Red Prairie set to acquire BlueCube, increase retail logistics processes
Jeff Berman, Senior Editor -- Logistics Management, 6/19/2006
MILWAUKEE, Wis. and ATLANTA, Ga.—Supply chain software provider RedPrairie announced today it has signed a definitive agreement to acquire BlueCube Software Inc., a provider of software to retailers and hospitality organizations, focusing on inventory management/supply chain and workforce management.
The deal is expected to be made official in the next 20-to-30 business days. Financial terms were not disclosed.
RedPrairie president John Jazweic told Logistics Management that the acquisition of BlueCube fits into the company’s E2E strategy, which focuses on consumers driving the supply chain as opposed to the other way around. He said the E2E strategy pictures the supply chain originating with the consumer and moving through distribution and down to the manufacturer, or taking it from a ‘bottoms up’ perspective.
“In order to have consumers [drive the supply chain], that requires signaling from retailers, and we think consumers want that now and they want that to be configurable,” said Jazweic. “Traditional supply chain planning pushes inventory through the supply chain, leading to longer lead times and more inventory costs.”
BlueCube was attractive to RedPrairie, according to Jazweic, because it the 185-employee company is profitable and growing and has an enviable list of world class customers. He added that BlueCube’s store operations, inventory management, and workforce management system capabilities will help to complete RedPrairie’s E2E vision.
And because RedPrairie is fairly early in its E2E adoption cycle, Jazweic said it is likely that BlueCube will play a major role in the grocery and convenient store market segment because the inventory SKUs in that area are not as volatile as things like retail apparel.
“RedPrairie has grown up in the consumer packaged goods, and food and beverage client world, and BlueCube’s retailers include a broad line of retail, including hard goods and apparel,” said Jazweic. “But because a lot of retailers [move] those products through grocery and convenient store markets, we think this combination of RedPrairie and BlueCube provides intellectual property and also puts us in the position to uniquely allow our traditional customer based to collaborate.”
From BlueCube’s perspective, company president Kim Eaton said it has a lot to gain by joining forces with one of the top two companies in the supply chain software market.
“This gives our customers the comfort that we are continuing to focus on them by becoming a part of a bigger entity,” said Eaton. “In terms of products, a lot of our customers face the issue of integrating with suppliers and being more responsive. Now [with RedPrairie] we can provide an integrated solution, where possible, to help customers be more responsive to be their consumers. This gives them supplier integration.”
Today’s announcement marks the fourth acquisition RedPrairie has made going back to last October when it acquired Rangegate, a United Kingdom-based provider of software and mobile solutions for managing visibility, compliance and execution in warehouses and stores. Last January RedPrairie acquired ALTA A/S, a provider of manufacturing event management solutions for automotive suppliers. And in February it acquired Marc Global Holdings, a provider of supply chain management products and services.
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