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PEK: Electronic marketplace

Product
Developers: First Forwarding Company (FFC)
Date of the premiere of the system: 2020/06/02
Last Release Date: 2021/01
Branches: Internet services,  Logistics and distribution
Technology: SRM - Vendor relationship management,  Logistics information system

2021: A design of 95% of all transportations of PEK through ETP

As of January, 2021 95% of all transportations of The First Forwarding Company (FFC) are made out through electronic marketplace - it is several tens of thousands of departures a month. At the same time labor costs of logisticians of the company decreased by 40%. PEK reported about it on January 29, 2021.

Pandemic also remote work became the driver of digitalization transport-logistic the industries. In June 2020 PEK years started own electronic marketplace which main objective is optimization of interaction with partners-cargo carriers. If in June on the platform 70 carriers were registered, then by December their number increased up to 200.

Before start of electronic marketplace the functionality on search of the vehicle and a design of run in working time of logisticians occupied 30-40%, for January, 2021 it is reduced to 10%. Digitalization allowed to optimize labor costs of logisticians of PEK, to reorient their work on quality improvement of services: the analysis, innovations, the head of service of transport logistics of PEK Magomed Gasanov explained.

The PEK electronic platform is corporate, but the functionality is created and is focused not only under tasks of the company. The platform works at fundamentals of auction and tender technology: the choice of cargo carrier in the specific direction in an auction format on single transportation and in a tender format – is available to long-term cooperation between the logistic company and carrier.

For partner carriers the personal account using which they structure the database of drivers and vehicles is created, trace the appointed orders and KPI on their accomplishment.

Further on the platform new opportunities for carriers will be implemented. So, in 1 quarter 2021 it is going to start service for tracking of the status of transportation online.

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"It will allow partner carriers to save time, the statuses will be updated on the basis of data from information system PEK", – Magomed Gasanov noted.
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Shortly carriers will be able on the platform not only to participate in tenders and auctions of consignors, but also to expose offers on free transport and rates on these or those directions. Also until the end of January the system of ratings of carriers will be finished that will help to systematize PEK of contractors, and to carriers to estimate the strengths and spaces in work.

On electronic platform distribution of runs by several main types of transportations, including LTL (combined loads), FTL (general loads), thermotransportations, express transportations is implemented. Information on type of transportations, the direction, other parameters is available. The carrier can browse all offers, or using filters to select those which correspond to its specialization.

One more task – to increase the number of carriers on the platform twice – up to 300, it is important in connection with development in PEK of the direction of transportation of general loads, Magomed Gasanov added.

In the long term the PEK electronic platform is transformed to a digital ecosystem, access to which will be got also by consignors.

In the next plans – integration with clients on service of FTL in API. Customers will be able to place requests in own information system, and information will appear on the platform with the authorized carriers.

2020: Start of electronic marketplace in the test mode

Transport- logistic provider "First forwarding company" on June 2, 2020 announced creation of own digital electronic platform which will integrate logisticians, cargo owners and cargo carriers for trade interaction in parts logistics.

By estimates of PEK, the electronic marketplace will allow to reduce time expenditure by interaction both for the logistic company, and for carrier for 35%. The auction and tender technology is the cornerstone of the platform. On the platform the choice of cargo carrier in the specific direction in an auction format with a possibility of bidding for single transportation and in a format of the tender meaning long-term cooperation between the logistic company and carrier is online available. All processes of the transaction from search of the supplier and creation of the request before payment of service are digitized, check of the status of run is in real time available.

The electronic platform will integrate all carriers with which PEK cooperates in the capital and regions. For June, 2020 their more than 150. Perhaps further the number of cargo carriers will increase.

For June 2 the work on creation of "a personal account of the supplier" and the systems of auctions is completed, the platform is started in the test mode. Until the end of 2020 the product will be completely finished. Work with questioning of carriers which give to PEK a feedback on a product is in parallel conducted. According to experts, after implementation of the remained completions, time for selection of necessary cargo carrier and implementation of delivery it will be reduced twice.

PEK has all necessary infrastructure for the organization of cargo transportation: from vehicle fleet in 2000 trucks to warehouse platforms in all territory of the country. However to implement all customer needs, the company also addresses services of partner owners of transport on third-party outsourcing electronic platforms. To automate work with suppliers of transport services and to simplify distribution of orders, having made this procedure transparent and convenient, PEK company made the decision on creation of own digital platform on interaction with carriers.

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Each participant of the platform will receive the separate "personal account of the supplier" allowing to exchange legally significant electronic documents and also displaying all database on the drivers and vehicles. Besides, in a personal account the carrier will be able to trace all orders and KPI appointed to it on their accomplishment — the head of service of transport logistics of PEK Magomed Gasanov told.
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