Leveraging the Internet as a global buyer : a framework for the World Food Programme, UN

Abstract

Procurement, consolidation, international transportation, custom clearance and distribution are the main global logistics steps of an integrated supply chain. Business-to-business e-commerce can significantly alter the logistics of business supply chains, with significant implications for the geography, modal structure and values of transportation services such as speed, reliability, visibility and transparency. Traditional procurement systems happen via complex, paper-intensive, approval and order process with high administrative cost and low economies of scale. These processes may include re-keying of information, lengthy approval cycles, a substantial involvement of financial and administrative resources, lack of transparency in the bidding process which ultimately would limit the benefits of volume procurement contracts and result in delays to end-users, i.e. losing efficiencies and precious time in a humanitarian relief program. The purpose of the study within the Transportation and Logistics Division of The World Food Programme is to answer the following question: how can The World Food Programme leverage the internet as a global buyer that connects suppliers and service providers in a digital interactive base? The aim of the study is to pin-point which transactions can in the future be made with higher visibility and with a better management of information in order to take advantage of volume procurement contracts, integrate the process and reduce the cost of each procurement transaction. Determining a best practice with a new process and its benefits is the objective.