Logistics automation expert Imaginnovate said today that supply chain consolidation is driving its business in new directions. The technology innovator said intense logistics sector M&A activity has created demand for systems integration consultants. The result is expanded opportunity for firms such as Imaginnnovate looking to build on their software development heritage.

“We’re seeing more mergers and acquisition activity in the third-party logistics space and it’s happening across the globe,” said Imaginnovate CEO Krishna Vattipalli. “We’re working with clients that are actively acquiring new businesses and with others looking for their next acquisition.”

Demand for technology guidance is being driven by unprecedented logistics industry consolidation, said Imaginnovate. PwC has valued transportation and logistics M&A at $246 billion in the past year. That was up 6 percent from the previous year. The trend is expected to continue as companies struggle to gain more control over supply chains.

Imaginnovate said transportation and logistics clients seek technology advice at every stage of M&A activity, including:

● Identifying acquisition targets in the logistics sector who have sound tech platforms;

● Advising on how to merge systems when consolidation partners integrate; and even

● Spotting technology firms that could be acquired to augment an organization’s systems capabilities.

“Logistics companies are working to provide a multi-channel experience for their customers,” said Mr. Vattipalli. “So, they are investing in acquiring new companies to augment existing services.”

Imaginnovate said it’s advising merger clients that systems consolidation must go hand-in-hand with other aspects of merger integration. If it’s left for later, opportunities to innovate are lost, the company explained.

“You cannot say I will wait two years for the integration to be complete and then we will work on new technology ideas,” warned Vattipalli. “There is a good possibility you will have already lost the race.”

Imaginnovate urged merger partners to develop roadmaps outlining the transition from legacy systems to the latest technology. The company said it conducts Discovery Workshops for clients to plan out systems integration, or migration to new systems. When consolidating systems, the most stable and scalable tech platforms should win out, Imaginnovate said.

“Technology is no longer a differentiator, it is a standard,” said Vattipalli. “When planning for a merger or acquisition, organizations need a plan to deliver to existing business demands while working on staying current with evolving technology trends. We can help on both fronts.”