San Diego July 9, 2002 Schneider Logistics has implemented online auction technology from Net Exchange as part of its SUMIT CVA transportation procurement system.
Operational since the fall of 2001, SUMIT CVA is intended to give shippers an online tool for securing low-cost, long-term freight contracts.
Schneider is using technology that Net Exchange called its "combined value trading framework," which enables a multi-round auction in which carriers dynamically revise price and service lane combinations based on a shipper's requirements.
In a multi-round auction format, SUMIT CVA allows the matching of carrier capacity with shipper demands by allowing carriers to bid on bundles of lane combinations and groupings of loads that reflect the best use of their transportation network.
"Our customers' strategic procurement requirements are better served through the application of combined value principles, and we were impressed with Net Exchange's ability to adapt its tool to the highly complex transportation procurement environment," said George Grossardt, vice president of alliance services at Schneider. "We were able to easily integrate Net Exchange's advanced combined value trading framework and customize its use to deliver this new procurement option to the freight industry."
"Better transactions occur when the shipper and carriers find the match that most efficiently allocates shipments to each carrier's network," said Charles Polk, president of Net Exchange. "Schneider Logistics recognized that determining the optimal match among many possible fits is a capability not offered in the freight industry. Net Exchange's approach to transaction optimization finds these optimal matches, providing a distinct advantage to SUMIT CVA."
Logistics consultancy Jos. Swanson and Co. worked with Net Exchange to incorporate the combined value-trading framework into SUMIT CVA.
Schneider Logistics - www.schneiderlogistics.com
Jos. Swanson & Co. - www.jsco.com
Net Exchange - www.nex.com
