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Purpose, Vision, Mission >>  
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Market Research

As we researched the market, we found strong evidence of Internet-based optimization solutions. Electronic communication is taking the guesswork out of the booking of freight to transport goods. Internet-enabled communication has expedited the transactions and reduced the cost of those transactions.

  • As one broker said, "The jargon of dotcoms is becoming familiar vocabulary to transportation intermediaries."

  • TrafficWORLD said, "As the Internet transforms one industry after another, no one stands to gain or lose more than the transportation industry."

  • There are now more than 125 load matching services. None is owned or controlled by a network of brokers.

  • Junk yards have always known who has what used parts. They have successfully networked for decades. They see more value in transferring knowledge than in holding it close to the vest.

  • Independent book sellers have collaborated to compete against market forces like Amazon.com and Barnes & Noble. (See www.booksense.com).

  • Michael J. Fitzgerald, one of the original six senior officers of Federal Express, has become CEO of Elogex in Charlotte, NC. Elogex is an Internet-based solution hat allows shippers to create logistics communities to optimize transportation and distribution activities across a broad base of suppliers, customers and service providers.

This is one of thousands of businesses being created in transportation and elsewhere to aid effective and confidential collaboration.

TIA RECOGNIZES NEED

   Before its annual meeting this year, the Transportation Intermediaries Association (TIA) is sponsoring a symposium on "Transportation Intermediaries in the Internet Age." In describing this first-of-its-kind event, TIA Executive Director and CEO Bob Voltmann told TrafficWORLD magazine.

   "There is a recognition that the Internet changes whatever industry it turns its attention to, and it has turned its attention to transportation later than most."

   Voltmann said that while at first many in the industry were afraid they could be rendered obsolete by the Internet's ability to provide information and bring transparency to the supply chain, the TIA - aided by a major shakeout among dotcom firms - has dispelled many of those fears.

   The organization's 800 members serve over 300,000 shippers, he said, and there is no way that dotcoms can solicit all of those companies. The TIs also provide services that many shippers do not want to bring in-house, no matter how e-enabled they may be.

   "Shippers have spent the last 20 years getting down to the core competencies of their business, which is to produce products," he said, "and carrier's core competency is to carry. The TIs exist to marry the two in the best way possible."

   Still, if TIs can learn anything from other industries that have been altered by the Internet, it is that they ignore the online world at their own peril. "Look at the stock-brokerage industry," Voltmann said. "Merrill Lynch didn't pay attention to what was going on and lost a huge chunk of business to Charles Schwab, who met customer demands for a faster, easier and cheaper way of trading stocks. We were watching as over 100 companies developed e-transportation products and realized that business as usual will not cut it."

   Referring to a study called "Intermediary and the Internet" by the Wharton School of Business, Voltmann said, "The study shows how those industries reacted to changes and how we can learn from them. One of the things we learned through the Wharton study is that as the process evolves the TIs will be able to develop and sell new types of services to their shippers and carrier customers."

Schneider National, Inc. Rolls Out
Web-enabled Carrier Portal

   This announcement contains specific information on how an Internet-enabled, exclusive community can operate.

   Schneider National, Inc. has announced the formal launch of its Web-enabled carrier portal, http://www.SchneiderCarriers.com where Schneider and its carrier partners meet via the Internet to match available freight to available capacity.

   The new site gives Schneider's more than 6,300 carrier partners access to a subset of Schneider's available freight; in turn, the site provides more capacity that will enhance and increase service to Schneider customers. This expanded capacity enables Schneider to cover overflow freight which does not fit the traditional flows in Schneider's network.

   The site initially launched Oct. 1, 2000 with freight search capability and has been drawing 47,000 hits per week. Now, the enhanced site, which opened a week ago, gives carriers additional tools to manage and utilize their capacity.

   Through the expanded site carriers can post their available capacity and rates on loads that interest them. Schneider provides not only real-time updates on available freight but also suggests loads to them - all via the Internet.

   Here's how SchneiderCarriers.com works: Through a customized feature called "My Capacity," carriers post their available equipment. Schneider then automatically searches for loads that match that carrier's needs and posts them to the carrier's customized My Capacity page. After viewing load details, a carrier can post its required rates for that load or chat online real-time with a Schneider carrier representative, and can view whether their rate has been accepted or declined.

   Users have called the site user friendly, fast and precise. There is online chat for rate negotiations.

   A carrier noted that, "It has up-to-date information. A lot of the other Web sites do not update their loads and there might be loads that have been gone for a couple of days that are still posted."

Details: www.schneider.com

Analysis/Need >>