📊 Blue Yonder acquires One Network for $839M

Irbis Index February 2024

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News

Blue Yonder shakes up the supply chain software market Blue Yonder, a prominent player in the supply chain planning and execution solutions sector, has recently made headlines with its strategic acquisition of One Network Enterprises for approximately $839M.

• The acquisition is part of Blue Yonder's broader strategy to consolidate its market position and expand its product offerings.

• This integration aims to provide real-time visibility across the supply chain, enabling immediate action through upstream and downstream collaboration, and unifying disparate data silos for a holistic view of the entire supply chain.

• Recently Blue Yonder acquired Flexis AG, which specializes in factory planning, sequencing, and slotting, as well as Doddle, known for its returns management and reverse logistics solutions.

• Furthermore, Blue Yonder has been actively hiring and rearchitecting its existing products to better serve the supply chain market, which it estimates to have a $130B addressable market

• Blue Yonder's CEO, Duncan Angove, has expressed confidence in the company's strategy, suggesting that the integration of One Network's Digital Supply Chain Network with Blue Yonder's existing solutions will offer customers unprecedented real-time optimization, orchestration, and collaboration capabilities across multiple tiers of their supply chains. (link)

DP World eyes 'niche' M&A in North America to develop end-to-end solutions DP World, a global port operator and logistics company, is actively seeking mergers and acquisitions (M&A) with niche service providers in North America to enhance its end-to-end logistics solutions.

• The company's strategy is to adapt to the evolving transpacific supply chain landscape, which has been affected by factors such as geopolitical tensions, environmental impacts, and port strikes.

• Glen Clark, DP World's chief executive for the US and Mexico, highlighted the shift in supply chain dynamics, noting that Mexico has recently surpassed China as the largest exporter to the US for the first time in two decades, with Canada potentially moving into second place.

• This change underscores the need for DP World to leverage its assets, including ports and terminals in Canada and Latin America, to offer tailored handling solutions.

• To support this strategy, DP World announced the opening of 100 freight forwarding branches worldwide.

• The company is focused on identifying strategic M&A opportunities with specialized service providers across the Americas to meet customer demand for more options and collaborative solutions. (link)

SGL eyes 'big' M&A deals, and declares itself the 'acquirer of choice' Scan Global Logistics (SGL) is positioning itself as a major player in the logistics industry's mergers and acquisitions (M&A) landscape, aiming to become the next DSV by focusing on larger, more strategic deals.

• Announcing its full-year financial results, SGL revealed a shift in its M&A strategy towards bigger transactions, signaling a move into the final phase of its geographical expansion.

• The company, which has historically pursued M&A to accelerate its presence across different regions, now plans to target investments in countries with strong underlying growth.

• This strategic pivot is designed to achieve scale and volumes in key markets, particularly in larger economies.

• SGL's approach also aims for a balanced portfolio between air and ocean freight, alongside tradelane diversification, to build "all-weather resilience."

• Significant investments have been made in sales-supporting functions like tender management, procurement, and supply chain development to fuel growth across all segments.

• This strategic realignment comes as SGL seeks to distinguish itself as the "acquirer of choice" in the logistics sector, focusing on fewer but larger M&A deals going forward. (link)

Logistics firms double down on US-Mexico nearshoring The trend of nearshoring, where companies relocate their manufacturing closer to the United States, is intensifying US-Mexico trade relations, prompting logistics firms to expand their operations.

• Echo Global Logistics, Ryder Systems, and Maersk have recently made significant investments to bolster cross-border trade capabilities.

• Echo has established offices in Monterrey and Laredo, Texas, enhancing its brokerage services across the border.

• Ryder Systems has expanded its presence with a new warehouse in Laredo and a larger drayage yard in Nuevo Laredo, aiming to support the automotive, hi-tech, industrial manufacturing, and consumer packaged goods sectors.

• Maersk has opened a 323,000-square-foot warehouse in Tijuana, targeting technology, automotive, retail, and lifestyle sectors to improve cross-border trade.

• Redwood Logistics is also doubling down on its Mexican operations, expanding its Monterrey office to support the growing demand for nearshoring transportation options.

• This expansion reflects the broader investment trend as companies seek to mitigate the risks associated with distant manufacturing hubs.

• The nearshoring movement is driven by the need for more resilient supply chains, highlighted by recent global disruptions, and is reshaping the logistics and manufacturing landscapes, promising to enhance economic ties between the US and Mexico. (link)

Making green logistics services profitable The demand for green logistics services, aimed at reducing emissions within the logistics sector, is on the rise, driven by both customer preferences and regulatory pressures.

• McKinsey's analysis predicts that the market for green logistics could grow from $50 billion in 2025, accounting for about 2 percent of the total logistics spend, to an estimated $350 billion by 2030, making up approximately 15 percent of the overall logistics expenditure.

• This burgeoning demand presents a lucrative opportunity for logistics companies to align with environmental goals while tapping into a rapidly expanding market segment.

• However, transitioning to green logistics poses significant challenges due to the sector's inherent reliance on transport, a major source of emissions.

• To make green logistics services economically viable, companies must develop effective commercialization strategies. This involves identifying potential customers for green products, shaping their demands, and collaborating to create premium, desirable green offerings that ensure a positive return on decarbonization investments.

• Despite the emergence of commercialization models, logistics firms continue to grapple with maintaining profitability while transitioning to greener operations. (link)

Events

The future of global trade: UNCTAD announces first-ever Global Supply Chain Forum The United Nations Conference on Trade and Development (UNCTAD), in collaboration with the Government of Barbados, is set to host the inaugural Global Supply Chain Forum (GSCF) 2024 from May 21 to 24 in Bridgetown, Barbados.

• This event marks the first of its kind and coincides with the 60th anniversary of UNCTAD.

• The forum aims to address the urgent need for resilient and sustainable global supply chains, a need highlighted by recent disruptions such as the COVID-19 pandemic, climate change, and geopolitical tensions.

• With a particular focus on the challenges faced by developing countries, especially Small Island Developing States (SIDS) and Landlocked Developing Countries (LLDCs), the GSCF 2024 will explore strategies to enhance the resilience and sustainability of supply chains through trade facilitation reforms and digital innovations.

• The forum will also feature an innovation challenge to inspire greener, more efficient, and resilient global production and distribution networks. (link)

Other headlines 

Avetta, a supply chain risk management firm, has garnered interest from private equity firms EQT, Warburg Pincus, and Bain Capital for a potential acquisition, valuing the company at over $3 billion.

Panasonic is preparing for a possible IPO of its supply chain management business, including Blue Yonder with a potential market capitalization of at least 1 trillion yen.

Alibaba has suspended the IPO of its logistics unit Cainiao due to challenging market conditions and a strategic shift to focus on global expansion and synergies with its e-commerce operations.

Zipline Logistics has acquired Texas-based Summit Eleven to enhance its transportation management solutions and strengthen its presence in the consumer-packaged goods sector.

Descartes Systems Group has acquired OCR Services, Inc., a leading provider of global trade compliance solutions, for $90 million, aiming to enhance its Global Logistics Network with OCR's expertise in export compliance and AI-driven content management.

Aqua Metals and 6K Energy signed a strategic supply agreement to establish a sustainable lithium battery supply chain.

The collapse of the Francis Scott Key Bridge in Baltimore has significantly disrupted supply chains, particularly affecting the export of coal and the automotive industry, with President Biden pledging federal funds for reconstruction.

The state and outlook for semiconductor supply chains in 2024 and beyond by S&P Global Market Intelligence.