SOURCE-IT-Straight

Forex risk management in eMarketPlaces
By: Grace Crisostomo-Cerdenia
June 2007

With May’s political elections over, the radar screen has reverted to the business terrain for the remaining semester this year. Economists and analysts are one in their call that funds flow has improved in Philippine shores, part of which favored equities and other securities markets. In fact, several listed and non-listed enterprises are revisiting capital expenditure plans for the remaining semester this year, especially those that are likely to benefit from government’s key priority investment sectors. With monetary authorities on status quo on policy, several if not all negotiators have kept a close watch on the peso-dollar movement, while Treasury experts re-position prospective financing options given the present single-digit interest rate environment.

Foreign currency adjustment (FCA) trends are commonly visible for utility companies, especially since regulators allow these enterprises to effect tariff adjustments whenever the peso weakens or firms up vis-à-vis the greenback. Such case however, is not typical for ordinary enterprises, unless they belong to industries that create a significant impact on the economy. For a regular enterprise to survive - irrespective of the venture they’re in - volatility in foreign exchange markets need to be monitored, especially when necessary direct inputs to production are purchased overseas. In fact, competition rests on proper inventory monitoring, as any wrong call on dollar purchases could set difficulties in implementing ‘realistic’ selling prices to key markets. Such case becomes more complicated if wrong calls are made for slow-moving items, especially when cyclical demand sets in.

Participation in eMarketPlaces has tackled these concerns, especially since it’s faster to collaborate contracts that require flexibilities on terms, especially if these are tied to foreign exchange movements. Responses are swifter, since buyers and suppliers could cohesively plan on the length of an agreed contract, based on existing industry trends during the targeted timing of negotiation. In other words, risk management procedures are not only transparent, but they’re simplified for all related parties concerned.

Let’s check an example. Suppose you were buying imported item A, and pricing was at P1,000 apiece in November last year. Being a regular customer, your supplier called in to inform you that pricing has been unchanged as of June this year. The supplier may have quipped, that you need to purchase the item soon, as prices are likely to trend higher during peak season this year. Meanwhile, an inquisitive friend informed you that he/she purchased the same item at P800, and his supplier was not even on a swift mode to do a sale. There are two things here: (1) You could simply ignore the fact, believing you purchased a ‘superior item’.; or (2) Try digesting facts and see if you did lose 20% of your hard-earned funds. With these options, I’m sure you’d rather focus on item two. Differences in foreign exchange rates should enable buyers to purchase the item lower (granting this item is imported), or there may have been other costs involved (e.g., overhead) that could justify your supplier’s ‘unchanged’ pricing.

eMarketPlaces do more than merely benchmarking or price referencing. As long as linkages are made within a system that runs across industry platforms, negotiations can be facilitated simultaneously for items intended for purchase, and similar input items that form part of finished items to be sold. Catalogue referencing can be revised accordingly, and orders are facilitated fast. Moreover, price variances can be adjusted based on prevailing market conditions, and one need not stock on relatively expensive inventory that might not even be pushed aggressively when competitive pricing pressures set in.

Catapulting present business models that run on technology platforms provide long-term gains. At the end of the day, it’s how fast a decision maker sees revenues flow in, and how equipped his back room people are in implementing measures to help streamline direct-related charges.

S'elections' in eMarketPlaces
By: Maritel Mallo-Atienza
May 2007

The streets have become abuzz with political campaigns, and traffic has gone worse. Most take notice of left-and-right political rallies, especially when entertainers join endorsements in almost all corners. Popular slogans, posters, banners, jingles, television commercials and even the Internet to name a few, played a key role in getting candidates introduced, and relaying the platforms they intend to prioritize within their jurisdiction. Regardless of advertisement mediums used however, the common aphorism is obviously to create ‘noises' to get these names far more visible in the ballots.

This week, the Filipino electorate is being called to transcend from the much-coveted campaign period, by going through prudent synthesis of their final list. The candidates are many, yet only a handful will lead the race. But what is really in a name? Is it driven by simple ad recall, or have Filipinos become aware on a candidate's merits to finally get the Philippines advancing towards higher terrain?

Unfortunately, we do not have a common and visible medium that could itemize categorized attributes that could help compare candidates' criteria. Unless one gets hold of flyers and successfully understands and reads through these materials, information dissemination could not be systematically measured to get everyone aware of the candidates they're voting for.

Similar concerns are addressed in private eMarketPlaces like SourcePilipinas, specifically through the latter's available ScoreCard feature. Here, existing as well as prospective business partners are graded according to their role as suppliers and/or buyers in a collaborative approach, based on identified criteria and weight allocation per category. Since results are oriented within Purchasing and Supply Chain, participants' confidence is supported since they can readily extract comments from participating members that carry similar functions.

For example, buyers are appropriately evaluated on the basis of their swiftness in relaying complete requirements, awarding merits, payment terms and ability to resolve transaction-related issues. Rankings can be performed, depending on the underlying decision criteria that will become the basis in awarding an item. Some participants might opt for the lowest price, especially if the item being purchased is non-sensitive, while others might go for the premium due to value-added qualifiers.

On the other hand, suppliers are best assessed in terms of competitiveness in pricing, quality of items and/or services delivered, services and delivery. Suppliers' administrative-related functions are also integrally addressed, especially if any discrepancies arise related to billed invoices. Within suppliers' service-related function, grades are given according to customer service responsiveness, and whether operational coverage is extensive where access for assistance is most often available. In a nutshell, accreditation becomes more convenient and objective, since internal ScoreCard systems can now be re-validated, especially for benchmarking with similar and cross industry players. Since online rating reviews are dynamic, all participants within the pool are prodded to perform, even exceeding expectations.

Comparatives can also be accomplished in neutral-centric eMarketPlaces, especially in studying variances when alternative solutions are in place. For similar participating groups vying for a capital expenditure requirement for example, decisions tied to an outright purchase or lease option can be facilitated. Here, cash flow considerations are highlighted, especially when we speak of long-term contract engagements.

In the future, ScoreCard matrices could probably be further customized that would help eMarketPlayers gauge the success of an upcoming transaction based on qualifying criteria of pre-selected players. Further advancements might soon take shape to help smoothen out ‘anticipated outcomes' based on the mixture of candidates that are being pre-selected. Compliance to ethics might already be considered, especially if a buying firm would assign a so-called ‘weight' for this attribute as part of the enterprise's vision and objectives.

All told, electronic procedures can be made to enable decision-makers to detach subjectivity when objectiveness must be called for in pre-selections. Vote wisely.

Valuations in eMarketPlaces
By: Grace Crisostomo-Cerdenia
March 2007

Too high of a price can deter buyers. Similarly, sellers might be unwilling to yield if prices fall below expected exit points. Within negotiation rounds, mediators provide a 'balanced tone' by identifying an equilibrium price that is 'fair' for buyers and sellers concerned. Here, certain considerations must be identified, to ensure objectives are met at any given situation for a specific period of time.

