APPENDIX A Glossary of Relevant Terms 52. Appendix A - Glossary of Relevant Terms B2B B2B (Business-to-Business) refers to the exchange of products, services, or information between businesses rather than between businesses and consumers. Increasingly, B2B transactions are taking place online via the World Wide Web. B2B Web sites fall into a number of classifications: company Web sites; product supply and procurement exchanges, specialized or vertical industry portals; brokering sites; and information sites. Many B2B sites also fall into more than one of these groups. An earlier and much more limited kind of online B2B prior to the Internet was Electronic Data Interchange (EDI). Models for B2B sites are still evolving. (Source: adapted from www.whatis.com) B2C B2C (Business-to-Consumer) refers to the exchange of products, services or information between businesses and customers. Often, B2C is used to refer to the retailing part of E-commerce on the Internet. It is often contrasted to B2B or Business-to-Business. (Source: adapted from www.whatis.com) B2G B2G (Business-to-Government) refers to the exchange of information, completion of regulatory or financial forms, payment of taxes or fees, and any other transaction that occurs between a business and a government entity (at the city, region, province, or national level). On the Internet, B2G is developing as a means by which businesses and government agencies can use central Web sites to exchange information and do business with each other more efficiently than they have in the past. For example, a Web site offering B2G services could provide businesses with a single place to locate applications and tax forms for one or more levels of government; provide the ability to send in filled-out forms and payments; update corporate information; request answers to specific questions; and so forth. B2G may also include e-procurement services, in which businesses learn about the purchasing needs of agencies and agencies request proposal responses. B2G may also support the idea of a virtual workplace in which a business and an agency could coordinate the work on a contracted project by sharing a common site to coordinate online meetings, review plans, and manage progress. B2G may also include the rental of online applications and databases designed especially for use by government agencies. (Source: adapted from www.whatis.com) E-commerce Electronic commerce, or E-commerce, can be defined as the buying and (General) selling of goods and services through electronic means such as the Internet, email, fax and Electronic Data Interchange (EDI). E-commerce is an important facet of the broader term “e-business,” which refers to automating business processes of all types through electronic means. E-commerce can be divided into three broad areas: Business-to-Customer (B2C), Business- to-Business (B2B) and Business-to-Government (B2G). 53. Appendix A - Glossary of Relevant Terms E-commerce (In In the context of the trucking industry, E-commerce can be defined as the the context of the buying and selling of trucking services through electronic means such as Canadian the Internet, email, fax and Electronic Data Interchange (EDI). As in other Trucking Industry) industries, E-commerce in the trucking industry has B2C, B2B and B2G aspects. In the trucking context, Business-to-Customer E-commerce includes on-line advertising and arrangement of trucking services; Business-to-Business E-commerce includes on-line exchanges for materials procurement or shipment consolidation; B2G applications include electronic shipment clearance and vehicle registration. EDI EDI (Electronic Data Interchange) constitutes the electronic exchange of structured information between two business partners. This exchange is carried out: From one computerized application to another computerized application; With the assistance of a structured data file; and In accordance with national or international standards. Traditionally, such transfers are carried out by means of a private communication network called a value-added network (VAN). More and more, firms are using a public Internet network to perform such transactions. A key characteristic of EDI is that it allows information to be exchanged between two organizations without human intervention, although this characteristic is not present in all situations. The absence of human intervention is possible only if the computerized applications are integrated into the EDI system. Web-EDI on Internet represents the most recent hybrid solution proposed to companies. By subscribing to this type of service, a small business uses its navigation software to access the Web-EDI server message centre. To send a document, a service user need only to select the partner, choose the appropriate form and complete it. The Web-EDI server receives the data and transforms these