Source One is a company that has fascinated me for some time now. They have their hands in a lot of different activities and I’m hearing and seeing their name pop up more and more.
I first learned about them a few years ago when I became aware of their WhyAbe free reverse auction tool. Then, their Strategic Sourceror Blog became well known. And just a few weeks ago, I blogged about them teaming up with ThomasNet and launching a contract management solution.
I love to see the entrepreneurial spirit at work and was delighted when they contacted me about sponsoring this blog. Last week, I had the opportunity to catch up with a couple of their senior execs to learn more about Source One. I’ll share with you what I learned…
First, with all of the activities they are involved in, what is Source One’s primary line of business? I learned that their bread-and-butter is their strategic sourcing consulting practice. They have quietly gone about growing their consulting business quite successfully. Their consulting business operates on a 100% pay-for-performance model, so they are obviously delivering some pretty nice results for their clients.
Second, I learned of their newest offering – a Web site called MasterNegotiator.com. This site provides a somewhat GPO-style offering in which they offer leveraged contracts with discounted pricing.
Who is eligible to take advantage of these contracts?
Yep. There are no membership requirements and you don’t have to be a Source One customer. And the buyer pays nothing other than the prices of the goods or services being purchased.
Are the prices good?
I haven’t personally done a comparison but Source One indicates that they are below the prices that their vendors advertise to the “average Joe.” Certainly, there are some larger companies whose volume would grant them better discounts than available through MasterNegotiator.com, so they say that companies that have annual revenues in the $250 million or lower range will benefit the most.
I have two pet peeves with some GPO-style offerings: one, the prices sometimes are not better than you can get on your own and, two, the vendors were not qualified by the GPO – they simply provided the best deal to the GPO.
In addressing the second point with the Source One execs, they have assured me that every single vendor offered through MasterNegotiator.com is a company that they have worked with in the past for several years and have performed well for Source One’s clients. That is a breath of fresh air!
MasterNegotiator.com currently offers contracts for categories such as credit card merchant services, local and long distance services, and outsourced processing just to name a few. Plus, Source One plans on adding more categories in the near future.
So, Source One rattled the reverse auction marketplace beginning a few years ago, they are now rattling the GPO space, and it looks like they will have more tricks up their sleeve in the near future.
With all of these new services, Source One is definitely a company to watch in the procurement world. I’m delighted to have them on board as a sponsor.
To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
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