Within the world of equities investing for example, it is much easier to allow buyers and sellers of securities to meet through a common Exchange where the key concentration is on shares being floated for public ownership. Generally, Exchanges follow specific procedures in verifying validity of transactions, starting with securities licenses that must be secured before shares of stocks are sold. These include verifying the existence of a corporation and its owners, as well as presentation of financial conditions to keep the investing public informed, among others. For companies venturing into an initial public offering (IPO) for example, underwriters go through a book building exercise before final pricing is agreed on. Here, an issuer's fundamental merits are considered, and material references via prospectuses for example, are distributed for proper data dissemination. Benchmarking is also made possible through analysts' quantitative comparisons within industry and regional markets, especially on selected indicators applicable for the listed stock being evaluated. As soon as a company lists its shares in the Exchange, systems are in place that allows holders of stocks to sell shares through brokers, and repurchase them depending on their portfolio call.

Within privatization platforms in the fiscal arena, planning is also made before any scheduled bidding event. Prospective bidders go through pre-qualification rounds, and the latter is likewise given enough time to conduct their respective due diligence on the asset being sold. The same route is also followed for large-ticket privatization undertakings, although bidding procedures must be done properly and cohesively to avoid a re-bidding route. The typical scenario is that prospective buyers would likely express keen interest ahead of a bidding event, yet the wildcard rests on whether or not identified buyers will be keen enough to make their bid during the actual event. When the bidding process fails, re-bids are considered, but only for a 'tolerable' timeframe. Too may re-bids could elicit the wrong signal to the market, either on price, administrative guidelines covering specific terms and conditions, or the attractiveness of the asset being sold. The worse scenario occurs when awarding has been made, only to be opposed due to unforeseen circumstances later on.

In private eMarketPlaces, Purchasers are regarded as 'equilibrators' tasked to ensure the best possible option has been considered, more specifically in prudently evaluating objectives that are neither abrasive both for the buying and/or selling party. Given this task, procedures must be in place, from pre-qualification, pre-bidding, actual online bid and awarding, among others. Purchasers need to blend their negotiating expertise based on technical considerations from key engineers, down to trivial-many items, even aspects tied to Finance and Treasury, among others. Simply put, Purchasers pro-actively involve themselves in the entire supply chain management so resolutions are realized to prevent possible disputes.

So-called 'noises' within the information chain are winnowed out through Request for Quotations that are readily available in eMarketPlaces. Through this facility, Purchasers and Budget Planners can get a good 'book building' gauge how prices behave, specifically when integrating up-to-date conditions in specific macroeconomic and industry settings. Since active collaboration is facilitated via eMarketPlaces, Purchasers are more armed simplifying accreditation based on participating members' ScoreCards, either as buyer or seller. More importantly, Purchasers can focus on more important tasks that would help them get involved in higher decision-making, among which considers research and analysis for alternative variants and improving social commitments, among others..

Overall, valuations are best verified via participation in eMarketPlaces, where the actual pulse of demand and supply are validated. Uniformity in data dissemination is enhanced to help support the awarding process.

Stroke of Luck or Strategies
By: Maritel Mallo-Atienza
February 2007

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 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 into 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 towards network collaboration and involvement.

Participation in eMarketPlaces also entails commitment, especially if the overall goal is to further professionalize negotiations. Through participants’ eMarketPlace involvement, buyers and suppliers gain effective avenues how to appropriately respond to each other’s requirements, and new skills 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 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 eMarketPlaces 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 is not constant at any given time. Technology can help minimize anticipated risks, especially when neutral grounds are to be amplified. Similarly, the timing before participating 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 eMarketPlaces - 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-à-vis what other participating members in an Exchange have to say, based on itemized areas for objective ranking.

Simply put, technologies available in eMarketPlaces help enhance communication between buyers, sellers, as well as 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.

Balancing options via eMarketPlaces
By: Grace Crisostomo-Cerdenia
January 2007

Unity in the midst of diversity was strongly underscored this year, beginning with the culmination of the ASEAN event in Cebu City, Philippines. The local stock market roared to greater heights, remittances from overseas Filipino workers (OFWs) aided the peso's strength, inflation and business costs remained stable, capital flowed onshore, rewarding the country's improving monetary and fiscal management story. While part of 2006's struggles prevailed - especially those afflicted by nature-related calamities - most were quick to view challenges on a bigger scale, armed with a clearer perspective that succession of events happen for a better reason.

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 eCommerce arena, especially within eMarketPlaces.

Consider Purchasing and Finance. While the two are regarded 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 eMarketPlaces, such risk-return scenario is balanced through Exchanges. Participation of 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 participants concerned.

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 eMarketPlace partner, purchasers have more time to arm themselves with appropriate understanding of financial jargons critical to achieving win-win negotiations. These may cover topics tied to regulations concerning foreign exchange gain and/or losses, tax-related policies, capitalization of interest, among others. Similarly, those in Finance can learn from purchasers, especially in fine-tuning estimates applicable for specific industries for the remaining stretch of the year. Aside form contract benchmarking, responses are pro-active in eMarketPlaces without necessarily altering relations and/or agreements between buying and selling participant. 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 political-tied variables as well as market readings fail, contingencies can be best monitored and planned, especially on fall back 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 understanding counterparty's view without abandoning an enterprise's growth maximization goal.

Delegation through eMarketPlaces
By: Grace Crisostomo-Cerdenia
November 2006

The concept of 'free markets' - that is, operating in an environment free of intervention - is the ideal route envisioned by business leaders worldwide. Realistically however, private and government enterprises embark on procedures for appropriate checks-and-balances to ensure transactions are done in the most transparent manner. Contract evaluations begin from evaluation of requisitions, supplier selection via outlined accreditation procedures, method of negotiation and concessions, awarding of contracts and monitoring supplier performance towards payment progression. In effect, Purchasing Managers do more than merely negotiating contracts given their indirect involvement in related areas in production, engineering, inventory planning and monitoring, quality assurance and financials, among others. These tasks are necessary to avoid potential areas of conflict, especially in spotting flaws internally or externally, when a counter party to a transaction 'underperformed' based on identified terms and conditions.

offers? Or, are there alternative 'value-added considerations' that may be considered when awarding at prices higher than market? These are just some of the gray areas that need to be evaluated, to ensure negotiated deals have been fair for participating parties concerned.

Most enterprises have embarked on matrices to properly identify procedures that would cater to pre-defined objectives and create effective delegation in the process. For example, people resources from production get indirectly involved in the accreditation route, to help justify awarding measures. Negotiation on the merits of balancing budgets relative to price and volume are tossed to the Purchasing Team, given their proficiency on the matter. Meanwhile, those comprising Compliance are there to cross check efficient implementation. Once the transaction loop is consummated as soon as full payment is made, an enterprise's designated Auditing Team can readily re-check procedures that have been carried out for proper flaw detection, and rectify these the soonest time possible. Yet, given an increasingly competitive business environment however, not all enterprises could afford hiring too many resources to specialize in these functions. Some resort to outsourcing respective competency to agencies that have established a niche to ensure deals are done appropriately within an acceptable timeframe.

