Manufacturing and Technology

Logistics supplier acquires Texas software maker

November 19, 2015
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Dematic makes logistics equipment and software, such as container shuttles for plants, warehouses and distribution centers. Photo via

A logistics supplier is acquiring a Texas-based maker of warehouse execution software.

Dematic, which has its U.S. headquarters in Grand Rapids and its global headquarters in Atlanta, announced yesterday an agreement to acquire Reddwerks Corporation of Austin, Texas.

Dematic said the acquisition will enhance its software suite and deliver additional value to Dematic customers.

Upon completion of the acquisition, Reddwerks will operate as a subsidiary of Dematic under the trade name Dematic Reddwerks.

Terms of the agreement were not disclosed.

The deal is subject to approval by Reddwerks shareholders and other customary closing conditions.

Integrating software

Dematic is a global supplier of integrated automated technology, software and services to optimize the supply chain.

Reddwerks provides its customers with real-time decision engines to optimize material and information flow in the supply chain through its warehouse execution software, or WES.

Dematic said Reddwerks offers “innovation, analysis and software solutions that result in demonstrable value to both new and existing supply chain facilities.”

Alex Ramirez, CEO, Reddwerks, said he’s excited about the prospect of “integrating our platform and our operational research-driven approach” into Dematic offerings and delivering value to customers globally.

Automating supply chain

“The global supply chain needs to be flexible, responsive and agile, empowered to deliver goods to consumers on demand,” said Ulf Henriksson, president and CEO, Dematic.

Henriksson said the only way to achieve effective order fulfillment is through an “automated supply chain, powered by comprehensive real-time software.”

He said traditional batch processing is inadequate.

“The union of Dematic and Reddwerks will enable customers to accommodate ever-changing business requirements by enhancing automation technologies with on-demand software solutions that dynamically optimize warehouse and distribution functions,” Henriksson said.

He added that Reddwerks' proprietary distribution science methodology, founded on operations research, and modular product suite “offer customers a new level of performance and efficiency.”

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