Supply chain software vendor Logility said earlier today it has acquired Optiant, a provider of supply chain optimization systems. The purchase price, according to Logility officials is $3.3 million and is subject to certain post-closing adjustments.
Logility added that Optiant's technology helps manufacturers and distribution businesses free-up millions of dollars in working capital trapped within their multi-echelon supply chains. And they also said that Optiant products will be incorporated into the Logility Voyager Solutions platform now as Voyager Inventory Optimization. The Logility Voyager Solutions is a suite of collaborative, best-of-breed supply chain solutions that streamline global supply chain operations from planning and forecasting to sourcing and production through warehousing and transportation management.
"Logility continues to innovate its products and, where applicable, seek technology that provides industry-leading capabilities," said Karin Bursa, vice president of marketing, in an interview. "As part of our ongoing commitment to deliver a comprehensive and robust supply chain suite we identified a need for additional inventory optimization and supply chain intelligence capabilities. Optiant is the logical choice. Optiant's technology is based on award-winning research from MIT and decades of experience creating supply chain efficiencies for businesses such as Black & Decker, Procter & Gamble, Kraft, HP, Nestle, and Boston Scientific."
Bursa explained that this deal was carefully planned and Logility's selection of Optiant is in the best interest of Logility's customers and shareholders.
"Optiant's solutions are in place at some of the world's leading companies helping identify and release millions of dollars trapped in their inventories," she said. " By integrating Optiant's solutions into the Logility Voyager Solutions suite, companies will benefit from the first best-of-breed supply chain management provider with a suite that includes optimization for both distribution and manufacturing operations. "
Another benefit she cited is the significant similarity between the distribution-intensive industries (consumer goods, life sciences, high-tech, discrete and process manufacturing) that both Logility and Optiant serve. With this acquisition, Logility will now be in a position to address the specific inventory optimization needs of complex, global manufacturing and distribution business that manage large investments in finish goods and work in process inventories.
When asked how Optiant's platform will be rolled into Logility Voyager Inventory Optimization, Bursa said that it will be integrated into the Logility Voyager Solutions and like other components in Logility's suite, the Voyager Inventory Optimization can be deployed on its own or as a part of a broader supply chain initiative.
"With the addition of Optiant's inventory optimization capabilities, distribution companies are able to model and identify interdependencies across the entire supply chain environment, from raw materials suppliers and supplier-managed inventory through manufacturing and distribution stages to vendor-managed inventory at customer sites," said Bursda. "For example, with this additional insight, shippers will have access to information that will allow them to reduce the cost of goods and increase inventory turns."
John Ruark Ph.D., chief technology officer and co-founder of Optiant, said in a statement that Optiant is excited to become part of the Logility team, adding that Optiant has long admired Logility's robust supply chain suite, large and satisfied customer base, and proven track record of financial stability which will provide an excellent platform for additional growth and innovation,
"There is tremendous synergy in the types of companies we serve and our customers will benefit from access to a comprehensive supply chain management suite with Logility Voyager Solutions," he said.
source : www.logisticsmgmt.com