Freight matching strategies in online spot market for balancing shipper and platform performance

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Freight matching strategy is an essential aspect of balancing the trade-offs between platform performance and user performance, particularly in the online freight transportation spot market. The online freight transportation market where the sellers provide services for transporting bulk product using one-time purchase transaction has variability in carrier availability and the rate the rate that increase the pairing process's complexity. This study analyzes the matching process of carriers and shippers in the online freight transportation spot market platform to balance the platform’s profit as well as shipper’s reliability. A simulation approach is used to capture the complexity and uncertainties in the system. We find that the matching strategies significantly affect the platform’s profit and shipment reliability. The balance between the platform and the shipper’s intentions is obtained by putting equal weight on the carriers’ rates and distance to the pickup location. The finding will help the online spot market platforms deliver the balance strategy in pairing their demand and therefore improve the supply chain performances.

Original languageEnglish
Title of host publicationProceedings of the 11th Annual International Conference on Industrial Engineering and Operations Management, 2021
PublisherIEOM Society
Pages401-408
Number of pages8
ISBN (Print)9781792361241
Publication statusPublished - 2021
Event11th Annual International Conference on Industrial Engineering and Operations Management, IEOM 2021 - Virtual, Online
Duration: 7 Mar 202111 Mar 2021

Publication series

NameProceedings of the International Conference on Industrial Engineering and Operations Management
ISSN (Electronic)2169-8767

Conference

Conference11th Annual International Conference on Industrial Engineering and Operations Management, IEOM 2021
CityVirtual, Online
Period7/03/2111/03/21

Keywords

  • Matching Strategy
  • On-Demand Sourcing
  • Online Spot Market
  • Simulation Study
  • Transportation Service Sourcing

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