Oracle has announced that it has signed an agreement to acquire LogFire, a provider of Cloud-based warehouse management applications. Upon closing, the addition of LogFire will complement the logistics, warehouse management and Omni-channel fulfillment capabilities of the Oracle SCM Cloud product suite by adding augmented warehouse management capabilities.

As those who deal with supply chain execution technology readily know, warehouse management systems (WMS) have in the past been highly customized to support business processes. Thus they have been difficult to implement in terms of overall time, and expensive to operate and maintain over time. The introduction of Cloud-based technology that provides more configurable options vs. hard-coding, is thus important, as is the ability to support business and transactional scalability.

LogFire features a built-for-the-Cloud technology platform providing an integrated warehouse, inventory and workforce management platform claiming easy scalability with increased volume and complexity. Business process support is noted as:

  • Inbound receiving and putaway
  • Enterprise inventory management
  • Outbound allocation and store receiving
  • Real-time reporting and analysis
  • Material handling
  • Workforce management

LogFire further supports the capability for retailers to transform any site (warehouse, distribution center, storefront, kiosk, garage) into a robust fulfillment center in supporting direct ship from store or fulfillment node support capabilities including on-site inventory visibility.

The company was founded by Diego Pantoja-Navajas after spending more than a decade designing and implementing supply chain solutions for some of the world’s largest retailers, CPG manufacturers, food service companies and 3PL providers. Currently this WMS provider has 40 existing customers stemming from a combination of retail, consumer goods, third-party logistics and E-commerce industry settings. Among lighthouse customer names are Glad, Sears Canada, APL Logistics, Ryder and InkaFarma.

LogFire, currently headquartered in Atlanta, additionally provides added international presence with offices in Chile, Peru and India. The technology provider was already a recognized Oracle Gold Partner and thus there were already business, organizational and technology integration relationships.

According to informational releases and an industry analyst briefing, Oracle plans to continue to invest in LogFire’s functionality and capabilities while providing eventual integration to the existing Oracle SCM Cloud product suite. Oracle’s SCM development teams are currently reviewing existing product roadmaps and will be providing additional guidance after closing. According to statements, LogFire’s existing management team and employees will become part of the Oracle SCM Cloud organization. Oracle SCM executives further indicated that the attraction to LogFire stemmed from the ability to support large as well as growing supply chain execution needs, the company’s existing capabilities in supporting Omni and multi-channel customer fulfillment needs and of-course, its native Cloud platform.

Oracle has provided an additional information resource for existing LogFire customers which can be viewed at this designated Oracle web link.

Our initial Supply Chain Matters viewpoint is that this is another important and key acquisition for Oracle. We were the first to declare after last year’s Oracle Open World conference that from our lens, Oracle had developed one of the broadest cross-functional supply chain management, public cloud based applications currently available in the marketplace. That stated, we noted qualifiers in that this public cloud suite provides standard functionality as opposed to the ability to support customized customer business needs. Oracle is obviously now addressing the need for deeper business support needs particularly in the all-important WMS and supply chain execution area.

The acquisition, when completed, has the potential to provide a stronger basis to compete with existing best-of-breed WMS providers while providing an added advantage of integration to a broader totally Cloud based enterprise support suite.

Obviously there will be more information to be shared further into this process, and we will keep both Oracle, LogFire and all of our other readers informed. This acquisition announcement comes just before this year’s Oracle Open World that begins in a mere two weeks. The previous blockbuster announcement of Oracle’s planned acquisition of NetSuite, coupled with the latest announcement relative to LogFire, provide for some rather interesting conference buzz relative to Oracle’s ongoing commitment to a comprehensive Cloud technology suite.

This author will be indeed attending the upcoming Open World so do stay tuned for further blog commentaries.

Bob Ferrari

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