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7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
http://slidepdf.com/reader/full/andrew-decision-support-a-level-all-science-subject-got-top-a-grade 1/31
Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
Pre-doctorate - GRADUATE SCHOOL RESEARCH PROPOSAL
SME for BETTER way to achieve COST –
SA!"G
#ith B$B e-a%ctio& ---- the %'co(i&) "E*T
GE"ERAT!O" of e-(ar+et',ace
#erspective$ %&ro' a anag'ent (nfor'ation )fficer #erspective*
Proposed an Implementation of IT and web based application
in SME / 3PL for competitive advantage
Identify Visibility and Problem area
Bild p competitive advantage for t!e SME
%s'all and 'ediu' enterprise 'anufacturer in +ong ,ong and #earl Delta iver Area of .hina*
(n this essa/ 1#2 is referring to a transportation co'pan/ that provide logistics and shipping needs and it does not
strategicall/ allies with an/ one of the 'anufacturers or another co'pan/3
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
"BST#"$T / E%E$&TIVE S&MM"#'
here are 6uite a nu'ber of successful electronic auction web sites3 he/ bring in service providers and bargainhunters together3 As a result 'ore visibilit/ and elasticit/ on the pricing3 S'all and ediu' !nterprise anufacturers
do not have 'uch bargaining power the/ re6uires 'iddle'en for their export re6uire'ents3 So'e of the' don7t even
have a .o'puter etwor9 in their co'pan/3 herefore (nternet is the window that the/ could afford to see what
happen in the world3 S! should use the (nternet as their logistics bargaining tools3 While in logistics industr/ cargo
containers got universal standard si:es therefore the/ could be stac9ed up easil/ li9e 2!;)3 (n +ong ,ong we have
highl/ sophisticated container ter'inals3 We also got super-ter'inal in the Airport which is full/ auto'ated3 +owever
pac9ing into a container are still done b/ &or9-2ift Drivers who use their own experience in a traditional wa/3 .o'puter
software have been developed fro' pac9ing up regular shape ob<ect increase the utili:ation ratio significant and
reduce the a'ount of guesswor9 which is non-productive3,!=W)DS$ S! .ontainers >ro9ers e-business auction pricing >usiness odel
(inclde Preface) perspective* abstract* +eyword,
T"BLE -. $-TETS
Section o0 Page o
Part 1 Bsiness ob2ective and Indstry bac+grond 3-- +ong ,ong 2ogistics is transfor'ing its role
Part Vast bsiness opportnity for loading s!ipping containers 4
Part 3 $rrent process analysis and t!e problem 5-- #roble' identification-- .ontainer !xchange-- #ac9ing up of containers
Part 4 &sing $argo Manager software 6 " 7ic+ 8ide 9
)>?!.(@!S )& +! 2)AD(; #2A :(ntegrating the use of ( solution altogether :
Part ; T!e Proposed IT Integrated Soltion for a 3PL company 1<
Part 5 " sccessfl bsiness internet model e0g0 e=action 1<
>ro9erage business 'odels for e-auction 11.o'pare and contrast of old business 'odel with new e-business 'odel 1i'ing and service 6ualit/ are the deter'ining factor 13
"&$TI- Pricing 13#everse action 6 alternative approac! 13>eb Srfers Loyalty ?iagram 14
Part @ System implementation consideration 1;== .irst stage AA provide shipping infor'ation and latest containers price== Second stage AA for the existing 'iddle'en
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
== T!ird stage AA sa'e internet platfor' for S! and container serviceproviders
15
('ple'entation of Database S/ste' 15esting $ &ocus on Bser acceptance test 1@cost C benefit anal/sis C appraisal for the DSS 19
Part 9 Profitability measre 1:
Part : Teac!ing ob2ectives <
Part 1< Middlemen provide .acilitating .nction <
Part 11 Teac!ing strategy) resistance dring implementation p!ase 1
Part 1 .oreseeable Epected #eslt 3-- 2ower )peration .ost-- ;eneral .ollaborative Advantage
Part 13 ?iscssion 6 sing vale c!ain 4
Part 14 $onclsion ;
Part 1; #eferences 5
Part 15 "ppendi @
1
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
Bsiness ob2ective and Indstry bac+grond
+ong ,ong 2ogistics is changing its role$
E .hina relies less on +ong ,ong for its container shipping services3 Strong develop'ent of trade-supporting
services in the #earl iver Delta3 As the #earl iver Delta continues to develop its reliance on +ong ,ong
resources is dropping3 a9e container shipping as illustration F0G of the containers were shipped through +ong
,ong in the 'iddle of FF0Hs while the figure was onl/ I0G last /ear3 his should be an alar'ing signal for +ong
,ong to understand that .hina got better and better seaports now3 (t is esti'ated that the ratio will drop further to
onl/ 50G b/ 00
E Accession of .hina into W) should benefit +ong ,ong3 When .hinaHs entr/ into the W) and there will be a big
opening in the .hina 'ar9et3 After .hinaHs entr/ into the W) the i'ports and exports of the ainland will expect
to grow at an annual rate of 0G in the next 0 /ears3 +ong ,ong will also benefit fro' the expansion of the trade
volu'e of the ainland rapid growth of the ;D#
1E >ut it is worth to note that 'ore foreign-origin <oint venture will develop its distribution channels and will 'a9e their
procure'ent directl/ in the ainland3 +ong ,ongHs trading fir's will also increase their direct exports fro' the
ainland which in turn will accelerate the develop'ent of offshore trading and reshape +ong ,ongHs logistics
trade
4E 2ogistics industr/ receives big support fro' the +ong ,ong ;overn'ent3 (n its 00 >udget eport the
govern'ent put it as one of the four pillar industries3 +ong ,ongHs policies in developing the logistics industr/3 he
+ong ,ong govern'ent considered the develop'ent logistics industr/ as a vital part of +ong ,ongHs econo'/ in
its 000 polic/ address and set up a designated group to pro'ote the industr/3
4
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
Logistic ?evelopment in Cong Dong provide vast bsiness
opportnity for loading and s!ipping containers
he +ong ,ong port handled a world-record throughput of F 'illion 0-foot e6uivalent units in 00 an increase of
J3J per cent over 003 +ong ,ong is changing fro' a re-export center to a 'ulti-functional center for logistics
operations and ad'inistration3 +ong ,ong should expedite its develop'ent in logistics to reinforce and i'prove its role
as an international trading center3 )n the other hand the ratio of re-exports to total trade increased dra'aticall/3
hese dra'atic changes indicate that$
E +ong ,ong as a re-export center3 he ratio of total re-exports to ;D# rose drasticall/ fro' 535G in FI8 to
053G last /ear the re-export industr/ contributing steadil/ to the econo'/K ow having a special .!#A function
to .hina an international gate to the whole world using +ong ,ong as a base
E Do'estic exports declined in ter's of both absolute volu'e and in relation to total exports3 otal value of do'estic
