Citi's Global Transaction Services (GTS), a business unit of the leading financial services company, and GT Nexus, today announced a strategic partnership to deliver an electronic invoice presentment and payment (EIPP) solution to the ocean logistics industry.
The partnership will leverage Citi's existing electronic invoice settlement expertise, currently offered to the air logistics industry, with the proven connectivity and standardization technology of the GT Nexus trade and logistics portal. The comprehensive solution will 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. In the current economic environment where 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 will 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.
"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. We look to modify this existing solution and make similar strides in the ocean space. We are very excited to continue this journey with a partner like GT Nexus," said Brent Flynn, Global Logistics Sector Head, GTS.
"This is consistent with our strategy to build a global EIPP offering," added Amol Gupte, North America Head, Treasury and Trade Solutions, GTS. "Container shipping is a huge, $200 billion industry that will see tremendous benefit through automation of the financial settlement process."
"We are very excited to join Citi in their expansion to a new market," said Greg Johnsen, EVP of Marketing at GT Nexus. "We look forward to helping them leverage our proven technology platform and industry expertise so that they can quickly bring a solution to market."