The Supply Chain Matters blog features our fifth in the year 2020 edition of This Week in Supply Chain Management Tech.
This series presents 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.
Since our last edition published on February 7, we have separately published two supply chain technology focused blog commentaries:
Included in this edition are capsulated highlights of noteworthy announcements and/or developments related to the B2B logistics and transportation technology segment.
A.P. Moeller Maersk and Performance Team
Bain and EcoVadis
A.P. Moeller Maersk to Acquire U.S. Warehousing and Distribution Provider- Performance Team
Global shipping market leader A.P. Moeller Maersk announced intentions to acquire U.S. based warehousing and distribution services provider Performance Team for a reported $545 million.
The transaction is subject to customary regulatory approvals and is expected to close by April 1.
Founded in 1987, El Segundo California based Performance Team provides upwards of 5000 customers third-party distribution and logistics services operations support focusing on import freight volumes encompassing ten individual U.S. ports.
According to the announcement, Craig Kaplan, will retain CEO title of Performance Team and likely become an operating group within Maersk North America, focusing on E-commerce fulfillment capabilities for retailers.
The move is part of Maersk’s stated strategic plan for added tuck-in acquisition activity in expanding land based inland logistics and last-mile delivery capabilities for the ocean container carrier.
Exostar Launches Aerospace and Defense Supply Network Working Group
Exostar, a Cloud based B2B technology platform provider in trusted, secure business collaboration for aerospace and defense (A&D), life sciences, and healthcare industry networks, announced the formation of an A&D Supply Chain Working Group to define and develop the industry journey roadmap for a next-generation application that benefits buyers, suppliers, and commercial and government customers throughout the supply network.
According to the announcement, the working group includes executives from industry leaders such as BAE Systems, Boeing, General Dynamics, Huntington Ingalls, L3Harris, Leidos, Lockheed Martin, Northrop Grumman, Raytheon, Rolls-Royce, and the UK Ministry of Defence.
The working group is expected to focus on a technology modernization roadmap alignment that addresses existing industry business drivers including digital transformation, supply chain cybersecurity, network and application integration interoperability, master data management and supplier qualification and sourcing.
Bain and Company Makes Minority Investment in EcoVadis
Bain & Company announced a minority investment in EcoVadis, a provider of business sustainability ratings, intelligence and collaborative performance improvement tools for global supply chains.
Financial details were not disclosed.
According to the announcement, Bain & Company will integrate EcoVadis’ sustainability ratings into its approaches to corporate strategy, supply chain and procurement. They will also seek to develop a focused approach around specific offerings for financial investors across fund strategy, diligence and post-acquisition.
The collaboration will reportedly accelerate and deepen both companies’ offerings for improving the environmental, social and governance (ESG) performance of their collective clients.
Bain’s announcement follows CVC Growth Partners c. $200 million investment in EcoVadis announced in January. That transaction was billed as one of the largest investments in the ESG space to date.
Reportedly, more than 450 enterprises – representing over $2.5 trillion in business spending – rely on EcoVadis’ supplier ratings and engagement platform to evaluate and improve environmental and social performance across their global supply chains. This provider’s evidence-based assessment methodology, delivered via a sophisticated SaaS platform and backed by a dedicated team of CSR analysts.
Nulogy Releases First AI Powered Capability to Facilitate Leaner External Supply Networks
Toronto based Nulogy, a provider of an agile Cloud based B2B supply chain platform connecting extended suppliers and partners with consumer brands has announced the release of this provider’s first product capability powered by artificial intelligence.
The new AI-driven feature leverages predictive analytics to enable contract manufacturers, contract packagers, and value-added third-party logistics providers to optimize the production rate and labor on each stock keeping unit in their inventory, maximizing efficiency and minimizing waste for leaner operations and sustained business growth. The feature is projected to cut down variance between a site’s expected and actual production performance rates from 33 percent to 15 percent or less, resulting in higher consistency and accuracy during production. Leveraging a unique recommendation algorithm, the capability predicts expected production and labor rates based on historical production data where available, or approximations based on similar SKUs.
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.