Dive Brief:
- Descartes Systems Group bought 4Solutions, an Australian market leader of cloud-based supply chain integration solutions for the healthcare industry for $2.7 million, reported DCVelocity.
- With an eye toward continued expansion, Ontario-based Descartes has been steadily acquiring logistics suppliers; including Appterra and Pixi Software GmbH. Last year, Descartes acquired MK Data Services, BearWare, and Oz Development.
- Descartes' goal is expansion, particularly into Australia and growing markets in Southeast Asia.
Dive Insight:
India and China are among the fastest-growing economies in the world. Between 2006 and 2011, pharmaceutical sales doubled in emerging markets, where wealth inevitably leads to an improvement in healthcare, including the demand for medical devices and diagnostic equipment. And where medical care improves, the need for an effective supply chain invariably grows, as evidenced by the acquisitive actions by such companies as Descartes.
Companies preparing for the type of change improved healthcare demands are in many ways accepting a high level of risk. It can take years for economic improvement to permeate the population to the degree that overall health care improves enough to justify investment in supply chain logistics dedicated to a specific region. Further, poor or inconsistent governance systems can affect regulations, most of which are already extremely stringent as regards to healthcare.
