Transportation eMarketplaces Are Revving Up, IDC Says

FRAMINGHAM, MA – JULY 19,2000 – The transportation industry is at a crossroads of transformational change. The industry, characterized by decades of relationship building and customized legacy transportation management systems, is witnessing the birth and proliferation of business-to-business transportation emarketplaces. These emarketplaces provide Internet solutions that connect users and providers of transportation services at a neutral site. Recognizing the golden opportunity in this space, service providers are emerging at lightning speed to try to establish a sustainable niche for itself. In a new report titled Driver’s Seat Still Open – A Closer Look at Logistics eMarketplaces, IDC analyzes the developments in the B2B transportation emarketplace and profiles the key service providers emerging in this space.

 

"Transportation emarketplaces are providing exciting opportunities for carriers and shippers to improve the efficiency of and establish visibility into their transportation management," said Ting Piper, program manager for IDC's Business Services: eLogistics research. "While many providers are emerging in the space, most of their applications are still at the beta testing stage, and the market remains at a very early stage of adoption."

According to IDC, the service providers currently in the space provide either contract management services or spot transaction services, the latter being more prevalent. Most providers also focus on only one mode of transportation. Currently, service providers are racing to build up transaction volumes at their respective sites and are trying to build liquidity by focusing on point solutions. "In the scramble to build up liquidity, important issues such as integration and execution have been put on the back burner," Piper said. "Once customers are brought to the site, the real challenge for service providers is to integrate legacy systems and to ensure smooth execution of their applications under battlefield conditions."

While there is definitely room for multiple players, IDC predicts the industry will witness a significant shake out and consolidation over the next 12 to 18 months. The survivors will be those who set themselves apart from the busy crowd through effective and differentiated go-to-market strategies. There are already players making their move in this direction.

IDC's recent publication Driver's Seat Still Open – A Closer Look at Logistics eMarketplaces (IDC #B22615) makes predictions on how the industry will shake out over the medium term. It describes the current trends, competitive landscape, and challenges facing vendors and makes recommendations for service providers trying to establish a sustainable niche in this space. The report also profiles major transportation emarketplace vendors such as Nistevo, Logistics.com, Transplace, RightFreight, Celarix, Carrierpoint, FreightMatrix, and NeoModal. To purchase the report, please contact Jim Nagle at 1-800-343-4952 extension 4549 or at jnagle@idc.com.

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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