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Expanding its global logistics management software, Manugistics Group Inc. announced Tuesday the acquisition of Digital Freight Inc.
Manugistics, of Rockville, Md., provides Enterprise Profit Optimization software that helps companies enhance margins across their supply chains. Digital Freight, of Lexington, Ky., provides collaborative logistics software that facilitates online, real-time bids for transportation contracts.
The terms of the deal were not disclosed.
With the acquisition, Manugistics Global Logistics Management Solution will now provide an enhanced transactional environment designed to simplify and accelerate the logistics sourcing process.
Rich Bergmann, Manugistics president, said the collaborative solutions the company gains through the purchase of Digital Freight are designed to cut contract execution times from months to days, resulting in a reduction of transportation rates by as much as 30 percent.
To date, the Digital Freight Marketplace software has facilitated over $1.9 billion in transactions across more than 1,800 carriers and 38 shippers, according to officials.
Digital Freight also brings some heavyweight customers to the table, including Crown Cork & Seal, Frito-Lay, Honeywell International, Safeway Inc. and Sonoco.
Manugistics and Digital Freight are no strangers. The two companies have been working together for the past year-and-a-half and have established links with nearly 400 manufacturing and distribution centers and suppliers.
According to a report by ARC Advisory Group, transportation costs in the United States approach $600 billion annually, with more than 80 percent of all shipments moved under contract. However, there are many companies that still rely on manual processes to manage their logistics sourcing process, despite the benefits associated with transportation procurement software.