When e-commerce over the Internet was introduced,
the operations were rightfully considered as B2B exchanges. Bringing buyers and
sellers together, price discovery, and matching supply and demand were the main
criteria bringing coffee traders and roasters to the Internet. Through
specialization these B2B exchanges then developed into private exchanges or
evolved into e-marketplaces, enlarging their scope to cover several
commodities.
These e-marketplaces facilitate the electronic
execution of coffee contracts but this covers only the 'front-office' segment of
trading coffee. The 'back-office' component (execution of contracts, shipments,
payments) continues to be largely paper based. Logically, e-marketplaces need to
be able to link the members of the coffee industry and service suppliers, so as
to offer the best levels of service and data distribution to the back-offices
and planning systems of exporters, traders, importers, roasters, warehouses and
other service providers.
Providing back-office functions to industry
participants is where the Internet can bring efficiencies. Electronic exchanges
such as Comdaq already conduct business on a global basis and several companies
and organizations representing origin countries have also established private
exchanges. Other application service providers offer integrated logistics
services (back-office functions) direct or via such e-marketplaces. And, as
mentioned previously, major shipping companies too are working on an electronic
alternative for the present-day Bill of Lading. Their preferred solution may
well come to be an industry standard that others will have to adapt
to.