A combinatorial intra-enterprise exchange for logistics services

Schwind, Michael; Gujo, Oleg; Vykoukal, Jens

doi:10.1007/s10257-008-0102-4

Cited by 46 publications

(30 citation statements)

References 31 publications

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“…alternatively, combinatorial auctions deal with multiple items put out for bidding where bidders can bid on combinations of these items. These, in the transportation industry [11], are used for procurement of long-term contracts for serving packages of lanes [8,[12][13][14][15][16][17]. In case of transportation industry and an online marketplace negotiation scenario the items put out to bid are lanes or loads with specified demands.…”

Section: City Logistics and Digital Marketplacesmentioning

confidence: 99%

See 1 more Smart Citation

Towards sustainable urban logistics: The evolution of digital marketplace

Giordani¹,

Archetti²,

Djordjević³

et al. 2017

Int. J. TDI

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Many existing industrial solutions for transportation services assume tightly controlled optimization scenarios where the price does not take a centre role, yet these models heavily rely on long-term business relationships between shippers and carriers. a number of solutions have been proposed for auction-based marketplaces with market-clearing property models, where supply and demand dictate the price and through innovation and improve transparency and efficiency. The overall objectives of these efforts are aimed at finding a balance that assures maximizing capital efficiency, maximizing customer satisfaction and minimizing logistical complexity, hence maximizing scalability. Some uberlike experiences have recently emerged, introducing fresh perspectives and putting back the spotlight on the potential of digital markets in transportation industry.In this article, we take a look at how the ideas of digital marketplaces have evolved over time and specifically consider how the lessons learned can be applied in last-mile urban logistics. We also present a prototype marketplace for urban city logistics and draw initial conclusions. Keywords: auctions in freight, digital marketplace, last-mile urban logistics, multi-attribute auctions1 INTrODucTION even in an industry like trucking which is quite resistant to innovation and modernization, the latest era of easily available and always connected gPS-enabled smartphones is reshaping existing ideas and transport practices. by leveraging truck drivers' smartphones easier, faster and more direct iteration is enabled between the drivers and nearby companies in need of shipping services. This market liberalization assumes skipping classical brokers and uses an online service acting as a digital broker: this solution gives autonomy also to small trucking firms and independent truckers, while enabling shorter response time, more efficient routes to pick up and delivery and a better payload.The idea of transportation marketplaces is not new, but the rise of Internet sites and the tech industry 15 years ago had brought a number of start-ups, attempting to modernize the way shippers and carriers worked together. They failed mainly due to the lack of understanding of how the market worked, empowering the shipper and discouraging the carriers with the goal simply driving down the cost for the shipper.The difference is that this time around the new solutions are built not aside but around basic concept of transportation being a relationship-based business. Indeed, trusted relationships are crucial as they also impact customer service and satisfaction which translates to shipper's brand and reputation. It is why the vast majority of freight is still being transported by contracted carriers and does not use the spot market. This is the reason why the newest solutions [1] don't exclude having 'preferred carriers' in order to solve the inefficiency and division of the local trucking industry in urban last-mile logistics. This time around the emphasis is on having a balanced add...

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Section: City Logistics and Digital Marketplacesmentioning

confidence: 99%

“…ZTl (limited Traffic Zone) zone, area c). Schwind et al [15] modelled the exchange of cargo capacity in a city through an online logistic marketplace, a combinatorial auction and inner-city terminals that all belong to the same company (i.e. intra-enterprise setting).…”

Section: Marketplace For City Last-mile Logisticsmentioning

confidence: 99%

Towards sustainable urban logistics: The evolution of digital marketplace

Giordani¹,

Archetti²,

Djordjević³

et al. 2017

Int. J. TDI

View full text Add to dashboard Cite

show abstract

“…For combinatorial auctions applied to carrier collaboration in LTL transportation, Schwind et al [23] designed a combinatorial exchange mechanism ComEx for the interdivision exchange of delivery orders in a logistics company organized in a profit center structure. The exchange mechanism is subdivided into four phases: initialization phase, outsourcing phase, insourcing phase, and final evaluation phase.…”

Section: Auctions In Transportationmentioning

confidence: 99%

A multi-agent and auction-based framework and approach for carrier collaboration

Dai

Chen

2011

Logist. Res.

