Korber Supply Chain Software announced Tuesday it is acquiring MercuryGate International Inc., a TMS provider, for an undisclosed sum.
According to a news release from Korber Supply Chain Software, MercuryGate is known for its capabilities in multimodal optimization and execution.
“The acquisition is a strategic move that extends Korber Supply Chain Software’s capabilities in delivering a comprehensive, innovative, adaptable and scalable supply chain execution portfolio,” the release states.
Hamburg, Germany-based Korber Supply Chain Software is a joint venture between strategic management holding company Korber AG and global investment firm KKR. Korber Supply Chain Software states in the release that extending its portfolio of solutions across all supply chain execution operations will make it a leader in managing the movement of goods from procurement to the end customer.
The release states that the acquisition will:
- Create solutions that connect across inbound and outbound supply chain activities, improving cost efficiencies and customer experiences by optimizing placement, usage and routing of goods.
- Establish a resilient and reliable supply chain platform with visibility across inventory pools, helping customers identify growth opportunities as well as predict and rapidly respond to disruptions.
- Provide simulation capabilities to evaluate future supply chain strategies and understand return on investment across their local and global business.
“Our customers navigate dynamic, volatile supply chain environments under increasingly high expectations for order fulfillment,” said Ed Auriemma, CEO of Korber Supply Chain Software, in the news release. “With the acquisition of MercuryGate, Körber Supply Chain Software is poised to offer an unparalleled combination of advanced technology and deep industry expertise to create innovative processes to help businesses manage these challenges.”
MercuryGate CEO Joe Juliano said in the release: “The addition of MercuryGate’s multimodal, SaaS-based TMS to Körber’s supply chain software business will create a comprehensive, value-driving supply chain offering for global industry leaders. The combined company is positioned to deliver the broadest and deepest set of supply chain execution software solutions available worldwide.”
Korber did not immediately respond to FreightWaves’ request for comment. The release notes that the transaction is subject to closing conditions and regulatory approvals.
Why buy MercuryGate?
According to a Monday blog post by Sean Elliot, chief technology officer at Korber Supply Chain Software, the COVID-19 pandemic forced strategy shifts in supply chain execution. Elliot notes that this was often by increasing cost in the short term, despite customers previously looking at their supply chains as an area that needed to become more cost-efficient.
“Our customers now tell us that their biggest challenge is to balance these competing goals, ensuring that supply chains are highly resilient while also remaining incredibly cost-effective,” Elliot states in the post.
He cites IDC’s Multi-Industry Supply Chain Survey 2024, stating over the past 12 months, 40% of reported disruptions were due to transportation costs and 33% were due to transportation or delivery delays.
Elliot says the solution is a new approach that expands beyond investment in technology to drive isolated priorities in functional areas like transportation, warehousing or commerce enablement.
“In today’s fast-paced and increasingly complex landscape, businesses need a new approach that seamlessly integrates every aspect of supply chain execution —from order management to warehouse operations and transportation logistics,” Elliot states in the blog post. “Specifically, since the pandemic, it has become clear to us that strategic integration between Order Management Systems (OMS), Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) is the key to achieving this balance, since seamless flow and cooperation between each of these systems creates a variety of opportunities to improve resilience and efficiency at the same time.”