down 1434G fro' its pea9 in FF3 A sharp decline in the 'anufacturing sector contributed to the high
une'plo/'ent rates in +ong ,ong in the recent /ears3 his is unli9el/ to reverse in the co'ing decade or so
1E Due to the F0s relocation of +ong ,ongHs 'anufacturing operation and expansion of the territor/Hs processing trade
activities3 ore than 80G of the goods re-exported in +ong ,ong last /ear were ainland-related out of which
I0G were processing trade3 Without the relocation and expansion of processing trade activities the recover/ anddevelop'ent of +ong ,ongHs role as a re-export center could not have been succeeded3 (nteresting to note that
the slowdown of +ong ,ongHs re-exports in recent /ears was also closel/ related to processing trade develop'ent
in the ainland especiall/ the #earl iver Delta3
5
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
Port $apability
(n 00 the port of +ong ,ong handled F3 'illion !BHs of containers 'a9ing +ong ,ong the worldHs leading
container port3 During 00 so'e 1J000 ocean-going vessels and 'ore than 0000 river trade vessels called at
+ong ,ong3 )n an average da/ 'ore than 00 ocean-going vessels and river craft enter or leave the port3
>eing a 'a<or centre for ship owning and ship 'anage'ent the nu'ber of vessels on the +ong ,ong Shipping
egister as at Dece'ber 00 stood at I58 with a total gross tonnage of over J31 'illion3 +ong ,ong-flagged
vessels are free to call at ports in ainland .hina and aiwan3 his is an interesting point as this will encourage direct
co'petition of port trade let the trade drift awa/ fro' +ong ,ong onl/ if those port could provide a fast reliable and
effective service3
At present there are eight container ter'inals in ,wai .hung3 o 'eet the growing de'ands +ong ,ong is now
building a new ter'inal the .ontainer er'inal F .FE on sing =i (sland opposite to the existing eight ter'inals3 he
.F will have six berths with a design capacit/ to handle 'ore than 3J 'illion !Bs of containers a /ear3 he whole
ter'inal is expected to be full/ operational in 0053 he channels to the ,wai .hung #ort has been dredged to 535
'etres to handle the largest container ships presentl/ on the drawing board3
(n short +ong ,ong should reinforce its cooperation with the ainland (ndustrial entrepreneurs especiall/ the #earl
iver Delta to develop itself into the 'ost i'portant logistics center in Asia-#acific Area3 +ong ,ong should also pa/
special attention on the rise of offshore trade and step up efforts3 Although their bac9-end support of the ban9ing and
insurance industr/ are not as good as +ong ,ong7s providers3 As long as the logistics industr/ can achieve greater
develop'ent +ong ,ong logistics provider would have a better prospect3
J
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
Bsiness Practice
he cost of transporting products fro' warehouse to final destination often represents a significant
portion of the products7 total cost3 (n addition better pac9age da'age to products while in-transit
should be avoided3 .onse6uentl/ warehouse is interested in utili:ing as 'uch of the space in the
cargo container as possible while arranging the ite's in each load so that the probabilit/ of in-
transit da'age is 'ini'i:ed3
$rrent process analysis and t!e problem
Problem identificationhe current practice is a 'ar9et based co'petition environ'ent for allocation container space and
dispatches the containers accordingl/3 (ts sole ai' is to create a wor9 order for container space
allocation with a flexible L negotiable price tag and stic9 to it3 ost of the' are still negotiating the
old-fashioned wa/ through relationships bro9ers sales calls and ali9e3 &or one the sea is usuall/
onl/ part of the <ourne/ for a container3 (t will also probabl/ go on a truc9 and a train and t/picall/
passes through custo's twice export and i'port portE3 his will usuall/ present as a ti'e-
consu'ing bottlenec93
he existing s/ste' uses the agent bro9erE or 'ulti-agent s/ste' to negotiate for a 'utuall/
agreeable price3 hen collection of the cargo fro' the 'anufacturer will be co''enced3
$ontainer Ec!ange
.ontainer exchange faced an uphill struggle3 Shippers usuall/ want an end-to-end solutionK although pa/ing a logistics
fir' or freight forwarder 1#2E to provide it 'a/ cost the' a bit 'ore than the/ would pa/ in an open auction the
overall savings on hassle and fu::/ often 'a9e it worthwhile3
We will 'ention about pac9ing boxes into container as this is an area about container loading opti'i:ation which could
produce real cost saving for bul9 pac9ing for 'anufacturers for 1#2 grouping cargo together3
2oading carton boxes of products fro' different custo'ers into container is a co'plicated tas93 &irstl/ the loader plans
the load in his head si:ing it up in broad ter's - before he begins3 here is a wide range of planning abilit/ a'ong3
#ic9ing and staging t/picall/ ta9e twice as long as actuall/ loading the trailerE3 An expert loader can arrange the boxes
I
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
so that space is used efficientl/ and the li9elihood of in-transit da'age to the products is 'ini'al3 his expertise is
being spread the whole warehouse3 he loaders var/ in their abilit/ to pac9 trailers efficientl/ when faced with
co'plicated loads ones that are co'posed of varieties of products as opposed to loads co'posed of onl/ one or two
product t/pesE3 (n addition the loaders var/ in their observance of loading policies and rules3 he result is a wide
variance in how efficientl/ the trailers are used and how to best load a truc93 (n this proposal we will use a software or
two to address this proble' directl/3
an/ experience loaders 9now the exact di'ensions width depth and heightE of all the co''on products and are
6uic9 at the arith'etic needed to plan a load3
$rrent practice of loading container
he conventional 'ethod used b/ the warehouse for esti'ating how 'an/ boxes of various si:es can fit on a truc9 is
si'plistic and does not perfor' well for co'plex loads3 (n addition the loading plan could be drawn up b/ clerical
personnel in the office who have no experience in actuall/ loading truc9s3 As a result loading plans are often
generated that either severel/ under-utili:e the trailers the/ are assigned to or will not fit on the' at all3 he
'anufacturer has found however that so'e of the people who actuall/ load truc9s at the warehouse develop
considerable expertise in pac9ing the' efficientl/3 his lead the warehouse to consider a decision support s/ste' that
could be used to produce better loading plan with best utili:ation ratio3
Pac+ing p of containers
With reference to D/c9hoffHs FF0E classification of pac9ing issue the scenario considered here can be broadl/
characteri:ed as being of t/pe 1L>L)L3 (n other words it is assu'ed that consign'ent of goods is to be loaded into a
