Select HW Supply Chain and Logistics Technology and Services Transactions

screen_shot_2019-10-18_at_2.23.17_pm.pngProvider of multi-modal transportation management and logistics technology solutions

 

 

 

screen_shot_2019-10-18_at_2.23.40_pm.pngProvider of cloud-based manufacturing and supply chain software for mid-market manufacturers

 

 

 

screen_shot_2019-10-18_at_2.24.11_pm.pngProvider of intelligent traffic software (ITS) and IoT solutions for the transportation industry

 

 

 

screen_shot_2019-10-18_at_2.24.35_pm.pngProvider of a non-asset based 3PL platform specializing in multimodal freight brokerage

 

 

 

screen_shot_2019-10-18_at_2.25.02_pm.pngProvider of technology-enabled Enterprise Logistics solutions

 

 

 

screen_shot_2019-10-18_at_2.25.32_pm.pngProvider of multi-modal transportation management and logistics technology solutions

 

 

 

screen_shot_2019-10-18_at_2.25.58_pm.pngProvider of ERP and warehouse management software solutions for 3PL, eCommerce, manufacturing, and retail companies

 

 

 

screen_shot_2019-10-18_at_2.26.29_pm.pngProvider of safety solutions to fleet vehicle manufacturers and operators

 

 

 

screen_shot_2019-10-18_at_2.26.55_pm.pngProvider of supply chain logistics and purchasing software solutions for healthcare providers and facilities

 

 

screen_shot_2019-10-18_at_2.27.29_pm.pngProvider of commercial maritime logistics execution and planning software and data solutions

Supply Chain & Logistics Technology Focus Areas

Source and Plan

Solutions designed to increase visibility, communication, and control costs for the upstream supply chain.

  • Sales & Operations Planning
  • Procurement / Spend Management
  • Trading Partner Networks

Select Market Participants

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Key Trends

Increased competition and price sensitivity as a result of continued globalization of commerce is resulting in accelerating adoption of sourcing and planning software by companies of all sizes and across many verticals 

Digital solutions are streamlining the S&OP process with real-time data visibility and technical capabilities that enable companies to improve planning collaboration, increase agility, and speed planning cycle times

Manage and Execute 

Solutions to connect manufacturing execution and warehouse management processes.

  • PLM / MES / QMS
  • Warehouse Management
  • Ecommerce Fulfillment
  • Factory Automation
  • Devices / Barcodes

Select Market Participants

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Key Trends

Orders are growing in volume, speed and complexity as a result of direct-to-consumer and multichannel commerce in consumer goods and retail, forcing warehouse leaders to invest in new processes and technologies

Incorporating real-time performance data into design and execution management software through IoT devices is allowing for closed-loop manufacturing and continuous improvement of processes

Transport and Deliver

Software solutions that enable the planning and execution of the transportation of goods across supply chains.

  • Transportation Mgmt.
  • Freight Exchange Matching
  • Freight Audit / Payments
  • Reverse Logistics
  • Fleet Mgmt. / Telematics

Select Market Participants

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Key Trends

Rising freight rates, driver shortages, tight truck capacity, and changing customer demands are pushing shippers to utilize TMS software to manage increasingly sophisticated transportation networks

Fleet management software solutions are improving routing and scheduling of deliveries, driver mobility, and integration with onboard vehicle telematics

Sector Investment is Being Driven by Greater Need for Visibility and Control Over Global and Complex Supply Chains

Key Industry Trends1,2

Evolving Consumer Preferences

  • The emergence of readily available production and supply chain data for consumers has resulted in heightened customer expectations and shortened acceptable delivery schedules, putting severe pressure on the supply chain
  • Increased pressures on fulfillment have resulted in many suppliers leveraging omni-channel best practices and implementing distributed manufacturing processes to be closer to consumer demand

Complex Tariff and Duty Requirements

  • In today’s global climate, import and export regulations are constantly changing, challenging companies to remain compliant and timely
  • Leading importers and exporters are moving away from disparate legacy systems to integrated, full-stack solutions to track licenses, tax documentation, applicable sanctions, audits, and payment history to drive operational efficiencies

Artificial Intelligence and Advanced Analytics

  • AI is driving automation and decision making to help streamline processes, optimize supply chain planning, and improve virtually every aspect of transportation
  • Perspective analytics is improving decision making in supply chain planning, sourcing, logistics, and transportation, and is driving increased end-to-end visibility

Blockchain and IoT

  • Blockchain is emerging as a valuable tool for creating immutable records in a distributed ledger that can allow all participants in a certain supply chain to understand the movement of goods
  • Adoption of IoT is accelerating as companies to seek to enhance visibility across their global supply chains and unlock new uses cases such as preventative maintenance, sourcing, demand management, and services

