Neutral ground

The world swung with events lately, from fellow Filipinos’ exodus from Lebanon following the Israel-Hezbollah political rift, the impasse among delegates of the United Nations (UN), typhoon Kaemi’s wrath to the tsunamis and earthquake that rocked Indonesia, even the good news stemming from expectations that the US Federal Reserve would cease its series of interest rate increases, and President Arroyo’s State of the Nation Address (SONA), among others. Despite these daily challenges, however, there’s always a so-called "golden era" in history that is almost similar to experiencing "stillness in every squall." Unity would not be known had there been no diversity, success would not be achieved without adversity, and progressions come only after cycles of regressions. At the end of the road, these form part of an unending change, given man’s insatiable quest for his paramount existence.

Within the business landscape, the presence of third parties that take the neutral zone has gained importance to meet desired objectives. Balance is necessary to ensure an enterprise’s growth, and protect its long-term survival. "Win-win" solutions are best arrived at when unbiased settlers are present to ensure that merits have been impartially assessed, to arrive at a "common ground." Defining "common" is also synonymous to systems of check and balance, and is a constantly evolving learning model, as business leaders put thrust on effective corporate governance to ensure that the scale is never tilted on one side. Traditional enterprises typically form their internal bids and awards evaluation committee, while those quick enough to jumpstart on their participation in e-commerce undertakings, take the e-Marketplace route.

E-Marketplaces help companies benchmark when volatile events shape the macro setting. When price increases become inevitable, for example, purchasing items that are lower-of-market becomes significant to allow enterprises to optimize their limited budgets. This may come in the form of discounts based on projected consumption for long-term contracts, or subdividing service components that may become candidates for outsourcing, such as distribution functions, among others. There are a number of logistics providers that have invested in their respective ware-houses, while some have partnered with space pro-viders. Enterprise buyers, meanwhile, could devote more time to evaluate service performance, rather than become too dependent on a single provider. This can be facilitated internally, while some deploy consultants who analyze process flows and how ratings can be defined.

E-Marketplaces also help manage "trade-offs" relative to price and variables prior to producing the final product and/or service, and assist business leaders evaluate relationships within defined parameters. Too much comfort given to service convenience, for example, may command higher pricing as a result. Defending the reasons why agreements need to be retained to a partner, meanwhile, can be expedited via e-Marketplaces’ real-time scorecard systems as these capture other buyers’ and/or industry category ratings for a specific company. Similarly, a negotiated price that is too low could alter quality as suppliers tighten the noose on their respective expense management to deliver goods based on price expectations.

Neutral-centric e-Marketplaces also help resolve issues. Since prices as well as terms and conditions are keyed into an organized platform, decision-makers can see clearly how supplier-partners participate in responding to requirements. Also, transparency is facilitated via detailed price quotes extracted throughout the negotiation round without the hassle of taxing clerical work. When these data are readily available, buyers and suppliers become more effective in addressing points that should be limited within a specific issue.

All told, operations run smoothly when possibilities for conflicts to arise are either eliminated or kept to a minimum. This works when "equilibrium" is achieved and when adequate representation of claims is made by both buyers and suppliers.

* * *

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