single container of 9nown di'ensions3 &urther'ore the container and all ob<ects to be pac9ed are assu'ed to be
rectangular in shape3
he software for devising loading opti'i:ing solution should be user friendl/ reliable and able to produce good pac9ing
results3 (n the .D attached please found the software file called .argo anager .45evaluation (t does re6uire
installation3
he enclosed software will plan exactl/ where and in what orientation the products in each load are to be placed in a
container3 Wor9ers on the loading doc9s should follow these loading plans in order to fit all of the products on their
respective containers3 he for'at of the loading plans 'ust be clear concise and una'biguous3 herefore this
software is chosen to illustrate and the graphics of pac9ing is eas/ to understand
8
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
he loading plan conve/ the following infor'ation to the loader$
3 2ocation and orientation of each box
3 ow b/ ow pac9ing of each t/pe of product
13 1D view of the loading plan
$argo manager software 6 7ic+ 8ide on Cow to se it
(Page 9) -ne page ser gide for t!e $argo Manager Software,
hese steps are in order to help the first ti'e user3 his is 'uch 'ore sophisticated function for the experience users
3 .lic9 on %ew Data* – a new set of proble'
3 DAA &(2! – 'a/ 'a9e so'e change to previous consign'ent data
13 (nput the
• Di'ension
• .haracteristics
• Muantit/
43 .ase Weight N 500,; e3g3E
53 u'ber to be pac9ed N 1 e3g3E 'ore varieties of boxes the better its perfor'ance
J3 .lic9 on %Add (te's*
(n the next screen
itle is .A;) SBA=
(t provide a 6uic9 su''ar/ of data entered
#lease loo9 at the left hand side onl/
I3 hen clic9 on %#ac9 .alculation* --- it refers to pac9ing of a single container in this sa'ple run
83 #ut in a filena'e N andrew0
(n the next screen
itle is (#B S#!.(&(.A()
F3 ?ust clic9 on %.)(B!*
03 hen clic9 on %DAW*
+ere
%A22* 'eans overall i'pression
%>A.,* 'eans re'ove last group of cases drawn
%!O* 'eans cargo loading begin it will draws in series of stages
F
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
%D views* is also available <ust li9e the container is being O-ra/ed and pro<ect ever/thing with overlapping
0
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
-BE$TIVES -. TCE L-"?I8 PL"
he 'ain ob<ective for the loading plan was a co'plete and understandable representation of these se6uence of stepsre6uired in the tas93 >/ 'eeting warehouse7s ob<ective the load plan for'at shall also 'eet the custo'er7s ob<ectives
which are$
3 axi'i:e container utili:ation b/ enabling less experienced loaders to load trailers in a 'anner si'ilar to the best
loaders
3 ini'i:e in-transit da'age to products b/ ensuring confor'it/ to the 'anufacturers rules and policies for how
products are loaded such as fragile product
Integrating t!e se of IT soltion altoget!er $ Web e-auction D> for 1#2 offer services
to 'anufactures choices of cargo 'anage'ent software %cargo 'anager* C %1D visualiser*
he procedure for a 1#2 co'pan/ to use the software that are enclosed in the .D would be – stage i'ple'entation
A3 ecord the new cargo order using the icrosoft Access Database i3e3 t/pe in the co'pan/ na'e to loo9 up the
data of the consign'ent co'pan/ and its contact
>3 As it is a 1#2 co'pan/ the co'pan/ will use an on-line auction portal web site not included in the .D but on the
internet site such as www3freight-traders3co' clai' that it could perfor' such auctionE ( did also have so'e free
software that could be set up to perfor' such e-auction function ( find that it is i'portant to re-design a si'ilar web
portal using3 ! technolog/ that will specificall/ consider all the needs for the cargo industr/3 As it has to be done
fro' scratch and it will be a 'ediu' si:e co'puter pro<ect therefore ( will <ust use existing web site as '/
illustration for the i'ple'entation phase
.3 After getting an even lower price fro' the e-auction the 1#2 have to update the icrosoft database and pic9 up
the cargo i''ediatel/ then (., the chec9box #ic9 up Alread/ (n this case the word in !D P.urrentl/Q will
disappear to indicate that the 1#2 should not loo9 for an even lower price in the 'ar9et3
D3 i3e3 if the 1#2 co'pan/ did negotiate an ideal transport price /ete3g3 1#2 could get a transportation co'pan/ to
6uote its tariff priceE it can also put it down in the database while do not (., the chec9box the word P.urrentl/Q
will still appear in the database beside the price so that the 1#2 could continue to 'a9e further contact to get an
even lower price or use this current price as a reference during bidding
!3 Since cargo fro' various 'anufacturers should be re-group together b/ the 1#23 herefore the 1#2 could use the
cargo 'anager software in .D c'45evaluation software that need to be installedE to pac9 various cargo3 he
following point should be noted$ high utili:ation is good but it is not the best solution3 herefore ( would
reco''end lessen the height and width and length of the cargo containers b/ 5G in each di'ension3 hat
software does allow these ad<ust'ent when it is purchased3 (n this wa/ even the carton box expand due to the
hu'id weather we would allow all cargo would safel/ be pac9ed into the container although a few inches of the
space is not utili:ed full/3 (t is better to have F5G space efficienc/ onl/ rather than late in deliver/ to the port3
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
T!e Proposed IT Integrated Soltion for a 3PL company
Bsing the above procedures and the 1 software that could be used for ever/ container3 his is '/ proposed 1#2
co'pan/ ( solution on how to use the integrated solution to fulfill custo'er need3 (t is ti'e saving sophisticated and6uic93 Allow best allocation for co'pan/ resources3 o longer calling ever/ transport co'pan/ that so'eone 9now and
tr/ to engage in a length/ negotiation for the best price and reliable service to ship the cargo via the container3
" sccessfl bsiness Internet model e0g0 e=action
his business 'odel is based on lower transaction costs and fast rate for 'oving cargo
#roposed (nternet >usiness odel
he 'odel 'ust have co'petitive advantage over the existing business practice3
A good (nternet business 'odel 'ust provide
• .usto'er value
• Scope
• #rice
• evenue sources
• .onnected activities
• .apabilities
Since our e-auction is a bro9erage 'odel our (nternet portal as a 'ar9et 'a9ers that bring bu/ers and sellers together
and charge a few G co''ission for the transactions that the/ 'ade3 (f we i'ple'ent it for a 1#2 e-auction business it
will be >> and >.3 While if we i'ple'ent the e-auction portal web site for the 'anufacturer directl/ it will be >. of
course we assu'e that each and ever/ of our 'anufacturer is our valuable custo'er in this case3 ( thin9 that it is >.
