TELCOT: An Application of Information Technology for Competitive Advantage in the Cotton Industry1

Abstract

This paper describes the strategic use of information technology by the Plains Cotton Cooperative Association (PCCA). TELCOT, a computer-based system developed by PCCA, provides cotton traders with functions much like those available to NYSE or AMEX traders. TELCOT transformed PCCA from a small cotton merchant to a major cotton broker. Handling 115,000 to 240,000 computer transactions per day, TELCOT provides over 20,000 cotton producers, 40 buyers, and 200 gin operators with an electronic marketing service that has helped PCCA grow from a $50 million to a $500 million enterprise in just 15 years.