E-Commerce and the Efficiency of the California Freight Network: Perspectives of Shippers, Carriers and Third Party Logistics and Information Services Providers

 

Tom Golob and Amelia Regan, Institute of Transportation Studies, Irvine

 

Manufacturing and distribution systems have undergone significant changes in recent years; "just-in-time" production and distribution systems have led to an increase in the number of time-sensitive freight movements. Time-definite services and regular updates on the status of en-route shipments are expected of many shippers. Additionally, freight movements take place in smaller units, increasing overall freight movements. This study extended an earlier study of the trucking industry in California by focusing on the impacts of shipper decisions on performance of the highway transportation system.

 

We examined how the trucking and third party logistics industry was evolving and much to our surprise and then developed several mathematical models that can be applied to make contracting in the trucking more efficient. 

 

Golob, T.F. and A.C. Regan (2001), Impacts of Information Technology on Personal Travel and Commercial Vehicle Operations: Research Challenges and Opportunities, Transportation Research, Part C, Emerging Technologies, 9, pp. 87-121.

 

This paper has a section on Freight and CVO in which we examine the impacts of IT on shippers, carriers and 3PLs.

 

Golob, T.F. and A.C. Regan (2002), The Perceived Usefulness of Different Sources of Traffic Information to Trucking Operations, Transportation Research Part E, Logistics and Transportation Review, 38 (2), pp. 97-116.

 

This paper looks at the perceived usefulness of various information on traffic conditions to trucking companies and truckers.

 

Wang, C. and A.C. Regan (2003), Risks and Prevention Measures in Logistics Outsourcing, proceedings of the 82nd meeting of the Transportation Research Board.

 

This paper examines outsourcing of logistics activities to 3PLs.   It makes recommendations about how to protect a company from some of the disasters that can arise out of outsourcing activities.  We synthesized literature across industries and interviewed a local company that had nearly been shut down due to problems with its outsourcing.

 

Wang, C. and A.C. Regan (2003), Reducing Risks in Logistics Outsourcing, Supply Chain Management: An International Journal, under review.

 

This paper is a more polished, version of the paper we published in the TRB proceedings.

 

Song, J. and A.C. Regan (2003), Approximation Algorithms for the Bid Valuation and Structuring Problem in Combinatorial Auctions for the Procurement of Freight Transportation Contracts, Transportation Research, Part B, Methodological, under review.

 

After examining changes in the industries triggered by technology, we developed a solution which should make the trucking industry better able to bid in web-based combinatorial auctions.  These auctions represent the wave of the future in transportation contracting.  

 

Song, J. and Regan, A.C. (2003), An Auction Based Collaborative Carrier Network, Transportation Research, Part E, under review.

 

This paper develops a method for making small trucking companies run effectively but using a web-based load trading network.  We design the network, examine its economic efficiency and then discuss the underlying optimization problems that must be solved in order to make it work.

 

Golob, T.F. and A.C. Regan (2003), Traffic Congestion and Trucking Managers’ Demand for Routing and Scheduling Software, Transportation Research, Part E, Logistics and Transportation Review, 39 (1), pp. 69-73.

 

This paper uses survey data to examine which companies are adopting routing and scheduling software and why or why not they find this software useful.  This research is aimed at helping software developers better understand the needs of their customers.  (There are literally hundreds of related software packages but relatively light market penetration.)

 

 

Conferences Attended:

TRB 2001, 2002, INFORMS 2002

 

Percent Complete:

100%, though we are still producing additional related papers.

 

Direct Cost:

$65,826