because it will inherit all the characteristics of other >. portal web sites3 i3e3 he custo'ers will log onto the web site
regularl/ in order to see the price trend and recent contract values3
1
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
Types of Bro+erage bsiness models for e=action
>ro9erage business 'odels could be further classified into$
• >u/Lsell fulfill'ent
• ar9et exchange
• >u/er aggregator
• Distributor
• @irtual auction bro9er
• everse auction $ price co'e down as ti'e go on
• .lassified
• Search agent search for appropriate logistics providerE
All these (nternet business 'odels 'ust be designed in a wa/ to 'a9e 'one/ for the 1#23 ather than tr/ to
enu'erate the nu'erous and changing business 'odels in different industries3
&or an internet fir' 9eep on 'a9ing 'one/ it 'ust 9eep offering custo'ers so'ething that the/ value$ it includes
latest price trends for different route finding a reliable and cheaper logistic co'pan/ that care about /our transportation
needs3
.usto'er value can ta9e the for' of differentiated e3g3 dangerous che'icalsE or lower-cost service3 he right wa/ is to
offer the right custo'ers the right value3
he overall strateg/ and the 'ission state'ent 'ust be$ it 'ust outperfor' for value-added activities that is superior to
the existing industr/ capabilities3 (n that sense co'petitive advantage 'ust be a function of the distinctiveness of the
capabilities3 he ai' is to produce reliable logistics bidders with all the above co'ponents that can be profitable3 An
i'portant issue is that the infor'ation 'ust be provided in real-ti'e3
o organise the event for e-auction ever/one 'a/ able to bid between 4 to 5 p' onl/3 he portal web site should
produce previous historical records as a reference guide %9eep the interested parties 9eep on browsing the site* the
satisfactor/ of the ship'ent and an/ da'age of the products 'ust be available to the 'anage'ent for evaluation of
the bidders 6ualit/ service perfor'ance3
)nce the portal web site starts 'a9ing 'one/ the co'petitors usuall/ want a piece of the pie3 A fir' with such
co'petitive advantage should expect 9een co'petitors reaction and whether the/ have sufficient co'petitive
advantage that allow the for' to 'a9e sustainabilit/ of profits3
4
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
Since the traditional old business 'odel is our 'a<or co'petitor we are going to co'pare the old 'odel with the e-
auction new 'odel
$omponent of
>usiness odel
"rea to address for t!e Traditional model t!at
se p!one and eisting networ+ing
"rea of concern specific for t!e internet e
action model
#ricing +ow does the fir' price the serviceR
?ust slight cheaper than co'petitor is good
enoughR
+ow does the e-auction 'a9e pricing differentR
Will it reach a narrow price range later or th
co'petition beco'e 9eenerR.onnected
activities
What set of activities does the fir' have to
perfor' to offer this value and whenR
+ow ti'e-consu'ing is the existing 'ethodolog/R
.alling one co'pan/ then another is a wa/ to
goRR
+ow 'an/ new activities 'ust be perfor'ed t
achieve saving of the shippingR
+ow 'uch better can the (nternet help ever/bod
to perfor' existing activities
+ re6uire'ent Are the traders got all its contactsR +ow long does it need to train new personnel
bid in the e-auction and follow up the shippingR.usto'er @alue (s the fir' offering its custo'er so'ething
distinctive or at a lower cost than its co'petitor
he uni6ueness of internet auction that allow th
fir' to offer its custo'er so'ething distinctiveSustainabilit/ +ow does the existing fir' that 'a9es it difficult
for other fir' to i'itate the'R +ow does the fir'
9eep 'a9ing 'one/ if the onl/ strateg/ is to offer
slightl/ lower price than /our close co'petitorR
Does the internet 'a9e sustainabilit/ easier o
'ore difficultR +ow can the web portal site ta9
advantage of it
5
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
Timing and service Fality are t!e determining factors to establis!
competitive advantage
)f course a popular platfor' of e-auction could benefit ever/one and fair to ever/ participant who offers good services
in the 'ar9et3 he (nternet e-auction allow saving on calling people tal9ing on the phone negotiating s9ill etc3 Services
could be varies between different logistics operators so all-participating 2ogistics .o'pan/ 'ust be assessed b/ an
appointed insurance agenc/ on their reliabilit/ record3 he web portal 'ust onl/ allow those logistics providers with a
ver/ good and reliable service record and reasonable G of da'ages to the product while the cargo was in transit3 his
is to assure the custo'er of good service level and the/ could pic9 an/ of the lowest 1 bidders to perfor' the shipping
service to the'3 i3e3 the na'e of the service providers could be disclosed after designated ti'e
(n the cargo industr/ the 'ost critical factors that deter'ine whether the i'ple'ented e-auction business 'odel is
successful or not3 (t will be 'ar9et share and 'argins3 hat is how the fir' should 'easure it success with the e-
auction web portal3
ar9et share 'ust be increasing in the first few /ears of the business3 As it is a 9nowledge-based service3 (n the initial
i'ple'entation stage the fir' 'ust strive for the higher 'ar9et share3 argins is the profit obviousl/ e-auction could
provide saving of ti'e for the bidder saving of 'one/ for the S! business therefore the fir' 'ight charge the
successful 'anufacturers who gain a cheap shipping service this wa/3 argins or profit should reflect how 'uch
saving will the e-auction 'odel provide and the sincerit/ of the portal web site co'pan/ to as9 the S! business about
the shipping process$ e3g3 is the bidder service satisfactor/ do the/ have good custo'er service for trac9ing en6uir/an/ da'age of the product before the arrival of the final destination3 )nl/ this wa/ it could strengthen the custo'er
lo/alt/ using the e-auction site again
"&$TI- Pricing
(n our auction pricing 'odel the S! 'anufacturer solicits bid fro' 'an/ of the shipping bidder and let the best
bidder win3 his re'oves the disadvantage of the traditional 'ethod of one-to-one bargaining3 )ne perceived proble'
with auctions is that bu/ers can collude to hold down the price of a particular service3 he other proble' is bringing
together 'an/ bu/ers and sellers3 +opefull/ our business 'odel and countr/-less boundar/ of the (nternet would bring
enough sellers and bu/ers together3
#everse action 6 we mig!t consider it
We 'ust 'ention reverse auction3 ?ust li9e priceline3co' for airline industr/ the price should co'e down when the
deadline is closer3 #riceline3co' was one of the pioneers of the reverse auction 'odel3 A fre6uent fl/er user of #riceline
proposes a price that he is willing to pa/ for e3g3 tic9et to 2A for tonight if an airline is willing to sell tic9ets at that price
the deal is consu''ated and priceline will get the deserved co''ission fro' the seller3 We could i'ple'ent this
J
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
reverse auction s/ste' in the proposed e-auction 'odel3 Sa/ the 'anufacturer offer a price that 9eep on rising until
