Honeywell buys stake in Flux to attack Asian warehouse management market
January 3, 2018
Honeywell has bought a 25 per cent stake in Flux Information Technology, a provider of warehouse management and related supply chain software in China. Honeywell will also form a joint venture with Flux's founder to serve customers outside China.
Honeywell will hold a 75 per cent stake in the joint venture, which will initially focus on opportunities in the Asia Pacific region. The investment in Flux is expected to close soon pending Chinese regulatory approvals.
Flux develops and implements warehouse management systems and other software for users in multiple industries and plays in China's booming e-commerce, apparel, pharmaceutical, retail, third-party logistics, cold chain and manufacturing sectors. Its supply chain execution products include warehouse management, transportation management, order management and data exchange platforms.
Flux's offerings complement those of Honeywell safety and productivity division, which develops hardware and software that improve productivity, enhance worker safety, and increases accuracy and throughput of supply chains.
“We are pleased to be partnering with a dynamic, emerging leader with a proven track record in a fast-growing market," said John Waldron, president and CEO of Honeywell’s safety and productivity division. "Flux's strong software capabilities fit well into Honeywell's connected supply chain strategy, complementing the warehouse expertise of our Honeywell Intelligrated business. Flux's warehouse, transportation management and order management offerings complement Honeywell's data capture technology, worker productivity and warehouse automation."
Over the past decade, Flux's business has grown significantly. Its software manages more than 12 million square metres of warehouse space in China alone. During China's November 11 Singles' Day online shopping festival, Flux helped process up to 650,000 orders per warehouse per day. Ecommerce sales total more than $1.3tn in the Asia Pacific region, and sales are expected to more than double to $3tn by 2021.
"We are pleased to team up with Honeywell to further expand in China and to play an active role in the global warehousing and logistics industry by offering our leading warehouse management systems," said Shi Zunli, founder and CEO of Flux. "Honeywell has outstanding industry reach and strong global presence, which will enable us to fulfil our vision of globalisation. With this strategic partnership, we will connect, collaborate and create more value for our customers."
Li Ning, president of Honeywell SPS in Greater China and India, added: "This partnership will allow Honeywell to accelerate the pace of executing our connected strategy in China and the Asia-Pacific region and create a win-win situation for both companies. This agreement strengthens our position as a software-industrial company and supports our efforts in developing and acquiring capabilities in China that are relevant for a global customer base."