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By Alex Lennane
Blue Yonder has moved to establish a lead in multi-enterprise supply chain optimisation capabilities, with the takeover of One Network for $839m – the firm’s third acquisition in 15 months, pushing its spending to over $1bn.
The deal, which is expected to close this quarter or next, has been described by some observers as a move that will change the landscape in supply chain technology.
It sets Blue Yonder on a course to create a multi-enterprise ecosystem that will enable its clients “to optimise and orchestrate solutions both internally and in collaboration with external partners in real time”.
One Network supplies intelligent control towers that offer customers visibility, planning tools, order fulfilment and payment solutions. Moreover, it has a network of more than 150,000 trading partners, which Blue Yonder clients will be able to tap into to share data and avoid potential disruptions.
One Network’s platform includes over 49,000 suppliers and about 20,000 carriers.
“Supply chains have become more complex and, as more and more companies reduce risk by diversifying sourcing of products globally, there is an increased demand for the sharing of information and resources across the whole value chain,” said Blue Yonder CEO Duncan Angove.
“This, along with increased disruptions and geopolitical risks, have put the pressure on organisations to build more resilient and robust supply chains.”
In the event of a disruption, the addition of One Network’s technology means Blue Yonder clients can update and optimise their supply chain or orchestrate a new plan, involving their internal resources as well as their carriers, suppliers and the suppliers’ suppliers.
In addition, the combination of Blue Yonder and One Network will allow customers to advance instantly from the order planning phase to fulfilment, eliminating the time gap normally associated with the process.
Emphasising the fragmented nature of supply chains and their vulnerability to disruptions, One Network founder and chairman Greg Brady was bullish on the prospect for the marriage.
“Blue Yonder offers the most complete portfolio in the industry, spanning from planning to execution. Coupled with our network and multi-enterprise, multi-tier platform, we’re poised to form the backbone of this new supply chain of the future,” he said.
As enterprises continue to face a volatile environment and potential supply chain disruptions beyond their control or even direct reach, the prospect of a unified platform tapping into data from multiple enterprises that enables supply chain optimisation and orchestration has strong appeal, which should give Blue Yonder an edge over many rival supply chain technology providers.
The $1.28bn digital supply chain transformation provider, which was acquired in 2021 by Panasonic, is on a roll to expand its reach and capabilities. This latest acquisition follows the takeover of reverse logistics specialist Doddle and Flexis, which offers factory planning, sequencing and slotting capabilities.
Blue Yonder did not disclose the amounts spent on those acquisitions, but management has confirmed that the latest deal is taking its M&A spend since the start of 2022 beyond $1bn.
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