ of 114 which makes it Smarter Than the Average Human. Just for reference, the average IQ in the United Sates is ninety-eight.

So why work harder when we can work smarter? I’ve told the team to come to the meeting and bring your devices. If we have an issue, let’s get the opinion of Bing ai, GPT4, Co-Pilot et al and compare them. Now we can as humans evaluate the combined input of these tools (still not people) and add the human element of review to it.

If you’re interested in how SafeSourcing is integrating Artificial Intelligence into our SafeSourceIt™ family of products, please contact a SafeSourcing Customer Services associate

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