Electronic Marketplaces E-Commerce Presentation – “Electronic Marketplaces” by Kristina Becker.
Electronic Logistics Marketplaces · Multimodal conference 2008 ©Cardiff University Electronic...
Transcript of Electronic Logistics Marketplaces · Multimodal conference 2008 ©Cardiff University Electronic...
Multimodal conference 2008© Cardiff University
Electronic Logistics Marketplaces
Yingli Wang and Christine MumfordCardiff University Innovative Manufacturing
Research centre (CUIMRC)
Multimodal conference 2008© Cardiff University
Why bother?http://www.freightbestpractice.org.uk/default.aspx?appid=1960&cid=43
Multimodal conference 2008© Cardiff University
Simplified ELM model
Customers
ShippersCarriers
Technology providersReliable delivery
Multimodal conference 2008© Cardiff University
Types of ELM
Open System
• No barriers to entry
• Focus on cost reduction
• Prices agreed for each transaction
• Examples include
Closed System
• Only available to members
• Focus on relationships
• Prices agreed through contracts
• Examples include
Multimodal conference 2008© Cardiff University
ELM Functionality
Advanced functionalities:business simulation, cross company synergies like complementary flows, backhaul opportunity, multi-lane links, joint deliveries
Multimodal conference 2008© Cardiff University
ELM Operations - Execution
Carrier
ELM
CustomerPurchase order
Shipper Purchase order
Deliveries
Deliveries
Load tracking
Load tracking
Load trackin
g
Load tracking
Load tracking
Load tracking
Settlement and
reports
Settlement and
Reports
Settlement and
reports
Multimodal conference 2008© Cardiff University
Every company is trying to optimise its own transport network, but ignores the potential opportunities across companies.
Company A
Company B
ELM Operations - Collaboration
Multimodal conference 2008© Cardiff University
Shipper
Carrier
Shipper
Carrier
Shipper
Carrier
Barriers• Relational barrier
• Lack of synergies
• Sharing information
• Technological capabilities
• Training costs
• “Big Brother”
Multimodal conference 2008© Cardiff University
The future of ELM• ELMs are a new method for connecting shippers
and carriers.• One sizes does not fit all. You need to think which
is the best for your organisation. • Future transport management need to be
o highly flexible for the provision of customised logistics o information rich and technologically robusto extensively connected with business partners o with appropriate relationship configurationso incorporating environmental and societal aspects.ELM has the potential to help organisations to
address above issues.
Multimodal conference 2008© Cardiff University
Closed ELM Structures
Shipper
Carrier Carrier Carrier
ELM
Private
Shared
Collaborative
Multimodal conference 2008© Cardiff University
Closed ELM StructuresPrivate
Shared
Collaborative
Shipper Shipper
Carrier Carrier Carrier Carrier Carrier
ELMELM
All ELMs hosted by same company and share single platform
Multimodal conference 2008© Cardiff University
Closed ELM StructuresPrivate
Shared
Collaborative
Shipper Shipper Shipper
Carrier Carrier Carrier Carrier Carrier Carrier
ELM
Multimodal conference 2008© Cardiff University
Cost
MethodFaxEmailWebformEDITelematics
SMSGPRS
Hosted
In house
The cost for shippers depends upon the type of system
The cost for carriers depends upon data transmission methods
The challenge is to make the benefits outweigh the costs. This is harder for carriers than shippers
Multimodal conference 2008© Cardiff University
hub
I
II
III
hub
Customers
A
B
C
A I
II
III
Shippers
B
C
Customers
Collaborative opportunities
Joint deliveries (Spatial pooling)
Multimodal conference 2008© Cardiff University
Multiple pick-ups and deliveries
Dynamic routes
R
RE
E
E
Integrate pick-ups and
deliveriesR
R
E
E
E
Collaborative opportunities
Separate Shipments Continuous movement routes
Empty vehicle
Empty vehicle
Multimodal conference 2008© Cardiff University
Motivations for an ELMProductivity gains
Cost savings
Competitive position
‘Lock in’companies
Exchanging information
Reduce uncertainty
Pressure on delivery performance
Visibility of pipeline information
Reliability and responsiveness
Impact industry sector as a whole
Promote industry standards
Reduce impactMotivations
EconomicRelational
ServiceCommunity
Environment
Not motivations for carriersMost common motivationLeast common motivationParticularly important for global logistics