Payment News
Most Read
Most E-mailed
E-mail Article
Print Article
Ocean Logistics Stands to Rise above Sea of Paper as Citi, GT Nexus Launch EIPP Service
Electronic invoice presentment and payment service aims to provide ocean carriers and their freight forwarder customers with a fully electronic means to present, pay ocean freight invoices
New York — September 17, 2009 — The Global Transaction Services (GTS) business unit of financial services company Citi is partnership with GT Nexus to deliver an electronic invoice presentment and payment (EIPP) solution to the ocean logistics industry, the two companies announced today.
The partnership will leverage Citi's existing electronic invoice settlement expertise, currently offered to the air logistics industry, with the connectivity and standardization technology of the GT Nexus trade and logistics portal. The solution is intended to provide ocean carriers and their freight forwarder customers a fully electronic means to present and pay ocean freight invoices.
Standard paper invoice presentment and payment processes are riddled with process inefficiencies, lack of standardization and insufficient controls that often result in increased days sales outstanding (DSO), trapped working capital and inflated invoicing and collection costs. As Citi and GT Nexus see it, in the current economic environment, when process optimization and spend management are at a premium, such inefficiencies cannot be afforded.
By automating these processes and leveraging GT Nexus' on-demand technology and implementation expertise, Citi clients stand to benefit from a fully electronic option to present, approve, adjudicate, pay and reconcile ocean freight invoices that will result in improved cash-flow visibility, accelerated payment settlement and lower costs, the new partners said in announcing their collaborative effort.
"Citi has already achieved much success in the air cargo space and has a long history of delivering innovative solutions that have transformed the air freight bill payment process," said Brent Flynn, global logistics sector head with GTS. "We look to modify this existing solution and make similar strides in the ocean space."
"This is consistent with our strategy to build a global EIPP offering," noted Amol Gupte, North America head of treasury and trade solutions at GTS. "Container shipping is a huge, $200 billion industry that will see tremendous benefit through automation of the financial settlement process."
The partnership will leverage Citi's existing electronic invoice settlement expertise, currently offered to the air logistics industry, with the connectivity and standardization technology of the GT Nexus trade and logistics portal. The solution is intended to provide ocean carriers and their freight forwarder customers a fully electronic means to present and pay ocean freight invoices.
Standard paper invoice presentment and payment processes are riddled with process inefficiencies, lack of standardization and insufficient controls that often result in increased days sales outstanding (DSO), trapped working capital and inflated invoicing and collection costs. As Citi and GT Nexus see it, in the current economic environment, when process optimization and spend management are at a premium, such inefficiencies cannot be afforded.
By automating these processes and leveraging GT Nexus' on-demand technology and implementation expertise, Citi clients stand to benefit from a fully electronic option to present, approve, adjudicate, pay and reconcile ocean freight invoices that will result in improved cash-flow visibility, accelerated payment settlement and lower costs, the new partners said in announcing their collaborative effort.
"Citi has already achieved much success in the air cargo space and has a long history of delivering innovative solutions that have transformed the air freight bill payment process," said Brent Flynn, global logistics sector head with GTS. "We look to modify this existing solution and make similar strides in the ocean space."
"This is consistent with our strategy to build a global EIPP offering," noted Amol Gupte, North America head of treasury and trade solutions at GTS. "Container shipping is a huge, $200 billion industry that will see tremendous benefit through automation of the financial settlement process."
RSS Feeds
