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Logistics.com Becomes Transportation Service Provider For Commerce One

Written By: Steve McVey
Published On: October 27 2000

Logistics.com Becomes Transportation Service Provider For Commerce One
S. McVey - October 27, 2000

Event Summary

At Commerce One's eLink user conference, Logistics.com announced an alliance that will put its Digital Transportation Marketplace (DTM) in front of Commerce One.net users. The move will make DTM available directly to buyers and suppliers of transportation services through Commerce One.net, the syndicated suite of business services formerly known as MarketSite.net. "We believe Commerce One.net will significantly increase the visibility of the burgeoning Digital Transportation Marketplace," said Yossi Sheffi, CEO of Logistics.com. "While Logistics.com is already handling millions of dollars in transportation procurement every month through the DTM, we are now positioning to scale activity within the DTM significantly and rapidly. Quality channel partnerships, such as this one with technology industry powerhouse Commerce One, are an integral part of our growth strategy."

The DTM is distinguished from other transportation software packages by its broad scope of functionality and detailed feature set. Taken as a whole, the DTM is a real-time online communications and trading environment for buyers and sellers of logistics services that supports transaction processing and plan optimization. Carriers and shippers pay for the services on a transaction basis that also considers the number of functions involved in processing each transaction. Hence, participants pay only for what they need.

Market Impact

An alliance with Commerce One provides Logistics.com with a level of visibility usually enjoyed by much larger companies. In spite of the quality and richness offered by the DTM, Logistics.com will need more than a strong product to differentiate itself from the multitude of transportation planning and execution software vendors in the market. The potential of becoming Commerce One's preferred transportation solution is a clear possibility for Logistics.com and could ensure its long-term success.

Commerce One stands to gain logistics services for its marketplace customers that are superior in many ways to those of one of its most dangerous rivals, i2 Technologies. i2's FreightMatrix combines the best parts of its Transportation Management software (acquired from Intertrans Logistics Systems) with a web-deployed platform that transparently serves as the logistics engine behind several of its TradeMatrix vertical marketplaces. Logistics.com can offer better functionality than i2 and has defeated it in more than one deal. Much of Commerce One's success against i2 rests on how smoothly Commerce One can deploy Logistics.com's transportation services through Commerce One.net.

User Recommendations

Shippers and carriers engaged in global logistics operations should make Logistics.com a prominent option in logistics services selections that include other vendors such as i2 Technologies and Descartes Systems Group. Commerce One.net participants should view the availability of Logistics.com as a plus but only if integration and support issues are worked out in the next few months. All users should also request client references from among Logistics' client partners and inquire about the company's services it employs in conjunction with its applications as these form a large part of its business and are integral to its solutions delivery model.

Prospective users who are not interested in Commerce One.net but could benefit from DTM services directly through Logistics.com should bear in mind that its components will be offered only as hosted applications and not in traditional on-site license formats.

 
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