EKA Solutions, which provides a cloud-based integrated freight management ecosystem, will offer working capital financial services to small-business carriers, brokers, and shippers.
The wholly owned subsidiary, EKA Logistics Capital LLC, will offer services beginning in January 2022 to “further help SMBs compete with their much savvy competitors,” said J.J. Singh, EKA founder and CEO, in a news release.
Services will be competitive to large factoring companies. EKA will offer receivables financing of an entire customer receivable portfolio. Or, it can offer receivables financing of select shipper receivables or on a single shipper invoice basis.
EKA announced its Omni-TMS cloud-based supply chain platform in 2018, designed to allow brokers, carriers, and shippers to easily assign and track loads, including back-end billing and financial functions. It has since added a number of functions and features, including private freight marketplaces for larger companies, features for carriers using independent contractors, mapping tools, load-matching, and most recently pricing data.
“EKA’s freight management and working capital solutions and services workflow processes have been optimally melded for highest seamless productive user experience and to accrue lowest customer lending costs,” said Mark Walker, president and CDO, in a release. “The result is a highly efficient and effective open loop automated receivables financing and payments digital platform for any carrier, broker, and shipper.”
Digital freight management platform provider EKA Solutions announced Monday it has formed EKA Logistics Capital LLC, a wholly owned subsidiary that will provide working capital financial services to its carriers, brokers and eventually its shippers.
The financial program, set to begin in January, is designed to give EKA a competitive solution to the industry’s factoring companies and create a full ecosystem of freight management tools within the EKA Omni-TMS platform.
“This is a logical next evolutionary step for EKA to realize its original vision to democratize freight management by providing a dual and seamless connected end-to-end ‘best-in-class’ digital platform, for freight management and key services respectively, to help smaller carriers, brokers and shippers to effectively compete with their larger competitors,” said JJ Singh, CEO of EKA Solutions.
While Singh did not disclose specific fees for these services, he did describe them as “highly competitive” to those charged by some of the largest factoring companies, often averaging around 2% to 5%.
Singh explained that EKA can charge lower fees because of the optimization and risk tools the company will be using to make the financial decisions.
“We can accomplish this as EKA provides a touchless and highly intelligent end-to-end platform with work processes that help deliver lowest customer cost to serve coupled with tools that help manage fraud and credit risk at the lowest levels possible,” said Singh.
Unlike many factoring companies that force carriers and brokers to only use a single factoring platform, there will be no constraints through EKA Logistics Capital, Singh said. EKA will offer its services in one of three ways — receivable financing of an entire customer receivable portfolio, select shipper receivables or on a single shipper invoice basis.
Over time EKA plans to open its platform to other factoring services as well, democratizing the way its customers use its freight management platforms.
“EKA expects, sometime in 2022, to make available [our] transformational financial services ‘Open-Loop’ platform for other factoring companies to use to service their factoring customers to transform services delivery, fraud and credit risk management practices and, hopefully, share cost and risk management savings with small to medium-sized businesses,” said Singh.
New Omni-TMS™ Cloud-Based Platform Features Transform Carrier, Broker & Shipper Efficiencies
SALT LAKE CITY, July 26, 2021 /PRNewswire/ — EKA Solutions Inc, the industry leading provider of cloud-based integrated freight management ecosystem for carriers, brokers and shippers, today announced the introduction of touchless trading and execution between trusted partners that use the EKA Supply Chain TMS.
Designed to tech-up carriers, brokers and shippers for the future of business, EKA Omni-TMS™ is a native cloud-based SaaS TMS that has become the company’s signature solution product and has earned EKA the prestigious FreightTech 100 award. You can discover more about EKA’s solutions by visiting www.go-eka.com.
“EKA’s touchless solution enables supply chain participants – carrier, broker or shipper – using the EKA supply chain Omni-TMSTM to benefit from the highest level of real-time automation when trading and executing loads with their trusted freight partners,” says JJ Singh, Founder and CEO for EKA Solutions, Inc. “As a result, each trading partner benefits from the lowest cost of handling a load, superior customer service, and sustainable revenue, profitability and business growth.”
“EKA’s innovative and best-in-class solution will help carriers, brokers and shippers using Omni-TMSTM to integrate and automate all trading and execution life-cycle workflow processes between them, from load tendering to booking to load tracking to invoicing and settlement, in a touchless manner with manual handling limited to exception events,” said Mark Walker, Investor, President and CDO.
EKA Solutions, Inc., provides a transformational cloud-based SaaS digital freight ecosystem management platform, dFEMX™, to manage all the customer’s freight businesses including freight exchange and third-party services. As part of the dFEMX™ Offering, EKA provides the Smart, Unified Platform EKA Omni-TMS™ for – Virtually – Everyone. EKA Omni-TMS™ is designed to transform the transportation and logistics industry. It empowers small, medium, and large size broker, carrier, and shipper businesses to operate from quote-to-cash with affordable and best-in-class digital tools, enabling the higher performance demanded in tomorrow’s supply chain. With real-time information, EKA Omni-TMS™ enables brokers, carriers, and shippers to provide visibility and transparency as they fluidly trade across an expanding and verified network with key, trusted partners. For more information, visit: https://www.go-eka.com.
