SCM Accelerators Acquired by UST Global
Author: Scott Barrett
That is an exciting headline to write but I thought a more personal post here, beyond today’s press release and presentations, might provide some insights and context to the deal we struck and our future plans.
Let’s start with how this all came about. About every 1-2 years during our ten-year existence we have been approached by firms looking to acquire our unique, expert Operations + SAP talent and top tier client relationships. To date those have been interesting discussions but Dejan, Thomas, Alfredo, and I were never looking for the cash-out play and focused more on assessing the culture of our would-be new parents – the litmus test was always “is this a place I want to work?” Those past discussions fell far short of that test until we met the folks at UST Global.
So why UST and why now? Unlike other past suitors, we immediately meshed with the UST team while working on a few joint projects with their customers. Building up that mutual admiration of work ethic and client-first mentality started solidifying the relationship. The biggest turn was when UST reached out to us to join them not as new faces among thousands of Operations & SAP consultants in their existing stable, but as the beachhead leadership team of a new business unit they believed was a key strategic growth area. Tapping into our entrepreneurial spirits, the idea of building something new within the structure of an established firm, was a unique and exciting opportunity. Finally, UST’s tagline is to have deeper relationships with fewer clients - I have not heard that since Jerry McGuire was fired for writing it… but it is exactly how SCMA runs and we were thrilled to find such a large, established organization sharing the same values.
The “why now” question is answered like many before – sometimes luck and timing create opportunities. We were not looking for a sale but we have been projecting 2019 as the start to a massive wave of growth in our business and an inflection point on how we would attempt to service it. The rush of SAP S/4 implementations has really just started, the digital buzzwords are starting to flush out into real deliverable value propositions (and not just ridiculous IBM “blockchain” commercials), and geopolitical instability is driving Supply Chain leaders nuts. In order to properly service this market, we needed scale and UST brings not only that but an established global structure in which to execute our plans.
Now that that docs are signed and press releases sent out, our “formerly known as” SCMA team can get back to work doing the things we do well – helping our clients tackle their SAP and digital Supply Chain challenges faster and more effectively than our peers. Our existing clients will not see resources swapped out or any degradation in service but will have the continued opportunity to tap into our talent pool as their trusted advisors with more scale and scope. We will have the opportunity to work with UST’s incredible and expansive team, existing customer base, and together seek out new clients that are probably tired of being underwhelmed yet overcharged for consulting services. We’ll focus on building the best, most diverse SAP team in the world which is just the kind of challenge upon which our team thrives. Big shout out to my team for fostering such an amzing internal culture for the last 10 years and for servicing our customers with the highest level of expertise an integrity - its great to find a new home that places the highest value on both of those things. Exciting times ahead indeed!