With a growing demand for efficient, reliable and cost effective last mile delivery in emerging markets, many organizations in the logistics and e-commerce spheres are investing in various solutions. However, given the complexity of the problem and the various obstacles it poses, many challenges are faced in coordinating deliveries based on stochastic demand and limited resources. The proposed platform outlined in this description offers a simple solution through the use of reverse auctions and service weighted bids.
The platform will allow businesses requiring the transportation of item(s) to create auctions where carriers can place bids. Carriers are registered individuals or organizations that provide delivery services. The bids are then adjusted for performance such that carriers with lower performance ratings will have their bids adjusted upwards to reflect the potential failure cost to the business. The system therefore matches carriers to businesses based on both cost and service level.