so'eone 'a9e the first bid then as9ing price co'e down again until no one 'a9e a bid on a lowest price3 he reverse
auction could be a Selling point of our e-auction 'odel for S! business as astute 'anufacturers can cater all the
seller7s surplus profit3 ow the/ have the option of choosing a price and giving countless vendors the chance to bid3
We do reali:e that 'anufacturers alread/ swallow the cost of fluctuation currenc/ 'ove'ent while financial spectators
who 'anufacture nothing in the trading floor wins whichever the currenc/ 'ove i3e3 straddle position of trading
practiceE3 )ur proposed 'odel should address the excessive profit that the cargo bro9ers trade about container space
or a co''itted ship'ent that is not done b/ itself but <ust searching for another s'all transport co'pan/ who is willing
to do it for a ver/ low price and profit the 'argin b/ doing no real wor93 As a conclusion this proposed e-auction 'odel
should address the 'ost i'portant issue that the +ong ,ong ;overn'ent concerned +ow to revitalise +ong ,ong
'anufacturing industr/ can the govern'ent reall/ help the' to save real 'one/ for shipping expenses3 herefore
the/ could be even 'ore co'petitive in ter' of pricing with their #earl iver Delta counterparts3
everse auction 'ethod$ shippers offer their cargo to the lowest bidder at the 'ean ti'e shippers list the availabilit/ of
cargo and carriers list the availabilit/ of space and then bidding directl/ at designated ti'e over price
>eb srfers Loyalty ?iagram 6 idea generated by andrew wood
T!is diagram indicates t!at every web site s!old !ave as many featres as possible to +eep people re=visiting
Place to Hang
e.g. ChatroomLoyalty / Confidence Sentimental Value
through Collectors siteCustomer Care/ as it means somethingCustomer Service:
e.g. Amazon e.g. ebay
Informational WEB surfers Educational
With trend analysis will revisit eg students log into the
e.g. Financial certain sites university portal
Graphs frequently
ecause
Peris!ale Info "inancial
eg Olympics updates e.g. an!s
e"ban!ing
#$$eal / %eason
Campaign
Web Site
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
eg Green #eace
8
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
System implementation consideration
.irst stage
he web portal site could provide shipping and latest containers priceL s6uare foot and route infor'ation to the existing
container space agents3 )nce the/ get used to visit the site we will have lots of web surfers for our proposed site3
We should collaborate with 'ediu'-si:e 'anufacturers in #D and +ong ,ong as the/ have a big interest in
eli'inating the ti'e waste on discussing with those container space agents >ro9erE3 he/ could have various ad hoc
orders to ship urgent order fro' ti'e to ti'e the fir' could help the' to contact with those container space agents3
his should build up the fir' reputation in logistics field during the first stage3 &orward #lanning is the essence in this
stage3 his should deter'ine whether the future e-business 'odel is viable or not3 ?ust loo9 at the (# of the surfers3
We would 9now whether we could expand our networ9 in the future3 i3e3 do the visitors 9eep on co'ing bac9 and
increasing in web traffic3
Sites that list all the available carriers and their rates for a given co''odit/ origin and destination
Second stage
he web portal site could be a 4#2 co'pan/ here ( a' referring those co'pan/ who tr/ to help out existing
transportation co'pan/ and container space agents to have e-auction that encourage the existing agents to use the e-
auction web site to find a cheaper price that could earn the' 'ore profit3 he site could also provide on-line access
.argo 'anager Software the software is enclosed in the .D sub'itted it has to be installed file na'e -- c'45evalE
and 1Dvisualiser software Software the software is enclosed in the .D sub'ittedK it has to be installed file na'e
1DvisualiserE3 his allow and encourage a fre6uent access to the web site the/ will be willing to give the e-auction a go
so the/ don7t need to call ever/ service providers the/ 9now for the shipping services3 his stage is also i'portant to
eli'inate all the unreliable service providers3 We 'ust guarantee our participants service 6ualit/ before 'oving on to
the third stage in the i'ple'entation
ot are all freight carriers as the/ 'ight see'3 So'e have better reliabilit/ records than others and so'e can handle
bigger ship'ents for instance3 .arriers could be suspicious of an/ 'ar9etplace that 'ight cut their prices b/ treating
their service as an undifferentiated co''odit/3 And on the shipper7s side long service-contracts have the additional
advantage of loc9ing in availabilit/ and price over a set period
When we introduce the 'odel to the 'anufacturers directl/ we have to evaluate the i'pact and reaction carefull/
he 'ain resistance to the new change would be
Will the !-.)!.! eli'inate +! AS#) (!!D(A= co'pletel/R
F
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
T!ird stage
We have to do the second stage first because those existing container space agent bro9erE would be the resistance
force when we introduce our e-auction reverse auction is a possible alternativeE for the 'anufacturers in +ong ,ongand #D region3 he/ could see the auction going on in the portal web site3 he/ could see how 'uch 'one/ the
'anufacturers could reall/ save if the/ participate in the e-auction too3 his will be the bread-winner L 'il9 cow if we
could encourage enough 'anufacturers activel/ see9ing a good low price to ship their product3
#lease also tr/ out the .argo +andler3 D> in the .D which is written b/ Andrew Wood fro' scratch3 he ob<ective is
for the 'anufacturer to get another lowest bid while ti'e pass on3 When the product is pic9ed up the shipping price is
fixed and can7t be change an/ 'ore3 here are so'e of the auto'atic features and assu'ption in the icrosoft Access
Database3 li9e total calculationE3 +ere ( would 'a9e an assu'ption that the price would go down when the shipping
schedule when the ship leave the port of +ong ,ong to the port of 2ong >each in .alifornia of BSAE
Implementation of ?atabase System
5 phases for s/ste' i'ple'entation
P!ase for system implementation of t!e ?B Main Tas+s
e6uire'ent Anal/sis Define business re6uire'ent and carr/ gap anal/sisD> software Design Software used functional specification #latfor'sESoftware Develop'ent (nvolve user in earl/ protot/ping deter'ine interfaces
S/ste' installation &ser "cceptance testraining raining for Bsers and co'puter ad'inistrator
e3g As our users are outsiders that could be an/where in
the world we need to adopt a training interface that the/
could learn where-ever the/ want and encourage those
S! custo'er to utilise the web site infor'ation and
possible e-transaction3 he best approach could be found
in a si'ilar training site$
!ttp)//www0microsoft0com/seminar/defalt0asp
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
Testing ) focs on &ser acceptance test
When we i'ple'ent an/ of the 1 phases of the portal web site it is vital that the target user can use it via the (nternet
browser3 (f possible it is i'portant for the web 'aster to have so'e feedbac9 whether the portal web site is user-