into EDI format to then forward these to the other business partner. (Source: adapted from www.bellzinc.ca) EDIFACT EDIFACT (Electronic Data Interchange For Administration Commerce and Transport) is an ISO standard for Electronic Data Interchange (EDI) that was proposed to supersede both X12 and TRADACOMS as the worldwide standard. See EDI. (Source: adapted from www.techweb.com) FCL FCL (Full Container Load) is a term used in shipping when goods occupy a whole container. (Source: adapted from http://theweb.badm.sc.edu/) FTL/TL FTL (Full Truck Load) or TL (Truck Load) is essentially the same as Full Container Load, but in reference to motor carriage instead of containers shipping. (Source: adapted from http://theweb.badm.sc.edu/) 54. Appendix A - Glossary of Relevant Terms Intermodalism/ Intermodalism means the use of more than one form of transportation. Multi-modal Multi-modal transport, in a freight context, refers to the use of several transport transportation modes (aircraft, ship, rail, truck) when forwarding a freight consignment. One of the most commonly used forms of intermodalism in the freight market relates to the transfer of shipments from rail (regional movement) to trucks (local delivery). (Source: adapted from a Deutsche Bank report on Logistics and U.S. Department of Transportation’s Office of Intermodalism Web page) ITS ITS (Intelligent Transportation Systems), an emerging global phenomenon, is a broad range of diverse technologies applied to transportation to save lives, time and money. The range of technologies involved includes microelectronics, communications and computer informatics, and cuts across disciplines such as transportation engineering, telecommunications, computer science, finance, electronic commerce, and vehicle manufacturing. The advancement of the ITS technologies has enabled the merging of the driver, vehicle, and roadway through technological means into a single integrated system to enhance the safety and efficiency of both passenger and freight transportation operations, and promote economic activities. (Source: Study on ITS Applications within the Canadian Trucking Industry, Sabounghi & Associates/Delcan Corporation) LCL Less than Container Load (LCL) is a term used in shipping when goods do not completely occupy an entire container. When many shippers’ goods occupy a single container, each shipper's shipment is considered to be LCL. (Source: adapted from http://theweb.badm.sc.edu/) Logistics Logistics is a broad term that encompasses a variety of services that support the production and distribution of goods. Transportation is a primary stage of logistics, but the term also refers to warehousing, packing, order picking and processing, quality control, assembling, breaking bulk, financial services, marketing and sales services, after-sales services and related information/communications technology. (Source: adapted from a Deutsche Bank report on Logistics) LTL Less than Truck Load (LTL) is essentially the same as Less than Container Load, but in reference to trucks instead of containers. (Source: adapted from http://theweb.badm.sc.edu/) 55. Appendix A - Glossary of Relevant Terms Online Market An online market place can take two forms: Place/Exchange Vertical market - Web site that provides information, services and a transaction space for a particular industry. It is the industry-specific equivalent of the general-purpose portal on the Web. Web hub - A Business-to-Business Web site for a particular industry. It provides a meeting ground for buyers and sellers in a specific field and rather than being advertising based, may charge a transaction fee for each purchase. Also known as a vertical portal, or "vortal." (Source: adapted from www.techweb.com) Portal Portal is a relatively new term, generally synonymous with gateway, for a World Wide Web site that is or proposes to be a major starting site for users when they get connected to the Web or that users tend to visit as an anchor site. Portals may be general or serve specialized/niche markets. Some major general portals include Yahoo, Excite, Netscape, Lycos, CNET, Microsoft Network, and America Online's AOL.com. Examples of niche portals include Garden.com (for gardeners), Fool.com (for investors), and SearchNT.com (for Windows NT administrators). A number of large access providers offer portals to the Web for their own users. Most portals have adopted the Yahoo style of content categories with a text-intensive, faster loading page that visitors will find easy to use and to return to. Companies with portal sites have attracted much stock market investor interest because portals are viewed as able to command large audiences and numbers of advertising viewers. Typical services offered by portal sites include a directory of Web sites, a facility to search for other sites, news, weather information, email, stock