Arvato Financial Solutions, financial service provider of Bertelsmann, has announced it has acquired a stake in Swiss logistics digitalization and TradeTech pioneer Nexxiot, furthering its strategy to invest in cutting-edge, data-driven solutions that advance global supply chain precision and dependability.
The groundbreaking partnership, whereby Arvato Financial Solutions will become a shareholder in Nexxiot, aspires to set a new standard in worldwide cargo transparency. Leveraging onboard digital technologies backed by AI powered Cloud solutions, they will ensure unparalleled trust and accountability spanning intermodal freight networks around the world while delivering unsurpassed value to customers in more than 160 countries.
Already one of the largest IoT and big data analytics companies in the supply chain space, Nexxiot will now add enhanced software and controls through the Bertelsmann subsidiary financial and systems expertise, while Arvato Financial Solutions will harness the dependability, reach and performance of Nexxiot’s industry leading sensors, gateways and Cloud solutions. Together, these capabilities promise unique business intelligence unlike anything in the cargo transportation sector.
“Financial services and global logistics are intertwined. Containers, railcars and the cargo they contain, represent significant financial investments. Stakeholders are looking for ways to manage risk and reduce operating costs,” said Jan Altersten, Chief Executive Officer of Arvato Financial Solutions. “We see a tremendous opportunity to transform the global cargo shipping industry through the deployment of digital solutions and the application of Big Data enabled AI. We are pleased to become an investor in Nexxiot and will rapidly deploy a business collaboration to accelerate the digital revolution in shipping.”
Stefan Kalmund, CEO of Nexxiot AG, added, “As an important global player and being well known for its digital innovation, Bertelsmanns’ Arvato Financial is the ideal partner to develop an intelligent cargo shipping platform that meets the needs of commerce today and into the future. Nexxiot’s TradeTech is already the leading digital cargo transformation tool across Europe and beyond, and this new collaboration promises to further accelerate its adoption worldwide.”
Nexxiot already creates significant value for asset and cargo owners in the supply chain. Providing field-proven precision IoT hardware, software applications and cutting-edge analytics, Nexxiot’s technology is critical to fleet owners, carriers and beneficial cargo owners alike. Adding Arvato Financial Solutions’ experience for the financial connection and as fellow standard-bearers, will enable clients to benefit from full cargo and transactional transparency in one place. This includes movements, handling, quality, provenance and more. The technology also enables automation of processes and the reinvention of business models to be more ‘outcome based’, meeting the demands of digital trade participants everywhere.
‘Know Your Cargo’ Poised to Transform Global Shipping
Just as the financial services sector has been transformed in efficiency and traceability through international “Know Your Customer” (KYC) standards, Arvato Financial Solutions and Nexxiot believe global trade will now experience the radical new “KYC” benefits for shipping – “Know Your Cargo.”
In 2021, seven ocean vessels were destroyed by fire due to weaknesses in today’s cargo declaration processes. This is just one example demonstrating how today’s “good faith” cargo transparency standards are no longer good enough. Each stakeholder from carriers to customs, insurers and owners, ports and terminals need better assurances when third parties take on critical processes, many times on the other side of the planet. Advanced digital services ensure cargo quality, safety and sustainability, and are required to control risks like damages, loss, theft, illegal trafficking and movements of hazardous goods.
To fully realize Know Your Cargo, raw data from robust hardware must be combined with advanced and secure platform analytics to deliver trusted stakeholder value. The resulting visibility will drive streamlined processes and establish better standards and business models. Always a frontrunner on new global megatrends, Arvato Financial Solutions recognized this emerging market and responded by creating the ‘Customer Information Network Intelligence’ platform known as Cinfoni. When combined with Nexxiot’s powerful Connect Intelligent Cloud, a new paradigm in cargo accountability will be defined.
Arvato Financial Solutions
Arvato Financial Solutions is a subsidiary of Bertelsmann SE & Co. KGaA, a privately owned media, services and education company that operates in about 50 countries around the world. The affiliated company, Arvato Financial Solutions, provides professional financial services to renowned international brands as well as respected local businesses — allowing them to leave their credit management to a professional, so they can focus on what matters most for their business. The services center around cash flow in all segments of the customer lifecycle: from credit risk management to payment, factoring and accounting services to debt collection. The Arvato Financial Solutions team is made up of around 5,500 experts in 14 countries and is aligned by a common goal: to make sure client’s credit management runs effortlessly and efficiently, ultimately resulting in optimized financial performance. www.finance.arvato.com
Nexxiot AG is a driver of the digital logistics of tomorrow. An industry leader in the digitalization of cargo transportation, Nexxiot empowers global shipping companies and suppliers to harness the power of their data through proprietary, cutting-edge technology and integrated data solutions to track, find and protect cargo across more than 160 countries around the world and via 450 network roaming partners to ensure accountability, security and efficiency. Headquartered in Zurich, Nexxiot operates throughout Europe and the U.S., employing people from 21 countries. The company’s secure, industry leading Cloud comprises data from over 2,5 billion travelled miles Committed to sustainability through corporate and social responsibility, Nexxiot’s goal is to enable a five percent reduction in global carbon dioxide emissions by increasing cargo transport efficiency and eliminating waste caused by empty runs and inefficient routes. https://nexxiot.com/
Source: Arvato Press Release