Atlanta, GA USA. (June 5, 2009) – nVision Global Technology Solutions, Inc., a leading global freight audit, payment and logistics management solutions provider headquartered in McDonough, GA USA announced that it has acquired Application Engineering Group Costa Rica. (AEG Costa Rica) a subsidiary of St. Louis, MO based IT services company Application Engineering Group Inc., (AEG). Terms of the purchase, which closed on May 22, were not disclosed.
Under the purchase agreement, AEG Costa Rica will become part of the nVision Global network of operational, customer service support and transportation technology development centers. “The addition of AEG in Costa Rica will support nVision Global's continued strategic global expansion providing current and future customers with the global processing and support capabilities necessary to provide a true global, single source solution,” said Luther M. Brown, nVision Global's Founder & CEO. Presently nVision Global has facilities in Asia (2), Europe (2), North America (3) and Central America (1), with plans to add additional facilities in Australia, South America and Southeastern Europe.
Today, nVision Global processes freight invoices from over 190 countries in over 45 different currencies. With the company’s significant growth, nVision Global is recognized as one of the fastest growing global freight audit and payment provides in the industry. Keith Snavely Vice President of Sales attributes the company’s continued success to a single business philosophy, “To “Partner” with our customers by providing state-of-the-art technology, flexible processes, business intelligence and unparalleled customer service second to none in the industry.”
About Application Engineering Group, Inc. (AEG) and AEG Costa Rica
AEG is a St. Louis, MO. based IT services company providing comprehensive business solutions to companies and organizations throughout the US. AEG helps its customers gain a competitive advantage, improve efficiency and reduce cost within their IT services organization. AEG provides such services to Fortune 100 companies and also has a presence in the small to mid-tier marketplace. AEG Costa Rica provided the same services in a near shore environment.
About nVision Global Technology Solutions, Inc.
nVision Global Technology Solutions, Inc. is a leading global Freight Audit, Payment & Logistics Management Solutions provider. With locations in North America, Central America, Europe and Asia, nVision Global provides multinational companies with global freight invoice pre-audit, payment, logistics management solutions and operational business intelligence necessary for the optimization and streamlining of their global supply chain.
Tuesday, June 30, 2009
Logistics News: U.S. Logistics Costs Drop for First Time in Six Years, Benchmark Report Says
If American transportation and logistics experts got the feeling the past year that the overall U.S. business logistics pie was shrinking, they were correct.
For the first time in six years, total spending on U.S. logistics dropped to $1.3 trillion last year, a decrease of $49 billion from 2007. That’s the gist of the 20th Annual “State of Logistics Report” released by the Council of Supply Chain Management Professionals (CSCMP) on Wednesday.
The annual respected benchmark report revealed the financial damage done to the sector by the ongoing recession. After rising by more than 50 percent the previous five years, business logistics costs fell to 9.4 percent of U.S. Gross Domestic Product last year. That is down from 10.1 percent in 2007. By way of comparison, that figure was 12.3 percent of GDP in 1985.
Transportation costs rose 2 percent, but that was not enough to offset the 13.2 percent decline in inventory carrying costs, primarily due to record-low interest rates last year. Transportation ($872 billion) now accounts for 6.1 percent of nominal GDP while inventory carrying costs ($420 billion) account for 2.9 percent of GDP.
Trucking, which accounts for 78 percent of transport by revenue and half of all business logistics cost, was particularly hard hit, rising just 1.3 percent compared with 4.4 percent for the other modes (rail, barge, air cargo, oil pipelines and forwarders).
For shippers, this has resulted in bargain transport rates, especially in trucking and ocean transport, according to Rosalyn Wilson, the long-time author of the SoL report.
“Abundant capacity, particularly in trucking and ocean shipping, push rates down (last year), often below costs,” Wilson said. “Many companies have not survived the prolonged downturn. Many more will not survive the upcoming months as we continue to ride out the recession.”
As a result of the shakeout—more than 3,000 motor carriers ceased operations last year, taking out approximately 7 percent of truck capacity—supply chains are being redefined and processes changing, Wilson said.
