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  • 6.4.3-E-COMMERCE AND SUPPLY CHAIN MANAGEMENT-WHAT ARE THE BENEFITS OF E-COMMERCE?

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  • What are the benefits of e-commerce?

     
     
    • Banks and their collateral managers can exercise better control over the execution of the transactions they fund, an important factor when financing trade in commodities. Depending on industry demand, electronic warehouse receipts could also be linked into the system, for example to start the funding chain of the coffee that is to be procured, processed for export and shipped. Or coffee could be tendered to commodity exchanges such as New York and London, linking into systems as eCOPS for example.
    • All concerned, including the bankers, can see the progress of the goods and, therefore, the progress of the transaction.
    • Shipping documents are prepared, issued and transmitted more quickly, resulting in earlier payment.· Turnover is faster, meaning more business within the same amount of working capital, or a reduction of the working capital required.
    • Costs are lower: less interest, no errors, no lost or late documents, no arguments, no waiting for shipping documents.
    • Sellers have better control. So do importers and roasters, who can trace both coffee and documents.
    • In some consuming countries special arrangements permit coffee to be cleared through customs ahead of arrival, resulting in direct dispatch from ship to final destination. This could bring many exporters closer to participation in the just-in-time supply systems of larger roasters.