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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

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Page 1: Andrew Decision Support A-level  all science subject got TOP A grade

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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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  """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""

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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

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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

I

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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

0

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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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Deg level 4 - 4508x – Andrew Wood A A A straight A course representative e-auction could benefit S! in container loading logistics  """""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""

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

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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

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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

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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

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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

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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

10

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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