Accenture (NSE: ACN) has agreed to acquire digital engineering and operational technology capabilities from Trancom ITS, a Japanese logistics technology services provider. The acquisition will enable Accenture’s Industry X service to offer hyper-automation solutions at scale, which manufacturing and logistics companies in Japan are increasingly demanding to become more efficient and sustainable in their core operations. Terms of the transaction were not disclosed.
Hyper-automation solutions help organizations rapidly identify and automate many business processes and assets. The approach relies on advanced digital technologies such as artificial intelligence (AI) and robotics.
Accenture will acquire capabilities from Trancom ITS for systems integration, consulting, software development and outsourcing. These include logistics and technological know-how and most of its client contracts. Approximately 190 engineers from Trancom ITS, specializing in cloud-based logistics systems and optimizing warehouse operations with IoT and sensor technology, will join Accenture Industry X in Japan.
“We’re seeing significant demand from clients to help them automate manual processes in factories and warehouses,” said Tatsuya Nakayabu, senior managing director and lead for Accenture Industry X in Japan. “By combining assets from Trancom ITS with our AI and robotics capabilities, we can drive more value from these processes for clients and help them become more sustainable.”
For example, systems integration capabilities and logistics expertise from Trancom ITS will allow Accenture to expand its AI-powered supply chain management service to more clients. The service uses AI and predictive analytics to refine their logistics and delivery planning, automate and visualize warehouse operations, and reduce manual labor.
Trancom ITS is a subsidiary of major Japanese logistics company Trancom. It provides technology services to its parent and other Japanese companies in the logistics, manufacturing and information technology industries. Its portfolio includes the development and integration of warehouse management systems and delivery management systems.
Upon close of the deal, Trancom ITS will continue to service Trancom, whereas its other client relationships will be transferred to Accenture.
Accenture and Trancom also plan to collaborate on other joint solutions that accelerate the digital transformation of Trancom and clients in the logistics and manufacturing industries.
The acquisition of capabilities from Trancom ITS will mark the next big step Accenture is taking to strengthen its offering in Japan for digitizing the entire engineering and manufacturing value chain. It follows the acquisition of product lifecycle management and application lifecycle management capabilities from Japan’s DI Square in August 2021.
Recent acquisitions Accenture has made for Industry X in other markets include asset performance management consultancy T.A. Cook (Germany), systems integrator for Hexagon’s Infor EAM solutions Advoco (US), international engineering consulting and services firm umlaut, operations technology provider Electro 80 (Australia), and industrial robotics and automation services provider Pollux (Brazil).
Completion of the acquisition is subject to customary closing conditions.