Let's first cover accreditation. How do enterprises level-the-playing field by soliciting bids on an 'apples-to-apples' basis? What if there are no parallel counterparts available to match X Company's 20 years of existence in the business? Does this bode well for emerging players who are willing to prove themselves?

When investing in equities, investors get to know more about the companies floating part of their capital structure to the public via prospectuses. Requirements for disclosure have been strongly underscored as part of world markets' improved corporate governance procedures through this medium, to make sure investors fully realize prospective risks and merits before buying into any stock. Within purchasing, not all enterprises have all the information they need. At most, company descriptions are sought, alongside background of owners and plant visits, while some weed through outdated financial statements that do not reflect up-to-date details on the firms they're working with.

eMarketPlaces simplify evaluation functions by virtue of market intelligence features and cross-rating from other participants in an Exchange. In fact, firms that have taken an eMarketPlace route have become more adept and share the clerical load tied to purchasing and supply chain management. Scorecard features for example, allow enterprises to cross-examine internal systems of accreditation, by browsing through other companies' objective performance ranking. Since Exchanges complement (and not replace) internal evaluations, information flow becomes faster as procedures are streamlined.

Overall, eMarketPlaces have effectively brought multiplier results to an enterprise's growth objective. More can be done when decision makers are able to share the load via a neutral-centric Exchange. More than tangibles of savings and/or cost-avoidance, time gaps in making a decision is handled well, especially when volatile market conditions exist.

Recourse in eMarketPlaces
By: Grace Crisostomo-Cerdenia
October 2006

Preparation for the unexpected is always underscored in negotiations, more specifically to Asia's dynamic environment. It has been a widely accepted phenomenon that Asia's historical richness stems from the fact that wave after wave, conditions change via some form of political and economic cycles, calamities included. Much has been learned after typhoon 'Milenyo' swooned the metropolis and neighboring regions, and some are still quantifying costs tied to its wrath. Consolidated measures from industry players have also been taken in addressing oil spill incidents, despite realization that there are no quick fixes for these cases.

While much has been tackled on the importance of price reference and volume aggregation via eMarketPlaces among others, events continue to unfold before the business arena, among which includes removal of trade restrictions resulting from any measures that might be levied by members of the World Trade Organization (WTO). Headlines have also been busy with increasing concerns for environmental protection, while others have floated the possibility of adopting a unified currency in Asia. Lest we forget, wobbles might also take place within the geopolitical terrain, depending on situations in the Middle East, and how North Korea would digest unanimous sanctions by the United Nations (UN) in the coming months.

Depending on how commercial-related contracts define 'force majeure', decision-makers have become cognizant in further simplifying its scale, especially with respect to available recourses that may be taken to minimize, if not, avoid disruptions in business processes. Prospects of higher prices or inflation, has become an accepted twin variable when discussions point to economic expansions, and measures are still being made to minimize its impact on end-users' pockets. Aware of this concern, leaders are equally challenged that awarding criteria in commercial contract negotiations need not necessarily boil down to obtaining 'lowest' possible prices, but considerations are also made on 'intangible' aspects that should be covered when so-called, 'risk premiums' arise.

As a neutral-centric eMarketPlace, SourcePilipinas has assisted Trading Partners identify and sub-classify 'risk premiums' through identified features within its Exchange. Terms and conditions are appropriately relayed to pre-accredited players, and information dissemination is simplified especially for issues that may be raised by any player to avoid misinterpretation of requirements. Parameter identification is best highlighted depending on auction-type selection (e.g., open / blind / sealed) from a buyer and/or seller's perspective, to minimize unwanted disputes or arguments over the long haul.

Take the case of construction-related requirements, pricing elements can be segmented to securing necessary permits and licenses among others, and liabilities that need to be considered in case faulty construction has been proven within an identified and acceptable time frame. Since reports can be extracted at the end of an online procurement exercise, enterprises are more able to pinpoint risk-reward points, without necessarily abandoning their regard in optimizing results based on specified budgets. If buyer A assesses its construction auction, he/she would need to check differentials in price quotes based on materials that would be utilized to cover ceiling components, against those that would be utilized to complete walls and flooring structures for example. If supplier A comes out cheap, other construction-tied components may be compensated as a result. Similarly, if supplier B and C came out more expensive relative to supplier A, structure integrity considerations may have been taken to support infrastructure stability and/or materials warranty. The same can be applied to foreign exchange-related risks, as eMarketPlaces can accept bids based on agreed reference exchange rates. This mostly applies to indent orders, especially if participants are to bid from their offices overseas. Buyers in turn, can view bids based on a uniform currency, to avoid recalculations and enable their finance officers quantify forex-related risks. eMarketPlaces provide windows for data extraction, especially in coming up with clauses where renegotiations can take place.

All said, recourses could be mapped and identified within the e-Commerce arena. Aside from having to avoid hassles that might be encountered within a volatile macro environment, actions can be facilitated swifter when planned approaches are in place.

Best buys for the 'Ber' season
By: Mariflor P. Santos
September 2006

Gift giving has been a tradition with the onset of the 'ber' season, and Filipinos are best known to shop to get the best bargains. This early, Christmas shoppers typically prepare their list to properly guide them in planning. With several malls and bazaars mushrooming all over town, one needs to plan ahead so 'best buys' are made despite going through the traffic hassle. More than avoiding the shopping-rush, consumers need to revert back to pointers so they need not go through headaches of being short-changed given their limited budget, especially for impulsive buyers that are usually over-spend.

Here are among processes shoppers go through to ensure they get those that would be appreciated by their loved-ones and help lessen the stress:

Commitment towards positive change meanwhile, entails sacrifice. While decisions need to be carefully weighed, it's a question of whether or not one is prepared to go the extra mile despite the odds that might come along the way. The fact exists there are enterprises that have achieved results, simply because they opted to speak less, act quickly and pro-actively respond to challenges with a staunch commitment.

Interdependency in eMarketPlaces
By: Grace Crisostomo-Cerdenia
May 2006

Early this year, Source-IT-Straight highlighted 'Teamwork' - a compelling force required these days given the challenges gripping economies worldwide. Headlines have been beset by geopolitical tensions that have reflected its wrath at the volatile crude and commodities market, while fiscal and monetary authorities realign efforts to cushion its impact on business costs and consumer spending.

While some took these issues in stride, more have focused on 'interdependency' by taking appropriate action to get things moving forward. Rather than act independently, team efforts were firmly synchronized with key leaders' overall initiative to improve efficiency, while setting aside differences for the common good of a Result-Oriented Team. Simply put, short-term bitter pills have become necessary to fend-of 'nuisances' that are starting to reshape another adjustment era. And with an evolving investment terrain, an enterprise's survival is likewise being underscored by swiftness and flexibility to adopting new ways of doing business. Business process outsourcing for one, has taken a bold leap, as several companies benefited in enabling their Team to maximize key expertise, and formulating healthy partnerships in the process.

