‘Staying agile to meet changing customer needs,’ says CEO
DOWNERS GROVE, IL -- NTE, formerly called the National Transportation Exchange, today announced robust growth in its operations for fiscal year 2000.
For the past five years, the B2B e-commerce company has been offering an online marketplace for companies who buy, sell and manage ground transportation services. While the privately held company did not disclose actual year-end results, it did announce sizeable growth in trading volume and participation in its e-marketplace. Comparing year-over-year results:
- Transactions, or the actual number of shipments that were traded in its e-marketplace, grew 45 percent.
- Trade rate, or the percentage of shipment tenders that actually traded in its e-marketplace, increased by 85 percent.
- Membership doubled, to 650 shippers and carriers. Companies who want to buy and sell through NTE agree to service and reliability standards that help ensure high-quality transactions.
“News of the demise of online marketplaces is greatly exaggerated for companies like ours that have traction in the marketplace and demonstrate clear value for customers,” said Jim Davidson, NTE’s president and chief executive officer.
“After four years of building a technologically superior e-commerce engine, we turned the corner in 2000 to make sure our solutions are not only predictable, repeatable and scalable, but that they address legitimate business needs. We’re clearly gaining in our drive to reach liquidity, while staying agile to meet the changing needs of our customers.”
In 2001, NTE plans to enhance its offerings by introducing: private trading communities, logistics consulting services, core carrier development and management, improved information management capabilities, and value-added services supporting its existing member-based trading community.
NTE is presently in active discussions with more than a dozen Fortune 500 companies interested in establishing private trading communities to gain visibility, optimization and supply chain control. A private trading community allows a shipper, or group of shippers, to establish an online marketplace with their existing carriers, vendors and customers.
“Online marketplaces have just begun to scratch the surface in helping companies dramatically improve management of their supply chains and the overall competitiveness of their businesses,” Davidson said.
Among the 2000 developments that sparked NTE’s growth, it:
- Introduced an Alternate Placement solution so companies can move all their shipments, including those that don’t trade in NTE’s online marketplace.
- Added refrigerated freight, in addition to dry van freight, to trade in its marketplace. Together, these sectors cover most of the $470-billion ground transportation business.
- Developed strategic business alliances to improve its reach and services. Among its partners: SAP Markets, Manugistics, FreightMatrix, Yantra and TruckersB2B.
- Enhanced its e-marketplace by adding new search capabilities for carriers; improving its proprietary pricing formula; acquiring auction and contract management functionalities; and introducing cross-docking as an optional member service.
- Launched a new corporate identity, revamped its website (www.nte.com) and revitalized its management team by retaining deep domain and technical expertise.
- Developed sales, operations and marketing organizations to strengthen its ties with members; develop needs-based solutions for prospects; and solidify NTE’s brand.
“Fueled by the strong support we received from our venture-capital partners, 2000 was a banner year for investment and heightened focus on customers,” Davidson said. “We expect to reap the benefits of our efforts in the months and years to come. And we’re not sitting still.”
About NTE: Formed in 1994, NTE (www.nte.com) improves how companies buy, sell and manage transportation services via leading-edge, technology-enabled solutions. Its online procurement services and information management tools provide indispensable supply chain value and control for shippers and carriers. The privately held, B2B e-commerce company is based in Downers Grove, IL and has about 650 member customers. NTE investors include FedEx, Dell, Generation Capital, Hummer Winblad, AT&T, divine interVentures, Lightspeed, CrossPoint and Bessemer.
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