friendl/ fro' the ver/ beginning of the design process it will eli'inate a lot of testing and 'aintenance at a later stage3a9e sure the whole progra''ing go through s'oothl/3 A proper software testing procedure involve 1 phases na'el/
testing with test data$ the pro<ect tea' co'piles and thoroughl/ tests the s/ste' with test data3 he test data are
appropriatel/ co'piled so that all progra' and s/ste' options and all error and validation routines are tested3 he test
is repeated and 'odifications are 'ade until all subs/ste's function properl/3
hen we carr/ out testing with 2ive Data$ 2ive data are actual data that have alread/ been processed through the
existing s/ste'3 esting with live data provides an extra level of assurance that the s/ste' will wor9 properl/ when
i'ple'ented3 he progra''er will co'pile test data that will test all possible option3 he ulti'ate test is to have
Pparallel runQ to the existing s/ste' it could be a traditional one$ using phone lines to tal9 to various parties onl/E
against live data3 During s/ste' testing with live data the real users should get involved3 hen it will represent a true
picture of training need and the/ could enter live data to perfor' routine transaction3 esting and 'odification 'ust be
continued until the progra''er pro<ect tea' and participating users are satisfied with the results of the test3
he &inal step is Bser Acceptance testing3
At this point in s/ste' testing all the bugs 'ust be eli'inated3 (t should be navigation-friendl/ and user-friendl/3 he
s/ste' will be presented to the scrutin/ b/ the real users and their co'pan/7s sales 'anager who will ulti'atel/ utili:e
our s/ste' for e-auction3 he purpose of this last test is called user acceptance testing3 (t is to get the user7s sta'p of
approval3
&inall/ since it is a new e-auction s/ste' that does not exist in +ong ,ong for this particular business operation
before a pilot s/ste' should be developed3 >etter 9now the user response earl/ encourage ever/ sa'ple users to tr/
out the new s/ste' as it does save ti'e and facilitate the existing process3
So'e !xa'ples of e-acution
iar93co' uses an auction 'odel to sell used capital e6uip'ent
Adauction3co' auctions off perishable online and print advertising inventor/3
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
$ost G benefit analysis G appraisal for t!e ?SS implementation
Appraisal of the e-auction business 'odel after i'ple'entation
#rofit 'argin 'ar9et share and revenue growth are good predictors of profits3 he/ were driven b/ the co'ponents
and lin9ages of a business 'odel3 We could 'easure how good a business 'odel in at least three levels
• easures of profitabilit/
• #rofitabilit/ prediction bench'ar9 of the progressE
• >usiness 'odel co'ponent attributes
>usiness 'odel appraisal attributes consists of all the following factors
• #rofitabilit/ 'easures
3 !arning
3 .ash flow
• #rofitabilit/ predictor 'easures
3 argins
3 ar9et share
13 evenue share growth rate
• .o'ponent attribute 'easures
3 @alue
3 #rice
13 Activities
43 evenue
53 ('ple'entational
J3 .apabilitiesI3 Sustainabilit/
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
Profitability measre for t!e SME 6 will or e=bsiness model give t!em
additional nepected benefitH
Without a profit no co'pan/ can survive3 We should use earning and cash flow anal/sis3 (nternet are real ti'e will this
e-auction site provide unexpected fast response and short lead-ti'e to the S! needsR +ow could the web portal site
be organised in a wa/ that is beneficial to S! providing with all the vital infor'ation e3g3 h/perlin9E that the/ needR
2oo9ing into the far future what should be the directives in developing the sites e3g3 S! 'a/ not have a database
could we build a online database for the' to use via the (nternet !xplorer >rowser will those infor'ation be integrated
into the +ong ,ong ;overn'ent e-business pro<ect in the futureR !ver/thing co'es with a price +owever if we have
a good online web base s/ste' for one co'pan/ we could support 'ore and 'ore S! co'panies with the sa'e
s/ste'3 herefore ( will address the 'ost vital issue in this essa/ topic as follow$
Anal/sis of the cost$
here will be Inventory Costs: cost that related to goods in transit. Cost saving will be achieved by shorten the cargo
movement
here will also be Docu'entation .osts$ ship'ent infor'ation custo's clearances insurance certificates
>oo9ing notices bills of lading %(nternet could provide electronic bills of lading* purchase and trans'it insurance
certificates sub'it data to custo's and receive clearances to release cargo trans'it and receive ship'ent status
infor'ation to and fro' shippers and agents across the globe and store selected data on bac9 office s/ste's for
billing and accounting purposes3
herefore collaborate co'puter s/ste's L online web based database s/ste' could i'prove efficienc/ and accurac/
strea'line the docu'entation process reduce labor and achieve cost reduction3 As a conclusion Docu'entation is a
costl/ process that could be done for S! in the distant future proper !D( and auto'ation will allow the S! gaining
significant co'petitive advantage3
1
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
Teac!ing ob2ectives)
To point ot t!e critical sccess factors* constraints* processes and information reFirements w!en t!e new
e=action system be developed
To identify t!e benefits gained and cost saving for t!e SME wit! t!e new ?SS0 Loo+ closely into t!e difficlties
and c!allenges t!at SME are facing and t!e importance of w!at t!e e=action portal web site cold provide
iddle'en provide &acilitating &unction
With the boo9 of >ill ;ate published in FFF
>oo9 title$ Business @ the Speed of Thought
here is a chapter called Phe iddle'an ust Add @alueQ
As Muote
ow that custo'ers can deal directl/ with 'anufacturers and service providers there is little value
added in si'pl/ transferring goods or infor'ation3 @arious co''entators have predicted the Tdeath
of the 'iddle'an3T .ertainl/ the value of the Tpass-throughT 'iddle'an is 6uic9l/ falling to
:ero3 3 3 3 (n the future travel agents will need to do 'ore than boo9 tic9ets 3 3 3 3 If yore a
middleman* t!e Internets promise of c!eaper prices and faster service can
JdisintermediateJ yo* eliminate yor role of assisting t!e transaction between t!e prodcer
and t!e consmer0
&or service industr/ >ill ;ate observes that the (nternet transfor' the service industr/ either to be
a high volu'e low cost provider ) a high-niche custo'er-service provider
Ce t!en draws a conclsion t!at becase very few companies in any mar+et can be t!e !ig!
volme providers* most companies will loo+ into benefit of internet to t!eir bsiness model
for not 2st to redce costs* bt also to deliver new services0 T!is will be t!e noticeable
impact of e=action to t!e eisting model t!at compete on pricing level0
4
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Teac!ing strategies)
#esistance dring implementation of t!e e=action proposal
he best strategies that could derive fro' such a pro<ect would be #eople anage'ent and >rand anage'ent as
this e-auction business would create big opposition fro' the existing containers7 operators3
