Provia plans to buy Pinnacle Distribution Concepts

By Staff -- Logistics Management, 11/1/1999

The latest supply chain software industry acquisition announcement reflects the continuing trend toward combining assets to create logistics execution suites--distribution applications that manage both warehousing and transportation operations. Provia Software in Grand Rapids, Mich., last month reached an agreement in principle to acquire Pinnacle Distribution Concepts Inc. of Knoxville, Tenn. Terms of the agreement were not disclosed.

Provia (formerly known as Haushahn) sells a warehouse management system (WMS) application. Its new acquisition, Pinnacle, has developed a Web-enabled transportation management system (TMS) application called "FreightLogic." Unlike other TMS vendors, which sell their applications outright to users, Pinnacle offers its application over the Web to eliminate the need for users to purchase computer equipment and maintain the application in-house. The load-planning and optimization software can be managed centrally on a FreightLogic server and is accessible via the Internet.

Provia executives hope to capitalize on Pinnacle's Web-enabled application strategy to expand their company's presence in the supply chain software market. Web-enabled access to a logistics software application is likely to appeal to small and mid-size companies, which often can't afford the cost of computers and systems integration.