Negotiations within eMarketPlaces have not gone unscathed with macro events, yet the 'strongest' continues to emerge. This partly covers companies that have formulated realistic forecasts in advance, with a firm resolve to balance the tide between calculated risks and expected returns. Objective views are readily produced to effectively get desired results, despite the tug-of-war element present within the demand and supply chain. More enterprises have also taken cognizance of expanding available sources, while weeding out lackadaisical performers based on identified evaluation criteria.

Alternative item searches have also been in the loop, especially for specifications that need not necessarily alter product quality. Take the case of ethanol, appropriate fuel blends are being discovered to keel over unwanted costs that are often forced into end-customers' pockets. Through collaboration with cross-industry players, less costly yet good variants are made for other commodities subject to price swings such as sugar and rice. Several items have also landed the top spot in eMarketPlaces such as generator sets, specifically those that could run on cheaper bunker fuel in the event of possible power outages. Approaches in dealing with leasing options are also facilitated, especially for those who do not want to be tied by depreciation charges, or additional inventory costs for certain equipments utilized in the production process.

Linkages with eMarketPlaces have also allowed decision-makers to streamline on capital expenditure plans, as real-time quotes are obtained. Financial planning becomes easier while comparatives are analyzed, that help complement creditor dealings and defining appropriate mixes in cash flow requirements. As a result, communication routes are simplified via a unified Exchange through its built-in approval hierarchy system, and flaws are readily resolved when clerical functions are minimized. Accreditation guidelines are appropriately established, Purchasing units can better focus on price negotiations, and Audit Committees could readily extract historical data related to awarding of contracts to the best-qualified partner. By outsourcing admin-related functions, companies become more able reducing operation-related charges and more time can be devoted for supplier plant visits and/or inspections, and adequate Training for improved contract formulation, price differential setting, financial analysis, to name a few.

While some companies managed to achieve results through independent means, resources are best optimized when the wheel is not reinvented. Team players quick enough to get the view of the bigger picture need not be rare, as these can be found in neutral-centric Exchanges where arsenals are in place that reinforce market assessments, trend forecasting and project implementation.

Trust element in eMarketPlaces
By: Mariflor P. Santos
March 2006

Intangibles exist when enterprises adjust from traditional to a relatively modernized route via eMarketPlaces. Those familiar with the phrase, ‘Why bother when it ain’t need fixin?’ are often classified under the ‘resistant’ category, and view changes more of a ‘nuisance’ vis-à-vis their decade-old procedure. Skeptics, as the term suggest, are those that end up undecided merging old and new, and become more inclined focusing on the ‘cost of adoption’. These typically muse to themselves, ‘This might cost me my job’, neglecting the basics of having to put an enterprise’s survival niche to the fore. The more responsive on the other hand, would say, ‘The only element constant throughout the growth process is change.’ Those grouped under this class are becoming valuable assets within the decision -making process, confronted by the reality competition is already shaping business deals across the globe.

Changes happen in all enterprises. These are often attuned to commitments given to customers, shareholders, business partners/suppliers, government and employees, among others. At the end of the day, core earnings are driven by productivity, and those quick enough to further improving operating cash resources are more primed to survive the race. To others, the task might look cumbersome. The truth is, more and more enterprises have gone fast enough to embrace the benefits of adopting eCommerce early onto their growth phase, and have more time to concentrate on bigger components within the business. ‘Competency outsourcing is fast becoming a common word embraced by key owners, to simplify the way transactions are done, especially with administrative-related tasks. Those assigned to implement commitments however, face the intricate part of having to carefully strike a balance when policies need to be fine-tuned, as these create a bearing on the entire decision-making cycle. It takes a ‘special eye’ therefore, to take on a larger frame, especially when leaders make their call towards ‘responsive’ methods of responsible technology adoption.

Adjustments however, can be a 'win-win' proposition, both for technology users and invited participants. The key here, is taking on calculated risks when procedures must be elevated to a higher plane to get things moving forward. Leaders have stepped-up to the challenge of having to expand their markets, and consequently relationships across-the-board. Within eMarketPlaces, emphasis is made on transparency to bolster ‘trust’ within preparation, supplier-partner selection and awarding procedures. Important parameters are defined and validated via Exchange functionality references, all towards the goal of ensuring integrity in the business dealing process. In turn, checks-and-balances are firmly supported when compliance procedures are validated – aspects that are starting to gain ground within the corporate governance loop.

Essential parameters help purchasers gain confidence, especially on intricacies tied within the request for quotation process. These include references related to item specification, uniformity in communicated terms and conditions, accreditation, behavior monitoring by virtue of price setting, ePayment infrastructure support and adoption of ‘balanced’ scorecard system, among others. Detailed item specification for one, assists the decision-making process by properly pinpointing those that could be readily traded-off, pegged on the degree of importance for the end-result item and/or services.

Just as the element of trust is not earned overnight, enterprises’ evolvement within eMarketPlaces is likewise honed through time. Majority of those participating in eMarketPlaces have proven that the benefits far outweigh perceived risks, and several have already championed on greater cost savings and improved topline through active participation. Bolder steps toward this endeavor starts from positive decisions, reinforced by firm commitment to take responsive actions.

Teamwork for 2006
By: Grace Crisostomo-Cerdenia
January 2006

Resolutions have become customary across the globe. Some take these seriously, while others are quick to ride the bandwagon by enumerating 'ideals' that would make them achieve desired outcomes for the next 365 days. This habit has become 'perpetual', driven by our goal to become better each year.

Beyond personal resolutions, these are similarly exercised within the business arena. More than traditional yearend operation assessment paralleled to financials, decision makers plow through the headlines to check on areas that could help advance their business models forward. Past achievements are fortified, prospective snags are identified and growth opportunities are outlined.

e-Commerce business entrepreneurs however, add zest within the conventional way of defining resolutions. Decision-makers who have participated early into eMarketPlaces are more able to augment desired results, after embracing both tangible and intangible benefits of investing their time and people resources within an Exchange. These include, among others:

Within SourcePilipinas, the latter is made possible through the Exchange's Feedback Board. As the term connotes, scorecard rating is spread across industry categories, and participants are likewise accorded a venue to qualify certain aspects that might be more transaction-specific. This provides a flexible view among trading partners, in a manner that could help defend industry members' overall rating outlook. In fact, feedbacks provide higher value-add to an enterprise's growth strategy, to ensure continuous improvement in areas where they may be rated poor vis-à-vis other relevant categories such as price, for example. Rather than restrict on basic business documentations, SourcePilipinas' Feedback Board aims to widen perspectives based on actual industry use.

Overall, a successful eMarketPlace transaction is primed on the basis an enterprise will invest its trust and confidence with present and future trading partners. More can be derived when companies participate within a specialized business community where views are exchanged freely.

Decide on investing
By: Grace Crisostomo-Cerdenia
August 2005

Let's veer away from politics temporarily, and talk about 'getting rich'. Interesting, isn't it? While it would be lengthy to elaborate on several aspects how one could get rich, let's probe deeper what 'investing' really is.