• .ut out the 'iddle'an and reduce costs
• a9ing over the role of transport inter'ediar/
(n the industr/ there are significant nu'ber inter'ediar/ who use their networ9 in the old-fashioned wa/ phone and
negotiationE to shop around for the lowest price3
Bndoubtedl/ the new s/ste' can 'a9e the whole process beco'e 'ore transparentK arrange ever/thing faster and
cheaper e-auction offer great business opportunities who are flexible enough to adapt3
here are vast opportunities in international transport industr/3 here are plent/ areas of inefficienc/ that couldaddress3 a9ing things running 'ore s'oothl/ and 6uic9l/ reduce the overall ris9 when business could aggregate the
de'and providing reliable and co'prehensive service to the custo'er3
(n change 'anage'ent we learnt to ta9e care of people attitude3 #eople do not alwa/s follow the easiest and the best
'ethod as the/ fear technolog/ as a threat3 With +igh Bncertaint/$ ;reatest fear of 'an9ind3 +owever in logistics
'anage'ent it is i'portant to bring out the best of such decision support s/ste'3 he s/ste' would facilitate the
process3 Shorten the ti'e of negotiation increase visibilit/ of the price level3 During i'ple'entation we should
highlight the benefit that would bring to the existing operation stage of the i'ple'entationE for instance less phone
call need to be 'ade increase existing operator co'petitiveness b/ using the extra ti'e to have 'ore business deal3
his should lessen the bad feeling about the new technolog/ on their existing business3 +owever in stage 1 of the
i'ple'entation where the e-auction will introduce to the 'anufacturers those 'iddle'en will certainl/ feel that the e-
auction is a threat3 he/ would have bad 'outh about the new service3 +owever ( proposed to i'ple'ent stage first
because it would lessen such feeling3
(n stage 1 of the i'ple'entation where the e-auction is introduced to the 'anufacturer3 he 9e/word at this stage
would be brand 'anage'ent3 We 'ust be sure ever/ 1#2 logistic provider that suppl/ the logistics service is 6ualit/
guaranteed as this would affect their confidence in the new web-based co'pan/3 &or exa'ple the 1#2 service 6ualit/
'ust be chec9ed and 'a9e sure that even the/ bid it at a low price the/ would provide good cargo service and
custo'er service to the 'anufacturers directl/3 &or instance the lead ti'e to pic9 up the cargo 'ust be short the
cargo 'ust not be da'aged during transit arrival of the whole consign'ent 'ust be done on ti'e and pa/'ent 'ust
be processed safel/3%@eriSign etc* With an/ co'plaint suitable co'pensation 'ust be provided b/ the 1#23 eliabilit/
is the onl/ essence in this stage not even the price level of the successful bids
5
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
Wh/ price level is not i'portant at allR (t is because courier and fa'ous shipping line such as &ed!x )).2 charge
excessive pre'iu' to ship the cargoR Wh/ the business are willing to pa/ for it without an/ hesitationR (t is si'pl/
because the/ can do it pro'ptl/ and the/ are reliable3
(n our case eliabilit/ is si'pler to be said rather than done not all 1#2 providers provide good training to their front-
line e'plo/ee3 Will the/ handle the cargo carefull/K will the/ pac9 and ship the cargo <ust in ti'eR (f there is 'ore than
G of the cargo ship'ent that is unsatisfactor/ it would ruin the whole phase 1 of the i'ple'entation3 As the
'anufacturers will no longer trust the e-auction s/ste' as so'e of those providers who provide the lowest bid but let
down the 'anufacturers and its custo'er who suppose to receive their .hrist'as order on ti'e3
(n conclusion b/ i'ple'enting phase 1 the 'iddle'en profit will disappear the 'anufacturers will then have great
saving via e-auction3 >ut all the participants in e-auction 'ust be reliable3 his could onl/ be done if the 1#2 providers
are selected b/ an authori:e insurance bro9er who is able to access the previous insurance clai' b/ these 1#2
providers3 he 1#2 'ust be chosen b/ its reliabilit/ of its service3 )therwise we should not i'ple'ent phase 1 at all as
this is the 'ost ris9/ phase a'ong 1 stages3 +aving said that (f i'ple'ent successfull/ it would 'a9e the e-auction a
household brand na'e for such business with proper >rand anage'entE3 )therwise if there was lots of unreliable
service 'issed pa/'ent or da'aged good during transit it would brea9 the whole e-auction initiative3 his is wh/
priceline3co' is successful and '/ 'odel is 'ore or less the sa'e3 (n priceline3co' case the less popular airlines do
not have to reduce their listed price while 9eeping all the re'aining seats on the plane filled within the last few hours
before departure3 #riceline receives a tin/ a'ount of co''ission3 2everaging the uni6ue attributes of the (nternet
priceline finds sellers willing to 'eet bu/ersH needs and price thus facilitating thousands of bu/er-driven transactions
each da/3 he custo'ers 9eep going bac9 because of its convenient service3 )f course <ust li9e what we <ust
'entioned here the strategic alliance with reliable airlines is the 9e/ to 'a9e priceline3co' so successful3 he
custo'er has no 9nowledge about which airline that the/ will travel until the/ pa/ for the tic9et3
J
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
.oreseeable Epected #eslt
Lower -peration $ost
We should also assess whether i'proved infor'ation L operation will bring significant cost saving3 Advantages can be
seen in 'onetar/ or non-'onetar/ ter's3 onetar/ benefit can be 6uantified as a saving3 (n the case of the S! if it
would establish a contract in the open 'ar9et for the shipped cargo it i'plies that the previous 'iddle'en pre'iu'
will be eli'inated3 on-'onetar/ cost saving for exa'ple hu'an resources used in 'a9ing such transaction could be
reduced3 his will result in saving3 With less hu'an resources used to co'pare the price and calling the 1#2 S!
should spare those resources to get 'ore overseas 'anufacturing orders3
&or transportation need the service industr/ is 'easures of its perfor'ance b/ the speed and accurac/ of cargo
deliver/3 (f the new e-auction bidder provide sa'e level of accurac/ of on-ti'e deliver/ and spoilage rate of the cargoin transit is the sa'eK then ever/ saving in transportation can be realised co'pletel/3
8eneral $ollaborative "dvantage
.ollaborative Advantage is e6uall/ applied to ever/ bod/3 &or instance the 1#2 could save ti'e and 'ar9et coverage
b/ participating in the bidding process3 Although 'ar9et 'argin could reduce we cannot underesti'ate the increase in
volu'e b/ exposing itself to 'ore S!3
1#2 and S! could use the .argo anager Software to utili:e the cargo container space this would reduce reliance
on the for9-lift truc9 expert to pac9 the cargo3 he database could be used b/ the S! to loo9 for the best provider P
2ess one/ for good value Q
I
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
?iscssion
2et7s loo9 at the t/pical value chain of a S! 'anufacturer and see how our e-auction would help3
he co'pan/ will have its inbound logistics stage that involves the ship'ent of raw 'aterials3 (n the deliver/ issue our
