Citi’s Global Transaction Services (GTS), and GT Nexus 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 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, say the companies.
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, explains GT Nexus. “In the current economic environment where process optimization and spend management are at a premium, such inefficiencies cannot be afforded.”
“Citi has already achieved 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, 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.”