HighJump Software, a supply chain software provider and subsidiary of 3M, said earlier this week it has entered into a definitive agreement to acquire Global Beverage Group Inc. (GBG), a Waterloo, Ontario-based provider of software for the direct-store delivery of consumer packaged goods, including soda, beer, and bakery goods.

HighJump COO Joe Blauert told Logistics Management that this acquisition represents a unique opportunity to execute the supply chain process for its shipper customers from sourcing raw materials through manufacturing and distribution to the final delivery—or “last mile”—to retail locations. Global has 570 customers, and HighJump has approximately 700.

“We have done some limited work to date with our own products on the retail delivery side with some of our customers,” said Blauert. “And this offered an opportunity to greatly expand that delivery portion, visibility, and execution into that last mile of the supply chain that we did not have before.”

Blauert added that this acquisition made sense for HighJump, because Global is a premier player in the direct store delivery space, it provides some immediate synergies for its customers that are in the food and beverage industries. And he noted that it also provides significant opportunities for Global customers that are looking to expand beyond direct store delivery and into more full-fledged warehouse management system and transportation management system service offerings.

Ted Hastings, Global CEO, said that HighJump helps compliment what Global does not have, with its expertise and experience in warehousing, manufacturing, and yard and labor management execution.

“These are things our customers have been asking for,” said Hastings. “Where we help out with HighJump’s products, the converse is also true and they will help to fill ours.”

Some of the takeaways of this acquisition for shippers, according to Blauert, are that it allows independent food and beverage distributors of companies such as Coca Cola, Pepsi, Anheuser-Busch, and Molson-Coors, among others, to actively move to manage the routes that they deliver goods to, whether it is for convenient stores, liquor stores, or grocery stores.

“This synergy will help automate that process, and what customers need today is help on the shipper side of transportation management,” said Blauert. “More importantly, they need help managing the actual distribution centers and warehouses, where these truck routes [originate].”

Another benefit of the acquisition cited by Blauert is that it provides HighJump with the ability to offer this integrated functionality to major retailers, as well as independent distributors. This is something he said that HighJump’s main competitors—Manhattan Associates and Red Prairie—do not have.

The acquisition is expected to be finalized by November. Financial terms of the transaction were not disclosed. Once the acquisition is complete, Global’s name will officially become part of HighJump. Hastings will remain with the company and will oversee delivery management processes.