quotes, phone and map information, and sometimes a community forum. Excite is among the first portals to offer users the ability to create a site that is personalized for individual interests. (Source: adapted from www.whatis.com) Vertical Market A vertical market is an industry or group of companies that can be marketed to in a similar manner because they have similar needs. Common examples of vertical markets are: insurance, real estate, banking, heavy manufacturing, retail, transportation, hospitals, and government. Vertical market applications are those aimed at a particular vertical market and can be contrasted with horizontal market applications (such as word processors and spreadsheet programs), which can be used in a cross-section of industries. (Source: adapted from www.whatis.com and www.geek.com) 56. Appendix A - Glossary of Relevant Terms Web Site A Web site is a related collection of World Wide Web files that includes a beginning file called a home page. A company or an individual tells you how to get to their Web site by giving you the address of their home page. From the home page, you can get to all the other pages on their site. Since site implies a geographic place, a Web site can be confused with a Web server. A server is a computer that holds the files for one or more sites. A very large Web site may be spread over a number of servers in different geographic locations. A synonym and less frequently used term for Web site is "Web presence." That term seems to better express the idea that a site is not tied to specific geographic location, but is "somewhere in cyberspace." (Source: adapted from www.whatis.com) XML XML (EXtensible Markup Language) is an open standard for describing data that is promoted by the World Wide Web Consortium, or W3C. It is used for defining data elements on a Web page and Business-to-Business documents. XML allows virtually any data items, such as product, sales rep and amount due, to be identified, allowing Web pages to function like database records. By providing a common method for identifying data, XML supports Business-to-Business transactions and is expected to become the dominant format for electronic data interchange (see EDI). Since its introduction, XML has been hyped tremendously as the panacea to E-commerce, but it's only the first step. The human-readable XML tags provide a simple data format, but the intelligent defining of these tags and common adherence to their usage will determine their value. For example, cXML (Commercial XML) from Ariba and CBL (Common Business Library) from Commerce One are some of the first XML vocabularies for business data. DSML is a set of XML tags that defines the items in a directory. XML tags are defined in an XML schema, which defines content type as well as name. XML tags can also be described in the original SGML DTD format, since XML is a subset of the SGML language. There are several Web sites that provide repositories for publishing and reviewing XML schemas, called XML repositories. (Source: adapted from www.techweb.com) 57. APPENDIX B E-Commerce & the Canadian Trucking Industry: Survey of Canadian Trucking Firms 58. APPENDIX B 59. APPENDIX B 60. APPENDIX B 61. APPENDIX B 62. APPENDIX B 63. APPENDIX B 64. APPENDIX B 65. APPENDIX B 66. APPENDIX C Candidate Case Study Selection Process 67. APPENDIX C Case Study Candidate Selection Process 1.0 INTRODUCTION As part of the case study candidate selection process, a systematic approach to identifying potential candidates was taken in order to assure the best possible representation of firms active in e-commerce. A four stage screening process was developed in order to derive a list of potential case study candidates. Using the short list derived from the four-stage screening process, candidates were ranked according to their e-commerce aptitude using a score sheet based on nine survey questions. The result was a ranked list of potential survey candidates. The following is a detailed outline of the process just described. 2.0 FOUR STAGE SCREENING PROCESS 2.1 Stage 1 An initial screening was performed by removing all candidates that displayed a disinterest in e-commerce. Questions 29 and 30 were used to screen out the initial candidates. Any free form comments displaying a pre-disposition against e-commerce were removed. This lead to a screening out of 5 candidates based on comments such as: “We are not a good candidate for the pilot.” “In future do not have surveys which must be completed in the months of December, March, or April. These are very busy times for carriers.” “The faster technology advances, the less patience people have waiting for a truck with a human driver and a real set of wheels on it. Expectations can become unrealistic.” Additionally, one company that declined to identify itself was also removed. 