Supply chain software vendor Cofactr said Thursday that it has acquired the AI-based solution provider Factor.io in a move it said will enable faster procurement and reduce logistical delays for its clients.
According to Cofactr, Factor.io automates the ordering and tracking of manufacturers’ complete list of materials, components and parts—across the hundreds of suppliers that produce and assemble them—so they can more efficiently move from sourcing and shipping to finished goods.
New York-based Cofactr will now integrate Factor.io’s capabilities into its unified platform, a supply chain and logistics management tool that streamlines production, processes, and policies for critical hardware manufacturers. The combined platform will give users complete visibility into the status of every part in their Bill of Materials (BOM), across the end-to-end direct material management process, the firm said.
Those capabilities are particularly crucial for Cofactr’s core customer base, which include manufacturers in high-compliance, highly regulated sectors such as defense, aerospace, robotics, and medtech.
“Whether an organization is supplying U.S. government agencies with critical hardware or working to meet ambitious product goals in an emerging space, they’re all looking for new ways to optimize old processes that stand between them and their need to iterate at breakneck speeds,” Matthew Haber, CEO and Co-founder of Cofactr, said in a release. “Through this acquisition, we’re giving them another way to do that with acute visibility into their full bill of materials across the many suppliers they work with, directly through our platform.”
Terms of the deal were not disclosed, but it comes just two months after Cofactr raised $17 million in venture capital. Following the move, Factor.io’s CEO and Co-Founder, Doug Shultz, will join Cofactr as the company’s Head of Strategic Accounts.
“Poor data quality in the supply chain has always been a root cause of delays that create unnecessary costs and interfere with an organization’s speed to market. For manufacturers, especially those in regulated industries, manually cross-checking hundreds of supplier communications against ERP information while navigating other complex processes and policies is a recipe for disaster,” Shultz said. “With Cofactr, we’re now working with the best in the industry to scale our ability to eliminate time-consuming tasks and increase process efficiencies so manufacturers can instead focus on building their products.”
