The Supply Chain Matters blog features our August 9, 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:
Elemica and Eurazeo
Nike and Celect
IBM and Chainyard
Elemica Sold to Eurazeo
Thoma Bravo, a leading private equity investment firm, has entered into a definitive agreement to sell Elemica, a B2B platform for global process-based manufacturing, to Eurazeo.
Since acquiring the company in 2016, Thoma Bravo has strengthened Elemica’s value proposition, increased investment in the development and rollout of a next generation cloud-native platform.
Eurazeo is described as a leading global investment company, with a diversified portfolio of €17.7 billion in assets under management, including nearly €11.6 billion from third parties, invested in nearly 400 companies. The investment will join Eurazeo’s Capital’s U.S. investment portfolio that includes Trader Interactive and WorldStrides.
Elemica has a 20-year history of connecting process manufacturing enterprises with their extended business partners in the process areas of buy, sell, transport, tracking and compliance.
According to the announcement, the acquisition will augment strategies to expand the B2B platform’s reach to adjacent industries while allowing the platform provider to broaden its product portfolio into next generation technology.
Eurazeo Capital is expected to complete its acquisition during the third quarter.
No financial information has been publicly shared related to this transaction.
Nike to Acquire Celect
Athletic apparel and footwear designer and manufacturer Nike announced that the company has acquired Celect, a Boston based retail predictive analytics and demand sensing technology provider.
Founded in 2013 by two MIT professors, Celect, a Cloud-based, predictive analytics SaaS platform, holds a cutting-edge intellectual property portfolio across data science and software engineering. The provider’s Cloud-based analytics platform provides proprietary insights that allow retailers to optimize inventory across an omnichannel environment through hyper-local demand predictions. The technology has been described as a groundbreaking advance in machine learning and optimization that allows retailers to understand how an individual customer shopping in store or online chooses from an assortment of products, revealing true demand.
The acquisition reportedly is designed to accelerate Nike’s ability to anticipate consumer needs. From our Supply Chain Matters lens, this development represents one of few occasions where a manufacturer itself will leverage its very own acquired, and proprietary demand sensing, allocation and inventory optimization technology.
According to the announcement, Celect’s team will immediately be integrated into Nike’s Global Operations Team and its co-founders will continue as tenured professors at the Massachusetts Institute of Technology, consulting Nike on an ongoing basis.
IBM Launches New Blockchain Platform for Supply Chain Management
IBM and blockchain technology consultancy Chainyard, have announced “Trust Your Supplier” a new blockchain network focused on supply chain management business processes related to supplier validation, onboarding and life cycle information management.
Anheuser-Busch InBev, Cisco, GlaxoSmithKline, Lenovo, Nokia, Schneider Electric and Vodafone are founding participants alongside IBM in the network and reportedly share a common goal of solving challenges related to supplier information management.
This initiative is targeted to overcome traditional methods of managing suppliers that often involve cumbersome manual processes, which make it difficult to verify identities and track documents like ISO certifications, bank account information, tax certifications, and certificates of insurance throughout the lifecycle of a supplier. By utilizing a decentralized approach and an immutable audit trail built on blockchain, Trust Your Supplier’s goal is to eliminate manual time-consuming processes and help reduce the risk of fraud and errors, ultimately creating frictionless connectivity across supply chains. In addition, third-party validators, such as Dun & Bradstreet, Ecovadis and RapidRatings provide outside verification or audit capabilities directly on the network.
IBM, which has over 18,500 suppliers around the world, will internally begin adopting the Trust Your Supplier network initially onboarding 4,000 of its own North American suppliers over the next few months. IBM Procurement reportedly anticipates a 70 to 80 percent reduction in the cycle time to onboard new suppliers, with a potential 50 percent reduction in administrative costs within its own business.
The Trust Your Supplier network is currently in limited availability with existing participants with plans for commercial availability later in Quarter 3 of 2019.
Added Note to Readers– Supply Chain Matters will feature our This Week in Supply Chain Tech highlight series as announcements warrant.
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