3M, the maker of household products like Scotch brand packaging tape, plans to acquire supply chain systems company HighJump Software Inc., the two companies said today. The move follows 3M’s launch last year of a web-based packaging information management system. HighJump will continue to operate as an autonomous unit headed by HighJump CEO Chris Heim, HighJump said.
“This transaction will help us accelerate growth and make us a stronger, faster, global company, better able to deliver an even broader and more comprehensive set of supply chain execution solutions to existing and new markets,” HighJump said.
"This is the right thing to do for our customers and our employees,” Heim said. “We'll be located in the same place, with the same strong focus on serving our customers. Our business has a strong history of innovation and growth. 3M's global strength and brand leadership will make us even stronger."
“Combining 3M's strong brand, global presence and business process excellence with HighJump Software's leading-edge supply chain execution expertise will help customers optimize their business processes across an even broader range of industries and geographies,” 3M said.
3M launched last year the web-based Integrated Packaging Tool, a packaging information management system that integrates product data and package design systems to help suppliers better manage packaging to suit retailers’ needs, a 3M spokesman says. For example, a supplier could use the web-based system to change printed product specifications or alter artwork or promotional information on packages to suit changing demands from retailers. "If a company is supplying shampoo to a retailer that wants to run a promotion, it could modify the packaging for the promotion," the spokesman says. He adds that the packaging tool is the first of what may become a longer line of 3M products that support supply chains.
3M and HighJump will attempt to cross-sell 3M’s web-based packaging tool to HighJump’s supply chain software customers. Eventually, 3M may consider integrating its packaging tool with HighJump’s supply chain software suite – a move supported by the fact that both companies' products operate on the same technology platform, Microsoft‘s .Net, the spokesman says.
Heim adds that HighJump expects to leverage 3M’s expertise in radio frequency identification technology to enhance its own efforts to make its supply chain execution systems capable of supporting RFID.
The acquisition is expected to close later this month. Terms were not disclosed.
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