Supply Chain Management

Post Acquisition Strategy: The Integration of Logistics Companies

Elemica, the leader in digitizing supply chain networks and connecting supply chain partners, acquired two transportation management management systems to broaden their logistics service offerings for new and existing customers.     

Challenge

In 2020 and 2021, Elemica acquired two Transportation Management Systems (TMS) – EyeFreight’s eTMS and ProcessWeaver’s xCarrier and enterprise central shipping (ECS) solutions. Elemica’s goal was to rapidly integrate these multinational companies, processes, and people into Elemica’s organization, each within a six month timeline and while working remotely during Covid lockdown. 

Solution

Our integration strategy for Elemica focused on several key areas.

  1. Product Portfolio Evaluation
    • Defined strategy for product integration
    • Aligned commercial and partner commitments with Elemica’s product strategy
  2. Technology Assessment
    • Collaborated with engineering leadership to simplify and standardize technology footprints
  3. Process and Personnel Review
    • Identified cost-saving opportunities through process optimization and personnel restructuring
  4. Implementation

The integration process involved several critical initiatives.

  1. Product Enhancements
    • Modernized UI/UX for core eTMS and xCarrier capabilities
    • Implemented new SSO capabilities and aligned branding
    • Designed and developed end-to-end integration strategy for eTMS and xCarrier parcel shipping
    • Implemented new vehicle routing problem solver for LTL optimization
    • Integrated xCarrier’s parcel capabilities into the eTMS platform
    • Defined product roadmap for Hazmat support, customs clearance, and freight audit and payments
  2. Process and Personnel Optimization
    • Reduced workforce and reorganized teams based on synergies
    • Restructured cloud operations, including CI/CD automation
    • Enhanced database performance through data warehousing initiatives
    • Defined Elemica’s standardized Software Development Lifecycle (SDLC) tools and processes

Results

The integration project yielded significant outcomes.

  • An integrated end to end LTL, TL, and parcel workflow which is sales demonstrable to drive net new revenue. 
  • A reduction in headcount leading to nearly $580,000 in savings which was re-invested for the modernization and technology efforts.
  • A shift toward one code base for all standardized TMS customers.
  • Centralized product management, identified, and placed a new Chief Product Officer leader across the combined organizations.
  • A consolidated global engineering and DevOps teams within the organization across the US, Europe and India that used a standard product operating model.

Key Benefits

The acquisitions and subsequent integration brought several advantages to Elemica.

  • Ready-made first-to-final mile multi-carrier and multi-modal logistics capabilities.
  • Cross-sell and upsell opportunities across expanded customer bases and partners.
  • Cost savings through combined sales, marketing, services, support, and engineering personnel.

Conclusion

By focusing on product integration, process optimization, and personnel alignment, Elemica has expanded its logistics capabilities and positioned itself for continued growth in the digital supply chain market.