The Role of IoT in Shaping the Future of Supply Chain 23rd edition | Page 81

Negotiation Automation Platform
On this screen , it is possible to view the status of simultaneous negotiations with the automotive dealer ( customer ) and the suppliers ( of seats , engines , and batteries , in this case ), which need to be improved in the production of the cars being negotiated . The table at the top provides a list of negotiations , the graph at the bottom left represents the negotiation process , and the table at the bottom right depicts the messages being exchanged in negotiation proceedings .
Assuming that the negotiation partners adopted a similar NAP solution , we conducted an Automated Negotiation simulation among these five companies . As a result , we confirmed that completing negotiations for procuring all missing parts and finalizing the sale of completed cars with consistent pricing and delivery dates , could be accomplished in just a few dozen seconds . In contrast to the several weeks typically required by current manual methods , we confirmed that a dramatic increase in efficiency is achievable through this approach .
5.3 AIR CARGO COORDINATION
The third case study focuses on the air cargo supply chain . We conducted a simulation where an air cargo forwarder ' s Automated Negotiation AI simultaneously and consistently executed negotiations for cargo slot allocations with airlines and cargo shipment schedule coordination with shippers . In this case , the negotiation partners were assumed to be humans .
The scenario is as follows ( see Figure 5-6 ):
1 . A shipper has an urgent transportation demand for their cargo , and negotiations with a forwarder begin .
2 . However , upon checking the cargo space situation of the forwarder and airline , there are no available slots for the desired flight .
3 . Delivering date changes are negotiated with other shippers who have already secured transport contracts to obtain cargo space . Simultaneously , spot cargo allocation negotiation with the airline is undertaken . If some coordination can fulfill all requirements and is concluded , other coordination efforts are closed , and the urgent cargo is transported as requested .
76 August 2023