Investing is part of our struggles daily, given our quest to improve our status quo. You may not realize it, but a great part of our time has been spent investing in necessary skills and resources to make us equip to hurdle life's challenges, starting with the education which our parents worked hard for, or possibly to the luckier ones who managed to earn their degree out of their own effort. After obtaining a degree for example, there wasn't any sure guarantee from educational institutions that all of us would land in a job, right? At the end of the day, it all boils down on our willingness to utilize the things we've been taught, and perseverance to succeed. And, this is a clear-cut example how investing works.

Think out-of-the-box, and you're off to a good start to investing. As mentioned, 'investing' is not to be dreaded, as it's a phenomenon we face every second of each day. Decisions need to be made, and corresponding risks and returns are carefully weighed prior to embracing any call. We're generally happy when we made the right decision, but only a few could master enough guts to re-assess these calls, when wrong turns occur. Typically, assessing the what's and why's for 'wrong' turns is often neglected by some, as others would often clobber-up and wallow in self-pity. Based on experience however, the successful investors are those that bravely live-up to re-check why wrong turns were made, and how these could be avoided via necessary contingency planning.

How does one check if he's out-of-the-box? Try answering these questions. For the past 'x' years, where have you placed your hard-earned savings? If your answer is just on your typical bank account, chances are, you have not explored investment avenues available around you. One must be bold enough to learn there's a much larger investment arena out there, a market is that is often left to only quite a few who have viewed things on a larger scale.

Next, how much return do you think your investment is worth? If you plan to settle for around 6% to 9% return net, you might want to explore mutual bond funds where you could at least sleep overnight. This would be true, only if your investible funds is at least worth Php10,000. Anything higher than this range would qualify you as prospective equities or foreign exchange investor where risk-return profiles are more varied. Provided appropriate investing strategies are made, a 5%-7% weekly return on stocks could be rewarding, as long as good stock selection is made.

Within online equities trading for example, retail investors have more flexibility to advance their trading skills as execution is directly made through an investor's fingertips. Demand and supply situation per stock can be readily accessed real-time, and information that can be accessed is almost limitless. In fact, one could readily view how share prices behave the moment announcements are made, and how fund managers factor-in earnings growth expectations. Also, trading opportunities can be easily tracked, even when working within a volatile political atmosphere.

Investing can be exhilarating, as it tests all available entry and exit strategies to profit from a trade. Those that manage to start on early through the investing process are more prepared to withstand varying business conditions, and are considered the fewest to succeed among the herd. So, if you're still stuck with the same status in life, it might be best to carefully consider if you have really decided to go for the real picture what investing ought to be. Decide now, and accumulate wealth while you still can.

Weeding out political & economic noises via eMarketPlaces
By: Mariflor Santos
July 2005

Another wave of terrorist bombings in London, skyrocketing crude prices and a murky political atmosphere at home has renewed jitters across the globe. Most view crisis like these as opportunity to grow, while some are probably still repressed within their pessimistic paradigm. Fortunately (or not, to some), business should continue. These struggles have seemingly become part of our daily existence, where solutions are likewise formed.

The corporate arena is no exception within this backdrop. Just like ordinary consumers, businessmen are similarly distressed, as the latter remains a critical link within the overall 'survival cycle'. There are two differing views that typically emerge in these situations - those who believe they can float, and those who seem to think they will sink. Endurance relative to financial resources and operational cash flows are perfectly highlighted, where adaptability towards change become the usual norm.

Consumers or end-users typically bear the brunt when economic and political beatings crop up. Higher political risk premiums directly affect loan interest charges for example, and a myriad of additional tax burden translates to higher pass-on prices. For an ordinary layman, these are tantamount to further stretching of budgets, or regressing one's lifestyle pattern to cope with the bitter situation. The push becomes a lot harder for business leaders, as they seek for better ways to limit the impact of higher prices, while keeping their market share afloat.

Almost all enterprises are beginning to realize the value-add they get by participating in e-MarketPlaces, specifically in outsourcing operation components to experts. Within SourcePilipinas for example, most e-Procurement Specialists are already more focused towards advanced contract negotiations, specifically in computing and adopting flexible price-adjustment clauses within long-term contract arrangement with suppliers. In fact, traditional and often administrative-centric processes are shortened, while implementation routes are fast-tracked towards e-Commerce adoption.

So, how does one week-out political and/or economic noises? Within the eMarketPlace we revolve in, participating Exchange members have more time to spend to critically assess specific price components that directly affect purchasing patterns. A buyer for example, can opt to post a requirement broken into sub-categorized line items, to further monitor areas where they could still obtain the added savings or cost-avoidance. For example, pricing from imported material sources can be segmented relative to having to procure these direct from suppliers' pick-up point, and outsourcing on logistics services. Participating logistics providers on the other hand, can readily map-out more convenient plans relative to stacking and scheduling, leading to more cost-efficient transporting of goods. This is also similar to a 'car-pooling' approach where similar objectives are met.

Meanwhile, participating e-MarketPlace Suppliers also take part within the challenge, by scouting for cheaper alternative sources. Aggregation is best facilitated via an eMarketPlace's expanding network, rather than having to rely on a company's finite resources. This has been the growing trend within the region, where ingenuity is encouraged as supplier sources scout for means to provide their buyers alternative ways to further reduce on cost. Supplier in turn, benefit through simplified consolidation of information within an eMarketPlace, as traditional planning methods are streamlined.

On a personal view, people are much more able to bring out their best when difficulties transpire. This has supported the 'revolutionary' concept behind eMarketPlaces, as change is inevitable within our day-to-day existence. Challenges also serve a wake-up call for Enterprise Leaders to re-think of numerous approaches that can better support an ever-evolving business framework. The final success ingredient stems from the necessary attitude when embracing these difficulties, as storms are meant to fortify a ship's endurance.

Out-of-the-box Energy Savings Challenge via eMarketPlaces
By: Elyn del Carmen
May 2005

Energy costs comprise a sizeable chunk of operating charges when businessmen operate in the Philippines. With crude futures prices trending higher in global markets, hedging in terms of energy-related purchases is gaining importance, especially for companies whose operations are directly-tied to consumers' spending pattern. Competitors that have mustered economies of scale can step up for any price hike that any related venture may implement, and limitations also exist as far as cost-cutting measures are concerned.

This is the main reason why prudent planning is essential for direct investors to meet their expected return on investment. The surest way to do this is by carefully ensuring all data run throughout the procurement process are adequately consolidated to arrive at the correct implementation of defensive policies.

eMarketPlaces help aggregate all necessary details on purchases where benchmarking to specific indices are made possible. Realistically, several enterprises would rely on data that need to be re-encoded in their systems, realizing the greater cost stems from time lags involved when extracting these information. Buyers typically go through a heap of filed purchased orders to get the data needed for those that maintain the old process, and purchasers remain locked within these clerical exercises. The end result: disparity is produced when it comes to analyzing data and purchasers' negotiation experience, very little flexiblity is made when one variable needs to be simulated against the other (i.e., supplier performance, volume-pricing variance), and little time is left to engage key suppliers in the planning process.

