Australian supply chain consulting firms TM Insight and XAct Solutions have joined forces to form a 110-strong pan-Asia Pacific player with offices in five countries.
Founded in 2010, TM Insight is a supply chain consultancy with offices in Melbourne, Sydney, Brisbane and Singapore. The older XAct Solutions meanwhile was established in 2005, and has built a presence across Sydney, Melbourne, Singapore, Ho Chi Minh City, Hanoi and Tokyo.
Both consulting firms specialise in helping clients with supply chain transformations, and take an end-to-end approach to delivery, supporting clients with strategic advice, project implementation, and operational management services. By teaming up, the two firms expect to realise a number of synergies.
First, it will deepen and broaden their portfolio of offerings, said Travis Erridge, Chief Executive Officer of TM Insight. “XAct Solutions will significantly bolster our supply chain capabilities by providing us with expertise and industry best practices to strengthen our integrated service offering in supply chain, property and project management.”
For TM Insight, it will in particular add digital transformation expertise – XAct Solutions is an expert in designing, procuring and implementing supply chain solutions. For XAct Solutions, it will add a layer of property and project services capabilities to its roster, while enable the firm to tap into the financial muscle of Next Capital, a private equity group which in January in this year invested in TM Insight.
Second, while some of the firm’s operations are complementary (Australia and Singapore), XAct Solutions has more of an Asian focus, providing TM Insight with market entry into the markets of Vietnam and China. “This marks our expansion into Asia, and prepares us for the next era of expansion,” said Erridge.
The added portfolio will according to Erridge “provide our customers the support they need to futureproof their business and optimise their operations for the long-term,” pointing at the disruptive environment companies are currently facing. As a result of the Covid-19 pandemic and the pandemic-induced downturn, supply chains are up for unprecedented change, including the rapid surge in ecommerce and the need to revamp sourcing models.
Third, the larger team and client portfolio – the pair work for the likes of Coca-Cola, Asahi, Woolworth, Coles, Kmart and Bunnings – will provide employees of both firms with more attractive project and career opportunities.
As part of the agreement, TM Insight and XAct Solutions will initially operate independently, with an integration into a combined entity planned for later this year / next year. The owners of XAct Solutions – Geoff Thomas, Peter Ramsay and Byron Patching – will support the transition to TM Insight.
John White, a partner at Next Capital said he is delighted with the transaction, stating: “We are delighted to support bringing together the region’s preeminent firms in supply chain, logistics and related property consulting services. Combined, they have a high-quality team with a real competitive advantage.”