Stroke of luck or strategies

The Chinese Lunar New Year is a celebrated event worldwide, even by Filipinos desiring to be showered with luck. Chinese traditions and customs, including divination tools, are fast becoming popular and attractive to those wishing for good fortune, especially when making major life decisions. While it is clear that more and more are drawn to believe in luck, reality would show that virtues carry greater credence, and the best results are attained when these are utilized appropriately.

Running an enterprise, however, is not driven by luck. Decisions need to be made when executing strategies to ensure things would run smoothly. When correct strategies and approaches are put in place, fortunes can be reaped in the long run. Similarly, decisions need to be made when owners are to take their enterprises to the next stage, especially if visions are to effectively transcend toward network collaboration and involvement.

Participation in e-Marketplaces also entails commitment, especially if the overall goal is to further professionalize negotiations. Through the participants’ e-Marketplace involvement, buyers and suppliers gain effective avenues on how to appropriately respond to each other’s requirements, and new skill sets are developed before, during and after an online auction requirement.

When buyers, for example, become auctioneers, time controls can be created and requirement specifications are posted before the online bidding event. Similarly, bidding terms and conditions are set to ensure that specific objectives prior to awarding a transaction are communicated appropriately to participating suppliers. When buyers and suppliers come to terms in the form of a negotiated price, the former benefits in terms of realized cost savings and/or cost avoidance, while the latter gains in terms of additional sale.

Successful online auctions cannot be simply justified by purchasers who dabble with the "stroke of luck." For participation in e-Marketplaces to work, focus is necessary on approaches that will be applied, and balancing these to both macro- and microeconomic conditions prevailing during the time of the negotiation round. While the usual dictum is to attain cost savings or work within budget based on the last purchased price, participants must also accept the fact that prices of goods or services rendered are not constant at any given time. Technology can help minimize anticipated risks, especially when neutral grounds are to be amplified. Similarly, the timing before suppliers are accredited to participate in an auction event must be considered. The typical routine is to limit negotiations within an accredited basket of suppliers, especially when confronted with limited time in fulfilling purchase requirements. Since benchmarking is faster via e-Marketplaces — especially the ones that successfully fulfilled other buyers’ needs in an exchange — quicker routes are attained when it comes to dealerships. Internal supplier scorecards can also be compared vis-a-vis what other participating members in an exchange have to say, based on itemized areas for objective ranking.

Simply put, technologies available in e-Marketplaces help enhance communication between buyers and sellers as well as with third parties that help bring about neutrality on the aspect of awarding and contract fulfillment. Best results are reaped when collaborative approaches are made, especially in terms of long-term partner selection. So the next time you think of "luck," revert to the essentials of adopting prudent strategies.

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Maritel M. Atienza is the assistant general manager of SourcePilipinas. For queries, e-mail her at [email protected].