SAP: increasing transparency in logistics
Shippers often struggle with transparency across their logistics ecosystem, SAP wants to provide companies with access to real-time information.
The new partnership between SAP and project44 will provide joint solutions for key transportation processes. This includes, receiving and tracking to connect, automate and provide visibility data and insights. As a result, the solution will deliver a more holistic and consistent experience, saving time and resources, improving operations and driving business development in the economy.
“Shippers often struggle with little transparency across their logistics ecosystem due to volatile market conditions and siloed operations, which makes everything from staffing operations to keeping stock on shelves more difficult,” said Franz Hero, senior vice president, Supply Chain Development, SAP. “We want to provide shippers with access to real-time information that pinpoints their shipments’ location at all times and provides dynamic, predictive delivery ETAs. This information will improve shippers’ real-time decisions, to run more proactive, data-driven supply chains."
What does this mean for SAP?
This new partnership marks a major milestone for SAP’s ‘network of networks’ strategy that aims to drive partnerships with world class innovators.
Who is project44?
Project44 founded in 2014, is an American company that strives to fix “the tech issues that plague the global supply chain.” The company ingests, cleanses and normalises high-quality data from a wide network of carriers. Integrating the company’s rich data with SAP Logistics Business Network will further strengthen the largest and fastest growing floval carrier network.
“Since its founding, project44 has been at the forefront in delivering the transportation and logistics industry the advanced visibility needed to make smarter and more proactive supply chain decisions. Together with SAP, we can enable the world’s leading organisations to know exactly where orders are during every step of the journey,” commented Jett McCandless, Founder and CEO of project44.
For more information on all topics for Procurement, Supply Chain & Logistics - please take a look at the latest edition of Supply Chain Digital magazine.
Uber Freight to Acquire Transplace in $2.2bn Deal
Uber Freight is to acquire logistics technology and solutions provider Transplace in a deal worth $2.25bn.
The company will pay up to $750m in common stock and the remainder in cash to TPG Capital, Transplace’s private equity owner, pending regulatory approval and closing conditions.
“This is a significant step forward, not just for Uber Freight but for the entire logistics ecosystem,” said Lior Ron, Head of Uber Freight, and former founder of the Uber-owned trucking start-up Otto.
Uber’s Big Play for Supply Chain
Transplace is one of the world's largest managed transportation and logistics networks, with 62,000 unique users on its platform and $11bn in freight under management. It offers truck brokerage and other capacity solutions, end-to-end visibility on cross border shipments, and a suite of digital solutions and consultancy services.
The purchase is the latest move by parent company Uber, which launched as a San Francisco cab-hailing app in 2011, to diversify its offering and create new revenue streams in all transport segments.
Transplace said the takeover comes amid a period of “accelerated transformation in logistics”, where globalisation, shipping and transport disruption, and widespread volatility are colliding.
Uber Freight plans to integrate the Transplace network into its own platform, which connects shippers and carriers in a dashboard that mirroring the intuitive experience found in its consumer vehicle booking and food ordering services.
“This is an opportunity to bring together complementary best-in-class technology solutions and operational excellence from two premier companies to create an industry-first shipper-to-carrier platform that will transform shippers’ entire supply chains, delivering operational resilience and reducing costs at a time when it matters most,” said Ron.
Frank McGuigan, CEO of Transplace, said the resulting merger will offer enhanced efficiency and transparency for shippers, and benefits of scale for carriers. “All in all, we expect to significantly reduce shipper and carrier empty miles to the benefit of highway and road infrastructures and the environment,” he added.
History of Uber Freight
Uber Freight was established in 2017 and separated into its own business unit the following year. In 2019 the company had expanded across the entire continental US, established a headquarters in Chicago. Later that year it launched its first international division in Europe, initially from a regional foothold in the Nertherlands, and later moving into Germany.
The logistics spinoff attracted a $500m investment from New York-based Greenbriar Equity Group in October 2020, and launched a new shipping platform for companies of all sizes in May, partly in response to a driver shortage in Canada.