There are several ways by which enterprises save on electricity charges, or even support back-up procedures in case power shortages occur. In fact, most have learned a valuable lesson following the debilitating effects of prior year's brownouts that ran for a long period, by ensuring support mechanisms are present to ensure continuity of operations. This may include purchasing appropriate gensets that could last longer than what is typically provided, to creation of more complex, and customized energy-savings plan that help reduce costs. In fact, eMarketPlaces assist in improving buyers' learning curve as they can readily touch-base with experts within specific industries. Depending on the extent of a requirement, these local and overseas experts aid in defining and fine-tuning realistic parameters that would fit well to meet an organization's objective.

The next question is, can buyers scout for consultancy arrangements through e-MarketPlaces? The answer is undoubtedly yes. Within SourcePilipinas' eMarketPlace, purchasers can look forward to securing consultancy arrangements, more particularly on schemes that would help them save energy costs in the course of their main operations. One should only adopt an "out-of-the-box" concept when it comes to looking into prospects in joining an Exchange, as not all requirements should necessary go through the competitive open auction route. In fact, SourcePilipinas helps shorten procedures when it comes to technical partner searches, as members utilize the Exchange's available pool for faster and easier supplier selection.

Within SourcePilipinas' e-MarketPlace, the Procurement Division of any enterprise is aided via smoother integration of plans with Engineering, Operations and even those belonging within Finance. More than tapping on wider pool of choices, technical aspects are better outlined and communicated during the accreditation route. Also, financing options need not be cumbersome, as available sources are readily secured within an Exchange's network. Appropriate exchange of ideas and other technical parameters are better facilitated, as advises are prudently enumerated that will benefit an enterprise's operations.

In summary, more heads are better than one. Joining eMarketPlaces allow enterprises to act swifter and early by securing methods that are long-term in nature, than rely on temporary solutions.

Sharpening the element of trust
By: Maritel Mallo
March 2005

Experience and constant training are essential considerations when selecting an enterprise’s people resources. Decision-makers are always on the prowl for prime people assets, as they strive through tougher working environments: customers’ prime satisfaction rests in obtaining quality goods and services at affordable costs, yet the challenging part here centers on the “affordable” phrase. Training charges are realistically considered an outflow from an enterprise’s cash resources, and payback has always been viewed as “unquantifiable”. There are others however, that took on a progressive platform, as improved worker competency hastens the business expectation cycle: loyal customers are producedwhen attended to properly, better workers’ relational skills lead to improved communication proficiency and professional as well as ethical negotiation know-how elevates supplier relationships to a more transparent scale. While the age of Information technology has begun to simplify admin-related tasks among others, experts continue to participate in the chain of unlimited learning to improve on people resources’ analytical skills, and empower their value-add functions within an enterprise’s growth process.

More often than not, training has been limited for most organizations within those involved in the frontline. For some, training priority has always been granted to people under the revenue-generating department, specifically those involved in sales. While it is true that marketing and/or sales typically drive pluses to the top-most portion of our income statements, several entities have taken increased interest in reducing costs within the back-office category. In fact, more and more decision makers are beginning to embrace the idea that people being mobilized to support the sales and/or marketing team must be adequately equipped to complete the loop in daily transaction requirements. Higher training helps sharpen skills, leading to improved productivity within the supply chain.

eMarketPlaces like SourcePilipinas has taken on a pro-active role to achieve this value-added goal through its education program. Pre-assessment of negotiating skills are made prior to running specific modules, to ensure proper matching in terms of learning support and competency rank. Learning modules include how to effectively manage contracts, and applications when and how to select contract types among others. Here, learners are trained on advantages and risks in formulating long-term agreements for example, as well as contingency elements that must be considered prior to writing a contract. Purchasers are also given ample legal knowledge in settling contract disputes, by making them aware on the applications of Laws of Agency versus Legal Authority. Purchasers are made aware how to effectively carry their legal authority, and when personal liability arises in the course of their normal procurement responsibilities. Concepts on damage claims are also elaborated, especially for instances when a firm could claim restitution, reliance and expectancy.

Improving strategic cost management is also highlighted by providing purchasers a glimpse how to they can effectively integrate their tasks related to their finance department’s budget goal. Here, significant pointers are made on creating a structured approach towards cost reduction, as well as the processes covered related to value engineering, value analysis, commodity strategies, process improvement and cost modeling, to name a few. Risks and values are likewise segregated when looking on the main framework for price-cost management, depending on whether we’re dealing with unique products, generics, commodities and critical items.

Overall, it is important to note that progression commences the moment decision makers adopt a firm attitude towards re-learning. Properly-trained members within an enterprise’s team are more equipped to respond to changes, specifically in drawing out resolutions when problems are encountered in any given circumstances. Becoming aware and updated of developments and changes are an integral part of schemes that are constantly reshaping the way businesses are conducted within this fast-moving era. Trust entails people-skill investmentleading to improved confidence, and workers’ passion for their tasks.

e-MarketPlace tips to lighten the load
By: Elyn del Carmen
February 2005

Geomancers have greatly emphasized prudence for the Year of the Rooster. Keeping a close tab on cash flows is a must, as returns on direct investments will be much more difficult to find. Some skeptics agree, that when we speak of the general economic terrain, faster economic expansion would be difficult to achieve for 2005, as countries struggle to balance the budget gap while coping with volatile crude prices

Despite these, Filipinos seem to have a special way viewing these challenges, as one need only to look around to observe if conditions get worse each day. As a well-versed traveler within the Philippines' busiest metropolis, progression continues with left and right constructions of medium- and high-rise condominium towers, residential enclaves, building offices, hospital expansions, jam-packed rail metro vehicles, even consumer traffic in shopping malls to coffee shop establishments, among others. Despite the odds, it's always a blessing to see how the Philippines has been open for business, possibly driven by everyone's goal of making life worth living despite the daily routines. Smiling is already becoming a rare phenomenon given left-and-right concerns, yet, there are still others who are able to hurdle challenges the "smarter" way.

Prudence in fact, is a regular aphorism in e-Commerce related ventures. Within the eMarketPlace where most of my accounts are involved, my Team and I are driven by the maxim of getting our accounts to smile throughout their series of transactions. eMarketPlaces help shorten both procurement selection and sales route, where workloads are equitably shared in the process. For example, planning out a simplified construction work map for malls, can be very costly in terms of budget and time. Engineers typically prepare the construction plan, attuned to financial planners' budget. Delays in these elements can make an enterprise susceptible to high cost of construction materials, especially labor, and even rental rates for machines and equipment that will be utilized in the plan. Poor timing and execution could raise a firm's budget twice-than-planned, and could hamper completion targets.

By partnering with eMarketPlaces like SourcePilipinas, companies undertaking construction activities can partake on functionalities that need not involve extensive paper trail. Pre-selection and requirement identification prior to construction are done through pre-bidding round, where technical bids are accepted via sealed process. This will help ensure pre-qualification consent and coordination with technical experts, and enable them to participate in decision-making. Once pre-qualified, participants can go through the commercial bidding process where specific construction components are segregated. This way, Procurement experts can identify where corresponding savings will come from, based on aggregate costs submitted by participating contractors. Thus, objectivity in selection is not compromised, and evaluation procedures during and post-construction, are more appropriately identified. The latter is extremely crucial when project turnovers are concerned, and provides leeway for work rectification prior to the actual launch.

