eBook

Logistics in lagging regions : overcoming local barriers to global connectivity

World Bank, Kunaka, Charles

2011,2010

Overview

Small scale producers in developing countries lack easy access to efficient logistics services. They are faced with long distances from both domestic and international markets. Unless they consolidate their trade volumes they face high costs which diminish their ability to trade. However, the process of consolidation is not without cost nor does it occur on its own accord. As a result, the consolidation is typically handled by intermediaries. Using case studies of sisal and soybean supply chains in Brazil and India respectively, this study explores the role and impact of intermediaries in facilitating trade in lagging regions. The study assesses the horizontal relationships between the small scale producers in thin markets and the vertical connections between different tiers of the same supply chain. The study analyzes the traditional approach to linking producers namely through cooperatives and itinerant traders and the relatively newer innovations using ICT. The study finds that farmers linked through the different mechanisms are more integrated to international supply chains or are able to better manage supply chains longer than would otherwise be the case. Intermediaries play several roles including providing transport services and facilitating market exchanges, payments, risk sharing and quality improvements. Generally, information technology driven innovations make it easier to integrate adjacent steps in the value chain. This report on logistics performance at the sub-national level is an on-going endeavour. Similar analysis is being carried out in some countries in Africa to identify the evolving role of intermediaries in low income regions. The results will be developed into a major publication on this topic, with recommendations on how development agencies, civil society and the private sector can improve the design of strategies to reduce logistics costs in low income areas.

