Candidate selection, e-Marketplace style

Various colors are emboldened in politics. With barely eight months left before the Filipino electorate prudently selects its ideal candidate, each is deployed with a formidable task of ensuring necessary qualifications are properly outlined in choosing a leader who is envisioned to resurrect the country from all hurdles that are to unfold in the coming term.

While lengthy political debates will surely unravel in the coming months, similar “candidate selection” routines are present almost daily in e-Marketplaces. Supplier selection, in fact, has gained importance in the negotiation cycle, specifically for enterprises that equally embrace the code toward Corporate Governance, especially when we boil down to the screening process. Negotiation, as a matter of fact, dictates the future outcome in terms of performances, which will be set against expectations that must be outlined at the onset.

So, how do purchasers start?

A carefully designed scheme en route e-Marketplaces begins with accreditation. Here, necessary elements must be carefully identified that should match a company’s vision and mission, along with growth objectives. The basics cover necessary business-related permits, pertinent industry and other government-prescribed reports, while some go as far as asking for the detailed background of owners and managers. Recently, evaluators are giving wider windows to view merits connected to financial stability, and tying this to a prospective supplier’s operations. With very limited time and people resources, however, almost all enterprises are starting to outsource this function to independent entities, which are similarly involved in the supply management chain. This procedure saves time in terms of conducting adequate cross-reference checks, and an e-Marketplace provides a good pool of cross-industry trading partners who could provide parallel “stamp of approvals” through their day-to-day experiences.

Those who are quick enough to land on “stage two” evolve by proper benchmarking. Here, scorecards are utilized where corresponding weights are agreed on, based on the complexity of the item. For example, prompt servicing and administrative processing related to inventory monitoring might be given more weight for raw material-sensitive items. Here, buyers need to set an “objective criteria” to monitor supplier compliance based on adhered terms in the contract, alongside specific schedules that would allow both parties to undertake reviews (e.g., weekly, quarterly, semi-annual or per annum). For trivial-many items (or those considered not so vital in the mainline process), pricing flexibility might be given more weight than servicing. Here, “indexation methodologies” can be deployed, to ensure procedures are “adequately balanced” vis-à-vis market conditions, without necessarily offsetting other variables that must be monitored.

Meanwhile, “advanced” groupings opt for “stage three” in the accreditation round. In this scenario, joint-venture undertakings are considered for long-term involvement, especially if the negotiation round would require participation from a specific industry, community, and other business entities. For example, the direction that might be taken by an enterprise might be geared toward reducing utility and/or logistics charges, where strategic partners will be required to pursue this undertaking. Others go as far as involving the community by which they operate in, via proper coordination with respective local municipalities and/or employment agencies.  Some participate on a broader scale, formalizing unions with technical and financial bodies related to environment (e.g., carbon credit emissions) and even financial incentives from multilateral agencies.

Regardless of the stage you’re in, “candidate selection” is all about “meeting and exceeding” expectations. Detailed communication is vital for negotiators who value “anticipation,” especially when it comes to obtaining a partner who can grow with the business, and “fit enough to respond to situations.” While relationships are not “linear” in reality, negotiating parties should also provide room to rectify “defects or inefficiencies,” albeit in a “calculated mode.” As we move closer to the election call, it might come in handy to draw a matrix of itemized criteria that would help us select the next batch of leaders that will run an entire nation. Weeding out “biases” is a must in the audit process, lest we blame ourselves in the end.

* * *

The author is the general manager of SourcePilipinas.com. For comments/views, e-mail at [email protected].