Transplace.com Revolutionizes Global Logistics with Ariba and IBM Partnership

Strategic Insights -

Transplace.com, a new internet-based global logistics alliance, has selected Ariba and IBM to create and operate one of the world's largest transportation e-marketplaces. This partnership aims to streamline procurement processes, create efficiencies and cost savings for both member carriers and suppliers, and provide a solid technology foundation for Transplace.com's procurement system.

Key Takeaways:

  • Transplace.com is a consortium of transportation logistics business units from six of the largest United States-based transportation companies: Covenant Transport, Inc., J.B. Hunt Transport Services, Inc., M.S. Carriers, Inc., Swift Transportation Co., Inc., U.S. Xpress Enterprises, Inc., and Werner Enterprises, Inc.
  • The e-marketplace, Transplace.com, began operations on July 1, offering a web-enabled platform to bring together shippers and carriers worldwide to collaborate on transportation logistics planning and execution through efficient business-to-business (B2B) processes.
  • Transplace.com has selected Ariba's Marketplace and Dynamic Trade software solutions as its technology infrastructure, providing browser-accessible auctions, reverse auctions, and procurement services on the Internet.
  • The partnership expects to generate $800 million in transportation logistics revenue over the next year, representing 220,000 tractors, 800,000 trailers, and millions of tires.
  • IBM Global Services will provide consulting services, web hosting, and systems integration for Transplace.com's procurement system.
  • Dr. Jun-Sheng Li, CEO of Transplace.com, stated that Ariba and IBM technologies will give Transplace.com a solid foundation to streamline procurement processes and create efficiencies and cost savings for both member carriers and suppliers.
  • The Transplace.com e-marketplace is expected to be operational by late fall, with a workforce of over 500 employees and a network of business relationships established by the six companies mentioned above.
  • Transplace.com aims to be "The Supermarket for Transportation Solutions," offering a "click-and-mortar" B2B model with unmatched vertical industry knowledge, expertise, and technology.

Statistics:

  • 1,500 carriers representing 220,000 tractors, 800,000 trailers, and millions of tires have joined Transplace.com's procurement membership since its announcement three months ago.
  • Transplace.com expects to generate $800 million in transportation logistics revenue over the next year.
  • The Transplace.com e-marketplace has secured Ariba's Marketplace and Dynamic Trade software solutions as its technology infrastructure.
  • Ariba and IBM have signed a memorandum of understanding with Transplace.com to finalize design and implementation agreements.
  • Transplace.com's procurement membership growth to 1,500 carriers in three months is a testament to its innovative e-marketplace model.

Sources:

  • Business Wire, "Transplace.com Announces Selection of Ariba and IBM to Create and Operate One of the World's Largest Transportation E-Marketplaces" (Aug. 8, 2000)
  • Ariba, Inc., "Ariba and IBM to Develop and Operate One of the World's Largest Transportation E-Marketplaces" (Aug. 8, 2000)
  • IBM, "IBM Global Services to Provide Consulting Services for Transplace.com's Procurement System" (Aug. 8, 2000)
  • Transplace.com, "Transplace.com: The Supermarket for Transportation Solutions" (Undated)