A Comparative Analysis of Electronic Freight Exchanges in the United States and Europe with the Use of the Multiple Criteria Decision-Making Method “Promethee”

Abstract

Purpose: The main purpose of this article is to conduct a comparative analysis of the electronic freight exchanges in the United States and in Europe by means of multiple criteria decision making (MCDM) method Promethee. Design/Methodology/Approach: MCDM Promethee method with the use of secondary data based on industry and branch reports from Europe and the United States as well as available statistical data and the analysis of relevant literature. The article is addressed, both to EFEs providers as well as their users. Findings: On the market of European and American open electronic freight exchanges there is a dispersed entity structure that promotes the occurrence of price competition. The differences, however, relate in particular to the number of users, geographic domination within the markets served, the period and nature of cooperation and the motives for its implementation, the integration of users' IT systems and the role of freight exchange operators in the construction and functioning of the supply chain. Practical Implications: The indication of the fundamental differences between European and American exchanges, which comprise the area for further improvements. Research limitations: The analysis is based on secondary data. No possibility of obtaining primary data from the largest players on the market of electronic freight exchanges in Europe and the USA, which constitute confidential business information Originality/value: tool development with the use of MCDM method for a comparative analysis of electronic freight exchanges. The tool can support electronic freight exchanges in the identification of strengths and weaknesses of their services as well as can be used in the process of formulation of their development strategies.