project44 Acquires Convey for $255M - Supply Chain Visibility

project44 Acquires Convey in $255 Million Deal

project44, a leading provider of real-time supply chain visibility, has finalized the acquisition of last-mile technology platform Convey for a sum of $255 million. This strategic move is designed to unify capabilities and deliver comprehensive end-to-end supply chain visibility, spanning from the origin of raw materials to the final delivery point.

Enhancing the RTTVP Platform

The integration of Convey’s technology will significantly enhance project44’s “Real-time Transportation Visibility Platform” (RTTVP). This platform offers crucial data regarding shipments in transit, encompassing all transportation modes and geographical locations. Furthermore, it provides precise estimated times of arrival (ETAs) for deliveries, with a particular focus on improving last-mile and direct-to-consumer delivery experiences.

Through this acquisition, project44 gains access to Convey’s extensive global customer base, which includes prominent brands such as The Home Depot, Nieman Marcus, and Ferguson Enterprises.

Addressing Evolving Customer Expectations

“project44 is focused on resolving a key challenge for businesses today – meeting increasingly demanding customer expectations while maintaining operational efficiency amidst ongoing uncertainty and escalating complexity,” stated Jett McCandless, CEO and founder of project44. “Companies face significant pressure to not only fulfill and ship orders but also to provide accurate information regarding product availability and delivery timelines. However, unpredictable conditions, intricate processes, and supply chain opacity often hinder these efforts.”

Growth in the Supply Chain Management Market

The importance of effective supply chain management is globally recognized, driven by the increasing reliance on e-commerce and the recent experience of widespread delays. According to a 2020 report by Allied Market Research, the global supply chain management market was valued at $15.85 billion in 2019 and is projected to reach $37.41 billion by 2027.

Ongoing disruptions stemming from the pandemic continue to impact manufacturers worldwide, highlighting the critical need for robust supply chain solutions. A 2020 survey revealed that 35% of businesses experienced negative consequences due to cross-border transportation delays.

Expanded Network and Capabilities

The Convey acquisition enables project44 to connect over 880 global shippers and third-party logistics providers with a vast network comprising 113,000 carriers, 2.6 million assets, and over 9 billion last-mile shipment events. This expanded network is expected to result in optimized costs, increased revenue, faster shipping speeds, improved service quality, and an overall enhanced delivery experience for clients.

Convey’s automated customer communication service also provides the ability to efficiently resolve parcel delivery issues, allowing project44 customers to reduce manual customer service efforts and concentrate on core business functions.

Improved Proactive Issue Resolution

“Managing thousands of concurrent shipments, with order details scattered across numerous systems, often makes it challenging to identify those requiring immediate attention,” explained Devin Van Hout, vice president of digital commerce at Ferguson Enterprises. “Convey’s solution equips our team with the necessary information to transition from a reactive to a proactive approach, while also providing tools for seamless communication with all stakeholders. This results in a simplified and consistent customer experience, even within complex B2B environments.”

Strategic Acquisitions and Partnerships

This acquisition marks project44’s third this year, following the acquisitions of Ocean Insights and ClearMetal. The company states that each acquisition has facilitated the integration of new technologies, leading to reduced turnaround times for customers. Recently, Google selected project44 as its inaugural strategic visibility partner for its Google Cloud Supply Chain Twin solution, an initiative aimed at addressing complex supply chain challenges.

A Leading Logistics Company

Having achieved a $1.2 billion valuation earlier in the year, project44 is rapidly establishing itself as a major player and a leader in the real-time logistics sector.

Note: An earlier iteration of this article incorrectly stated the acquisition value as $225 million. This has been corrected to reflect the accurate amount of $255 million.