Stretching your peso’s worth

Becoming a "one-day millionaire" is not new to Filipinos. Perhaps, the motivation comes from the "try my luck" concept, driven by people’s need for fun and entertainment. Unfortunately, there are no "overnight luck" concepts when it comes to managing funds, or stretching the worth of every peso spent on any item we buy. No matter how small our resources are, very few are able to take on the challenge of acquiring the necessary skills to make wise decisions on spending.

Most, if not all, Filipinos work on limited budgets and this is a typical predicament that budget planners like me, confront daily. If we go through the shopping lane, the initial step I take is to select an appropriate "one-stop-shop" center to locate the items I need. Upon finding an item, I usually scout for other similar items (possibly in other cheaper yet decent stores) to compare pricing and service. I try to seek further discounts when buying in bulk, and when negotiated prices fit my budget, my next task is to go straight to the payment counter. Given the traffic in Manila, my final stretch is to haggle for appropriate transport to ensure the items I purchased will arrive undamaged and on time.

With the advent of information technology, however, it dawned on me that systems are already in place that could take us to shorter and more convenient routes. Rather than having to go through the long queue, joining eMarketplaces makes it convenient for company buyers to access suppliers of all items. eMarketplaces like SourcePilipinas allow buyers to gather suppliers together, rather than letting our fingers walk through the typical directory system. Here, one can profer bidding invitations, and pricing lists are available for smaller-value requirements. Requests for quotes can also be streamlined, especially in effecting timely spot purchases. Also termed as public exchanges, they give prospective buyers windows to know their markets more effectively, and benchmark their purchasing patterns accordingly.

The evolution of eMarketplaces has broadened channels, making it possible for finicky buyers to broaden their selection range. Transparency in supplier selection is attained while paper-bound and more often, bureaucratic approval processes are eliminated. Similarly, suppliers are more able to raise their competency level in ways where they can readily map out their production and/or ordering schedules. Business opportunities are readily clinched, making participants move out of their boxes to save time and accomplish their tasks.

Meantime, there are more benefits to consider if we take our earlier shopping lane concept to small- and medium-sized Filipino enterprises (SMFEs). Aggregated demand from SMFEs can help these institutions realize effectiveness in buying power through improved discounts and supplier selection. Procedures are readily identified in awarding processes, providing participating supplier firms ample time to factor in variables into their pricing. SMFE suppliers are also able to expand their markets gradually, especially when it comes to immediately responding to a prospective client’s requirements. Information flow becomes relevant as buyers coordinate alternative product searches and pay closer attention to product details. Over and above meeting regional players through exchanges, most learn how long-term contracts are formulated, in a manner that best fits their operations.

Speaking of contracts, pricing is perhaps one major criterion given weight by buying companies. While the most ideal scenario is for buying firms to obtain the lowest price, purchasers need to consider offsetting intangible criteria like quality in deciding to award a specific item. eMarketplaces help companies explore other realistic options in arriving at a win-win formula to determine price adjustments, especially when working in a very volatile business environment. This way, relationships are kept positive, where feedback mechanisms become possible.

Finally, there is a one-stop-shop eMarketplace where entry is free. If you’re wise enough about budget planning, opt for an exchange where you need not spend a single centavo to realize savings and be able to bag bigger business opportunities.

* * *

Maritel E. Mallo is a senior business development associate of SourcePilipinas.com, specializing in banking/finance, multinationals, non-alcoholic beverages, refined petroleum and fuel, automotive, logistics, inorganic chemicals and pharmaceutical. For comments or queries, e-mail her at [email protected].