SOURCE: GT Nexus, Inc.

July 18, 2006 07:23 ET

GT Nexus Reports Record Transportation Bid Activity on Global Logistics Portal

Major Shippers Use Single, On-Demand Portal to Collectively Negotiate, Award and Manage Over $3.5 Billion in Transportation Services for 2006 Bid Season

ALAMEDA, CA -- (MARKET WIRE) -- July 18, 2006 -- GT Nexus reported today that it experienced record activity levels for the just-completed 2006 ocean transportation bid season. The bidding and contracting capabilities on the GT Nexus portal are the industry's most widely used system for shippers to negotiate, execute and manage their spend with global transportation carriers via the Web.

For the 2006 bid season, which occurs each spring, GT Nexus tallied the following results:

--  Over 2.6 million TEUs procured and managed over the portal (One TEU is
    a 20-foot cargo container or its equivalent)
--  More than $3.5 billion in transportation services contracted with
--  Participation of ocean carriers who together control more than 90% of
    global TEU capacity
"These numbers are up 150% from 2005, and represent over 20% of all container volume moving in and out of North America," said GT Nexus president, John Urban. "This demonstrates two things. First, the concept of going online to handle a multi-million dollar, strategic transportation spend has become common for big shippers. And second, GT Nexus has become the industry standard and market leader for global transportation management."

"Ten years ago, people were having trouble with the concept of making an airline reservation online," said Ann Grackin, chief executive officer of ChainLink Research Inc., a supply chain research firm based in Cambridge, Mass. "Now we are seeing the biggest companies in the world going online and collectively spending over $3 billion on a critical component of their global supply chains through a single, industry-backed portal. I think this provides a preview on how supply chains will be managed in the future -- online."

Major shippers such as DuPont, Hewlett-Packard, The Home Depot and Procter & Gamble have been using the GT Nexus portal's global transportation management capabilities for several years, pioneering a whole new direction for the industry. As new customers adopt the portal to conduct their bids, they find that most of their carriers are already familiar with the GT Nexus system.

Historically, the big challenge of conducting a bid is the lack of standardization across carrier proposals. Ocean transportation contracts are massive, complex documents that often list the service terms and commitments between the shipper and each of its carriers in different formats. GT Nexus helps untangle that complexity by providing a single, unified contract structure. That means all bid participants follow the same procedures to request, propose, counter, negotiate, accept and then award transportation agreements.

Once the structured rates and service levels are captured, shippers have an "online data hub" which sets the foundation for other, more sophisticated portal capabilities, including:

--  Strategic Optimization to allocate cargo across all carriers at the
    ideal service price mix
--  Contract Management that allows customers and carriers to actively
    manage the agreements as the services are delivered
--  Execution of services with integrated carriers, directly from online
--  Freight Audit that automatically compares the contracted pricing with
    rated bills as they come in
--  Analysis of provider performance to identify strengths and weaknesses
The dramatic rise in adoption is fuelled by the convenience of using the GT Nexus portal. Since GT Nexus is a Web-based on-demand service, users can access contracts online from virtually anywhere, in a secure environment.

GT Nexus provides all of its global logistics management capabilities as a service over the Web, a delivery model known as "on-demand." Unlike buyers of traditional software, customers avoid the hassles of buying a license and then installing and maintaining the software on their own systems. Customers use just the capabilities they need, paying as they go only for what they use.

Customers also have the option to use other premium GT Nexus services like multi-modal inventory visibility, trade document automation and real-time landed cost updates.


GT Nexus runs the world's only industry-backed, on-demand global logistics portal. Today, more than 40,000 registered users, from over 15,000 organizations use a range of capabilities on the portal to control and optimize the flow of goods and information from order to delivery, worldwide. GT Nexus also is backed by several leading ocean carriers who transact over the portal with thousands of their importer, exporter and 3PL customers. For more about GT Nexus, visit

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