The Supply Chain Matters blog features our sixth in the year 2020 editions 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.
With all of our blog updates dedicated to the COVID-19 coronavirus response needs, this update attempts to catch-up from our prior February 27th edition, along with an acquisition announcement from our blog sponsor Kinaxis.
Included in this edition are capsulated highlights of noteworthy announcements and/or developments related to the B2B logistics and transportation technology segment.
American Institute of CPAs (AICPA)
LLamasoft Announces COVID-19 Response Center Technology Offerings
Supply chain network design, planning and analytics technology provider LLamasoft announced this week the availability of several services to help supply chain planning and strategy teams supplement their COVID-19 Coronavirus recovery efforts..
The announced COVID-19 Response Center is described as a collection of llama.ai applications and services built for the express purpose of helping enterprises restore their operations, adapt to fast-changing circumstances, and once restored, to evolve their supply chain for long-term resilience against future disruptions.
There are three concentrations of resources reportedly available:
Restore – this offering is designed to help organizations rapidly perform detailed analysis necessary to identify options and trade-off decisions given both the current and evolving state of their extended supply chain.
JD Logistics Dedicated Shipping Service: Through a prior announced partnership with China’s JD Logistics, the logistics business arm of China’s online retail platform, JD.com, the provider plans to offer expedited shipping services to LLamasoft customers from Wuhan, China and other impacted areas in China to any destination, to help recover from any supply chain material or part disruptions.
COVID-19 Newsfeed Application: This is a free application that delivers consolidated COVID-19 global virus status and consolidated news feeds, customized to the user’s preferences, from multiple global news sources in one easy to use source.
COVID-19 Impact Analysis: Pairs expert supply chain consultants with a company’s current operating data in a predefined app to help rapidly analyze the impact on current supply chain execution, diagnose exposure and impacts to production, distribution and inventory availability to enable evaluation of options and trade-offs to balance supply and demand and to rapidly restore operations.
LLamasoft’s Augmented Analytics: Described as highly skilled data engineers and analytics consultants to augment existing resources to help companies respond more rapidly to the onslaught of questions needed to quickly restore services levels.
Adapt – Once supply chain operations are restored, the technology provider is providing an offering to enable companies to identify vulnerabilities and re-design their supply chain to balance risk, service and investment under future volatile market conditions.
Evolve – The third area of concentration calls for the full breadth of LLamasoft software, enabling companies to create a long-term risk management plan and an anti-fragile supply chain, further positioning the enterprise for continued resilience against future disruptions.
AICPA Unveils New Supply Chain Risk Management Reporting Framework
To help manufacturers, producers, distribution companies and their customers and business partners identify, assess and address supply chain risks, the American Institute of CPAs (AICPA), described as the world’s largest member association representing the CPA profession, has launched SOC for Supply Chain, a new risk reporting framework.
The SOC for Supply Chain framework is described as a market-driven, flexible and voluntary framework for organizations to communicate certain information about their manufacturing, production or distribution system and the effectiveness of controls that mitigate supply chain risks.
The introduction of this new framework provides an opportunity for organizations to have an examination engagement performed on their manufacturing, production or distribution system. This type of audit provides a CPA’s opinion on the organization’s description of the system it uses to manufacture, produce or distribute products and an opinion on the effectiveness of the controls within that system.
The SOC for Supply Chain examination is part of the AICPA’s suite of System and Organization Controls (SOC) services, which enable CPAs to examine and report on system or entity-level controls of a variety of different organizations.
Three resources that support the framework were further described:
Description criteria: The AICPA’s Description Criteria for a Description of an Entity’s Production, Manufacturing, or Distribution System in a SOC for Supply Chain Report includes the criteria used to prepare and evaluate the description of a manufacturer’s, producer’s or distribution company’s system.
Trust services criteria (updated): The AICPA’s 2017 Trust Services Criteria for Security, Availability, Processing Integrity, Confidentiality, and Privacy is used to evaluate and report on the effectiveness of the controls within an organization’s system.
CPA guide: Reporting on an Examination of Controls Relevant to Security, Availability, Processing Integrity, Confidentiality, or Privacy in a Production, Manufacturing, or Distribution System. Developed by a joint working group of the AICPA Assurance Services Executive Committee and the Auditing Standards Board, the guide provides guidance to CPAs on performing the new SOC for Supply Chain Examination.
XPO Logistics to Acquire Kuehne + Nagel International U.K. Contract Logistics Arm
Global logistics provider XPO Logistics recently announced that the provider has entered into an agreement the buy the bulk of global transportation and logistics provider Kuehne + Nagel’s contract logistics business in the United Kingdom.
The acquisition reportedly includes operations that provide inbound and outbound distribution, reverse and inventory management services in select food and beverage as well as drinks logistics, along with retail technology and online commerce sectors in the region.
Financial terms were not disclosed and the transaction, subject to customary conditions including merger clearance is expected to close in the first-half of 2020.
Kuehne + Nagel had previously been exploring strategic alternatives for this specific business segment.
This announcement came after an XPO announcement two months ago indicating that XPO was exploring strategic options for all of its operating units excluding the less-than-truckload business. This week in a United States SEC 8-k filing, XPO disclosed that in light of current market conditions, the strategic review process was terminated.
OpenText Acquires XMedius
Enterprise Information Management and B2B Business Network Cloud technology provider OpenText announced early this month that it had acquired Secure Information exchange technology provider XMedius for the purchase price of $75 million in an all-cash transaction.
According to the announcement, with more than 50,000 worldwide installations, XMedius will add to OpenText’s capabilities in secure information exchange, unified communications and digital fax services. The technology will reportedly complement both OpenText’s Customer Experience and B2B Business Network Cloud platforms.
Xmedius reportedly generates upwards of $40 million in annual revenues but OpenText expects first-year revenues to be down 20 percent due to customary purchase price accounting adjustments and typical integration activities.
Interos Raises $17.5 Million in Series B Funding
Supply chain risk management technology provider Interos announce the closing of $17.5 million in a new Series B funding round led by Venrock, with participation from Kleiner Perkins which was a prior Series A sponsor.
Interos reportedly ingests more than 85,000 information feeds per month and leverages machine learning applied to five risk factors, including financial, operational, geographical and cyber risk categories to assess which risks are most pertinent to disrupting a supply chain.
Proceeds for the funding round are reportedly being applied toward added engineering and data science needs, along with added sales and marketing needs. The provider expects to hire an additional 80 employees.
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.