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GT Nexus launches new global trade management platform

GT Nexus has released GT Nexus Trade, an integrated set of trade and financial services delivered on-demand over the company’s industry-backed global trade and logistics portal.

 

Based on a proven foundation of global supply chain integrations and data that is already supporting customers and their logistics providers, GT Nexus Trade gives companies, their trading partners and their banks a single, industry-neutral platform to automate the global ‘procure-to-pay’ process. The new capabilities support a range of advanced supply chain finance strategies to lower costs and improve working capital efficiency across the supply chain.

 

Companies have long been forced to operate in two separate but equally vital supply chain worlds – the physical and the financial. But the documents and data required to inform and automate the financial supply chain are exactly those that are produced and exchanged by trade and logistics partners all along the physical supply chain.

 

This has resulted in redundant practices, miscommunication, and working capital tied up in centuries-old processes. GT Nexus today manages the digital flow of documents and data that are vital to logistics and which also play a crucial role in global payment and financing processes.

 

Banks especially stand to benefit from new levels of operational efficiency by tapping GT Nexus for standardised data and documents.

 

“It takes a technology platform and an integrated partner network to deliver the trade documents and data needed for broader financial control and automation,” says Paul Johnson, senior vice-president, Bank of America Global Treasury Services.

 

“With its proven track record in trade logistics and its integrated partner network, GT Nexus is uniquely positioned to give sourcing, financial and treasury services personnel a whole new level of visibility and control over their financial operations,” says Dan Riley, the former president of Bank of America’s Global Treasury Services and a current GT Nexus board member. “That level of control can serve as the foundation for broader automation and more innovative financing strategies to improve cash flow for trading partners.”

 

“We use GT Nexus to track the flow and status of purchase orders, inventory, and shipments globally,” says James Orr, director of international logistics at Cost Plus World Markets, a specialty retailer with over 290 stores in 34 states. “The data and documents stored in the system are incredibly useful not just to logistics but to our finance teams as well. With GT Nexus the teams get a single version of supply chain truth, accessible immediately, over the web.”

 

“According to our research, the average US$1bn company can free up US$10mn-US$40mn in cash through global trade process improvement and automation,” says Beth Enslow, senior vice-president of enterprise research for Aberdeen Group. “GT Nexus has already done the hard work of connecting the key physical supply chain players and standardising associated data and documents – so this expansion makes a lot of sense.”

 

Importers, exporters and their banks not only speed document exchange and presentment over GT Nexus.

 

They can also enable a range of supply chain financing programmes that further reduce cost of goods sold (COGS), strengthen strategic partnerships and deliver better cashflow, including:

 

 

    • Pre-shipment financing – or vendor financing, made possible through clear vendor performance data and real-time visibility to purchase orders, resulting in better access to cash for the vendor and lower COGS to the buyer.

 

    • Inventory financing – or buyer financing, made possible by better visibility to in-transit inventory to support asset-based lending programmes.

 

  • Post-shipment financing – factoring or early payment discount programmes that enable better cashflow to vendors and in-exchange discounts or extended terms to the buyer.

 

“We spent the better part of a decade creating the industry-backed network platform to give leading companies and their partners control over their physical supply chains – the flow of goods and shipments,” says Aaron Sasson, CEO of GT Nexus. “We’re leveraging that same infrastructure and many of the same services to quickly give companies visibility to and control over their financial supply chains as well.”

 

GT Nexus Trade services are delivered alongside the company’s proven logistics services; the services share a common partner integration and data platform so that crucial and hard-to-get documents and supply chain information can be shared across the many teams and functions within a company, including sourcing, logistics and finance.