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Carrier collaboration in transportation means multiple carriers form an alliance to optimize their transportation operations through sharing transportation requests and vehicle capacities. In this paper, we propose a multi-agent and auction-based framework and approach for carrier collaboration in less than truckload transportation. In this framework, the carriers outsource/acquire requests through multiple auctions, one for outsourcing each request; a carrier acts as an auctioneer when it wants to outsource a request to other carriers, whereas the carrier acts as a bidder when it wants to acquire a request from other carriers; for each carrier, which requests it should outsource and acquire are determined by solving its outsourcing requests selection problem and requests bidding problem, respectively. These two decision problems are formulated as mixed integer programming problems. The auction of each request is multiround; in each round, the auctioneer determines the outsourcing price of the request and each bidder determines whether it acquires the request at the given price; the auctioneer lowers the outsourcing price if multiple carriers bid for the request or raises the price if no carrier bids for it. The auction process continues until only one carrier bids for the request or a given number of rounds are achieved. In the second case, if no agent bids for the request, then it is returned to the outsourcing agent; if multiple bidding agents compete for the request, a conflict resolution procedure is used to determine which carrier wins it. The approach is decentralized, asynchronous, and dynamic, where multiple auctions may occur simultaneously and interact with each other. The performance of the approach is evaluated by randomly generated instances and compared with an individual planning approach and a centralized planning approach.

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“…Lee et al (2007) propose a combinatorial auction mechanism for transportation procurement of a shipper from carriers. Schwind et al (2009) present an exchange mechanism for intra-enterprise order exchange among profit centers with the purpose of reducing total costs of the entire company. A framework for the comparison between a decentralized auction-based collaborative planning approach and a central planning approach can be found in Berger and Bierwirth (2010).…”

Section: Literaturementioning

confidence: 99%

“…Situated between these extremes are contractual agreement structures where carriers and/or shippers form a coalition to increase operational efficiency. Potential costs reductions within these coalitions are commonly estimated around 15% of the total transportation cost (Cruijssen and Salomon 2004;Ergun et al 2007a;Schwind et al 2009). …”

mentioning

confidence: 99%

Interaction between intelligent agent strategies for real-time transportation planning

Mes

Heijden

Schuur

2011

Cent Eur J Oper Res

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In this paper we study the real-time scheduling of time-sensitive full truckload pickup-and-delivery jobs. The problem involves the allocation of jobs to a fixed set of vehicles which might belong to different collaborating transportation agencies. A recently proposed solution methodology for this problem is the use of a multi-agent system where shipper agents offer jobs through sequential auctions and vehicle agents bid on these jobs. In this paper we consider such a system where both the vehicle agents and the shipper agents are using profit maximizing look-ahead strategies. Our main contribution is that we study the interrelation of these strategies and their impact on the system-wide logistical costs. From our simulation results, we conclude that the system-wide logistical costs (i) are always reduced by using the look-ahead strategies instead of a myopic strategy (10-20%) and (ii) the joint effect of two look-ahead strategies is larger than the effect of an individual strategy. To provide an indication of the savings that might be realized under centralized decision making, we benchmark our results against an integer programming approach.

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A combinatorial intra-enterprise exchange for logistics services

Cited by 46 publications

References 31 publications

Towards sustainable urban logistics: The evolution of digital marketplace

Towards sustainable urban logistics: The evolution of digital marketplace

A multi-agent and auction-based framework and approach for carrier collaboration

Interaction between intelligent agent strategies for real-time transportation planning

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