Logistics technology provider Descartes is growing its services through the takeover of STEPcom in a $19.6 million agreement, the company recently announced.
The takeover of Switzerland-based STEPcom will enhance Canada-based Descartes’ current offering by adding STEPcom’s B2B supply chain integration solutions to its product suite. STEPcom connects buyers, suppliers and other trading partners in a network to streamline data exchange and automate an array of supply chain processes, including procure-to-pay and order-to-cash.
Descartes’ current Logistics Technology Platform includes its Global Logistics Network, a range of logistics apps and a community of logistics companies to connect and conduct business. According to the company, the STEPcom takeover strengthens Descartes’ presence in Switzerland and enhances its B2B toolset around the areas of data pool synchronization, product information management and vendor-managed inventory.
The takeover also presents new opportunities for Descartes to aggregate a broader range of supply chain data starting earlier in the B2B transaction cycle.
Its current platform aggregates regulatory trade and logistics trade data to promote enhanced market research and risk mitigation services for its users, the company explained. Acquiring STEPcom strengthens the firm’s ability to gather market data for market research purposes, which can help guide the firm when developing and offering additional products.
In 2017, Descartes announced the takeover of Seattle shipping company ShipRush, a company that offers small businesses and retailers with shipping management solutions and supply chain efficiency tools. That takeover agreement was reached for $14 million.
Data exchange and partnership coordination are among the biggest challenges in supply chain management and global trade today.
Recent analysis from American Shipper, sponsored by US Bank and Amber Road, warned that despite the acceleration of technological innovations in the supply chain management market, “the industry is still often derided as slow to adopt and adapt.”