Weeding out political and economic noises via e-Marketplaces

Another wave of terrorist bombings in London, skyrocketing crude prices and a murky political atmosphere at home have renewed jitters among us. Most people view crises like these as opportunities to grow, while some are probably still repressed within their pessimistic paradigm. Fortunately (or not, to some), business should continue. These struggles have seemingly become part of our daily existence, where solutions are likewise formed.

The corporate arena is no exception within this backdrop. Just like ordinary consumers, businessmen are similarly distressed since they remain a critical link within the overall "survival cycle." There are two differing views that typically emerge in these situations – those who believe they can float, and those who seem to think they will sink. Endurance, relative to financial resources and operational cash flows, is perfectly highlighted, where adaptability to change becomes the norm.

Consumers or end-users typically bear the brunt when economic and political beatings crop up. Higher political risk premiums directly affect loan interest charges, for example, and a myriad of additional tax burdens translates into higher pass-on prices. For an ordinary layman, these are tantamount to the further stretching of budgets, or regressing one’s lifestyle pattern to cope with the bitter situation. The push becomes a lot harder for business leaders, as they seek better ways to limit the impact of higher prices, while keeping their market shares afloat.

Almost all enterprises are beginning to realize the value-add they get by participating in e-Marketplaces, specifically in outsourcing operation components to experts. Within SourcePilipinas, for example, most e-procurement specialists are already more focused on advanced contract negotiations, specifically in computing and adopting flexible price adjustment clauses within long-term contract arrangements with suppliers. In fact, traditional and often administrative-centric processes are shortened, while implementation routes are fast-tracked toward the adoption of e-commerce.

So, how does one weed out political and/or economic noises? Within the e-Marketplace we revolve in, participating exchange members have more time to spend to critically assess specific price components that directly affect purchasing patterns. A buyer, for example, can opt to post a requirement broken into sub-categorized line items to further monitor areas where he can still obtain the added savings or cost-avoidance. For example, pricing from imported material sources can be segmented relative to procuring them directly from suppliers’ pick-up points, and outsourcing logistical services. Participating logistics providers, on the other hand, can readily map out more convenient plans relative to stacking and scheduling, leading to a more cost-efficient transporting of goods. This is also similar to a "car-pooling" approach where similar objectives are met.

Meanwhile, participating in an e-Marketplace, suppliers also take part in the challenge by scouting for cheaper alternative sources. Aggregation is best facilitated via an e-Marketplace’s expanding network, rather than having to rely on a company’s finite resources. This has been the growing trend within the region, where ingenuity is encouraged as supplier sources scout for means to provide their buyers with alternative ways to further reduce cost. Suppliers, in turn, benefit through simplified consolidation of information within an e-Marketplace as traditional planning methods are streamlined.

On a personal view, people are much more able to bring out their best when difficulties transpire. This has supported the "revolutionary" concept behind e-Marketplaces as change is inevitable within our day-to-day existence. Challenges also serve as a wake-up call for enterprise leaders to rethink numerous approaches that can better support an ever-evolving business framework. The final success ingredient stems from one’s attitude when embracing these difficulties as storms are meant to fortify a ship’s endurance.

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Mariflor P. Santos is a senior applications associate of SourcePilipinas.com handling special projects, local and international linkages, e-payment and value-added services. For comments or queries, e-mail her at [email protected].