Electronic marketplaces for tailored logistics
| DOI | https://doi.org/10.1108/02635570710822804 |
| Published date | 02 October 2007 |
| Date | 02 October 2007 |
| Pages | 1170-1187 |
| Author | Yingli Wang,Andrew Potter,Mohamed Naim |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
Electronic marketplaces for
tailored logistics
Yingli Wang, Andrew Potter and Mohamed Naim
Innovative Manufacturing Research Centre, Cardiff Business School,
Cardiff University, Cardiff, UK
Abstract
Purpose â The purpose of this paper is to evaluate electronic logistics marketplaces (ELMs),
especially closed systems based on long-term relationships between shippers and carriers. It aims to
establish likely operational models and investigate their relationship with tailored logistics.
Design/methodology/approach â Multiple case-studies with shippers, carriers and technology
providers, involving interviews, process mapping, work-shops and system demonstrations.
Findings â Key attributes in relation to processes, relationships and technology are identiïŹed.
Finding reveal that the ELM business model is still at its infancy stage but with huge potential for
growth in optimizing supply chain networks, and enabling the provision of tailored logistics.
Practical implications â Business-to-business electronic marketplaces are becoming more common
in practice. By characterizing the different operational models, decision makers in logistics can identify
which structure is best suited for their particular application. The paper conïŹrms the existence of three
distinct ELM structures, while also specifying their key attributes. It provides a foundation for future
research in this developing ïŹeld.
Originality/value â Research on ELMs is scarce. The paper establishes fundamentals of the
operational models available to support closed ELM and provides insights on how different closed
ELMs are structured, what they do and how they impact tailored logistics.
Keywords Distributionmanagement, Electronic commerce, Freightforwarding
Paper type Research paper
Introduction
Since the 1990s there is a rich literature on business to business (B2B) electronic
marketplaces (EMs), facilitated by recent advances in information and communication
technology (ICT) (Grieger, 2003; Kaplan and Sawhney, 2000). EMs are an emerging
business model with the potential for enormous inïŹuence over the way that
transactions are carried out, relationships are formed, supply chains are structured and
proïŹt ïŹows are operated (Kaplan and Sawhney, 2000; Rayport and Sviokla , 1994).
Enabled by web-technology, they provide advantages in low cost inter-organiza tion
information connectivity, real time visibility, and ïŹexible partnership conïŹgurations.
While, many aspects of supply chain management have been considered, there are only
a few studies which investigate the development of EMs speciïŹcally in logistic s
(Gudmundsson and Walczuck, 1999; Goldsby and Eckert, 2003). These can be termed
electronic logistics marketplaces (ELMs) and are deïŹned as an electronic hub using
The current issue and full text archive of this journal is available at
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This research has been funded by grants from both the UKâs Engineering and Physical Science
Research Council (EPSRC) and the Department for Transport (DfT). The authors would also
like to thank all those interviewees for their assistance in the research. The authors also
acknowledge the constructive critique provided by the anonymous referees who helped them
clarify the outputs of their research.
IMDS
107,8
1170
Industrial Management & Data
Systems
Vol. 107 No. 8, 2007
pp. 1170-1187
qEmerald Group Publishing Limited
0263-5577
DOI 10.1108/02635570710822804
web-based systems that link shippers and carriers together for the purpose of
collaboration or trading.
As shown in Figure 1, a basic ELM is normally composed of three key parties:
shipper, carrier and technology provider with the primary objective of reliable delivery.
In some circumstances customers can access an ELM. As the functions offered by
ELMs are different, there may be other parties involved such as freight forwarders and
ïŹnancial service providers.
Open and closed ELMs have emerged since the late 1990 s (SkjĂžtt-Larsen et al.,
2003). The former allows shippers and carriers to use their services with no barriers to
entry. A typical example is an on-line freight exchange for the spot trading of transport
services. Closed systems tend to be geared towards the needs of particular shippers
and/or carriers. Rather than focusing on the identiïŹcation and selection of trading
participants as per open ELMs, the closed ELM focuses more on execution and
long-term value-added activities between shippers and carriers. To some extent open
ELMs have the same operational model as generic trading EMs which have already
been well discussed in the literature (Eng, 2004; Howard et al., 2006; Kathawala et al.,
2002; Rayport and Sviokla, 1994). However, there has been limited research on closed
ELMs, and particularly empirical studies.
The aim of our research is to undertake an exploratory study of different types of
closed ELMs. Our research uses Wang and Naimâs (2007) conceptual work as a starting
point, which we substantiate through multiple case studies. By doing so, we wish to
contribute to both academics and practitionersâ understanding of the different
operational models that support ELM and their impact on logistics management, and
especially the provision of tailored logistics.
The paper begins with a literature review which leads to the development of
research questions. We then discuss the research methodology and establish our
analysis framework. Next, we conduct an analysis of six case studies. This is followed
by the discussion of research ïŹndings and its implications. We conclude by examining
the limitations of our work and suggesting future research directions.
ELM literature review
The deïŹnitions of an EM are diverse. Different authors assign different names
and deïŹnitions under different contexts, such as marketspace, electronic exchange,
electronic market, e-hub, electronic network and portals. One of the earliest and
broadest deïŹnitions is by Bakos (1991), referring to an EM as âan inter-organizational
system (IOS) that allows the participating buyers and sellers to exchange information
about price and product offeringsâ. Daniel et al. (2004) narrows down the deïŹnition and
describes an EM to be only âweb-based systems which enable automated transaction,
Figure 1.
Basic model of ELM
Technology
Providers
Reliable delivery Customers
Shippers
Source: Authors
Carriers
Electronic
marketplaces for
tailored logistics
1171
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