GT Nexus offers software to support service contract tasks
Alameda, Calif.-based IT firm GT Nexus has introduced software and a contractual staff service to support the service contract bidding, optimization and contract management of shippers.
The on-demand managed service, using the GT Nexus system, includes Web technology for procurement, optimization and contract management, and a dedicated GT Nexus specialist to run the system. The software deals with the complex process of bidding, evaluating, negotiating and securing ocean service contracts, which can run to tens of thousands of line items, GT Nexus said.
Optimization software allows the shipper to do scenario planning, consider trade-offs between price and service, apply customer-specific business rules, and evaluate other performance factors that impact overall global transportation costs.
The IT firm said that this service is designed for importers or exporters with 5,000 or more full-container shipments annually and who contract with between 5 and 50 ocean carriers.
Logistics professionals are consumed with day-to-day operating challenges to keep their supply chains flowing, according to John Urban, president of GT Nexus. “The annual bid process burdens them with a difficult, labor-intensive management task,” he said. “They need technology tools and expertise.”
Ocean transportation contracts typically are negotiated during the early months of the new year, ahead of the peak shipping season, Urban noted.
“This year in particular, ship lines are expecting record volumes, capacity is tight and rates are on the upswing. Global businesses are under pressure to secure agreements that give them adequate capacity at reasonable cost,” GT Nexus said.
GT Nexus believes that a managed on-demand service can be implemented by shippers quickly without heavy upfront investments.