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| Reverse
Auction for Transportation and Logistics
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Traditionally, logistics and transportation are extremely
important for successful operating of any company as well
as the whole market at large. It is necessary to point out
that, as a rule, the main goal of producers and sellers, as
well as buyers, on the other hand, is to minimize costs for
transportation and logistics and deliver goods to customers
in possibly shorter terms. In the current situation, a variety
of tools is used to achieve this goal. In this respect, it
should be said that innovative technologies, especially IT,
computing, Internet, etc., are playing increasingly more important
role and are commonly used to facilitate transportation and
logistics. As a result, auctions, using an electronic reverse
auction platform, are growing to be popular and widely spread.
First of all, it is necessary to point out that electronic
reverse auctions have a lot of advantages compared to conventional
auctions. Nonetheless, in order to better realize their efficiency,
it is necessary to dwell upon the most significant ones. Primarily,
it should be said that electronic reverse auctions may lead
to a successful cooperation between producers of different
goods to transport to various destinations and carriers.
Naturally, it is logical to wonder what both producers and
carriers benefit from such cooperation. It is worthy to note
that this may lead to increasing of speed of transactions
since producers receive not only the possibility to sell their
goods but, at the same time, they have got a possibility to
find a carrier that can deliver the goods to the destination.
In such a way, two operations could be run simultaneously
that seems to be extremely beneficial for sellers, i.e. producers.
Furthermore, it is necessary to underline that the reverse
auction provides producers with the possibility to choose
from a large amount of carriers. In such a situation, the
essential conditions for open and fair competition are created
since producers can choose carriers on the basis of objective
principles identical for all participants of the auction.
On the other hand, carriers can supply their services to a
large number of sellers and, consequently, can also easily
find their potential customer. Moreover, the open competition
stimulates carriers to the improvement of their services and
it may also result in certain decrease of costs of transportation
for producers.
Also, it should be said that the implementation of new technologies,
notably electronic reverse auctions leads to the implementation
of high technologies in transportation and logistics at large.
Moreover, it also opens new perspectives for reverse auctions
since, being based on electronic platform, they can involve
unprecedented amount of participants. Consequently, the probability
that producers will find their clients and carrier, which
will transport the goods to the destination at possibly lower
costs, increases.
Thus, taking into account all above mentioned, it is possible
to conclude that the implementation of electronic reverse
auctions leading to better cooperation between producers and
carriers perfectly demonstrates the possibilities of new technologies
applied to business at large and transportation and logistics
in particular.
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