Cloud-based software-as-a-service (SaaS) logistics platform company Yojee (ASX: YOJ) will see its technology rolled out in the Philippines following the signing of a services agreement with global logistics provider Kuehne + Nagel Logistics Solutions Inc.
The three-year agreement will give Kuehne + Nagel Philippines access to Yojee’s subscription-based SaaS platform for the development of a parcel-tracking project currently in the planning stages.
It will be subject to standard clauses including termination on 90 days of notice following an initial term of nine months.
The project is expected to go live by the end of July and will see Yojee’s platform integrated with Kuehne + Nagel Philippines and an e-commerce customer across delivery, order management, planning and execution functions.
Yojee managing director Ed Clarke said the services agreement will promote digitisation to help drive efficiencies for Keuhne + Nagel.
“Supply chains continue to digitise to drive efficiency and meet increasing customer demands,” he said.
“We aim to create a seamless digital experience and enable our customers to realise market opportunities, converting them into fruitful businesses.”
Mr Clarke said the partnership will also help grow Yojee’s Asian market.
“We are excited to be working with Kuehne + Nagel as they share our view of a digital future and have a clear focus on IT-based integrated logistics solutions and growth in Asia in 2020.”
“We are confident our SaaS platform will deliver huge value in terms of bringing visibility, accountability and control to the business,” he said.
Last month, Mr Clarke spoke of the impact of COVID-19 on Yojee’s recent sales after the company posted a 21% increase in March quarterly revenues to $225,000 from the $186,000 reported for the previous quarter.
“We have maintained a strong and productive focus on sales over recent months, which has seen interest convert into sales on our platform in new verticals and in new use cases,” he said.
“We are hopeful of announcing further contract wins during the current quarter, continuing on our path of becoming the premier emerging technology in global supply chain,” Mr Clarke added.
During the March quarter, Yojee continued to receive strong interest from customers for its platform, with companies keen to support decentralised supply chains.
“The industry is at an early stage of technology adoption and logistics providers are looking to digitise their operations after the lessons learned so far of COVID-19, which is well beyond the capabilities of incumbent transaction management systems,” he said.
According to Mr Clarke, the “whole ecosystem” from logistics operators and shipping companies to end users is demanding greater visibility, accountability and control of goods movements.
“This can only be solved using new technology solutions such as [our] platform which can work across entire supply chains and through complexities such as tracking multi-sector goods movements and optimising fixed asset capacity utilisation,” he said.
At mid-morning, shares in Yojee were trading 30.77% higher at $0.034.