14-05-2012, 05:10 PM
A Framework for the study of Carrier Strategies in an Auction Based Transportation Marketplace
A Framework for the study of carrier strategies in auction-based transportation marketplacel.pdf (Size: 126.72 KB / Downloads: 55)
INTRODUCTION
It is well recognized that information and communication technologies (ICT) are
changing many aspects of the way business is conducted (1). The implications for
transportation and logistics systems structure and operations are continuing to unfold,
sometimes in unpredictable ways. Discussion of these phenomena has been mostly
limited to generalities and speculation, with few attempts to provide formal models or
numerical results.
The changes that ICT could bring to companies’ strategies and market structures
have been examined from a broad perspective. As early as 1987, Malone et al. (2)
predicted that reducing coordination costs (while holding other factors constant) should
increase the proportion of economic activity coordinated by the markets. Factors that
favor market or auction systems are the simplicity of the product description, the
adoption of common standards, and access to multiple potential suppliers in the
marketplace.
DEFINITION OF AUCTION MARKETPLACES
Many Internet-based sites have emerged to serve the transportation industry,
offering a wide variety of services. These services range from load posting boards, cargo
matching, and auctions to the procurement of transportation equipment, parts and systems
for logistics and supply chain management (5).
CHARACTERISTICS OF TRANSPORTATION AUCTIONS
Two types of assets could be traded in transportation marketplaces: (a) loads, or
demands of shippers, being "sold" to the lowest bidder-- this would be the case of extra
supply looking for scarce demands; and (b) capacity, i.e. the capacity to move goods, that
have certain requirements, by a given mode from location A to location B, being sold to
the highest bidder. The buyer of such capacity could be a shipper wishing to move a load,
a carrier needing the extra capacity to move contracted loads, or a third party hoping to
make a profit by reselling this capacity.
COMPLEXITY OF TRANSPORTATION AUCTIONS
Transportation auctions present opportunities to improve the efficiency of the
overall transportation system, but they also introduce a considerable challenge to the
participants (shippers and carriers). More information and data are available for decisionFigliozzi,
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making, but the complexity of the problem increases substantially. Shippers and carriers
have to keep in mind the marginal cost and desired profit from a particular transaction. In
real time situations this is often difficult.