Hardis Supply Chain: Logistics Software Expands to North America

IFS to acquire Softeon, Pioneering AI-Powered Warehouse Integration

A strategic acquisition will see Swedish enterprise resource planning (ERP) software vendor IFS integrate warehouse management system (WMS) capabilities thru the purchase of Softeon, aiming to create a unified platform connecting manufacturing and warehouse execution. The move underscores a growing industry trend toward modernizing supply chains and addressing persistent labor challenges.

Addressing Supply Chain Modernization with AI

IFS announced the acquisition as global enterprises grapple with the need to modernize aging infrastructure and overcome ongoing labor shortages. These pressures are intensifying the critical link between production and distribution, prompting IFS to expand its industrial artificial intelligence (AI) capabilities into the $8.6 billion WMS market.

The combined entity intends to apply Industrial AI directly to warehouse operations, challenging the status quo in a segment traditionally reliant on manual processes and paper-based systems.According to a joint statement, the solution will embed both agentic AI and physical AI orchestration throughout warehouse management, encompassing areas like fulfillment, labor optimization, real-time yard visibility, and automation integration.

Did you know? – The global warehouse management system market is projected to reach $8.6 billion by 2028, driven by the need for increased efficiency and automation in supply chains.

Softeon’s Expertise and Customer Base

Reston, Virginia-based Softeon specializes in cloud-native warehouse management, warehouse execution, and distributed order management solutions. The company’s client roster includes prominent names such as Sears Home Services, Sony DADC, and DB Schenker Logistics.

The financial terms of the deal remain undisclosed. However, IFS’s purchase includes acquiring Softeon shares from Warburg Pincus, a private equity firm that initially invested in a minority stake in the software firm in 2019. Warburg pincus highlighted the modernization of Softeon’s architecture during its investment period, leading to the development of its first outbound go-to-market strategy and channel partnership program. “Our investment enabled Softeon to expand its teams, broaden its footprint, and drive product innovation to set new standards in logistics,” stated Devin Grossman, Vice President at Warburg Pincus, in a LinkedIn announcement.

Pro tip – Cloud-native WMS solutions, like those offered by Softeon, offer scalability and adaptability, allowing businesses to adapt quickly to changing market demands.

Immediate Value for a Diverse Customer Portfolio

IFS anticipates the acquisition will deliver immediate benefits to its customers across a range of sectors, including aerospace and defense, energy, engineering and construction, manufacturing, and transport.

“The warehouse is the next frontier for Industrial AI,” said Mark Moffat, CEO of IFS, in a company release. “As we work with increasingly complex global manufacturers and asset-intensive enterprises, warehouse operations must become as intelligent and autonomous as the production lines they support. Softeon brings proven warehouse expertise to IFS, and we deliver next-generation AI, robotics orchestration, and deep industrial doma

Why: IFS acquired Softeon to expand its industrial AI capabilities and integrate warehouse management into its ERP platform, addressing the growing need for supply chain modernization and automation. The acquisition aims to bridge the gap between production and distribution, leveraging AI to optimize warehouse operations.

Who: IFS, a Swedish ERP software vendor, acquired Softeon, a Reston, Virginia-based provider of cloud-native warehouse management solutions.Warburg Pincus, a private equity firm, previously held a minority stake in Softeon and sold its shares to IFS.

What: IFS purchased Softeon to gain access to its WMS expertise and customer base, including companies like Sears Home Services, Sony DADC, and DB Schenker Logistics. The acquisition will integrate Softeon’s technology into IFS’s platform,offering a unified solution for manufacturing and warehouse execution.

How did it end?: The acquisition was announced by IFS and is complete, with IFS acquiring all shares of Softeon from Warburg Pincus. The financial terms of the deal were not disclosed. IFS anticipates immediate benefits for its customers across various sectors, and