Major international companies have seen that the
electronic sharing of non-confidential data and information can shorten
delivery, marketing and financing cycles while maintaining acceptable inventory
levels, thereby reducing cost and liberating working capital throughout the
trade chains. Optimizing the supply chain results in efficiency gains for all
parties, and minimizes the complications and risks involved in international
trade and shipping.
Electronic information flows also make it much
easier to act proactively when a potential control issue looms: the situation at
each stage of the execution of an international shipment is visible, instantly
and constantly. Finally, increases in efficiency and security may also add to
cash market liquidity.
Such major change does not happen overnight. We have
seen the telex and fax gradually being replaced by email. But what to do with
electronic data which is not standardized? How to make optimal use of Internet
technology? How to bring the community of coffee exporters, traders, importers,
roasters, carriers, warehousemen, government authorities, financial institutions
and other service suppliers closer together in sharing data, thereby avoiding
duplication and errors? How to create efficiencies for each member of the
community in their function within the supply chain and for the coffee community
as a whole? What about the security of the data transmission? Will such
comprehensive data be used effectively and without compromising the competitive
advantage individual companies may have developed over the years?
Various global shippers have focused their efforts
on providing browser-based information services on contracts, delivery orders,
shipments and quality. These initiatives have played a meaningful role in the
process of automation and creation of supply chain visibility. But in the long
run they are not a sustainable solution because they do not allow for efficient,
industry-wide data integration. Two mainstream solutions have now evolved:
- E-marketplaces for commodity trading,
and
- Secure messaging platforms to allow for data
integration within the supply chain.