The Supply Chain Matters blog features our February 5, 2022 edition of This Week in Supply Chain Management Tech, a synopsis of noteworthy supply chain management focused technology news which we believe would be of specific interest to our global-based blog readership.
The Ferrari Consulting and Research Group’s 2022 Predictions for Industry and Global Supply Chains Research Advisory (Available for complimentary downloading in our Research Center) includes a prediction that the supply chain technology segment will feature an investment boom in market consumption, added equity investment and M&A activity. Both in our first 2022 posting last week, and this edition, provides readers on more of the latest news in supply chain management and B2B supply chain business network focused technology developments, and provide added evidence of these ongoing developments.
Names included in this edition include:
J.B. Hunt Group
CMA CGM’s Acquisition of Another Last Mile Delivery Company
French based ocean container shipping line carrier CMA CGM Group announced that it has tentatively agreed to acquire a 51 percent equity stake in French based last-mile logistics services provider Colis Prive Group.
Reportedly, the agreement further provides CMA CGM Group the option of raising its ownership interest in Colis Privé at a later date.
The move is yet another component of this carrier’s strategy to be a broader provider of both ocean transit and land-based logistics services. The carrier acquired full control of European based CEVA Logistics in 2019 with an investment of $1.7 billion. According to the announcement, this deal will strengthen the presence of CEVA Logistics, now CMA CGM’s logistics subsidiary, in e-commerce services, especially last-mile deliveries.
Founded in 2012, Colis Preve has a focus on residential based last mile delivery services servicing over 200 online retailers. The logistics provider has grown over the years to become a leading last-mile logistics player in France and has also expanded last mile delivery services across areas of Belgium, Luxembourg, Morocco, with plans to soon add Netherlands.
The Group recently announced the acquisition of Ingram Micro’s Commerce & Lifecycle Services (CLS) business to strengthen CEVA Logistics’ existing e-commerce operations and accelerate its development in key market segments, such as technology, retail and fashion.
Arrive Logistics Acquires Forager’s Group Cross-Border Business
Austin Texas based Arrive Logistics, a multimodal transportation and technology company, has announced that it has acquired Forager Group’s cross-border business and proprietary platform.
The acquisition reportedly enables Arrive to strengthen its cross-border services and technology offerings in Canada and Mexico, facilitating the company’s strategy to expand its service portfolio.
This acquisition will further equip Arrive to deliver enhanced visibility into cross-border shipping and provide a one-stop-shop freight experience. Increases in cross-border trade, in-sourcing and near-sourcing are expected to continue to rise over the next five years which point to a growing need for these specialized capabilities within the logistics space.
Founded in 2018, Forager is a cross-border logistics technology company that ships truckload freight between the United States, Mexico, and Canada.
No financial specifics were disclosed in the announcement.
Blume Global Acquires Live Source
In January, Blume Global, a provider of supply chain sourcing, procurement, execution and visibility technology, announced the acquisition of LiveSource, a multi-enterprise supply chain business network for complex manufacturers. The company, which has offices throughout North America, Europe and Asia, provides sourcing and procurement orchestration technology, among other applications, to the automotive and industrial manufacturing sectors.
The acquisition was initiated to complement Blume’s logistics orchestration and visibility capabilities as well as Blume’s presence among Europe, North American and Asian presence.
As of January 1, all LiveSource employees became part of Blume Global, which has the capabilities to fully support existing customers throughout the world. The deal will reportedly give provide LiveSource customers access to Blume’s logistics execution technology and supply chain management expertise.
No financial specifics were disclosed regarding this transaction.
J.B Hunt’s $87 Million Acquisition of Furniture Carrier Zenith Freight Lines
U.S. based trucker carrier J.B. Hunt Transport Services Inc, and Bassett Furniture Industries, Inc., a leading manufacturer and marketer of high-quality home furnishings, announced a definitive agreement under which J.B. Hunt Transport will acquire the assets of Zenith Freight Lines, a wholly owned subsidiary of Bassett, for approximately $87 million.
Upon closing of the transaction, J.B. Hunt and Bassett will enter into a long-term master services agreement whereby J.B. Hunt will continue to provide the exceptional service Zenith has performed for Bassett for almost 50 years.
Based in North Carolina, Zenith provides specialized LTL transportation services for furniture manufacturers and retailers in the continental United States. The specialized carrier reported revenue of $87 million in the fiscal year ending November 2021, with Bassett representing one-third of its business. The acquisition will reportedly expand J.B. Hunt’s Final Mile Services® segment, which operates one of the largest nationwide, commingled cross-dock operations.
Commenting on the acquisition, Robert H. Spilman, Jr., Bassett’s CEO and Chairman of the Board indicated in-part: ‘Disruption caused by the pandemic aside, we believe that the consolidation of traditional specialized furniture transportation is inevitable. As discussions with J.B. Hunt progressed, we came to understand the benefits that the scale of J.B. Hunt could provide in terms of equipment, technology, driver recruitment, intermodal transportation, and warehousing density. In addition, we developed a healthy respect for the management team and their operating culture.”
The transaction is expected to close by the end of February, subject to customary closing conditions.
JAGGAER Makes A Strategic Technology Announcement
Intelligent procurement technology provider JAGGAER unveiled its vision for 2022 and beyond, announcing Autonomous Commerce, a described self-governing B2B commerce experience between buyers, suppliers, physical things and partners.
According to the announcement, with over five million global suppliers on its Enterprise Commerce Network, JAGGAER is providing enterprise buyers access to myriad sources of supply that are tightly aligned with their specific needs. JAGGAER’s Digital Mind technology leverages artificial intelligence and machine learning to deliver smart-match recommendations, which are not only a boon for enterprise buyers looking to reduce supplier risk, but also for suppliers looking to grow their revenues.
Over $500 billion worth of goods flowed through JAGGAER’s Enterprise Commerce Network in 2021.
JAGGAER’s Digital Mind solution autonomously executes many of the repetitive, behind-the-scenes tasks required to facilitate enterprise commerce, mitigating the talent shortage by freeing employees to focus on more strategic, high-value activities.
Commenting on this technology direction, Dawn Andre, JAGGAER Chief Product Officer, indicated:
“Three years ago, we laid out a vision for what an Autonomous Commerce world would look like for enterprises. Autonomous Commerce calls for solutions that are Networked, Intelligent, Comprehensive and Extensible. We’ve been deploying solutions that embody these principles ever since. Now that we’re well on our way to delivering on the promise of Autonomous Commerce, we decided to unveil our strategy publicly. We’re excited to be leading the Autonomous Commerce revolution and putting our customers in a position to thrive during this transformational shift.”
This concludes our latest edition of Supply Chain Matters This Week in Supply Chain Management Tech.
As noted in our opening, will strive to keep-up with the numerous supply chain technology related announcements that are occurring at a fever pace.
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