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

CarrierShipper CarrierShipper

ELM

What is an ELM?

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Simplified ELM model

Customers

ShippersCarriers

Technology providersReliable delivery

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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

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ELM Functionality

Advanced functionalities:business simulation, cross company synergies like complementary flows, backhaul opportunity, multi-lane links, joint deliveries

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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

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Every company is trying to optimise its own transport network, but ignores the potential opportunities across companies.

Company A

Company B

ELM Operations - Collaboration

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Benefits

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Shipper

Carrier

Shipper

Carrier

Shipper

Carrier

Barriers• Relational barrier

• Lack of synergies

• Sharing information

• Technological capabilities

• Training costs

• “Big Brother”

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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.

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Thank you for your attention!

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Additional slides

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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

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Closed ELM StructuresPrivate

Shared

Collaborative

Shipper Shipper Shipper

Carrier Carrier Carrier Carrier Carrier Carrier

ELM

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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

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hub

I

II

III

hub

Customers

A

B

C

A I

II

III

Shippers

B

C

Customers

Collaborative opportunities

Joint deliveries (Spatial pooling)

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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

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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

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Now, that’s what we call ‘collaboration’!

Shipper A Shipper B

ELM