Tech major IBM has announced it has completed its acquisition of Emptoris Inc. The acquisition expands IBM’s cloud-based analytics offerings that provide supply chain intelligence leading to better inventory management and cost efficiencies.
According to IBM, Emptoris solutions bring more intelligence to procurement and supply chain operations with spend, supplier and contract management for Smarter Commerce, which helps organizations that are struggling to meet the demands of a rapidly changing market.
The acceleration in online connectivity and speed, combined with the explosion of information and unprecedented access to it, is reshaping globally interconnected commerce systems. This new digital marketplace requires companies to respond rapidly to customer demands by automating their buying, marketing, selling and service processes, believes IBM.
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“Developing the right procurement strategy and an adaptive supply chain are keys to achieving the business objectives of Smarter Commerce,” said Craig Hayman, general manager, IBM Industry Solutions. “Together, Emptoris and IBM’s integrated solutions will transform how clients manage compliance and mitigate supply risk.”
With this acquisition, IBM builds on its capabilities in the procurement aspect of Smarter Commerce and extends it to a new line of c-suite executives – chief procurement officers. Procurement and sourcing professionals increasingly need better supplier management, spend analysis and contract management solutions to lower sourcing costs and risks. Emptoris is a leader in delivering these benefits by automating vendor selection, negotiation, management and compliance, says IBM.
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Emptoris’ solutions complement multiple IBM offerings. They supplement the existing B2B integration and supply chain management capabilities IBM acquired through the purchase of Sterling Commerce in 2010.
They also complement IBM’s Supply Chain Management (SCM) Business Process Outsourcing (BPO) capabilities, a services offering available to clients through IBM Global Process Services (GPS). Emptoris technology combined with IBM GPS BPO capabilities will help accelerate cost savings and speed to benefit, according to IBM.
With the closing of this acquisition, approximately 725 Emptoris employees will join IBM’s software group, which is a key driver of growth and profitability for the company.
IBM made this announcement today, Feb. 1.