Kewill and Newgistics team up to provide shippers with cost-savings options
CHELMSFORD, Mass. – March 23, 2009 – Kewill, a provider of logistics and global trade software, and returns management services and technology provider Newgistics, recently announced they have formed a partnership that will allow Newgistics’ customers to leverage Kewill’s technology to drive down costs and augment shipping processes. Officials at the companies said that Newgistics will be added as an outbound carrier to the Kewill Shipping application suite—a Web-based multi-carrier shipping management application with an emphasis on parcel shipping. They added that this, in turn, will allow Kewill customers to also reduce shipping expenses. This is done, they explained, when shipments are picked up and delivered to the Newgistics hub, where Newgistics combines packages from multiple origins and manages their insertion into the U.S. postal network at a significant discount. Newgistics Director of Marketing Kevin Brown told LM there were various drivers in establishing a partnership with Kewill. He explained that one of the challenges that a lot of shippers have is integrating a carrier within their operating environment for things like a manifest system or manifest platform or another type of shipping platform. “Oftentimes, shippers are strapped with resources, in terms of the amount of time, materials, and money they have dedicated towards a certain project,” said Brown. “And today’s environment is even more so that way, as companies are actively identifying ways to reduce costs. IT is one of those areas where a lot of shippers have let go of those resources.” Brown said that Kewill is known as a leader in the parcel shipping technology space, and noted that looking at Newgistics’ history over the last six or seven years on the returns side, it has always aligned itself with technology leaders on the enterprise platform—or ERP—space, saying that this partnership seemed like a natural fit as it is a major player in this space. The reason being that this partnership enables Newgistics to provide services for Kewill’s customers in a way which, Brown said “eases the burden in terms of time and expense associated” for customers to get up and running. When asked how Kewill and Newgistics will collaborate through this partnership, Brown offered up a basic scenario. A company that has made a previous investment in Kewill’s services for an older platform or a technology it has leveraged for previous years may elect to make an upgrade, as well as integrate Newgistics as a carrier. What happens next is that Newgistics would make a proposal for services and based on what Newgistics is capable of delivering (as per a customer request), as well as an existing investment in Kewill’s technology, what may be afforded to them is the opportunity integrate the Newgistics’ carrier module into their platform. And a customer would also be able to upgrade its entire Kewill environment to bring it into support and maintenance and to activate Newgistics as a carrier in that platform. “This partnership allows Kewill customers to take advantage of our applications and brings their platform up to the current licensing and maintenance and support level where they have the opportunity to reduce internal support costs associated with that and also receive support and service from Kewill that they had previously supported on their own,” said Brown. For example, if a customer is using a commercial ground delivery carrier and have determined they want to consider Newgistics’ postal-based delivery technology, Brown said the customer would be able to reduce various delivery-related surcharges and fees that are incurred. He explained there are opportunities on top of base rates to save by up to between 25-40 percent of a shipper’s small parcel transportation spend on base rates. He also noted that the integration of Newgistics into Kewill supports the United States Postal Service’s Electronic Verification System (EVS), which enables customers that manage a multi-sort environment for their postal products to be able to consolidate their mail sort into a single consolidation system and “co-mingle” their mail classes, which drives efficiencies for labor and planning and are variable cost components. In this situation, Newgistics and Kewill are partners in facilitating the generation of the label that enables this type of process, which provide for things like labor and real estate, paperwork and billing-management savings, among others, said Brown. ABOUT NEWGISTICS, INC. Newgistics (www.newgistics.com) provides direct marketers and retailers with the only postal-based, intelligent logistics solution for forward and returns shipping focused on residential pickup and delivery. Newgistics’ flagship solution, SmartLabel®, features a dynamic barcode integrated with customer data at the point-of-sale that allows the shipper to populate their CRM systems with their customers’ information once the barcode is scanned in the Newgistics process. Newgistics lowers handling and overhead costs, maximizes operational control and drives greater customer satisfaction. Newgistics provides a competitive alternative to the traditional, expensive parcel carriers and drives customer loyalty and increases profitability for leading retailers like Neiman Marcus, and Abercrombie & Fitch. ABOUT Kewill With over 35 years experience in global trade management and logistics, and over 600 employees worldwide, Kewill (www.kewill.com) is a long-time innovator of solutions for manufacturers, distributors, retailers, freight forwarders, transport companies, customs brokers, 3PL’s and 4PL’s.