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EAST RUTHERFORD,
NJ, October 11, 2007 --
Management Dynamics Inc., a
leading provider of global trade
management solutions, today
announced a strategic alliance
with CombineNet that will
provide importers and exporters
with a comprehensive spend
management system to effectively
reduce the escalating costs of
global transportation.
CombineNet’s advanced sourcing
platform integrates with
Management Dynamics’
international transportation
management system to automate
the complete procure-to-pay
process for airfreight and
seafreight operations. This new
joint product offering is
available now for the 2008
contracting year.
According to Aberdeen Group’s
recent report, Winning
Strategies for Transportation
Procurement & Payment, 81% of
380 enterprises surveyed with
freight spend over $25 million
plan to implement new
transportation procurement and
payment technology. And, the
majority of respondents believe
that a more sophisticated
procurement and freight audit
solution can save an average of
8.8% on their overall freight
budget.
“Aberdeen research consistently
shows that simply managing
transportation spend at the
day-to-day, tactical level is no
longer enough to remain
competitive,” according to Ian
Hobkirk, Senior Analyst in
Aberdeen’s Logistics practice.
“Management Dynamics’ approach
will allow them to provide a
comprehensive solution that
combines the best aspects of
global trade management,
tactical transportation
management, and, through
CombineNet, strategic
transportation procurement.
Aberdeen research shows that
Best-in-Class companies are 60%
more likely to use these types
of flexible bidding systems in
their transportation procurement
process.”
CombineNet’s Advanced Sourcing
Application Platform enables
Expressive Commerce, a
strategic sourcing approach that
allows shippers and carriers to
make optimal cost, volume and
service tradeoffs with the
following key capabilities:
- Patented optimization engine to analyze potential award scenarios across an unlimited number of bids, bid attributes and business constraints in seconds.
- Expressive Bidding delivers optimal transportation cost savings by enabling carriers to make creative bids that leverage their strengths, letting them offer conditional pricing, equipment and route alternatives, and packaged offers to deliver greater value at a lower cost.
- Scenario Builder helps shippers make better decisions faster by analyzing each bidding iteration alongside business rules and preferences to understand the cost and service level implications of transportation awards
"We have been delivering
successful seafreight and
airfreight sourcing projects for
years that have saved some of
the world’s largest shippers
millions of dollars at the time
of the award,” said CombineNet
CEO, Tony Bonidy. “Our alliance
with Management Dynamics expands
the value proposition for
clients with a complete
automation solution that
improves efficiencies and allows
them to more effectively manage
their global transportation
providers before and after the
bid award.”
Awards generated from the
CombineNet solution are then
managed over the contract term
in Management Dynamics’
transportation management
solution which delivers the
following operational benefits:
- Improve contract
management through a
centralized repository and
contract amendments with
role-based access
- Simplify routing
decisions by comparing
all routing combinations,
including transshipment
points, available under
contract
- Optimize carrier
selection decisions by
comparing side-by-side
alternative carrier services
and bottom-line costs
inclusive of all
assessorials prior to
booking
- Manage contracted
commitments against
actual volumes
- Automate the freight audit process to identify, document and
resolve discrepancies with
carriers prior to payment
Contracts are managed
throughout the entire lifecycle
to monitor changes to routes and
rates and facilitate future
tenders with baseline carrier
data and performance metrics.
"Closed-loop spend management
for global transportation
provides the right mix of
information technology and
services to enable companies to
get control over their freight
costs in support of their
internationalization
strategies,” said Jim Preuninger,
CEO of Management Dynamics.
“CombineNet’s advanced sourcing
technology can handle the
complexity of today’s global
transportation networks and
uncover real cost savings from
the ‘win-win’ innovation of
Expressive Commerce.”
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