Maximize the use of technology

Share

Since about 90% of all employment in this country is by MSMEs, the government should pour the most investments to enhance their operations. But this is not happening. Government can’t even fully implement the anti-red tape law. Only in the Philippines.

            So MSMEs have to find ways on their own to survive or to improve their businesses. Cursing the government can only result in minuscule changes. Not worth the effort really. What sucks is the government can do a lot more if it is really inclined to go the distance in improving people’s lives.

            One area MSMEs must pay attention to is how to maximize the use of the internet and the social media to their advantage. For instance, it is foolish to tie up meager operating capital in extra inventory of raw material and other production needs. With an efficient communications system which is within our grasp at very low cost due to the internet, one can implement a policy of just-intime-inventory. To program arrivals of what you need to operate in the nick of time. That way, capital is maximized to achieve the most turn-around.

            Back then, your operation had to be big to have a leverage on suppliers to deliver only just-in-time. If you were a small operator, you were not a priority so your needs were attended to at the suppliers’ leisurely pace. Now with reliable communications at a very cheap cost, you can find many other suppliers including those in far-away places. Their competition against each other will make them value you and cater to your needs in accordance with your priorities or schedules.

            Another example is the need for back up systems. Back then, you had to invest in expensive spare machines just in case a breakdown happened in your production line. That might not be necessary anymore due to ease of communications.  Develop a network of other operators in the same line of business whom you can readily contact to help you whenever such an unfortunate event happened.

            The key is to have an eagle’s eye appraisal of your operations and spot the vulnerable areas which can be remedied by having an efficient communications system. Yes, maximize the internet and the social media and your business can be smooth sailing all year round at reasonable cost. Meaning, more profits.** 

 


Share

Leave a Reply

Your email address will not be published. Required fields are marked *

6 − two =