Whichever way we call it — old/new, pros/cons, thesis/anti-thesis, left/right, Democrats/Republicans, optimists/pessimists, etc. – markets, in general, deal with opposing forces to achieve "balance." This is a phenomenon similarly present within the e-commerce arena, especially within e-Marketplaces.
Consider purchasing and finance. While the two are regarded as distinct departments, both play a critical role in an enterprise’s survival given their link. One co-exists with the other, and as such, members within each team play a critical role to meet objectives. Purchases are dependent on budgets, and utilization of the latter must be optimized to ensure operational viability.
Let’s consider a macroeconomic variable within the purchasing-finance link. If finance officials, for example, foresee the peso further strengthening over the entire year, should purchasers bid for more time before procuring imported capital equipment? If yes, when would be the appropriate time to embark on the undertaking? Or, if finance officials failed in their estimate, what action plans should be considered, especially when so-called "unavoidable noises" are interposed in the picture?
Viewing trading partners’ experience in e-Marketplaces, such risk-return scenario is balanced through exchanges. The participation of a third-party counterpart helps streamline communication between buyers and sellers, outlining specific and measurable parameters that can be borne by participating direct parties. Best contracts, after all, are those that are neither buyer- or supplier-centric, where awarding criteria become visible for the participants.
Reverting to our earlier example, foreign exchange fluctuation clauses must be agreed upon to further validate contracts, to avoid stumbling into issues that could cause abrasions to either party’s operations. Since administrative-related procedures can be outsourced through an e-Marketplace partner, purchasers have more time to arm themselves with an appropriate understanding of financial jargons critical to achieving win-win negotiations. These may cover topics tied to regulations concerning foreign exchange gains and/or losses, tax-related policies, and capitalization of interest, among others. Similarly, those in finance can learn from purchasers, especially in fine-tuning estimates applicable in specific industries for the remaining stretch of the year. Aside from contract benchmarking, responses are pro-active in e-Marketplaces without necessarily altering relations and/or agreements between the buying and selling participants. Statistical forecasts are also best validated based on the "real feel" of the market, especially for items that thrive on micro-market conditions. These may cover market conditions where only two dominant players thrive, those rated on intangible merits like operational synergy and other directives, even worldwide policies like strategic directions in searching alternative fuels in light of environmental experts’ warning on global warming issues. And, when all economic and/or politically tied variables as well as market readings fail, contingencies can be best monitored and planned, especially on fallback schemes that may be taken. Other technically proficient units can also participate in the process, especially those gifted in exploring alternatives that can lead to producing items friendly to end-users’ pockets and help boost bottomline goals.
Multipliers are best achieved when traditional measures are combined with opportunities provided under the New Age. While merging these two elements do not happen overnight, balance is attained when one transcends to understand the counter-party’s view without abandoning an enterprise’s growth maximization goal.