A recent acquisition highlights the growing importance of consumer forecasting technologies in the e-commerce industry.
Software company E2open, based in Austin, Texas, bought Terra Technology, a technology company specializing in predicting consumer demand and trends, reported The Wall Street Journal.
E2open develops cloud-based software for companies to improve inventory and warehouse management. With the acquisition of Terra Technology, a firm that analyzes data to identify consumer buying patterns and anticipate changes in demand, E2open can offer retail companies enhanced, predictive inventory management software.
The clients of Terra Technology include big names like Procter & Gamble Co., ConAgra Foods Inc. and Unilever PLC, noted the source.
The acquisition comes as tech companies identify the growing need to more strongly connect demand to the supply chain to develop efficient inventory workflows that better respond to rising online sales, according to Retail Dive. Retail moguls Nordstrom and Target have increased their investments in predictive technologies, while inventory management software company Infor acquired GT Nexus, a logistics company, last year in an effort to consolidate front- and back-end supply chain processes.
“We’re thrilled to have Terra Technology join us,” said Michael Farlekas, CEO of E2open. “Terra’s Demand Sensing capabilities allow companies to combine massive amounts of data from the supply chain to leverage demand signals which dramatically improve forecast accuracy.”