Nexxiot’s new shareholder wants to revolutionise intermodal freight
Nexxiot acquired a new shareholder last week. Arvato Financial Solutions, a subsidiary of Bertelsmann, onboarded Nexxiot, aiming to make cargo transport more transparent by using the ‘Know Your Cargo’ standards.
Nexxiot is a data-driven company using Internet of Things (IoT) and Artificial Intelligence (AI) technologies to optimise ra8il freight supply chains and fleet management. On the other hand, its new shareholder Arvato Financial Solutions, provides financial to international and local businesses. It is a subsidiary of Bertlesmann, a private-owned media company.
“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, CEO of Arvato, in an attempt to highlight his company’s mission in entering the rail freight innovation race.
Know Your Cargo
Nexxiot’s new shareholder steps into the rail industry, bringing a new approach. The financial company sees “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,” they said.
Arvato Financial wants to implement innovative solutions using Nexxiot’s know-how and bringing financial models into the rail business. “Just as the financial services sector has been transformed concerning efficiency and traceability through the 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,” said the company.
The disruptions that the global supply chain experienced in 2021, with ocean vessels destroyed by fire, for instance, indicate the “weaknesses in today’s cargo declaration processes, and that “good faith” cargo transparency standards are no longer good enough,” commented Arvato. “To fully realise 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,” concluded the company.