EKA provides a digital freight management (which it calls dFEMX) platform to manage all the customer’s freight businesses, including freight exchange and third-party services. EKA serves as the system of record across multiple applications and seamlessly ties into other freight solutions (TMS, driver apps, etc.) and third-party services.
“EKA Omni-TMS for carriers is a native cloud-based [software-as-a-service] TMS that provides affordable, quote-to-cash, best-in-class, intuitive, easy-to-use functionality to empower small- and medium-size carriers with the functionality and services to grow and perform as well or better than large fleets,” said JJ Singh, Founder, CEO.
The platform features asset and revenue management tools, real-time availability of data and information, automated work processes that allow for exception management, real-time load movement visibility, and live ETA.
According to the company, the platform allows small-to-medium brokers, carriers, and shippers to leverage real- time information and trade fluidly across a verified network with key trusted partners and support vendors.
J.J. Singh, a longtime transportation and logistics executive, decided to launch a digital freight management solutions company a few years ago after he realized that many small and medium-size shippers, brokers and carriers were not ready for “the Amazon world,” a pressure cooker environment that requires an immediate answer to the question: “‘Where is your load?’”
“We knew from the start these folks were at a cost disadvantage and an effectiveness disadvantage,” said Singh, whose previous experience includes stints at C.H. Robinson and Flying J. The reason for starting the new venture, he said “was to respond to the new business environment, help digitize folks and provide them with services so they are at least on par with larger companies that have a lot more resources.”
Founded in 2015, EKA Solutions offers a cloud-based logistics platform designed to facilitate collaboration and data exchange among small and medium-size shippers, trucking companies and brokers.
The Sacramento, California-based company is developing a range of products aimed at helping customers connect and thrive. Among the offerings: a broker, carrier and shipper transportation management system (TMS), a private marketplace platform, 4PL solutions, and solutions for service providers such as insurance companies.
“We are building an ecosystem for freight management,” said Singh, EKA’s chief executive officer.
Several features distinguish the company’s products and services from others in the supply chain technology management sector, the company’s executives said.
EKA’s platform is end-to-end, “from order to cash,” Singh said. A centralized system of record, the platform enables real-time load management, shipment tracking, trade partner negotiations, payment and more.
Customizing offerings for different freight participants, EKA starts with a supply chain engine, then crafts different “lenses” on top of that engine, said Mark Walker, EKA’s president and chief digital officer, explaining there is a tailored TMS for carriers, for shippers and for brokers.
“The nuances of each of those lenses allows each party to run their business,” Walker said, “and it is highly configurable as well, so one company could have a completely different look and feel in a lot of their use of the system.”
A broker TMS launched last fall, and a carrier TMS will be ready on July 1. A shipper TMS is ready to deploy.
The company’s supply chain platform features an intuitive interface and reports can be generated throughout the day in an easy-to-read dashboard style. Because of the “intelligent design,” the cost to deploy is a fraction of what other systems might charge, according to Singh, and the company offers its lowest pricing for the smallest customers, upending the common practice of giving large customers discounts.
“Our whole model is price as you need it,” he said.
Connected to the platform are web portals for any vendors, allowing customers to extend capacity and loads, and enabling “digital freighting in a marketplace environment,” Walker said.
But unlike the large freight-matching services, typically wide open to all carriers and brokers, EKA’s offering is built around “trusted relationships,” the executives said. Customers can extend information to outsiders, but it is not suggested, Walker explained. “We are not trying to open freight up so they can get the lowest price or generate the highest profit.”
EKA is not a brokerage, but digital brokerage is a subset of what they offer broker customers. “We give them a whole gamut of lanes based on relationships, rather than a singular one-touch or touchless lane for doing their business,” explained Singh.
Looking ahead, the startup aims to broaden its ecosystem to include service providers such as insurance companies for brokers and carriers. That will debut in the second half of 2020.
Mirroring the experience of other technology companies, EKA Solutions experienced a tough time for sales in March and April, as the pandemic upended the economy, according to Singh. But the platform “shines” as a work-from-home solution, he emphasized. “All you need is high-speed internet and we take care of the rest. It’s just like running an airbnb platform.”
As the team continues to build out its product suite, “we are very close to delivering to the marketplace our vision of an end-to-end supply chain platform,” Singh said, “where the shipper can run their business end-to-end, the broker can run their business end-to-end and the carrier can run their business end-to-end. And they can all collaborate very effectively.”
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