Infor just announced its acquisition of GT Nexus. I like it because it is not just a simplistic business network where you order paper and pencils and then burden those suppliers with the costs of running the network. GT Nexus’s network is more about direct components that go into BOMs of many large customers. It also supports (and is funded by) many commerce participants – 3PLs, carriers, trade financiers – and fits in well with Infor’s fashion, retail and manufacturing vertical focus.
I hope this is one of Infor’s continued investments in the supply chain and broader digital commerce arena. Indeed, I hope most large software vendors revisit the space. In the last decade, while smaller vendors like E2open and Kinaxis have continued to deliver value, larger vendors have turned their attention to HCM, CRM and other areas of the enterprise. A comment I have heard from a couple of them “most supply chains are optimized, we can deliver better value elsewhere”
In that same decade, I would say most supply chains have had a chance to be “re-optimized”. If you are not taking advantage of amazing logistical advances such as the expanded Panama Canal, the rail link between China and Germany, extreme oil drilling in the Arctic, the promise of drones and privatization of space exploration you are likely under-optimized. If you are not benchmarking against Apple and Amazon type supply chains, you likely are under-optimized. In that same decades, freight railroads and Fedex, DHL and UPS have become some of the savviest users of technology.
I hope SAP’s Simple Logistics is a recognition of this new world not just a HANA/Fiori update of the old world. Ditto with the Oracle SCM Cloud. Be nice to see the younger cloud players like NetSuite, Plex and Workday invest more in this area.
Kudos to Infor. Keep redefining the SCM space.