Global trade management solutions provider Amber Road has just made a major investment in a supply chain relationship services firm that will strengthen buyer-supplier partnerships throughout North America, Europe and Asia.
Amber Road revealed an agreement to acquire supply chain services firm ecVision for $24 million as well as an additional $9 million over the next two years, according to reports.
The takeover means Amber Road will acquire the cloud-based resources offered by ecVision that allow buyers and suppliers to maintain a collaborative relationship regardless of location. Reports said the acquisition aims to increase supply chain management services as well as supplier product development and innovation.
“U.S. and European-based brand companies are under constant pressure to bring new products to market faster,” said SCM World Chief Content Officer Kevin O’Marah. “It’s all about accelerated merchandise innovation and rapid, profitable execution.”
According to the executive, Amber Road’s takeover of Hong Kong-based ecVision is also part of Amber Road’s efforts to strengthen companies’ abilities to do business overseas. “More effective collaboration with Asian-based manufacturers is key” to innovation, O’Marah said. “Where ecVision helps drive these benefits on the front end of the process, Amber Road picks it up at point of shipment to ensure compliant, cost-effective global delivery to the brand or retailer. It’s a very synergistic union.”
The purchase of ecVision lands its vendor and production, material and product, risk and quality management, and shipment and logistics management services in Amber Road’s hands. The corporation deploys a Software-as-a-Service business model to more than 40 countries, reports said, to streamline brand operations with their manufacturers and suppliers.
Together, the companies will collaborate to speed up the procurement process and encourage product innovation. ecVision CEO Thomas Ng added that the merger will focus on product compliance as well. “We’ve seen an increased focus on trade compliance and global logistics on the part of our customers over the past few years,” he said.
While ecVision operations in Hong Kong, the U.S. and China, the acquisition will expand its services throughout North America and Europe.