Electronic Commerce & Transportation

94 Pages·1994·7.2 MB·English

STRATEGIC MARKET PERSPECTIVE
Commerc
Electronic
and
Transportatio
Comm
Electronic
an
DECEMBER
1994
Commerce
Electronic
and
Transportation
INPUT
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M&S459/D1 11/94
ELECTRONIC COMMERCEANDTRANSPORTATION INPUT
Abstract
Because transportation is a "business-service" industry, its success
is dependent upon the overall economy and the need for the
movement ofgoods. Unlike most industry sectors, transportation
growth for any single provider is usually at the expense of another
firm. Can a true "trading community" exist in such a competitive
and economically stressed environment?
In this report. Electronic Commerce and Transportation, the
transportation trading community, electronic commerce products
and services sold into that community and issues surrounding this
period ofmassive organizational change, are described.
Some ofthe questions answered include: What are the technology
demographics ofthe industry? Are they technologically advanced?
Are they conducive to the use ofexternal services? Are they leaders,
who can move others into electronic commerce or are they more
often driven by external forces? Are there substantive differences in
the different mode-bases submarkets (rail, truck, water, etc.)
regarding technology (e.g.: electronic commerce)?
Expansion ofelectronic commerce in transportation will be driven
by transport vendors as well as customers needs to connect; the fact
that transport companies generate 65% oftheir own revenues and
can support their internal requirements; the use ofmore than one
transport mode to complete a transfer is growing; and the increase
in the numbers of"mega carriers" with increased need for electronic
commerce.
The report goes on to describe technologies used in the rail, water
cargo, trucking and air cargo subsectors as well as pipelines,
containers and other modes. Major electronic commerce vendors
serving the transportation sector are discussed and conclusions and
recommendations are made.
EED4 ®1994byINPUT.ReproductionProhblted.
Published by
INPUT
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Electronic Commerce Program
Electronic Commerce and
Transportation
©
Copyright 1994 by INPUT. All rights reserved.
Printed in the United States of America. No part
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provided.
EED4»701 • 1994
85111
ELECTRONIC COMMERCEANDTRANSPORTATION INPUT
Table of Contents
I Introduction I-l
A. Purpose I-l
B. General Business Trends And Events 1-2
C Report Orgamization 1-3
.
II Executive Overview II-
A. Electronic Commerce (EC) II-
1. Trading Communities II-2
2. EC Components II-3
B. Transportation Business II-3
1. Transportaton Factors II-4
2. Transportation Technology Trends II-
3. Current EC Technology II-7
4. Future Directions II-
C. Recommendations II-9
III Electronic Commerce Overview III-
A. What is Electronic Commerce? III-2
B. Trading Community III-3
1. Transportation's Role in Another Sector Trading
Community
III-4
2. Intratransportation Trading Commimity III-4
C. Electronic Commerce Components III-5
1. Network Applications Services III-7
2. Electronic Information Services (EIS) III-7
3. Software Products III-8
4. Professional Services III-8
EEDA 01994byINPUT.ReproductionProhibited. I
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ELECTRONIC COMMERCEANDTRANSPORTATION INPUT
Transportation Business Overview IV-
A
rv-1
1. History T1VV-9Z
2. Transportation Community 1V-o
TV A
B. Trsinsportation Subsectors
Railroads IV-4
1.
2. Trucking IV-5
3. Oil pipelines IV-8
4. Water Carriers IV-8
5. Air Cargo IV-9
6. Multimodal IV-10
Mega-carriers IV-11
7.
a. CSX, Corporation IV-11
b. Union Pacific IV-12
c. RYDER System IV-13
d. Consolidated Freightways IV-13
e. American President Companies IV-14
C. Transportation Business Summary IV-14
V
Transportation Technology and Electronic Commerce V-
A. General Transportation Technology V-1
B. Electronic Data Interchange V-5
C. Specific Sector Technology Actions V-7
Railroad V-7
1.
Water V-7
2.
Truck V-8
3.
4. Air Cargo V-8
D. Transportation EC Use Patterns V-9
E. Transportation EC By Transportation Mode V-9
Railroads V-9
1.
Trucking V-10
2.
Water V-11
3.
4. Pipelines V-12
—
5. Airlines Cargo V-12
Containers V-12
6.
Summary V-13
7.
ii e1994byINPUT.ReproductianProhibited. EED4
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ELECTRONIC COMMERCEANDTRANSPORTATION INPUT
F. Electronic Commerce Vendors in Transportation V-14
Network Application Services (NAS) V-14
1.
2. Electronic Information Services (EIS) V-15
3. Software Programs V-16
4. Professional Services (PS) V-17
G. Impact of New Technologies V-17
EDI Message Formats V-17
1.
2. Automatic Eqtiipment Identification (AEI) V-18
Communications V-18
3.
H. Selected Vendor Profiles V-19
1. TSI International V-20
a. General Description V-20
b. Products and Services V-20
c. Strategy V-21
d. Challenges V-21
2. Integrated Systems Solutions Corporation (ISSC) V-22
a. General Description V-22
b. Products and Services V-23
Strategy V-23
c.
d. Challenges V-23
3. RAILING Corporation V-23
a. General Description V-24
b. Strategy V-24
Products and Services V-24
c.
d. Challenges V-25
VI Conclusions and Recommendations VI-
A. Conclusions VI-
1. Electronic Commerce VI-
2. Transportation Business VI-3
3. Transportation/EC Directions VI-4
B. Recommendations VI-5
Appendixes
A. Definitions A-1
B. Conclusions and Recommendations B-1
EED4 e1994byINPUT.ReproductionProhibited. Ill
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ELECTRONIC COMMERCEANDTRANSPORTATION INPUT
Exhibits
II
.1 TT.9
-2 Primary Transportation Factors II-4
-3 Primary Transportation Sector Technology Trends 11-6
EC
-4 Transportation Patterns II-7
-5 Transportation Future Directions II-8
-6 Vendor Recommendations II-9
III
-1 Generic Trading Community III-3
-2 Wal-Mart, Typical Advanced EC Trading Conmnmity III-4
-3 RAILINC Network Diagram III-5
-4 EC Components III-6
-5 EDI Network Services Market III-7
IV
-1 Freight Transportation, 10-Year Comparison IV-2
-2 Transportation Submarket Freight Share Comparison IV-
-3 Top Transportation Sector Partners IV-
-4 Railroad Overview IV-
-5 Truck Carrier Relative Revenues-1992 IV-6
-6 Trucking Overview IV-
iv O1994byINPUT.ReproductionProhibited. EED4