Tecsys, the OrderDynamics Acquisition, and the Future of Retail’s Supply Chain
2018 was a blockbuster year for mergers and acquisitions. Whether in the name of efficiency, market share, or strategy, each carries opportunity and risk. Among these shakeups is Tecsys’ acquisition of OrderDynamics announced on November 14th 2018. As the dust starts to settle and another impressive year at NRF is behind us, we took a moment to discuss the acquisition with Peter Brereton, president and CEO of Tecsys. What will be the impact on the retail industry? How does this play out for the supply chain market at large? Here is a first look at that discussion.
Tecsys – Supply Chain Technology
Briefly, Tecsys is a global provider of supply chain management (SCM) solutions that equips growing organizations with industry-leading services and tools to achieve operational greatness. Tecsys provides warehousing and distribution solutions to healthcare, heavy equipment, retail, service parts, industrial and 3PL (third-party logistics) markets. Examples of key Tecsys technologies include: Warehouse management systems (WMS);
Demand planning and analytics;
Distribution management systems (DMS);
Transportation management systems (TMS);
Point-of-use systems, and others. Tecsys is headquartered in Montreal, Canada. Over 600 mid-size and Fortune 1000 customers trust their supply chains to Tecsys. Tecsys serves the healthcare, service parts, third-party logistics, and general wholesale high-volume distribution industries. Peter co-founded Tecsys in 1983 and leads today as president and CEO.
An Open Discussion with Peter Brereton
Q: Tecsys recently announced that it acquired OrderDynamics. This is an exciting time. Peter, what excites you most about having OrderDynamics join the Tecsys family? Peter: Indeed, it is an exciting time for all of us at Tecsys and OrderDynamics. While Tecsys focused on the technical backbone, addressing some of the country’s most complex supply chain and distribution challenges, OrderDynamics successfully navigated the complexities of omni-channel order taking, workflow design and order fulfillment. As these two operational silos converge, businesses contend with more complex supply chains than ever before. It is particularly exciting to bear witness to the convergence of these trends in the supply chain market and be in a position to present a robust solution to our customers.
Q: Why did this make sense strategically? Peter: Implementing systems like ours usually signals that businesses—or their underlying industries—are undergoing some sort of change. Put simply, change represents a business challenge. To navigate change, those businesses need trusted partners who can deliver the right systems on time and on budget. The converging marketplace I mentioned earlier is taking place on a fairly macro level. That convergence introduces a flurry of changes to Tecsys customers and challenges them to get a better handle on distributed order management. It also challenges OrderDynamics customers to run more complex warehouses and distribution operations. This marketplace convergence elicits challenges that are likely to exist for several years as different industries and supply chains mature. To that end, it really made sense to bring a strong distributed order management (DOM) solution into our portfolio. This is a solid strategic move for Tecsys because it makes good business sense for our customers, solving myriad operating challenges they may face in the years to come.
Q: Focusing on the Retail Market. What can they expect from the synergies of Tecsys and OrderDynamics? Peter: Historically, midmarket retailers have been challenged to find a solution portfolio that serves them effectively. Certainly, if a retailer or chain needed only an order management system (OMS) or only a warehouse management system (WMS) they had a few options. But, if they instead sought a full suite or a converged solution, their options were very limited and often prohibitively expensive. This underserved market will gain access to a more agile, more easily installable, and more financially reasonable solution to the existing enterprise giants.
Q: Let's take a step back. Tecsys has a legacy of technological excellence, and leading technology development in demand planning, warehouse management systems, and other supply chain technologies. What are you most proud of that we will be able to start seeing on the retail side? Peter: The Tecsys portfolio stands out in the marketplace for its agility and adaptability. Companies thrive when they can effectively adapt to change while maintaining a high level of customer service. Whether competitive pressures, regulatory requirements or more demanding customer expectations spur those changes on, the companies that rise to the top of their industries will be those that can pivot and deliver. Our capacity to support that agility has served our customers well. As Tecsys’ broader portfolio takes shape, our customers can look forward to that kind of adaptability and bi-directional scalability. Our solutions can serve as a singular, best-in-class technology, or come together in seamlessly converged systems. A standalone, enterprise solution that can tap into a supply chain, execution portfolio, as demanded, is a true game-changer. We are setting out to make it easy for our customers - compared to traditional systems.
Q: What did Tecsys see in OrderDynamics - that will become even stronger as part of the broader family? Peter: OrderDynamics has a solid track record and a brilliant technical solution. It has the right architecture that is scalable, deploys in the cloud, implements quickly, and is ready out of the box. By bringing OrderDynamics under the Tecsys umbrella, we all benefit from greater organizational scale. With OrderDynamics as part of our larger organization, those customers will gain greater depth on the implementation and delivery side, and improvements on round the clock support side. Together, we have an opportunity to build a company with deeper end-to-end capabilities that is even better equipped to support our customers.
Q: Tell me a bit about the two cultures.
Peter: Since its inception some 35 years ago, culture has been an essential component of Tecsys’ success. We are very fortunate to find in OrderDynamics a like-minded organization equally customer-focused and customer-driven. Both Tecsys and OrderDynamics operate a positive working environment where employees enjoy what they do and are proud of the company they represent. The similarities between our two cultures run deep. This goes a long way to unlocking our organizational joint value and preserving a razor-sharp focus on our customer successes.
Q: What is your vision for the company? Any sneak peeks you can provide into the next few years? Peter: Every day, our customers are facing challenges that are more complex. Our responsibility is to ensure our solutions create clarity from that complexity, thus enabling very good businesses to achieve greatness through their supply chain. Our end-to-end platform provides an extended ecosystem of technologies and solutions, that gives our customers confidence that their businesses can grow—and evolve—as their market demands. With respect to evolving market demands, we are witnessing an increasingly interconnected global economy. OrderDynamics’ notable international presence is a beacon for the broader Tecsys organization. Customers around the world are using Tecsys software, and that international footprint is poised to grow as we help our customers reach their goals. Ultimately, today and into the future, Tecsys is committed to equipping our customers for the future. This takes shape by developing cutting-edge technology and holistic solutions to complex challenges. Our team is growing stronger, but what remains the same is our focus. Tecsys will relentlessly continue to focus on our customers’ needs, on how to best serve them, and how to provide valuable support on a global scale. That is the Tecsys promise today, and will be years from now. Author: Charles Dimov is VP of Marketing at OrderDynamics. Charles has 23 years experience in Marketing, Sales and Management across various IT and Technology businesses. Previous roles include Chief of Staff, Director Product Marketing, and Director Sales. Charles has held roles in brand name firms like IBM, Ericsson, HP, ADP, and OrderDynamics.Back to List View