• Publisher: World Bank,World Bank Publications,The World Bank
• Subject: ACCESS TO FOREIGN MARKET / ACCESS TO INFORMATION / ACCESS TO MARKETS / ACCESS TO SERVICES / ACCESSIBILITY / AGRICULTURAL PRODUCERS / Agricultural production / AGRICULTURAL PRODUCTS / AIR / BARRIER EFFECT / BASIC INFRASTRUCTURE / Brazil / BRIDGE / BUSINESS NEEDS / BUSINESS PROCESS / BUSINESS SERVICE / BUSINESSES / BUYER / BUYERS / CAPACITY BUILDING / CATERING / COFFEE PRICES / COMMODITIES / COMMODITY / COMMON CARRIERS / COMPETITIVE ADVANTAGE / COMPETITIVENESS / CONNECTIVITY / CONSUMER DEMANDS / CONTESTABLE MARKETS / COORDINATION MECHANISM / COORDINATION MECHANISMS / COPYRIGHT / COST INCREASES / COST OF TRANSPORT / COST OF TRANSPORTATION / COSTS OF TRANSPORT / CROSSING / CUSTOMS / Delivery of goods / DOMESTIC MARKETS / DOMESTIC TRANSPORT / E-MAIL / ECONOMIC ACTIVITIES / ECONOMIC ACTIVITY / ECONOMIC DEVELOPMENT / ECONOMIC REGIONS / ECONOMIES OF SCALE / EFFICIENT TRANSPORT / ELECTRONIC MARKETS / EXPORT MARKETS / EXPORT OPPORTUNITIES / EXPRESS SERVICES / Farm produce / FARM-GATE / FARMER / FARMERS / FINANCIAL FLOWS / FINANCIAL SERVICES / FOOD SECURITY / FOREIGN INVESTMENT / FREIGHT / FREIGHT FLOWS / FREIGHT TRANSPORT / GEOGRAPHICAL AREA / GEOGRAPHICAL AREAS / GLOBAL MARKETS / GLOBAL SUPPLY CHAIN / GLOBAL SUPPLY CHAINS / GLOBALIZATION / HORIZONTAL INTEGRATION / ICT / INCOME REGIONS / India / INDUSTRIAL DEVELOPMENT / INFORMATION COMMUNICATION / INFORMATION COMMUNICATION TECHNOLOGIES / INFORMATION COMMUNICATION TECHNOLOGY / INFORMATION FLOWS / INFORMATION SERVICES / INFORMATION SYSTEM / INFORMATION SYSTEMS / INFORMATION TECHNOLOGY / INFRASTRUCTURE COSTS / INNOVATIONS / INSPECTION / INTEGRATION OF TECHNOLOGIES / INTERNATIONAL BORDER CROSSING / INTERNATIONAL BUSINESS / INTERNATIONAL GATEWAYS / INTERNATIONAL LOGISTICS / INTERNATIONAL MARKETS / INTERNATIONAL TRADE / INVENTIONS / INVENTORIES / IT INFRASTRUCTURE / LAGGING REGIONS / LENGTH OF ROAD / LICENSES / LOAD FACTORS / Logistics / LOGISTICS SERVICE PROVIDERS / LOGISTICS SYSTEM / LOGISTICS SYSTEMS / MANUFACTURING / MARKET ACCESS / MARKET CONDITIONS / MARKET ENTRY / MARKET FAILURE / MARKET INFORMATION / MARKET INTEGRATION / MARKET POWER / MARKET PRICES / MARKET RISKS / MARKETING / MATERIAL / MEANS OF TRANSPORT / MEDIUM ENTERPRISE / MEDIUM ENTERPRISES / MIDDLEMEN / MILK / MOBILE COMMUNICATIONS / MOBILE PHONE / MOBILE TELEPHONY / MOBILITY / MODE OF TRANSPORT / MONOPOLY / Mothers and daughters / MOVEMENT OF GOODS / MULTIMODAL TRANSPORT / NETWORKS / NEW TECHNOLOGIES / OUTSOURCING / PAYMENT SYSTEMS / PHYSICAL DISTANCE / POLICY FRAMEWORK / POOR ECONOMIES / POOR FARMERS / POOR PEOPLE / POSTAL SERVICES / POVERTY ERADICATION / PRICE COMPETITION / PRICE INCREASES / PRICE MECHANISM / PRICING STRATEGIES / PRICING STRATEGY / PRIVATE SECTOR / PRIVATE SECTOR INVESTMENT / PRIVATE SECTOR INVESTMENTS / PRIVATE SECTORS / PROCESS INFORMATION / PROCUREMENT / PRODUCT MARKETS / PRODUCTIVITY / PURCHASING / QUALITY OF SERVICE / QUALITY OF SERVICES / QUERIES / RAIL / RAILWAYS / RELATIONAL DATABASES / RESULT / RESULTS / RETAIL / ROAD IMPROVEMENTS / ROAD INFRASTRUCTURE / ROAD NETWORK / ROADS / ROUTES / Runaway teenagers / RURAL ACCESS / SALE / SALES / SALES OUTLETS / SEARCH / SERVER / SERVICE PROVIDER / SMALLHOLDER AGRICULTURE / SPATIAL DEVELOPMENT / SPATIAL DISPERSION / SPATIAL DISTRIBUTION / SPATIAL ORGANIZATION / SPOT MARKET / SPREAD / STORAGE FACILITIES / STORAGE FACILITY / SUPERMARKETS / SUPERVISION / SUPPLIER / SUPPLIERS / SUPPLY CHAIN / SUPPLY CHAIN APPROACH / SUPPLY CHAIN INTEGRATION / SUPPLY CHAIN MANAGEMENT / SUPPLY CHAIN STRUCTURE / SUPPLY CHAINS / SURPLUS / SURPLUSES / TAX / Teenage girls / TELECOMMUNICATIONS / TELEPHONE / TRACEABILITY / TRAFFIC / TRAFFIC VOLUMES / TRANSACTION / TRANSACTION SERVICES / TRANSIT / TRANSMISSION / TRANSMISSION OF INFORMATION / TRANSPORT CAPACITY / TRANSPORT CORRIDORS / TRANSPORT COSTS / Transport economics / TRANSPORT INFRASTRUCTURE / TRANSPORT PRICE / TRANSPORT SERVICE / TRANSPORT SERVICES / TRANSPORT SYSTEMS / TRANSPORTATION / TRANSPORTATION COSTS / TRANSPORTATION SERVICES / TRIP / TRUCKS / TRUE / USERS / VALUE CHAIN / VALUE CHAINS / VEHICLE / VEHICLE OPERATING / VEHICLE OPERATING COSTS / VEHICLE SIZE / VEHICLES / VERTICAL INTEGRATION / WAREHOUSE / West (U.S.)
• ISBN: 0821386492, 9780821386491