Accelerating Cloud Adoption

  • Gartner estimates the $15.2 billion SCM and Logistics technology market will increase by a 11% CAGR through 2022
  • Hybrid SCM environments with co-existing cloud and on-premise applications are becoming more commonplace, with multi-enterprise applications such as information hubs and supplier networks leading the transition to the cloud

Increasing M&A Momentum Across the Broader Supply Chain and Logistics Technology Market

Recent Supply Chain & Logistics Technology M&A Activity

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Notable Industry Consolidators

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Recent Select Supply Chain & Logistics Technology Transactions3

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Eurazeo’s Majority Investment in Elemica

  • Elemica provides digital supply-chain SaaS solutions for customers to connect, automate, and have full end-to-end visibility into their supply chains
  • The Company accelerates digital supply-chain management transformation for its more than 450 customers globally, including 35+ of the top global 100 chemical companies
  • With the support, expertise, and international network from Eurazeo, Elemica will accelerate its development in new industries, geographies, and product offerings
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Investment in KeepTruckin

  • KeepTruckin provides a fleet management platform used by for-hire carriers to connect vehicles, drivers, and fleet managers
  • The Company’s Electronic Logging Device, Electronic Logbook App, Smart Dashcam, and Asset Gateway offers a catalog of customizable integrations to over 55,000 for-hire carriers and over 250,000 vehicles
  • ITOCHU’s strategic investment in KeepTruckin includes a strategic business alliance to foster network growth, product distribution, and an open freight marketplace
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Shopify’s Pending Acquisition of 6 River Systems

  • 6 River Systems is a provider of collaborative warehouse fulfillment systems including software and robotics solutions
  • The Company manufactures an autonomous vehicle which utilizes machine learning and artificial intelligence capabilities to help warehouse associates minimize walking, stay on task, and work more efficiently
  • By acquiring 6 River Systems, Shopify will add a team with decades of experience in fulfillment software and robotics, as well as 6 River’s cloud—based software and collaborative mobile robot solutions
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Banneker Partners’ Acquisition of Dairy.com

  • Dairy.com provides SaaS-based, dairy supply-chain technology to help dairy industry customers manage, trade, and move their dairy commodities
  • The Company’s solutions include Producer Payroll, Dairy Commodity Scheduling and Transportation, Milk Scheduling, Intelligence and Consulting, and Milk Plant Intake
  • With the acquisition by Banneker, Dairy.com will be able to accelerate significant organic growth initiatives and leverage the operating expertise of its new majority investor
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Kayne Anderson’s investment in Source Intelligence

  • Source Intelligence provides an information and analytics SaaS platform for customers to improve visibility into their supply chains in order to comply with legal, ethical, and environmental standards
  • The Company provides automated data collection, automated document review, supplier intelligence, and other compliance-related solutions to the industrial and other highly regulated industries
  • With the investment from Kayne Anderson, Source Intelligence will continue to grow organically by accelerating its product roadmap and ramping up its hiring plans

Select Recent Private Placements3

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Note: Financial information presented above represents reported capital raised only.

Supply Chain & Logistics Technology Landscape

Representative Providers

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Supply Chain Networks and Procurement Solutions Help Increase Visibility, Communication, and Control Costs

Source and Plan

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Key Trends1,2

  • Increased competition and price sensitivity as a result of continued globalization of commerce is resulting in accelerating adoption of sourcing and planning software by companies of all sizes and across many verticals 
  • Leveraging predictive analytics in sales & operations planning is allowing businesses to integrate global data to enhance predictive sales planning – resulting in proprietary data-driven sales plans and a greater ability to assess the impact of potential macro-economic events that could greatly affect consumer demand and company-wide forecasts
  • Companies are turning to SaaS-based supply chain network solutions to mitigate the cost impacts associated with increased lead times, stock outs, and excessive inventory levels
  • Cloud-based trading partner networks and enhanced supplier information are resulting in improved communication of order data between shippers and suppliers
  • By 2020, 32% of worldwide deployments of sourcing and procurement software will be SaaS, more than double all deployments in 2016

Connected Manufacturing, Warehousing, and Fulfillment Processes are Essential to Effective Supply Chain Execution

Manage and Execute

screen_shot_2019-10-18_at_3.08.55_pm.png

Key Trends1,2

  • Heightened demand for bringing products to market quickly has driven companies to invest in integrated PLM, MES, and Quality management solutions to drive efficient production
  • Incorporating real-time performance data into design and execution management software through IoT devices is allowing for closed-loop manufacturing and continuous improvement of processes
  • Use of handheld devices for QMS and WMS has continued to evolve as more than 67% of warehouse and retail operators plan to use handheld mobile devices with real-time access to their management systems
  • Significant investment in automated guided vehicles (AGVs) and robotics is putting inventory closer to market with quicker turnaround times and smaller order sizes
  • Continued improvement of e-commerce customer experience and the prominence of “social shopping” is driving the consumer away from traditional brick and mortar purchases

