A case study exploring drivers and implications of collaborative electronic logistics marketplaces

Since the 1990s there has been a rich literature on business-to-business electronic marketplaces. While many aspects of supply chain management have been considered, there are only a few studies which investigate the development and application of these electronic marketplaces in logistics. These can be termed Electronic Logistics Marketplaces (ELM). The paper aims to understand the rationale behind a particular type of ELM, termed ‘collaborative ELM’, and evaluates the impact of introducing such an ELM. To do this, an in depth case study in the UK fast moving consumer goods industry is used. Data has been collected from shippers, transport companies and the technology provider using a range of tools, including interviews, quantitative data analysis and process mapping. The research reveals that the collaborative ELM is still a relatively new business model. It has potential for growth in optimizing supply chain networks and enabling not only vertical collaboration between shippers and carriers but also horizontal collaboration between shippers and/or between carriers. It identifies the motives behind a collaborative ELM, and demonstrates how such a system is implemented through the configurations of information system, process and collaborative arrangements. The impact on the different participating parties is also examined. Finally the necessary conditions for a successful implementation are derived in the light of the research findings. ►A logistics application of a closed electronic marketplace. ►Main motivations for participating are economic and service benefits for shippers. ►Trust, relationships and power issues inhibit take-up, and not technology. ►Benefits are in operational efficiency, with network optimization possible later. ►Pre-requisites are being market driven, critical mass and using web-based solutions.