Database 'odel does not expand to help in such stage3 +owever the 'anufacturer could still use the cargo handlingsoftware and 'a9e suggestion to pac9ing of raw 'aterials to the suppliers3 his would certainl/ i'prove the
relationship if this can produce saving for the supplier to ship those 'aterials3 hen there could be strategic
collaboration or bigger bargaining power in the price negotiation3 he operations L 'anufacture part of the value chain
our ( 'odel did not cover3 We are actuall/ focusing on the outbound logistics stage that involves order processing and
shipping3 )ur ( solution will 'a9e the outbound logistics 'ore s'ooth 'ore sophisticated and leverage a good deal
with big saving3 (n order for the 1#2 to get business it could either produce high 6ualit/ fast and reliable service or
lower price but good enough service3
+ow does the (nternet affect the @alue .hain activit/
(nternet allows participant to better assess and infor' the 'ar9et needs3 )nl/ with 'ore direct contact with the
'anufactures the 1#2 could sti'ulate the de'and of their service3 (n the past there is less visibilit/ of pricing except
the container exchange bro9ers using internet the 1#2 bidder could have a bigger custo'er base (n conclusion it
brings in iterative proble' solving s9ill for the 1#2 the 1#2 will continue to discovering what the clients want <ust dried
cargo service or handling of special che'icalsE what price will the S! willing to pa/ the/ also have to get feedbac9
fro' the custo'er after the/ perfor' the service and see whether all custo'er needs were fulfilled e3g3 the/ 'ight
realise if the/ could co-ordinate with S! for ?( deliver/ to get rid of the S! warehouse the/ 'ight won a stead/
service contract rather than go through the bidding procedure again -- cargo b/ cargoE3
)!$
(terative proble' solving s9ill 'eans 1#2 participants will go through the
#roble' finding will direct contact with the few 'anufacturer be a good thingRE
#roble' solving the ulti'ate goal it to help the 'anufacturer to resolve logistics need as the wa/ that the/ preferE
.hoice 1#2 would have to 'a9e 6uic9 decision during bidding whether the/ will ta9e up a bid or notE
!xecution 1#2 'ust able to execute the logistic procedure for the custo'erE
.ontrol and !valuation 1#2 will re-evaluate each bid contract to see whether the/ 'aintain a satisfactor/ profit 'argin and 'a9e so'e re-
ad<ust'ent in the next bidding sessionE
8
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
$onclsion
ore visibilit/ is the 'ost valued benefit that the (nternet brings to us3 >/ enhancing interaction
with the concerned parties our DSS 'odel could let S! have a big saving and answer on 'an/
cost-effectiveness issues na'el/$ E ti'e and resources to pac9 a container correctl/ E +ow to
group the 'anufacture products into carton boxes sa/ pac9age of or pac9age of 4 1E what
should be the di'ension of carton box 4E where to find a reliable 1#2 who could provide logistics
fulfill'ent with reasonable price and 5E ,eep records of the updated transportation cost of ever/
consig'ent3
Around three-6uarters of the world7s BSU50-billion container business is still done under service
contracts3 #revious bidding infor'ation should increase nu'ber of participants in the e-auctionweb portal as ever/one want to 9now whether the/ are pa/ing 'ore than the/ should V he portal
web site should s/nergise value-added benefits such as raise the efficienc/ eli'inate non-value-
added process and lowering cost3 Set up realistic target is crucial$ a successful and sustainable
co''ercial web site should gain popularit/ provide extra-ordinar/ custo'er value and being built
on a sound business 'odel3 Distinter'ediation is possible if stage 1 of the i'ple'entation
proposal is launched3 hat would bring enor'ous direct cost saving to the S!3
F
7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
#eferences
Implementation of -n=line ?ecision Spport Systems in orasia $ontainer Line) " $ase Stdy
#II-F0 (nternational conference on Suppl/ .hain anage'ent and (nfor'ation S/ste's – walter chung
International Mar+etingTerpstra
About !xport #ricing and er's
Internet Bsiness Models and Strategies Tet and $ases Afuah
!ttp)//www0microsoft0com/seminar/defalt0aspvarious presenters
T!e $!aracteristics and Prospects of Cong DongKs Trade Transformation
+ong ,ong rade develop'ent .ouncil ?ournal
T!e T!ree=?imensional Bin Pac+ing Problem
artello )perational esearch @olu'e 48 u'ber arch – April 000
T!e container loading problem#isinger D FFI (n #roceedings )AS7FI
Bsiness t!e Speed of T!og!t
>ill ;ate FFF
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7/23/2019 Andrew Decision Support A-level all science subject got TOP A grade
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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""
"ppendi == Live data from !ttp)//www0s!ipgide0com/paceast0!tml
Searc!ed all voyages .rom Cong Dong to Long Beac!* $" for <<4
. (atchi&) voya)e/ were fo%&d0To Departure Arrival Transit Service Vessel Voyage
Lo&) Beach 1ri 2a& $ Th% 2a& 34 3 day/ CAL-2 Poha&) Se&ator ..$5E
Lo/ A&)e,e/ S%& 2a& 6 Sat 2a& 37 3 day/ CAL-8 Mi&) So%th 94E
Lo&) Beach T%e 2a& 9 Sat 2a& 37 33 day/ CAL-C S%e: Ca&a, Brid)e .5E
Lo&) Beach 1ri 2a& 5 Th% 2a& $$ 3 day/ CAL-2 Ha&;i& He,/i&+i ..36E
Lo/ A&)e,e/ S%& 2a& 33 Sat 2a& $6 3 day/ CAL-8 Mi&) "orth 97E
Lo&) Beach T%e 2a& 3 Sat 2a& $6 33 day/ CAL-C Lo&) Beach Brid)e 3.E
Lo&) Beach 1ri 2a& 39 Th% 2a& $5 3 day/ CAL-2 Pe+i&) Se&ator ..$E
Lo/ A&)e,e/ S%& 2a& 3< Sat 2a& 3 3 day/ CAL-8 8M #i,(i&)to& $6E
Lo&) Beach T%e 2a& $. Sat 2a& 3 33 day/ CAL-C T/i&) Ma Brid)e .5E
Lo&) Beach 1ri 2a& $ Th% 1e= 4 3 day/ CAL-2 Port,a&d Se&ator ..$<ELo/ A&)e,e/ S%& 2a& $4 Sat 1e= 7 3 day/ CAL-8 Mi&) #e/t 95E
Lo&) Beach T%e 2a& $7 Sat 1e= 7 33 day/ CAL-C 2a(e/ River Brid)e .5E
Lo&) Beach 1ri 2a& . Th% 1e= 3$ 3 day/ CAL-2 P%/a& Se&ator ..3E
Lo/ A&)e,e/ S%& 1e= 3 Sat 1e= 36 3 day/ CAL-8 Mi&) Ea/t 99E
Lo&) Beach T%e 1e= Sat 1e= 36 33 day/ CAL-C Chi/wic+ Brid)e .5E
Lo&) Beach 1ri 1e= 9 Th% 1e= 35 3 day/ CAL-2 P%do&) Se&ator ...E
Lo/ A&)e,e/ S%& 1e= < Sat 1e= $3 3 day/ CAL-8 Mi&) So%th 99E
Lo&) Beach T%e 1e= 3. Sat 1e= $3 33 day/ CAL-C Go,de& Gate Brid)e .5E
Lo&) Beach 1ri 1e= 3 Th% 1e= $9 3 day/ CAL-2 P%)wa/h Se&ator ..$<E
Lo/ A&)e,e/ S%& 1e= 34 Sat 1e= $< 3 day/ CAL-8 Mi&) "orth 9<E
Lo&) Beach T%e 1e= 37 Sat 1e= $< 33 day/ CAL-C Bre(e& Brid)e 33ELo&) Beach 1ri 1e= $. Th% Mar 6 3 day/ CAL-2 P%&;a= Se&ator ..E
Lo/ A&)e,e/ S%& 1e= $$ Sat Mar 9 3 day/ CAL-8 8M #i,(i&)to& $4E
Lo&) Beach T%e 1e= $6 Sat Mar 9 33 day/ CAL-C A+i&ada Brid)e 3.E
Lo&) Beach 1ri 1e= $7 Th% Mar 33 3 day/ CAL-2 8o+oha(a Se&ator ..$5E
Lo/ A&)e,e/ S%& 1e= $5 Sat Mar 3 3 day/ CAL-8 Mi&) #e/t 7.E
Lo&) Beach T%e Mar $ Sat Mar 3 33 day/ CAL-C Chica)o Brid)e .5E
Lo&) Beach 1ri Mar 4 Th% Mar 3< 3 day/ CAL-2 Port%)a, Se&ator ..3E
Lo/ A&)e,e/ S%& Mar 7 Sat Mar $. 3 day/ CAL-8 Mi&) Ea/t 97E
Lo&) Beach T%e Mar 5 Sat Mar $. 33 day/ CAL-C Rotterda( Brid)e .5E
T!e above data !as been adopted as an illstration into t!e ?atabase w!ic! is in t!e $?
Sa'ple online auction web site that could be installed
http$LLdownload3co'3co'L100-J4F-004I883ht'l
%there are a few 'ore fro' other experi'ental software sites*
1