“The industry will emerge more efficient and resilient,” Wilson predicted.
Nevertheless, Wilson added, recovery will be a “longer and more difficult journey” for the logistics industry as it awaits meaningful economic recovery, which, Wilson said, will not come quickly.
“It is becoming more apparent that we will see an end to the decline by the end of this year but not a quick recovery,” she said.
One indicator of that is the sharp, record rise in inventory-to-sales ratios, which Wilson called an “unwelcome sign” of a slow recovery. Even with historic inventory reduction rates, the inventory-to-sales ratio skyrocketed from a low last June of 1.25 to 1.46 by December. That is the swiftest rise in that benchmark since 1982. And Wilson said it occurred across the entire distribution chain—wholesale, manufacturing, and retail.
That took a toll on transport pricing. After 6 percent rise in 2007, total transport costs were up less than 2 percent last year. Trucking, the largest component of transport, rose just 1.3 percent. Lower fuel surcharges and tougher bargaining by shippers were cited, especially during the soft 2008 fourth quarter, when truck tonnage fell 6 percent. That decline has carried over into this year, Wilson said.
Read the rest of the scmr.com article here.
For the first time in six years, total spending on U.S. logistics dropped to $1.3 trillion last year, a decrease of $49 billion from 2007. That’s the gist of the 20th Annual “State of Logistics Report” released by the Council of Supply Chain Management Professionals (CSCMP) on Wednesday.
The annual respected benchmark report revealed the financial damage done to the sector by the ongoing recession. After rising by more than 50 percent the previous five years, business logistics costs fell to 9.4 percent of U.S. Gross Domestic Product last year. That is down from 10.1 percent in 2007. By way of comparison, that figure was 12.3 percent of GDP in 1985.
Transportation costs rose 2 percent, but that was not enough to offset the 13.2 percent decline in inventory carrying costs, primarily due to record-low interest rates last year. Transportation ($872 billion) now accounts for 6.1 percent of nominal GDP while inventory carrying costs ($420 billion) account for 2.9 percent of GDP.
Trucking, which accounts for 78 percent of transport by revenue and half of all business logistics cost, was particularly hard hit, rising just 1.3 percent compared with 4.4 percent for the other modes (rail, barge, air cargo, oil pipelines and forwarders).
For shippers, this has resulted in bargain transport rates, especially in trucking and ocean transport, according to Rosalyn Wilson, the long-time author of the SoL report.
“Abundant capacity, particularly in trucking and ocean shipping, push rates down (last year), often below costs,” Wilson said. “Many companies have not survived the prolonged downturn. Many more will not survive the upcoming months as we continue to ride out the recession.”
As a result of the shakeout—more than 3,000 motor carriers ceased operations last year, taking out approximately 7 percent of truck capacity—supply chains are being redefined and processes changing, Wilson said.
“The industry will emerge more efficient and resilient,” Wilson predicted.
Nevertheless, Wilson added, recovery will be a “longer and more difficult journey” for the logistics industry as it awaits meaningful economic recovery, which, Wilson said, will not come quickly.
“It is becoming more apparent that we will see an end to the decline by the end of this year but not a quick recovery,” she said.
One indicator of that is the sharp, record rise in inventory-to-sales ratios, which Wilson called an “unwelcome sign” of a slow recovery. Even with historic inventory reduction rates, the inventory-to-sales ratio skyrocketed from a low last June of 1.25 to 1.46 by December. That is the swiftest rise in that benchmark since 1982. And Wilson said it occurred across the entire distribution chain—wholesale, manufacturing, and retail.
That took a toll on transport pricing. After 6 percent rise in 2007, total transport costs were up less than 2 percent last year. Trucking, the largest component of transport, rose just 1.3 percent. Lower fuel surcharges and tougher bargaining by shippers were cited, especially during the soft 2008 fourth quarter, when truck tonnage fell 6 percent. That decline has carried over into this year, Wilson said.
Read the rest of the scmr.com article here.
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