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By Paul Page 

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Analysts believe JDA Software Group Inc. and its customers may be better off with a new capital infusion rather than a new owner. The supply-chain software plans to use a $570 million investment from private-equity firms New Mountain Capital and Blackstone Group LP to reduce its debt load and expand its research into cloud-based services, building out the technology JDA says retailers need to ramp up their e-commerce capabilities. The investment pushes aside a buyout bid by industrial conglomerate Honeywell International Inc., WSJ Logistics Report's Loretta Chao writes, and provides what analysts say will be continuity and potential expansion for JDA's retailing customers. An equity investment, rather than an outright sale, is less likely to disrupt those services, says Dwight Klappich of Gartner. The capital injection will reduce the company's $2 billion debt by $500 million, and save JDA $70 million a year on interest payments.

Nike Inc. is taking an unusual path to more completely overhaul its supply chain . The apparel giant is looking past basic vendor-supplier agreements by striking a deal with private-equity firm Apollo Global Management LLC to set up a fully controlled and contained manufacturing and distribution operation. Under the plan, t he WSJ's Josh Beckerman reports, a new apparel supply chain company is purchasing existing Nike apparel suppliers with an eye on creating "a more vertically-integrated apparel ecosystem." The venture marks a deep dive into the supply-chain business by Apollo, which aims to pull together a global outsourced manufacturing operation under one financial ownership umbrella. It also steps up Nike's efforts to restructure its supply chain: the company has added big distribution operations in the U.S. and Europe and struck a partnership with Flextronics International Ltd. as it tries to overcome concerns over inventory management and complaints from retailers over product deliveries.

The rush to handle Canada's big fall grain harvest is already underway. Ahead of an expected near-record crop this year, Canada's transportation regulator is reporting a jump in the number of government-owned grain railcars needing repair. The WSJ's David George-Cosh reports that is raising worries among farmers and grain companies over potential bottlenecks. The higher-than-normal rate of railcar repairs comes as Canadian farmers are expected to produce 75 million metric tons of grains and oilseeds in the 2016-17 crop year. Canadian Pacific Railway Ltd. has pointed to the big harvest as a critical source of optimism, and it notified customers last week that "producer collaboration" will be needed to keep hopper cars moving. The new capacity concerns highlight questions over Canada's system for managing the cars, which include a big government-owned fleet that some argue should be shifted to a market-based system.

SUPPLY CHAIN STRATEGIES

Bumps in Germany's famously efficient automotive supply chain are leading to a dispute between one of the country's top manufacturers and its suppliers. Two Volkswagen AG suppliers are denying responsibility for parts shortages at the German car maker's plants, the WSJ's Hendrik Varnholt and Sarah Sloat report, problems that Volkswagen says are forcing the company to reduce production. The issues are bad enough that Volkswagen is suspending output this week of its Golf and Sportsvan models at one factory because of a dispute with suppliers after scaling back work at other sites. Volkswagen says it's the result of a labor dispute, but two suppliers say they are being scapegoated for the manufacturer's own problems. The two sides will resume talks this week aimed at resolving the rare public dust-up. The dispute comes as Volkswagen is facing bigger problems in the aftermath of diesel-emissions cheating scandal that has roiled the business and hurt demand for its cars in some markets. That demand, the suppliers say, may be Volkswagen's real concern.

QUOTABLE

IN OTHER NEWS

Amtrak is naming former Norfolk Southern Corp. chief Charles "Wick" Moorman as its next chief executive. (WSJ)

Canadian retail sales fell 0.1% unexpectedly in June due to weaker sales at food, beverage and general merchandise stores.

Government-owned China National Chemical Corp says a U.S. national-security regulator cleared its $43 billion acquisition of Swiss seed company Syngenta AG. (WSJ)

Emerson Electric Co. will buy Pentair PLC's valves-and-controls unit for $3.2 billion as it expands its automation offerings. (WSJ)

General Motors Co.'s Opel unit is paring back the hours of German factory workers in a move aimed at blunting the impact of Brexit and breaking even in Europe. (WSJ)

The downturn in department stores has Estée Lauder Cos. struggling to improve sales. (WSJ)

Honda Motor Co. Ltd. began exporting Civic hatchbacks from its Swindon, U.K., plant to the U.S. (Automotive Logistics)

Rural Utah counties withdrew their application to invest $53 million in an Oakland coal export terminal but left open reviving the plan in the future. (Salt Lake Tribune)

A California judge rejected new challenges by opponents of a planned sprawling logistics center in Southern California's Moreno Valley. (Riverside Press-Enterprise)

Michelin North America, Inc. will phase in online sales for its BFGoodrich Tires division in the U.S. over the rest of this year. (Multichannel Merchant)

Chinese e-commerce giant Alibaba Group Holding Ltd. has held partnerships talks with a several start-ups in India, including Snapdeal and Shopclues. (Business-Standard)

North American companies ordered a record number of robots in the first half of 2016. (Modern Materials Handling)

Asian food-delivery startup Foodpanda is trying to sell its operations in Indonesia and evaluating its presence in the rest of Southeast Asia. (TechCrunch)

India's government will be 50% shareholder in a proposed multi-modal logistics hub along a planned Delhi-Mumbai industrial corridor. (Economic Times)

XPO Logistics Inc. Chief Executive Brad Jacobs says technology startups are offering nothing beyond services existing operators have available. (American Shipper)

ABOUT US

Paul Page is deputy editor of WSJ Logistics Report. Follow him at @PaulPage, and follow the entire WSJ Logistics Report team: @brianjbaskin, @lorettachao, @RWhelanWSJ and @EEPhillips_WSJ, and follow the WSJ Logistics Report on Twitter at @WSJLogistics.

Subscribe to this email newsletter by clicking here: http://on.wsj.com/Logisticsnewsletter .

Write to Paul Page at paul.page@wsj.com

(END) Dow Jones Newswires

August 22, 2016 06:11 ET (10:11 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.