The cloud has gotten a little more crowded in the past 24 hours.
Infor, the world's third-largest provider of enterprise applications and services, said today it agreed to acquire Oakland-based GT Nexus, touted as the world's largest cloud-based commerce platform, for $675 million. The announcement comes a day after software giant Oracle Corp. and cloud-based warehouse management systems provider LogFire, Inc. collaborated to develop the first integrated transport and WMS system in the cloud.
Infor said in a statement that the transaction will create the first "global commerce cloud" to give companies the visibility needed to integrate worldwide manufacturing locations for the sharing of ordering, financial, and shipment data. For Infor, which manages a portfolio of automated supply chain solutions but is not particularly well-entrenched in the segment, the transaction helps elevate it to the levels of supply chain powerhouses like Redwood Shores, Calif.-based Oracle, German firm SAP SE, and Scottsdale, Ariz.-based JDA Software, said Steve Banker, service director, supply chain management, at ARC Advisory Group.
The deal is expected to close within 45 days, pending regulatory approval, Infor said.
Infor is one of the leading providers of cloud-based enterprise resource planning (ERP) software, which helps manufacturers synchronize production inside the enterprise. Infor is especially strong in building cloud-based suites to serve verticals like fashion and retailing, a capability that sets it apart from companies like SAP and Oracle, according to James A. Cooke, analyst for Nucleus Research Inc., a consultancy. Infor has more than 3,200 fashion and retail customers, many of whom also use GT Nexus.
Infor has benefited from the growth of global contract manufacturing, which requires a cloud-based process to coordinate activities among different companies handling product design, production, and distribution. By acquiring GT Nexus, Infor extends its presence into cloud-based global trade management, where buyers transmit orders to suppliers, financial institutions, transport partners, and third-party logistics (3PL) providers. GT Nexus functions as the order-management system for an entire network by managing the order's master record across multiple stakeholders, and doing so in a scalable manner. The objective is to improve the flow of goods, funds, and trade information by allowing all participants to operate against a uniform set of data standards across myriad supply chain functions.
In a statement, Infor CEO Charles Phillips said the companies would offer businesses "unprecedented visibility into their supply chains to manage production and monitor goods in transit and at rest." Phillips added that in a turbocharged supply chain, "all partners need to know what was ordered, when it was built, where it is in transit, if the order has changed, and [whether it] has cleared customs. Specialization and speed are moving the future of manufacturing into the commerce cloud."
GT Nexus' forte is providing end-to-end visibility of ocean freight shipments, a complex process that stretches across thousands of miles and encompasses numerous parties. Banker of ARC said GT Nexus' delivers "granular visibility," where status information extends far beyond ship status to the number of containers and products aboard the vessels. Among GT Nexus' other skills is the facilitation of more than $20 billion in payments between buyers and suppliers in 90 countries and in eight currencies.
The broad strategy of cloud-based supply chain convergence, which came across in today's announcement, was also emphasized yesterday by Oracle and Logfire when they announced their partnership. Phillips joined Infor in 2010 after a seven-year stint at Oracle, where he served as its president and codirector.
The dual announcements reinforce a broader strategy of migrating supply chain services from traditional on-premise systems, where software is customized and maintained for clients, to web-enabled, cloud-based models, where startup costs are lower and deployment times are faster. Users of cloud-based supply chain services achieve full payback on their investments about 1.7 times faster than with on-premise solutions, according to data from Nucleus Research.
In addition, over the past 12 to 18 months cloud-based supply chain services have gone from being rudimentary in nature to delivering the same richness of information traditionally found in more expensive and complex on-premise systems, Diego Pantoja-Navajas, LogFire's founder and CEO, said in an interview yesterday.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.