2.2 Stage 2 A second screening was performed on the basis of the response to question 12: does your firm use an e- commerce application? This led to an additional screening out of 5 candidates leaving 29 possible candidates to choose from. 2.3 Stage 3 The third screening was performed on the basis of the response to question 14: does your firm have a public/private Web site? These companies are probably using a closed system of e-commerce (such as EDI) and will not provide useful information relevant to the focus of this study (i.e. Internet-based e- commerce). This led to an additional 5 candidates being screened out leaving 24 possible candidates to choose from. 2.4 Stage 4 A final screening was performed based on the response to question 15: What functions does your company Web site perform? Firms that indicated either “Perform business transactions...” or “Other” were kept in the sample. A total of 10 candidates were screened out by these criteria. The logic behind selecting question 15 as a criterion for screening is that companies that operate “static” Web sites will provide little useful information for the purpose of the Case Study. 68. APPENDIX C 3.0 RANKING OF SCREENED CANDIDATES The initial screening process produced a set of 14 possible candidates. A database of these likely candidates and their responses to the survey was derived from the complete survey database. Using the candidate database, some profile charts were produced to help in the decision of three final case study candidates. Nine profile charts were produced, each based on a question from the survey that was seen as being a good indicator of past and present experiences and success in e-commerce. Additionally two general profile questions unrelated to e-commerce were also added for the purpose of identifying company size and location of each candidate firm. The nine questions used were: • Question 2: Province indicated in address • Question 10 – Fleet size: How many of each vehicle type do you operate? In the case of fleet size, it was decided that power units (tractors and straight trucks) were a more suitable measure of company size than total tractors, straight trucks and trailers. • Question 16: Roughly what percent of these areas of your business is conducted with e-commerce today? • Question 17: Does your firm use any e-commerce supply chain management software? • Question 20: Please rate the benefits you feel your company gains by using e-commerce applications, if it is doing so. • Question 21: Has your firm implemented an e-commerce application in the past that is no longer used in the present? • Question 22: Which of the following methods does your firm use to perform the following tasks? • Question 27: Roughly what percent of these areas of your business could ideally be conducted with e- commerce? • Questions 29 and 30: free-form responses that were insightful or relevant to the study Based on the profile charts produced in the database, a ranking was produced for the 14 likely candidates. Points were awarded to responses for each question. Each firm’s rank was determined by summing points scored in each of the seven questions. The first two questions, on province and fleet size,were not used in the scoring process itself, but were later used to choose between firms that received comparable scores. The scoring sheet is shown below: 69. APPENDIX C CANDIDATE SELECTION SCORING SHEET Question Ranking 16. For each business function conducted with e-commerce, 1 point for 1-20%, 2 for 21- 40% and so on. 17. 2 points if answered yes 20. For each benefit, 2 points for Strongly Agree, 1 for Agree, 0 for Disagree, -1 for Strongly Disagree. 21. 5 points if answered yes (This is an indicator that the firm has experience with either upgraded or phased out e-commerce applications). 22. 1 point each for any activity performed with either EDI, 2 points each for any activity performed via Web 27. 1 point for each increase in each business function (i.e. if they perform 1-20% of pick up/dispatch using e-commerce, and they indicate that 21 to 40% potential for future use, then that is a 1 point increase. 29. 2 points if they answered yes Q 29-30 2 points for each insightful comment The scorecard shown below summarizes the results of the ranking process. The firms are sorted according to total score (highest to lowest). Aliases of firm names have been used to keep anonymity. Results of Ranking of Potential Case Study Firms Q.29 Company Q. Q. Q. Q. Q. Q. Q. & Total Name 16 17 20 21 22 27 29 Q.30 Firm Z 8 0 7 5 21 11 2 2 56 Firm AM 13 0 8 0 10 23 2 0 56 Firm V 3 0 4 5 21 18 0 0 51 Firm AF 11 0 6 0 17 16 0 0 50 Firm R 10 0 7 0 12 16 2 2 49 Firm AD 5 0 7 0 16 15 2 2 47 Firm S 3 0 4 5 4 25 2 2 45 Firm O 5 0 7 0 12 20 0 0 44 Firm AC 7 2 10 0 6 14 2 2 43 Firm B 10 0 7 5 20 0 0 0 42 Firm AL 5 0 7 0 4 15 2 0 33 Firm A 5 2 0 5 0 16 2 2 32 Firm Y 3 2 4 0 7 9 0 2 27 Firm AG 0 0 0 0 0 0 0 0 0 70.