The same scheme is utilized even for food-related items. The add-on includes availability of customizable cataloguing options, where companies get up-to-date pricing and ordering execution facilities. This is commonly the preferred solution for critical items that must be procured from a preferred list of suppliers, where prompt servicing and delivery are given crucial importance. Also, learning curves are further elevated in eMarketPlaces, as we capitalize on specific tools that would enable buyers to properly correlate key statistics related to higher prices. This removes the frequently-utilized explanation of higher fuel costs that is often associated with rising commodity charges. Purchasers in essence, will be more equipped to conduct their respective timetable, clearly assess supplier performance, and allow them to execute swifter strategies based on identified variable forecasts.

eMarketPlaces provide several avenues that enable enterprises to surmount challenges, especially when prudence is prioritized. Action commences in joining, and fun is realized as Team members expand their community- and technical knowledge.

Distinction in Seasons
By: Meralie Calagui
December 2004

The quantity of workload has expanded more than ever these days. Withtough times however, it pays to count our blessings, especially if we have work to do and problems to resolve. Despite the hectic load, several are amused to realize that “unwinding” has been a household term for Filipinos. Put simply, “we all need some breathing space.”

Excess time has actually been valuable within a fast-pace era, specifically one that is most economical to spenders’ pockets. Filipinosespecially “balikbayans”and foreigners alike, have eagerly embraced the concept of spending their available time and ready income to make the holiday season more solemn, private and meaningful with their loved ones. With this, the Philippines' hospitality industry, has provided a hassle-free getaway amid the metropolis’ pandemonium. In my opinion, there are three main reasons why most Filipinos buy the concept of solace: First, for relaxation to keep one’s sanity intact.; Second is to ensure quality time, yet one that is practical; and Third is accessibility, where they could gather around to spend time away from home. For those who could not afford to get relatively higher-priced tour packages, however, hotels and similar choices are alternatives to bridging this gap, where reunions are made feasible. Karaoke-TV rooms (KTV) have flourishedwhere gatherers can sing limitlessly, and can also have the venue to re-acquaint themselves via quiet moments to share happenings that transpired in a year.

Essentially, a sophisticated tavern need not be costly. Several players within the segment rode with the winds of change, ensuring quality is retained by providing available rooms at the least cost. One of the leading players includesVictoria Court, which elevated its image to become a leading quality provider for lodging and entertainment for transients and tourists. The company has accorded a similar feel to what hotels provide, through its state-of-the-art amenities and service.

How was this made possible? Victoria Court’s strategized approach by embarking on a defined e-Commerce initiative reinforced the company’s continued pursuit for excellence. Back in February, Victoria joined SourcePilipinas’ roster of active trading partners, which significantly reduced paper work and opened wider alternatives to maximize savings. Internal procedures were hastened to effectively monitor supplier performance and compliance to specified terms and conditions, and negotiations have become more transparent.

By outsourcing Victoria Court’s capitaland operating requirements, the firm’s team members now have more time to focus providing reputable service and exceed internal and external clienteles’ expectation. Improved discounts and packages are readily provided with more available cash resources, while their admin route has become more specialized analyzing customers’ visiting patterns and behavior. Their engineering group has also become more equipped to modify and/or customize unit designs that are more attuned to various customers’ needs that would be most suitable for groups in selected categories. By riding on e-Commerce opportunities, Victoria’s purchasers have elevated their role as competent Supply Chain Managers, cohesively integrating purchasing-related decisions with specific objectives performed per unit and/or division. As a result, competitive pricing is reinforced, by adequately ensuring services are fully optimized to encourage clients’ repeat visits.

Bottomline, innovativeness and creativity need not be expensive for any enterprise, especially if the aim is to save valuable time. Look into eMarketPlaces that could help you shorten the process, and create more room to establish your key people’s growth.

Let's talk specialization
By: Maritel E. Mallo
October 2004

I had a chat with a friend the other night. She’s Marketing head in one of the leading manufacturing companies in the country. She complained about their purchasing people, upset her department was made to pay too much for marketing collaterals that were used for an event. Blame was passed on to their Purchasing Officer who negotiated with the supplier and was not given much of a discount. When I asked my friend if she involved their Purchasing Officer during the initial stage of developing the requirements, she responded “No”. This was where I explained to her the value of involving Purchasing from start to finish when developing products or items to buy.

Most advance companies realize the significance of Purchasing from the early stage of product development until close, or awarding transactions. This creates value, if the objective is to get the most favorable outcome out of identified variables on price, performance and overall customer satisfaction. People from purchasing are much knowledgeable on details of materials and/or services required, supplier selection and strategic contract approaches. The critical part essentially, is having to monitor suppliers that really adhere on outlined terms and conditions. In fact high regard is placed on these capabilities and skills, specifically if firms want to arrive on their desired goal to be competitive. Purchasers' involvement saves time in the most prudent manner, ensuring timeline targets are met. Buying and guaranteeing is so broad, especially when we talk of creating uniform approaches that would allow companies to decide in the most objective manner. Part of the scope includes determining credible and dependable suppliers that will participate in auctions, or to a farther extent, enabling participation within the entire supply chain.

Technology however, created pluses in terms of simplifying tasks. These days, purchasers are more equipped advancing their approaches by engaging in neutral Exchanges. The step begins when buyers embrace the common realization they need to benchmark their experiences and expand learning avenues in the process. I have always embraced the thought there are "a thousand and one ways to skin a calf", and the most critical ingredient covers buyers' willingness to sharpen their skills by learning. Essentially, this would entail getting out of purchasers' traditional norm, and allowing these users to mange risks by ensuring costs are reduced without sacrificing quality of items required.

Several approaches are available in Exchanges, especially if the medium-term goal is to create a reliable database where historical comparisons are a must. Being the decision maker in her field, my friend would have had the upper hand, if the data she required would be immediately available without having to let their Purchasing Officer go through tons of archived documents. Well, truth of the matter is, there are those lucky with cash to establish or even purchase their own Exchange. Within the Philippine setting however, not everyone could afford getting an appropriate technology partner, not to mention added input of migrating and/or training suppliers on top of yearly license upgrades involved in Exchanges. The smartest of the few however, participate freely in Exchanges where there's zero-fixed charge. After all, specialization is enhanced when companies realize the advantages of benchmarking within a community of co-specialists that strive on similar objectives.

Bottomline, the best results are achieved when intra-department units work cohesively within separate teams. Marketing's expertise rely most on product positioning, while price negotiations and compliance are best fulfilled within Purchasing. While both departments deal with external clients, customers are further streamlined where firmer relations are established at the least cost to the company's pockets. Our talk nonetheless, ended on a very light tone. The experience made my friend realize the value of having to involve procurement experts within her team's overall development cycle, without neglecting transparency, team work and trust.

