Crossing the Digital Divide
Multinationals are leveraging Internet technology to build bridges to suppliers in developing economies
By Charles Jackson

For years, large multinational corporations have adopted an effective strategy of offshoring key operations to countries with advantageous labor environments to remain competitive in international markets. In doing this, many of these companies have been forced to "surrender" the world-class supply chain practices they've implemented, or aspire to implement, throughout the rest of their enterprises.

These large multinational companies have gained access to the developing world's labor pool and successfully transitioned and enlarged their supply chain community without sacrificing quality, surety of supply or customer loyalty. But there has been an unintended consequence. They have created a digital divide.

Deon Mocke, Quadrem Africa's regional vice-president, says global standards made sense in an electronic marketplace.
"In an e-marketplace we are in a unique position to bring economies of scale through coding and item description for spend analysis and procurement.  For example, we can apply global standards in coding regimes for catalogues."