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Siemens is continuing to drive digitalization in logistics forward with its acquisition of LOCOM
Customers benefit from integrated, cloud-based supply chain solutions
Through the acquisition of LOCOM, Siemens Postal, Parcel & Airport Logistics (SPPAL) and its subsidiary AXIT have expanded their market position for consulting and IT services in the logistics sector. Based in Karlsruhe, LOCOM is successfully engaged in the market for logistics consulting and innovative planning, simulation and optimization software. LOCOM is regarded as a trailblazer and one of the leading companies in its field of business. Among the customers are leading German companies and logistics service providers in Europe. The transaction was completed on June 7, 2018. The companies have concluded a non-disclosure agreement about the financial details.
"After the acquisition of AXIT in 2015, this is a further, consistent step toward a strategic expansion of our portfolio. In this way, we are strengthening our market position in the important growth field of digitalization in logistics. We are planning to bundle the AXIT and LOCOM activities into one company in the new fiscal year. In conjunction with the SPPAL expertise we see tremendous potential for our customers," said Michael Reichle, CEO of SPPAL.
With its own software portfolio, SPPAL already offers outstanding digital solutions for intralogistics in the postal, parcel and airport market, whether it involves optimizing the operations of parcel centers with real data on a daily basis or improving the flow of goods at airports. In combination with the cloud-based logistics platform AX4 from AXIT, customers also benefit from the global control of their logistics networks. Thus, companies can manage their supply chains more easily, more transparently, and more reliably. The competencies of LOCOM – especially their sophisticated planning and optimization algorithms and subsequent simulation – strengthen and supplement the entire software portfolio up to a holistic supply chain management system. Thus, in the future, customers will be able to use the already validated and consolidated data from the transport management of the AX4 logistics platform for planning and simulation processes at the push of a button. In this way, they can flexibly optimize their supply chains and respond very quickly and with more agility to changing boundary conditions, for example.
Whereas the logistics industry is still essentially relying on isolated silo solutions, Siemens customers benefit from the implementation of a continuous optimization and control process from a single source along the entire logistics chain. On the one hand, this includes strategic and tactical planning with the help of data analysis, simulation and visualization of processes as well as optimization recommendations. On the other hand, the optimized shipments are handled via a digital platform: All of the participants are integrated, the information and shipment management is automated.
The resulting end-to-end visibility creates a high degree of efficiency and security for the connected companies. As a supplement to this, the combination of many years of cross-industry consulting competency and software solutions represents considerable added value for the customer, for example, in regard to working out a digitalization strategy and developing new IT-based service offers. Holger Schmitt, CEO of AXIT, emphasizes: "Customers from industry, trade and logistics service providers benefit considerably from the linking of the solutions from AXIT and LOCOM: The combination of planning, optimization, digitalized shipment management and end-to-end transparency leads to a clear boost in efficiency, security, reliability and success in supply chain management."
Volker Klohr, founder and CEO of LOCOM, adds: "With Siemens as a well-known brand around the world, this is the right way for LOCOM to offer our portfolio and our competencies more intensively in international markets in the future. In this way, we can benefit even more from the global growth in the digitalization field."