This week, all ears are attuned to President Gloria Macapagal-Arroyo’s State of the Nation Address (SONA), specifically on subsequent plans that will be implemented for the remainder of this year. What has been visible thus far is that privatization efforts are bound to be supported, a feat that could allow fiscal authorities to attain their earlier estimated budget gap goal. If plans are upheld, these measures will help reinforce investors’ long-term perspective on the economy, with keener attention on the stability of borrowing costs.
For one, we have witnessed momentum in the improving equities trading, and administrative work has been extremely extensive with the roster of capital calls from selected listed companies — from listing by way of introduction to initial public offers (IPOs), stock rights, preferred share float, corporate bond issuances, and capital restructuring, among others. The peso has likewise appreciated further despite the move of local monetary authorities in reducing benchmark overnight borrowing and lending rates, sustaining domestic companies’ capital expenditure strategy. Overall, the financial system has been buoyant, and authorities need to ensure that the influx of investments is adequately supported.
Similar optimism has reverberated within e-Marketplaces. Enterprises are selectively moving into longer-term contracts (e.g., one year and up), especially when flexibility is accorded in pricing negotiation routes. Referencing is also made by benchmarking contract costs versus prevailing market quotes from key players, to revalidate price trends, real time. Others embark on operational synergies, especially those that provide the best fit relative to an enterprise’s business model. So how do companies get to this level?
First, decisions must be upheld if company owners are willing to embrace transparency with existing and prospective purchasing-related trading partners. Here, historical data extraction becomes crucial, as this helps leaders digest and correlate information covering selected trading partners’ influence on both direct and indirect costs. In fact, those that participated in e-Marketplaces early on achieved greater control in adopting forward-looking strategies, especially in verifying who among the suppliers would prevail and participate in their advancement.
Second, defined standards must be formed. Similar to any benchmarking plan, quantification tools constantly evolve as there is no exact science to accurately compute end-user expectations. Assuming an enterprise is engaged in vehicle production, costing can be segmented to specific color element that can help in pricing the final output. Intra-network collaboration is also amplified, especially when purchasers require assistance from selected team’s proficiency.
Third, take on an open stance, as an e-Marketplace isn’t just about buying. Facilities available within these exchanges have useful systems to assist the sales cycle, part of which includes adopting general (or those accessible to all) and specific catalogues. Others have advanced features to monitor contract compliance, enabling market watchers to get ready alerts before embarking on contingencies. Database accessibility, especially for accreditation, can also be facilitated, specifically for finance that would like to better understand cash flow disposition.
Overall, historical data extraction helps provide the view for an enterprise’s business terrain. More than targeting average savings and sales criteria, “intangible benefits” thrive in e-Marketplaces, specifically those with a forward-looking stance in shaping and reshaping their enterprise’s model.
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Grace Crisostomo-Cerdenia is the general manager of SourcePilipinas and 2TradeAsia.com. For queries, e-mail her at grace.cerdenia@sourcepilipinas.com.