DC Velocity - December 2015

Material handling and logistics systems provider Dematic Corp. will acquire Reddwerks Corp., an Austin, Texas-based warehouse execution software (WES) provider. Terms of the transaction were not disclosed.

The combination integrates Reddwerks’ WES systems with Dematic’s warehouse automation tools to give customers real-time decision-making engines that optimize their material and information flows, Atlanta-based Dematic said.

In today’s environment, “the only way to effectively achieve responsive order fulfillment is through an automated supply chain, powered by comprehensive real-time software. Traditional batch processing cannot sufficiently respond to either the operational variability or the speed required,” Dematic President and CEO Ulf Henriksson said in a statement.

Customers typically use a WES platform to optimize a highly automated environment and balance the movement of people, resources, and product inside a DC. Adding Reddwerks helps Dematic fill a void between warehouse control system (WCS) and warehouse management system (WMS) platforms and improve customers’ performance in an automated environment, said John Santagate, research manager for supply chain execution at IDC Manufacturing Insights, a consultancy.

After the merger, Reddwerks will operate as a subsidiary of Dematic under the name Dematic Reddwerks.

Dematic is wise to maintain the Reddwerks name while merging the two firms’ capabilities, Santagate said. “Reddwerks has a good brand. They are well known in the WES field, and you don’t want to disrupt that,” he said.

Santagate said Dematic’s strategy is similar to the approach taken in 2014 by Accellos Inc. when it acquired HighJump Software, combining two companies that provide technology to support omnichannel fulfillment. “HighJump continues to operate under its own name and maintain its brand, and not be fully integrated into Accellos,” he said.

Likewise, the pressure of meeting omnichannel demands was a key factor driving Dematic’s acquisition of Reddwerks, Santagate said.

—B.A.
newsworthy

22 DC VELOCITY DECEMBER 2015 www.dcvelocity.com
Dematic acquires Reddwerks to leap into
WES software space

Murphy Warehouse Co. has become Minnesota’s first warehousing and logistics company—and one of just four companies based in Minnesota—to earn LEED Gold recertification. … Dachser Transport of America Inc. has been honored by the German American Chamber of Commerce of the Midwest with the 2015 Excellence in Services award. … Both of Henningsen Cold Storage’s facilities in Portland, Ore., have been recognized by the Oregon Occupational Safety and Health Administration On-Site Consultation Program’s Safety and Health Achievement Recognition Program for continuing to exceed injury and illness prevention standards. … Seko Logistics’ European MedTec control tower has been awarded ISO 13485 certification, the foundation for manufacturers to address medical device directives, regulations, and responsibilities. … Jeremy Steger, a Wisconsin-based driver for Con-way Freight, was named the Straight Truck Class Champion at the 78th National Truck Driving Championships. … For the fifth consecutive year, Penske Truck Leasing and Penske Logistics made the Victory Media list of Top 100 Mili-tary-Friendly Employers and Military Spouse-Friendly Employers. … Whirlpool Corp. has honored logistics service provider Kenco as one of its top supply chain partners for 2014. … UTi Worldwide Inc., a supply chain service provider, has won parts supplier Nexteer Automotive’s Superior Customer Service award. accolades

Hyster-Yale Materials Handling Inc. said its wholly owned operating subsidiary, NACCO Materials Handling Group Inc., a designer, manufacturer, and seller of lift trucks and aftermarket parts, will change its name to Hyster-Yale Group Inc. on Jan. 1.

In conjunction with the name change, Cleveland-based Hyster-Yale Materials Handling Inc. and Hyster-Yale Group Inc. will adopt a new corporate logo, effective Jan. 1.

NACCO primarily markets its global product line under the Hyster and Yale brand names.

In a statement, the parent said the name change is aimed at reinforcing Hyster-Yale Group’s position as the operating company under Hyster-Yale Materials Handling Inc., and to eliminate any confusion stemming from the use of NACCO in the operating company name subsequent to the 2012 spinoff of Hyster-Yale Materials Handling from NACCO Industries Inc.