JPMorgan and global transportation management company Trax Technologies are jointly offering a suite of logistics and financial services that includes supply chain financing solutions for Trax's customer base of freight carriers and shippers.
Trax's outsourced freight invoicing service automates and manages the billing and accounts receivables process. Carriers will benefit from reductions in days sales outstanding and a more cost-effective and compliant billing infrastructure, according to Trax. By adding JPMorgan's supply chain financing solution, Trax can extend the shipper's payment terms while enabling the carrier to discount its receivables for cash. The partnership allows Trax to leverage JPMorgan's strength in supply chain finance and logistics management to provide complete freight settlement services to carriers and logistics companies.
With JPMorgan supply chain financing, carriers can automatically or manually select receivables to discount and decide how and when they wish to receive payment. Carriers will be notified of, and have the option to sell to JPMorgan, confirmed invoices meeting eligibility criteria-or to select some invoices to be sold to JPMorgan. Carriers receive payment from JPMorgan of a discounted price for the invoices purchased, along with comprehensive remittance data. At maturity, the shipper will settle all confirmed invoices that were delivered to JPMorgan's platform.
"Combining JPMorgan's financial expertise with Trax's proven success in freight cost management will help our customers further improve their financial supply chain operations," says J. Scott Nelson, CEO of Trax Technologies.
