Oracle acquires cloud supply chain management firm LogFire

The latest cloud acquisition will add warehouse management expertise to Oracle's cloud portfolio

Oracle is to acquire LogFire, a provider of cloud-based supply chain management (SCM) software, as it seeks to increase its profile in the areas of distribution, warehouse management, e-commerce and order fulfilment.

LogFire is a nine-year-old SaaS company based in Atlanta, Georgia with offices in South America and India. A software start-up that was based in the cloud from the beginning, the company has more than 40 customers in the retail, consumer goods, third-party logistics and e-commerce sectors and its technology is used to fulfil more than 100 million orders annually, according to the its website.

The deal is not the first time the two firms have come together. Since 2015 LogFire's Warehouse Management System (WMS) has been integrated with Oracle Transportation Management, the software giant's own SCM solution, and the two companies have partnered in other areas too.

For Oracle the acquisition of LogFire will allow it to bring on board warehouse management expertise to augment its existing solutions.

"Supply chain organisations are under enormous pressure to capitalise on evolving business trends such as omni-channel fulfillment, integrated logistics and dynamic sourcing, while simultaneously increasing efficiency and reducing costs," Oracle said on its website.

"To meet these challenges, Oracle Supply Chain Management (SCM) Cloud offers a broad suite of innovative applications that enables organisations to modernise their supply chain processes. The addition of LogFire will complement the logistics functionality of the Oracle SCM Cloud by adding cloud-based warehouse management capabilities."

LogFire's founder, chairman and CEO Diego Pantoja-Navajas said he was "humbled and excited by this great event".

"Oracle will leverage our expertise in the cloud-based warehouse management space while we integrate into Oracle SCM Cloud's broad suite of innovative applications that enables supply chain organisations to modernise their supply chain processes," he said.

LogFire's management team and employees will join the Oracle SCM Cloud team, and Oracle has said that for the time being at least existing LogFire customers should see little change. The terms of the deal are not known.

Since its late conversion to cloud, Oracle has made many acquisitions of specialist cloud firms, the most significant being the purchase of NetSuite for $3bn earlier this year. Other notable acquisitions include energy analytics outfit OPower ($532m) and construction and engineering specialist Textura ($633m).