A subsidiary of cloud-based software as a service (SaaS) logistics platform Yojee (ASX: YOJ) has extended its contract with global supply chain operator Geodis Singapore to include a more comprehensive product suite to customers in Asia.
Yojee Solutions has signed a new statement of work under its current three-year services contract which will see the SaaS platform more broadly integrated within Geodis in order to track freight across Malaysia, Thailand and Singapore.
The work will be immediately followed by a subscription order which will have an initial term of three years and automatically renew for successive 12-month period subject to standard termination clauses.
Set-up and configuration fees will be charged for the initial three-country roll-out and when new countries are added, subject to agreement between Yojee and Geodis.
Subscription fees will be charged monthly based on per-country transactional volume.
Strong business value
Yojee managing director Ed Clarke said the extended contract expands on a cross-border road network solution for Geodis announced in January.
“The new work agreement scope recognises the strong business value that our platform brings [and] includes freight forwarding products on top of our original solution earlier this year,” he said.
“We believe we can deliver incremental value to Geodis and will continue to work with the company to identify opportunities to partner on improved customer experiences and regional growth objectives.”
The Geodis contract extension follows a May agreement signed with global logistics provider Kuehne + Nagel to roll-out its platform across the Phillipines in June.
Yojee posted a steady June quarter despite adjustments and reductions in spend to cope with the worst of the COVID-19 disruptions.
Revenues from ordinary activities were $115,000 (down from $225,000 in the previous quarter) while cash receipts were $144,000 (compared to $121,000).
Contract re-evaluation during the quarter saw some “customer offboarding processes” which impacted revenue for the period.
“This quarter we have reduced costs, increased cash receipts, signed and deployed a large enterprise project with a top 10 global client – all with no material increase in cloud hosting fees,” Mr Clarke said.
“We have demonstrated a platform which can deploy cheaply and rapidly, deliver reliably and scale to hundreds of thousands of transactions at a nominal cent transaction cost within a global pandemic and remote work environment.”
He said increasing demand from small-to-medium enterprises in light of the COVID-19 operating environment would position the company well over the new financial year.
“There has been a rapid change in expectations of the consumer economy and companies are increasingly looking to support rapidly-evolving and decentralised supply chains [which will allow them] to digitise and deliver to the customer’s door,” he said.
“We are well on our path to becoming the premier emerging technology in the global supply chain industry [and] I am more positive than ever about the enormous opportunity ahead.”
He said several SME agreements had already been signed, and implementation and configuration completed.