Everyone wants to be a winner
By: Mariflor P. Santos
June 2004

Everyone wants to win, In every competition there's always a winner - be it luck, strategies or what they called "Daya".

The perfect example of this was the recent election that we had. A lot of preparation has been done and yet it seems that it is not enough to prove a good and clean election. These includes, extending of voters registration to accommodate greater registrants for the upcoming nationwide election. In regards to this absentee voters are also assured that they can exercise their right during this event. Then test out of 456 Automated Counting Machines which said to be 100% accurate by the Department of Science and Technology came, which will be used for faster, better and cleaner results.

After the tedious preparation, what comes next is the acceptance of the new rules that were implemented. Some groups oppose in using the Automated Counting Machine (ACM). For people who are afraid of changes they find it as an enemy rather than an ally, a thief rather than a soldier , unreliable rather than accurate.

Filipinos are known for being traditional, maybe they really need a lot of teaching, learning to realized the advantage of having advance technologies in their lives. It will take some time just to accept the fact that we are leading to the computer age. But what really hit me is the desire for transparency in counting the ballot and yet afraid to try.

Election brings out the best in many, the worst in some. All wants to win in any cause.While closely watching the progression of it. This make me compare this scenario as similar to what we are experiencing in our daily lives. People are afraid of changes and the consequences that this my bring. Without trying , they don't know what their missing. This holds true in the new technologies that come our way: Used of computers, takes about 5 years to be included in the curriculum of an ordinary student. Used of Cellular phones for short messages -are intended for deaf people and develop for years to become a usual practice for normal folks.

There are a lot of inventions and technologies that might be useful for us.. One of this is the electronic marketplace, that allows buyers and sellers to transact businesses online. With the power of an internet you can reach your supplier around the world and still obtain the best possible price like coursing transaction through www.sourcepilipinas.com .For suppliers winning in an auction is a must, but more often they enjoy the fair playing field where they can exercise their right to out bid each other and to be transparent in terms of the price that they are giving.

Winning is a high feeling that everyone wants, but what really matter is that how you attain your victory. Reality bites, some by fortune, some by luck, and some by chance. But whatever it is, you still have to serve its purpose.

Everyone wants to be a winner
By: Mariflor P. Santos
June 2004

Everyone wants to win, In every competition there's always a winner - be it luck, strategies or what they called "Daya".

The perfect example of this was the recent election that we had. A lot of preparation has been done and yet it seems that it is not enough to prove a good and clean election. These includes, extending of voters registration to accommodate greater registrants for the upcoming nationwide election. In regards to this absentee voters are also assured that they can exercise their right during this event. Then test out of 456 Automated Counting Machines which said to be 100% accurate by the Department of Science and Technology came, which will be used for faster, better and cleaner results.

After the tedious preparation, what comes next is the acceptance of the new rules that were implemented. Some groups oppose in using the Automated Counting Machine (ACM). For people who are afraid of changes they find it as an enemy rather than an ally, a thief rather than a soldier , unreliable rather than accurate.

Filipinos are known for being traditional, maybe they really need a lot of teaching, learning to realized the advantage of having advance technologies in their lives. It will take some time just to accept the fact that we are leading to the computer age. But what really hit me is the desire for transparency in counting the ballot and yet afraid to try.

Election brings out the best in many, the worst in some. All wants to win in any cause.While closely watching the progression of it. This make me compare this scenario as similar to what we are experiencing in our daily lives. People are afraid of changes and the consequences that this my bring. Without trying , they don't know what their missing. This holds true in the new technologies that come our way: Used of computers, takes about 5 years to be included in the curriculum of an ordinary student. Used of Cellular phones for short messages -are intended for deaf people and develop for years to become a usual practice for normal folks.

There are a lot of inventions and technologies that might be useful for us.. One of this is the electronic marketplace, that allows buyers and sellers to transact businesses online. With the power of an internet you can reach your supplier around the world and still obtain the best possible price like coursing transaction through www.sourcepilipinas.com .For suppliers winning in an auction is a must, but more often they enjoy the fair playing field where they can exercise their right to out bid each other and to be transparent in terms of the price that they are giving.

Winning is a high feeling that everyone wants, but what really matter is that how you attain your victory. Reality bites, some by fortune, some by luck, and some by chance. But whatever it is, you still have to serve its purpose.

Looking now… is May still the Month of Flowers and Festivities?
By: Elyn M. Del Carmen
May 2004

"Flores de Mayo" is a very common event that every Filipino loves to celebrate in almost every place in the Philippines for the whole month of May. This is the time where we appreciate and speak-of the language of nature and its beauty through 'flowers' and other things our mother nature could offer.

But due to many occurrences that our country is undergoing, the meaning of May outlived its importance. What happened to fresh air and proper sunlight that provides these flowers enough nourishment in order to release pleasant smell and in vibrant colors? What happened to enough rain showers that help in its growth?

Ozone layers weakening, maltreatment in the environmental and other nature re-order have changed the original design God has made for the month of May.

Thanks to countries like Holland, United States, England, Australia and many others because we can still celebrate this precious event through importation. Although, some of the nice flowers blooms and

But flower importation has never been easy for the past years. Importers must obtain phytosanitary certificates from the exporting country to accompany the import permits. These certificates also identify the flowers by their scientific name and confirm that the shipment meets the country's regulation for importation. Aside from this, buying flowers from a different land will cost a lot with the hassle of communicating regarding the delivery and payment terms. With the present technology such us internet, this makes everything possible it's a matter of choice of what will be the gateway to be used. SourcePilipinas being an electronic marketplace allows buyers to source flowers from different countries and with the help of its market intelligence and tie-ups with different embassies makes it more easy than having it in a traditional way.

Stretching your peso's worth
By: Maritel Mallo
April 004

Becoming "one day millionaire" is not new to Filipinos. Perhaps, the motivation comes from "try my luck" concept, driven by people's need for fun and great deal of 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 getting 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 select an appropriate "one-stop-shop" center to locate the items I need. When finding an item, I usually scout for other similar items (possibly in other cheaper yet decent stores) to compare on 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 the payment counter. Given the traffic in Manila, my final stretch is haggle for an appropriate transport mode to ensure the items I purchased will arrive undamaged and on time.

With the advent of Information Technology however, it dawned to me that systems are already in place that could take us to shorter and convenient routes. Rather than having to go through the long queue, joining eMarketPlaces makes it convenient for company buyers to access suppliers for 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 conduct bidding invitations, while pricing lists are viewable for smaller-value requirements. Requests for quotes can also be streamlined, especially in effecting timely spot purchases. Also termed as public exchanges, prospective buyers are likewise given windows to know their markets more effectively, and benchmark their purchasing patterns accordingly.

The evolution of eMarketPlaces broadened channels that make 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 cinched, that make 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 on awarding processes, providing participating supplier firms ample time to factor these variables into their pricing. SMFE suppliers are also able to expand their markets gradually, especially when it comes to immediately responding to 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 schemes how long-term contracts are formulated, in a manner that fits best their operations.

Speaking of contracts, pricing is perhaps one major criterion given weight by buying companies. While the mo