Blue Yonder, a leading provider of supply chain planning and execution solutions, has announced its acquisition of One Network Enterprises for approximately $839 million. This significant acquisition will change the supply chain software landscape. Blue Yonder, with revenues of $1.28 billion in the last fiscal year, is the third largest supplier in the supply chain planning market. One Network, on the other hand, is a smaller company with a market share of less than 2%.
One Network provides supply chain planning, execution, and a multi-enterprise supply chain network solution, which offers the most agile solution in the market when combined with planning and execution. With the pandemic highlighting the need for agility and resilience in supply chains, software firms have been working to incorporate these functionalities into their solutions. The multi-enterprise supply chain network platform provided by One Network connects over 150,000 organizations, including suppliers and carriers, facilitating more than 5.6 million transactions daily impacting supply chain operations.
The combination of One Network’s Digital Supply Chain Network and Blue Yonder’s applications will offer real-time, multi-enterprise optimization, orchestration, and collaboration, both inside and outside organizations. This new ecosystem will enable customers to move from order planning to fulfillment instantly, tap into a complete and actionable data set, and take immediate action via upstream and downstream collaboration, providing real-time visibility across the supply chain and automating decision-making technology.
Blue Yonder’s acquisition of One Network will enhance the ability to reoptimize plans when unexpected events occur, providing a holistic view of the entire supply chain. While One Network primarily enables quick resolutions within a company’s supply chain, the multi-tier capabilities, including visibility to risk multiple tiers up the supply chain, are achieved through partnerships with advanced supplier risk management solutions. Other players in the supply chain software landscape, such as Kinaxis and SAP, have also made moves to combine multi-enterprise supply chain network solutions with supply chain planning capabilities.
Following its acquisition by Panasonic in 2021, Blue Yonder has been aggressively investing in its business. This deal with One Network marks approximately $1 billion in M&A investments made since the fourth quarter of 2023. Blue Yonder has also made acquisitions of flexis AG and Doddle, focusing on enhancing its factory planning, sequencing, slotting, and returns management solutions. The company is actively hiring, building out, and rearchitecting its existing products to solidify its market leadership position in the supply chain software space.
Blue Yonder’s CEO, Duncan Angove, sees a huge opportunity in the $130 billion addressable market for supply chain solutions that can turn uncertainty and disruption into opportunities for customers. Despite the challenge of integrating diverse product sets and componentizing them into a unified platform offering, which historically takes years, Blue Yonder’s aggressive investing may accelerate the timeline. The company aims to create the next generation of supply chain software that will lock in customers for years to come with its innovative solutions and strategic acquisitions.
