Interdependency in e-Marketplaces

Early this year, Source-IT-Straight highlighted "teamwork" – a compelling force required these days given the challenges gripping economies worldwide. Headlines have been beset by geopolitical tensions reflected on the volatile crude and commodities market, while fiscal and monetary authorities have realigned their efforts to cushion the impact on business costs and consumer spending.

While some took these issues in stride, others have focused on "interdependency" by taking appropriate actions to get things moving forward. Rather than act independently, team efforts were firmly synchronized with the key leaders’ overall initiative to improve efficiency, while setting aside differences for the common good. Simply put, short-term bitter pills have become necessary to fend off "nuisances" that are starting to reshape another adjustment era. And with an evolving investment terrain, an enterprise’s survival is likewise being underscored by swiftness and flexibility to adopt new ways of doing business. Business process outsourcing, for one, has taken a bold leap, as several companies have benefited from enabling their teams to maximize key expertise, and formulating healthy partnerships in the process.

Negotiations within e-Marketplaces have not gone unscathed by macro events, yet the "strongest" continues to emerge. This partly covers companies that have formulated realistic forecasts in advance, with a firm resolve to balance the tide between calculated risks and expected returns. Objective views are readily produced to effectively get desired results, despite the tug of war present within the demand and supply chain. More enterprises have also taken cognizance of expanding available sources, while weeding out lackadaisical performers based on identified evaluation criteria.

Alternative item searches have also been in the loop, especially for specifications that need not necessarily alter product quality. Take the case of ethanol. Appropriate fuel blends are being discovered to keel over unwanted costs that are often forced into end-customers’ pockets. Through collaboration with cross-industry players, less costly yet good variants are made for other commodities subject to price swings such as sugar and rice. Several items have also landed on the top spot in e-Marketplaces such as generator sets, specifically those that could run on cheaper bunker fuel in the event of power outages. Approaches in dealing with leasing options are also facilitated, especially for those who do not want to be tied down by depreciation charges or additional inventory costs for certain equipment utilized in the production process.

Linkages with e-Marketplaces have also allowed decision-makers to streamline capital expenditure plans, as real-time quotes are obtained. Financial planning becomes easier while comparatives are analyzed, helping complement creditor dealings and defining appropriate mixes in cash flow requirements. As a result, communication routes are simplified via a unified exchange through its built-in approval hierarchy system, and flaws are readily resolved when clerical functions are minimized. Accreditation guidelines are appropriately established, purchasing units can better focus on price negotiations, and audit committees could readily extract historical data related to awarding of contracts to the best qualified partners. By outsourcing administrative-related functions, companies become more able in reducing operation-related charges and more time could be devoted to supplier plant visits and/or inspections, and adequate training for improved contract formulation, price differential setting, and financial analysis, to name a few.

While some companies manage to achieve results through independent means, resources are best optimized when the wheel is not reinvented. Team players quick enough to get a view of the bigger picture need not be rare, as they can be found in neutral-centric exchanges where arsenals are in place that reinforce market assessments, trend forecasting and project implementation.

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Grace Crisostomo-Cerdenia is the general manager of SourcePilipinas.com and COO of 2TradeAsia. For comments or queries, e-mail her at [email protected]