Connecting Sourcing Networks – GT Nexus (formerly TradeCard)- A SaaS survivor from the 90s David Gustin - May 20, 2014 11:02 AM | Categories: Technology & Platforms | Tags: financial supply chain, GT Nexus, Tradecard, working capital TradeCard, now known as GT Nexus after the combination of TradeCard and GT Nexus in early 2013, brands themselves as a supply chain collaboration platform. Their platform enables companies to run Direct Sourcing and Import programs through a cloud-based platform connecting forwarders, suppliers, large Corporate buyers, financing banks, etc. When GT Nexus announced plans to merge with TradeCard on January 7, 2013, it created a global supply-chain management company that would employ about 1,000 people and serve about 20,000 businesses in industries ranging from manufacturing to retail to pharmaceuticals. As a direct import platform, GT Nexus helps corporates with documentation on compliance instructions, customs manuals, routing guides, human rights guidelines, process updates and training materials. Given the data from purchase orders, packing and shipping documents residing on the GT Nexus Platform, it can assist importers in complying with the U.S. Government’s 10+2 trade regulation and help expedite the customs document creation and filing process. GT Nexus also has developed chargeback modules to help corporates manage shortage, quality, or warranty issues by enabling credit notes. Their historical strength has been on brand apparel and footwear companies and clients include Dicks, StrideRite, Columbia Sportswear Co, Patagonia, Wolverine World Wide, etc. What are the platform synergies? I spoke to the team that focuses on product management and supply chain finance, including Heidi Benko, Bill Jetter and Ted Barba. Prior to the merger, GT Nexus and Tradecard started to run into each other more and more. As Heidi explains, "If you think about life cycle of an order, you have an order go to the Logistics Provider to move goods and order go to the supplier/agent to produce the goods. We are at the process of merging the platform. Now when an order comes in, we connect and write to all relevant objects that might be using it- a supplier for shipment planning or for finance?" They are investing heavily in their roadmap to take them from integrating the messaging and integration between two platforms to one that will involve a single unified navigation experience for the customer. How does GT Nexus facilitate Working Capital solutions GT Nexus’s platform enables finance in two ways: The platform enables international Purchase order financing, similar to what Asian suppliers do off of a letter of credit order (eg. Packing loans). Suppliers can request pre-export financing on an approved purchase order to get the working capital they need to produce the order. A purchase order is signed by both buyer and supplier in the GT Nexus system. GT Nexus partners with banks in local markets to enable this financing. The GT Nexus system can take approved invoices and enable the vendor to receive funds before due date. The GT Nexus working capital team commented that what makes their service unique is that suppliers in emerging markets enjoy financing based upon risk mitigation factors such as the legal and systemic framework of the platform, the visibility and collaboration they have with real time data, the control around money movement, and most important, the ability to analyze detailed historical performance between and across trading pairs to determine the level of risk. This allows the finance provider to avoid lost discount opportunities and more competitively set discount and advance rates when financing at multiple points in the transaction lifecycle such as purchase order financing, staged financing, at title transfer, or at payment approval. First and foremost, GT Nexus provides a way to connect many of the parties critical to international transactions – including the logistic folks like brokers, forwarders, 3PLs, etc. as well as financial institutions like banks. That’s their strong value proposition, visibility into the counterparties, details around the transaction, document, events, etc. GT Nexus has never released public figures on transaction volume financed by either method. They are working with several third party funding providers. Related Articles Striking the Right Cost Balance in Global Sourcing Afternoon Coffee: GT Nexus/TradeCard Link Up, TriplePoint Buys WAM Systems,… Discuss this: Cancel reply Your email address will not be published. Required fields are marked *Comment Name * Email * Website Notify me of new posts by email.