Integrated Logistics Management Solutions Remain a Key Focus Area as Shippers Seek to Optimize Freight Spend Across Modes

Transport and Deliver

screen_shot_2019-10-18_at_3.10.34_pm.png

Key Trends1,2

  • Significant investment in freight matching platforms is being driven by the opportunity to capitalize on the unused capacity within long-haul trucking and last mile delivery markets
  • By 2020, 90% of U.S. states will have autonomous vehicle legislation that enables the motor freight industry to use self-driving trucks
  • Constantly evolving regulatory policies are driving technology investments and digital flexibility requirements 
  • Costly and resource heavy auditing of freight invoices and payments have encouraged companies to adopt automated software solutions to streamline processing, reduce errors, and operational costs
  • Early integration of technology-enabled reverse logistics solutions has proven the capability to automate burdensome processes and boost efficiencies during the return process for retailers
  • Fleet management software solutions are improving routing and scheduling of deliveries, driver mobility, and integration with onboard vehicle telematics

    Real-Time Visibility into Supply Chains and Risk Mitigation is a Key Theme for Both Shippers and Carriers

    Optimize and Comply

    screen_shot_2019-10-18_at_3.12.31_pm.png

    Key Trends1,2

    • As supply chain networks become increasingly complex and global, companies are turning to new, data-driven approaches to model their operations and better identify improvements in cost, service, efficiency, and risk
    • Automation of market data acquisition allows for timely and accurate business intelligence to drive increased visibility into the order process, inventory management, supplier collaboration, supply chain risk, and analytics
    • Global Trade Management solutions are integrating the financial supply chain with the physical supply chain, enabling corporations to grow top line revenue and better comply with required governmental reporting and security mandates
    • Leading enterprises are taking cross-functional and cross-company approaches to their supply chain to minimize and prevent risks, manage compliance, and monitor threats as their supply chains expand around the world

    Supply Chain & Logistics Technology Public Market Observations4

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    As of September 30, 2019

    Supply Chain & Logistics Technology – Trading Comparables4

    Valuation 

    ($ in millions)

    screen_shot_2019-10-18_at_3.15.42_pm.png

    Demonstrated Success Transacting Across the Supply Chain

    Select HW Supply Chain & Logistics Technology and Services Transaction Experience

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    3PL / Transportation Management

    Description

    • Provider of multi-modal transportation and logistics solutions

    Key Value Drivers

    • Provider of multi-modal transportation and logistics solutions
    • Highly visible transactional revenue with scalable EBITDA margins
    • Proven acquisition platform with compelling M&A opportunity to accelerate market share
    • Highly scalable, non-asset based business model configured for strong free cash flow generation
    • Highly motivated management team with deep industry experience

    Tech-Enabled Freight Brokerage

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    Manufacturing Supply Chain Software

    Description

    • Provider of cloud-based, fully-integrated manufacturing and supply chain software solutions

    Key Value Drivers

    • Feature-rich platform poised for continued expansion in a growing $35 billion global market underpinned by compelling Manufacturing 4.0 trends
    • Longstanding customers across diverse manufacturing end-markets and geographies
    • Multiple avenues for continued organic growth, including a robust sales pipeline and compelling cross-sell opportunity

    End-to-End Manufacturing and Supply Software Platform

    screen_shot_2019-10-21_at_2.59.57_pm.png

    screen_shot_2019-10-21_at_3.01.36_pm.png

    3PL / TMS / Freight Audit Solutions

    Description

    • Provider of technology-enabled Enterprise Logistics solutions

    Key Value Drivers

    • Tangible value proposition for shippers experiencing the pressures of increasingly complex supply chains and growing freight costs
    • Growing truckload and less-than-truckload freight brokerage operation complements Enterprise Logistics offering
    • An acquirer of choice with a proven ability to execute strategic M&A, having completed six acquisitions in four years

    Enterprise Logistics Platform

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    Maritime Logistics Technology

    Description

    • Provider of commercial maritime ERP and supply chain software and data solutions

    Key Value Drivers

    • Expanding and highly referenceable client base consisting of many of the world’s premier energy, agricultural, trading and maritime organizations
    • Large addressable market for current solutions and significant incremental opportunity through product expansion with new and existing user segments
    • Fully-integrated software and data solutions that drive operational improvements and efficiencies

    Maritime Supply Chain Optimization Platform​screen_shot_2019-10-21_at_3.13.09_pm.png

    1. Gartner

    2. IDC

    3. PitchBook

    4. Capital IQ

     

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