May 17, 2020

Honeywell reportedly in talks to acquire JDA Software

Honeywell International automation
JDA Software Honeywell deal
JDA Software Honeywell negotiations
Supply chain planning software
Jennifer Johnson
2 min
The diversified industrial conglomerate is eager to boost its automation portfolio.
Honeywell International is in talks to acquire JDA Software Group Inc in a deal that would value the supply chain management software company at roughly...

Honeywell International is in talks to acquire JDA Software Group Inc in a deal that would value the supply chain management software company at roughly USD $3 billion, according to Reuters.

New Mountain Capital LLC, JDA’s majority owner, has previously contemplated a sale of the company to private equity firms, and a source said yesterday that there is no guarantee that talks with Honeywell will result in a deal.

Due to the confidential nature of negotiations, the sources asked not to be identified.

Scottsdale, Arizona-based JDA Software provides end-to-end, integrated retail and supply chain planning and execution for more than 4,000 customers across the globe. The company has some $2 million in debt to contend with and was recently given warning by Moody’s Investor Service that its capital structure could be impaired without a reduction in debt or sizable equity investment.   

Increasingly fierce competition among software vendors for products in supply chain planning, warehouse management and transportation will further reduce JDA Software’s market share.

Last month, Honeywell acquired Intelligrated Inc, a US distribution systems and logistics company for $1.5 billion. The diversified industrial conglomerate is looking to increase its automation portfolio and boost its sensing and productivity solutions division as increased online shopping calls for streamlined logistics processes.

Honeywell, New Mountain Capital and JDA Software all declined to comment.

This story was originally reported by Reuters.

Supply Chain Digital's August issue is now live. 

Follow @SupplyChainD on Twitter.

Supply Chain Digital is also on Facebook. 

Share article

Jun 21, 2021

Pandora and IBM digitise jewellery supply chain

supplychain
IBM
Pandora
omnichannel
2 min
Jewellery retailer Pandora teamed with IBM to streamline supply chains as sales of hand-finished jewellery doubled across ecommerce platforms

Pandora has overhauled its global supply chain in partnership with IBM amid an ecommerce sales boom for its hand-finished jewellery. 

The company found international success offering customisable charm bracelets and other personalised jewellery though its chain of bricks and mortar retail destinations. But in 2020, as the COVID-19 outbreak forced physical stores to close, Pandora strengthened its omnichannel operations and doubled online sales. 

A focus on customer experience included deploying IBM’s Sterling Order Management, increasing supply chain resiliency and safeguarding against disruption across the global value chain.

Pandora leverages IBM Sterling Order Management as the backbone it its omnichannel fulfilment, with Salesforce Commerce Cloud powering its ecommerce. Greater automation across its channels has boosted the jeweller’s sustainability credentials, IBM said, streamlining processes for more efficient delivery. It has also given in-store staff and virtual customer service representatives superior end-to-end visibility to better meet consumer needs. 

Jim Cruickshank, VP of Digital Development & Retail Technology, Pandora, said the digital transformation journey has brought “digital and store technology closer together and closer to the customer”, highlighting how important the customer journey remains, even during unprecedented disruption. 

"Our mission is about creating a personal experience and we've instituted massive platform changes with IBM Sterling and Salesforce to enable new digital-first capabilities that are much more individualised, localised and connected across channels and markets,” he added. 

 

Pandora’s pivot to digital 

The pandemic forced the doors closed at most of Pandora’s 2,700 retail locations. To remain competitive, it pivoted to online retail. Virtual queuing for stores and virtual product trials via augmented reality (AR) technology went someway to emulating the in-store experience and retail theatre that is the brand’s hallmark. Meanwhile digital investments in supply chain efficiency was central to delivering on consumer demand. 

“Consumer behaviour has significantly shifted and will continue to evolve with businesses needing to quickly adapt to new preferences and needs,” said Kareem Yusuf, General Manager, AI Applications and Blockchain, IBM. “To address this shift, leading retailers like Pandora rely on innovation to increase their business agility by enabling and scaling sustainable supply chain operations using AI and cloud.”

Yusuf said Pandora’s success was indicative of how to remain competitive by “finding new ways to create differentiated customer experiences that protect their enterprises from disruptions to help mitigate risk and accelerate growth”. 
 

Share article