The Supply Chain Matters blog features our December 20, 2019 Edition of This Week in Supply Chain Management Tech, a brief synopsis of noteworthy supply chain management focused technology news which we believe would be of specific interest to our global-based blog readership.
Included in this edition are highlights related to noteworthy announcements and/or developments related to:
Intel and Habana Labs
GIC Announces Intent to Acquire $1.5 Billion European Logistics Facilities
Singapore’s sovereign wealth fund, GIC, has signed an agreement to acquire a pan-European logistics real estate collection of 28 distribution centers from Apollo Global Management, for a net consideration of ~€950 million ($1.1 Bil.). The fund indicated that it will integrate this Maximus portfolio, which spans more than 1 million square meters (10.9 million square feet) into its exiting pan-European P3 Logistic Parks.
GIC acquired the P3 Logistic Parks in 2016 for upwards of $2.6 billion from TPG Real Estate and Ivanhoe Cambridge. The addition of the added portfolio is expected to increase the P3 foothold in Western Europe. The portfolio’s well-diversified tenant base includes companies in the automotive, e-mobility, distribution, e-commerce and last-mile logistics sectors, among others. Through the newly announced deal, expected to close in the first quarter of 2020, GIC will assume a portfolio of assets located in core logistics hubs across countries including Austria, Belgium, Germany, the Netherlands, Poland and Slovakia.
The acquisition is being reported as the largest real estate investment deal in Germany this year and one of the largest in Europe.
Intel Adds to AI Capabilities with $2 Billion Acquisition of Habana Labs
Intel Corp. is expanding its push into the Artificial Intelligence market with the planned acquisition of Israel based AI chip start-up Habana Labs for approximately $2 billion. According to the announcement, the combination strengthens Intel’s AI portfolio and accelerates its efforts in the nascent, fast-growing AI silicon market, which Intel expects to be greater than $25 billion by 2024.
Intel’s AI strategy is grounded in the belief that harnessing the power of the technology to improve business outcomes requires a broad mix of technology – hardware and software – and full ecosystem support.
Further, according to the announcement, Habana will remain an independent business unit and will continue to be led by its current management team, and report to Intel’s Data Platforms Group. The combination provides Habana access to Intel AI capabilities, including significant resources built over the last three years with deep expertise in software, algorithms and research that will help this new Intel business scale and accelerate.
According to reporting by The Wall Street Journal, before announcing this acquisition, Intel had already indicated that it expected to generate more than $3.5 billion in AI-related revenues this year, an increase of 20 percent from the prior year.
Pattonair Wins Eurozone Backing in Bid to Revolutionize Aerospace Industry
Global aerospace and defense supply chain specialist Pattonair has joined forces with two innovative companies to win EU funding for a what is described as a ground-breaking technology venture.
The Derby United Kingdom based firm is working with complex part machining specialists Advanced Manufacturing Ltd (AML) and technology start-up Parts Pedigree Ltd to create a digital Cloud-based service for the aerospace industry.
The Parts Pedigree digital platform is being designed to minimize the loss of millions of pounds that parts manufacturers and customers endure every year through outdated paper-based tracking systems. Using Blockchain technology to notarize part certificates, the platform will allow businesses to track and view aviation parts and the related paperwork throughout their supply chain. As well as providing a digital mechanism to record processes such as goods receipt and dispatch, the project will reportedly be able to associate manufacturing and certification events with each component produced.
Earmarked as the ‘supply chain of the future’, the venture is set to bring a wide range of benefits to both suppliers and customers through greater visibility into manufacturing and certification processes. Customers will reportedly be able to track where parts are, their status and be able to view the complete audit trail of related paperwork, which is crucial to track the lifetime of every single part.
Ahold Delhaize USA Planning Major Supply Chain Expansion
Supermarket News reported that global food retailer Ahold Delhaize plans to invest $480 million over the next three years to bolster its U.S. supply chain operations.
Ahold Delhaize USA indicated that the move signals a shift to transition its supply chain into a fully integrated, self-distribution model. Under the plan, the company will acquire three warehouses from C&S Wholesale Grocers and partner with various firms to build two fully automated frozen facilities in the U.S. Northeast and Mid-Atlantic.
The company noted that the investment will provide its infrastructure to support a U.S. omnichannel growth strategy and the next generation of grocery retail. Among investments planned is an integrated transportation management system and end-to-end forecasting and replenishment technology.
The food chain’s current distribution networks include 15 traditional and e-commerce distribution centers, which serve Food Lion, Giant Food, Giant/Martin’s, Hannaford and Stop & Shop supermarket chains, as well as online grocery arm Peapod. The plan calls for the network to expand to 22 facilities by 2023.
This concludes our latest edition of This Week in Supply Chain Management Tech.
An Added Note to Readers– Supply Chain Matters will feature our This Week in Supply Chain Tech highlight series periodically as announcements warrant. During the upcoming Christmas and New Year holiday periods, Supply Chain Matters This Week in Tech will not publish. We anticipate our next edition to publish on January 10, 2020.