Supply Chain and Logistics Technology Sector Review | 3Q 2019 Supply Chain and Logistics Technology Sector Review | 3Q 2019
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SUPPLY CHAIN AND LOGISTICS TECHNOLOGY SECTOR REVIEW | 3Q 2019 SUPPLY CHAIN AND LOGISTICS TECHNOLOGY SECTOR REVIEW | 3Q 2019 HARRIS WILLIAMS (“HW”) TECHNOLOGY, MEDIA & TELECOM (“TMT”) GROUP • 330+ professionals across eight offices globally • 35 professionals across Boston, San Francisco, and London • 160+ closed transactions in the last 24 months HORIZONTAL FOCUS SECTORS VERTICAL FOCUS SECTORS • 10 industry groups • Compliance Software • Architecture, Engineering & Construction • CRM and Member Management Software • eCommerce & Retail Software • Data & Analytics • Education Technology • Enterprise Software • Energy Technology • Human Capital Management • Facilities & Real Estate Technology • Infrastructure & Security Software • Financial Technology • IT& Tech Enabled Services • Government Technology • Managed Services, Hosting & Data Center Solutions • Healthcare IT • Online Marketing, Data & Research • Industrial & Supply Chain Software TMT CONTACTS TRANSPORTATION & LOGISTICS CONTACTS A N D Y LEED TYLER DEWING THIERRY MONJAUZE J A S O N B A S S F R A N K MOUNTCASTLE J O E C O N N E R +1 415-217-3420 +1 617-654-2133 +44 20 7518 8901 +1 804-915-0132 +1 804-915-0124 +1 804-915-0151 E R I K SZYNDLAR JULIEN OUSSADON MIKE WILKINS J E F F BURKETT J E F F K I D D JERSHON JONES +1 415-217-3418 +44 20 7518 8909 +1 415-217-3411 +1 804-932-1334 +1 804-915-0178 +1 804-932-1356 Provider of multi-modal Provider of cloud- Provider of intelligent Provider of a non-asset Provider of technology- transportation based manufacturing traffic software (ITS) based 3PL platform enabled Enterprise management and and supply chain and IoT solutions for specializing in Logistics solutions logistics technology software for mid-market the transportation multimodal freight has received a has been has been has been has been solutions manufacturers industry brokerage majority investment acquired by acquired by acquired by acquired by from Provider of multi-modal Provider of ERP and Provider of safety Provider of supply Provider of commercial transportation warehouse solutions to fleet chain logistics and maritime logistics management and management software vehicle purchasing software execution and planning logistics technology has received a solutions for 3PL, manufacturers and solutions for healthcare has received a software and data has been has been solutions majority investment eCommerce, operators has acquired providers and facilities growth investment solutions acquired by acquired by from manufacturing, and from retail companies TECHNOLOGY, MEDIA & TELECOM PAGE | 1 SUPPLY CHAIN AND LOGISTICS TECHNOLOGY SECTOR REVIEW | 3Q 2019 SOURCE AND PLAN Solutions designed to increase visibility, Solutions to connect manufacturing Software solutions that enable the planning communication, and control costs for the execution and warehouse management and execution of the transportation of goods upstream supply chain. processes. across supply chains. PLM / MES / Warehouse Ecommerce Transportation Freight Exchange Freight Audit / Sales & Operations Procurement / Trading Partner QMS Management Fulfillment Mgmt. Matching Payments Planning Spend Management Networks Factory Devices / Reverse Fleet Mgmt. / Automation Barcodes Logistics Telematics Select Market Participants Select Market Participants Select Market Participants Key Trends Key Trends Key Trends Increased competition and price sensitivity as a Orders are growing in volume, speed and Rising freight rates, driver shortages, tight result of continued globalization of commerce is complexity as a result of direct-to-consumer and truck capacity, and changing customer resulting in accelerating adoption of sourcing and multichannel commerce in consumer goods and demands are pushing shippers to utilize TMS planning software by companies of all sizes and retail, forcing warehouse leaders to invest in new software to manage increasingly across many verticals processes and technologies sophisticated transportation networks Digital solutions are streamlining the S&OP Incorporating real-time performance data into Fleet management software solutions are process with real-time data visibility and technical design and execution management software improving routing and scheduling of capabilities that enable companies to improve through IoT devices is allowing for closed-loop deliveries, driver mobility, and integration planning collaboration, increase agility, and manufacturing and continuous improvement of with onboard vehicle telematics speed planning cycle times processes TECHNOLOGY, MEDIA & TELECOM PAGE | 2 SUPPLY CHAIN AND LOGISTICS TECHNOLOGY SECTOR REVIEW | 3Q 2019 KEY INDUSTRY TRENDS 1,2 1 . 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 2 . 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 3 . 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 4 . 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 5 . 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 TECHNOLOGY, MEDIA & TELECOM PAGE | 3 SUPPLY CHAIN AND LOGISTICS TECHNOLOGY SECTOR REVIEW | 3Q 2019 Recent Supply Chain & Logistics Technology M&A Activity Capital Raise HW Transaction Notable Industry Consolidators TECHNOLOGY, MEDIA & TELECOM PAGE | 4 SUPPLY CHAIN AND LOGISTICS TECHNOLOGY SECTOR REVIEW | 3Q 2019 • 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 Enterprise Value: NP EV / Rev: NP the top global 100 chemical companies • With the support, expertise, and international network from Eurazeo, Elemica will accelerate its development in new industries, Revenue: NP EV / EBITDA: NM geographies, and product offerings • 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 Enterprise Value: NP EV / Rev: NP • ITOCHU’s strategic investment in KeepTruckin includes a strategic business alliance to foster network growth, product distribution, and an open freight marketplace Revenue: NP EV / EBITDA: NP • 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 Enterprise Value: $450m EV / Rev: $15m • 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 Revenue: $30m EV / EBITDA: NP • 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 Enterprise Value: NP EV / Rev: NP 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 Revenue: NP EV / EBITDA: NP expertise of its new majority investor • 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 Enterprise Value: NP EV / Rev: NP solutions to the industrial and other highly regulated industries • With the investment from Kayne Anderson,