eCommerce

B2B eCommerce offers tremendous benefits to organizations willing to embrace its use. Online transactions are expected to reach $2.7 trillion by 2004. A major B2B trend is the development of eMarkets for buyers and sellers of goods and services. That means huge opportunities for people in manufacturing, distribution, 3rd party logistics and transportation. Market value propositions vary based on the relative balance of power between buyer and seller. The traditional freight transportation industry includes a number of integrators through which buyers and sellers of freight transportation services are able to conduct business. eCommerce has enabled the development of several new channels through which these buyers and sellers of freight transportation can now conduct business.

Freight Exchanges have been rapidly developing over the last year, exploding from less than ten exchanges in early 1999 to over one hundred today. In summary, eMarkets will have a profound impact on the freight industry, however, the industry itself will determine the winners and losers.

eMarkets will have a profound impact on the freight industry, however, the industry itself will determine the winners and losers.

Possible scenarios for existing freight exchanges:

• Independent exchanges establish shipper and carrier relationships and replace existing third parties (3PLs, FF, IMCs, etc.)
• Existing third parties reinvent themselves with a major Internet presence
• Carriers join forces to create exchange and disintermediate existing third parties
• Shippers join forces to create exchanges and disintermediate existing third parties