Digitizing Trade Process With eAuction

  • 2 mins read
  • 16th Nov,2020

Globally auction platforms have proven their efficacy in promoting market access & price discovery for commodity trade. In economies where agriculture is the primary source of employment for the population, auction platforms can spur income growth especially for small & marginal producers. Most trading ecosystems bring together several stakeholders such as expert brokers (for cataloguing & sample check), warehouses & logistic providers that are critical for connecting producers to buyers. Hence, well designed auction platforms can create a competitive business environment and attract investment for export led growth.

Modernizing Auction Through Tech

Consider the example of tea. It happens to be the second most preferred beverage in the world after water. The global market for tea is estimated to reach 80 billion USD by 2026 and is exported significantly from emerging economies such as Kenya, Sri Lanka, India and Bangladesh. Small landholders produce some of the finest blends and contribute to more than half of the tea produced. To correct information asymmetries on prevailing market prices and prevent market monopolies, trade associations have started leveraging technology to digitize the entire commodity auction platforms. This covers automating critical processes such as stakeholder registration, catalogue management, pricing trends dissemination, conducting auction, & post purchase activity management.

It was a great opportunity for CSM to partner with the East Africa Trade Association in digitally transforming its tea auction platform. The efficiency introduced through our system, reduced tea trade cycle time by 40%. And more importantly, it continues to support income for 6 million Kenyans and drive average trade worth 1.5 billion USD annually effortlessly. This digital platform has in fact sustained the East African economy during this pandemic.

The Perfect Concoction

EATTA leveraged public private partnerships to digitize the entire tea trade process. Imagine the power of an integrated tea trade system that brings together an ecosystem of 81 producers, 9 packers, 86 buyers and 11 brokers, into one platform! The challenge of deploying such a system lies in breaking the bureaucratic cycle involving loss of both time and money in efficiently moving a perishable commodity like tea. The challenge was also in creating value propositions for all the stakeholders, by taking their opinions and understanding the system through their bioscope. Unlike other e- systems where the ultimate users are renegaded to the status of onlookers, EATTA held extensive stakeholder consultation sessions, workshops and simulations, so that they knew the system even before it was on. This modus operandi made a success story of the e-Auction system for tea trade in Kenya.

Credit goes to the policy makers who had the chutzpah to see GovTech as an enabler, even in these COVID times. In my opinion, EATTA set an example of how public and private enterprises can align their goals to the government’s vision of making disruptions work for them. Govtech are technologies that work for Governments. Therefore, these are not just automation processes but SLAs. A Service Level Agreement that needs to be specific for a workflow to be defined, but also flexible enough to accommodate the changing market mechanisms. Instead of putting the onus of acceptability of a Solution on the shoulders of the IT provider, the government is required to be cohesive in sharing the risks and working towards a symbiotic success story. Like EATTA.

CSM Editorial

CSM Editorial

More Blog Posts from CSM Editorial

Education - 4 MINS READ

Reimagining Technology For Education Delivery

Agriculture - 2 MINS READ

GOVTECH IN AFRICA: Promoting Agri Economy in Africa

Agriculture - 2 MINS READ

Seed Certification Goes Digital In Kenya

Healthcare - 3 MINS READ

Redefining Public Health: Tech for Strengthening Health Infrastructure

GovTech Solution - 3 MINS READ

Strengthening Democracy - ICT enabling Public Sector Accountability to Citizens

Land & Industry - 3 MINS READ

Adaptive Single Window System: For Investor Facilitation & Ease of Doing Business

Smart City - 2 MINS READ

Building Cities of Tomorrow: Smarter, Safer and Resilient Amenities & Services

Agriculture - 2 MINS READ

Seed Certification System: Key to Responsibilities for Optimizing Productivity

CSM Editorial - 3 MINS READ

eAdmission: Moving Ahead On Learning Curve With Agile Admission Systems

Healthcare - 3 MINS READ

CoVaTrack: Tracking The Enigmatic Vaccine

Most Viewed Blog Posts

Emerging Technologies - 3 MINS READ

Artificial Intelligence : The future is here

Emerging Technologies - 2 MINS READ

e-Governance: Adopting Agile Methodology

Digital service - 3 MINS READ

PWA - The Time Ahead For The Web

Healthcare - 3 MINS READ

Making the Right Use of Data Power in the Challenging Times of Pandemic

Digital service - 2 MINS READ

Freshworks' Success Should Spur Indian Start-Ups To Ring Bells, Globally

Mines & Minerals - 2 MINS READ

Why Multi-Modal Mine Logistics Needs Digital Disruption

GovTech Solution - 3 MINS READ

Why Governments Need Unified Social Registry for Beneficiary Targeting

Agriculture - 3 MINS READ

Emerging Technologies Can Future-Proof The Farm-To-Fork Chain

Education - 3 MINS READ

How Digital First Strategy Creates Delight in Admissions

Agriculture - 4 MINS READ

How Early Warning System Delights Farmers and Promises Food Security

CSM Technologies

Subscribe to our newsletter

If you choose to provide us with your e-mail address and/or other (indirect) personally identifiable information, we will only use such information to send you our newsletter