THE INTERNET-ENABLED SUPPLY CHAIN AND TRANSPORTATION

Electronic-commerce presents both challenges and opportunities for transportation: opportunities for transport firms to use technology to improve service, increase productivity, and reduce costs; challenges as it creates new supply chain requirements and capabilities that impact the demand for transport services; and both a challenge and an opportunity as the Internet reinvents the marketplace through the creation of freight exchanges. This paper reviews current trends in E-business, supply chain management, and the corresponding response of the transportation industry. Special emphasis is placed on the changing demand for product delivery reflected in the nature of the product ordered, speed and reliability of delivery, flexibility and responsiveness, and origins and destinations. Whereas traditional transportation and logistics service offerings have met some of this demand, new transport products have been developed and organizational structures have evolved. This paper also describes some of the trends that have been occurring in transportation supply.