Order Allocation Study From Freight Transportation Platform Perspective

Enterprise of special-line transportation has played a leading role in the freight transportation market for a long time, which can provide a point-to-point transportation service with low cost and high efficiency. However, freight transportation market become small-size scale, fragment, disordered operation and inferior service quality because of the fierce competition in China. Currently, alliance model and platform model, emerges for the purpose of matching logistics service provider to logistics service demander. Traditional method to select logistics service provider is bidding, price is the main consideration, in which enterprises of special-line transportation couldn’t make full use of their transportation network. For this reason, this paper proposes a method based on combinatorial auction. Firstly, this paper studies on the basic functions and its participants of freight transportation platform, discusses the difference from traditional transactional model and proposes order allocation schemes based on combinatorial auction transaction mechanism. And then analyzes the strategy of both logistics service demander and logistics service provider in the combinatorial auction process. Aim for the effective order allocation, this paper establishes combinatorial auction model and also makes extension to guide decision-making processes. Finally, an instance is given to explain how to apply the method into practice, and provides a reference for relevant enterprises.