Orazio Buzza

Rumor has it, mergers and acquisitions in the 3PL space have cooled dramatically, as strategic buyers have pulled back from making acquisitions. This leaves private equity firms, who are hyper focused on investing in profitable companies at much lower valuations than we’ve seen in recent years, while avoiding risky or distressed businesses. So, what does this mean for underfunded 3PLs already struggling with extreme margin compression and higher capital costs? The days of 3PLs being valued like software companies are over, especially for those that aren't growing profitably. Who will survive now that buyers are no longer in the market for 3PL's with topline only growth? And what does this mean for the brands using them?

175

39 Comments

If I were sitting at KKR or Shopify holding the senior debt at Flexport, I’d be benchmarking the asset and asking serious questions. Between NFI partnering with Transfix and UNIS rolling out Item.com as cash flow-positive competitors, both backed by large real estate balance sheets, I’m struggling to understand Flexport’s business case if/when they seek additional capital. Both competitors have developed automation, integrations, and partnerships in a fraction of the time. Most importantly, they have a proven track record of self-funding innovation with sustainable cost structures and the best tech talent I’ve encountered, consistently leaving their VC-funded competitors barely visible in the rearview mirror. My takeaway: When leaders focus on building a superior product rather than merely promoting it, the product always wins! #transloading #ecommerce #warehousing #distribution

26

3 Comments

At the CFA Society Indianapolis Venture Breakfast last week I mentioned how SaaS is losing its VC footing to AI. A couple of folks asked for more information, so I figured I'd share today's PitchBook newsletter on the topic. (https://lnkd.in/eJ285n-a) Amid shifting landscapes in the tech sector, corporate innovation funds and investment dollars are increasingly pivoting towards AI experimentation. As traditional SaaS startups experience a deceleration in revenue growth, the focus is shifting. 💡 As we witness this transition, it's crucial for professionals in tech and investment sectors to understand how AI can drive not only efficiency but also innovation. ❓ Let's discuss how your organizations are adapting to this shift. Are you experimenting with AI? What impacts do you foresee in your industry? #AI #CorporateInnovation #TechTrends #StrategicInvestment

19

My latest article on Fast Company is live! This article, “8 important tips for evaluating your next technology investment”, is a great resource for drayage companies, and really companies in all industries, looking to implement a new technology. Check it out :) https://lnkd.in/eeTiJcC4

32

8 Comments

For PE portco's, vision ≠ financial targets. What's more likely to inspire and motivate the team in your port-co? → Target: "Achieve $100m revenue and $25m EBITDA by 2025." OR → Vision: "Heal and transform 100k lives by 2025." Ask yourself: does your value creation plan spell out the vision for the company? ▶️ #PrivateEquity #Vision #ValueCreation

12

1 Comment

Great article about e-mail freight quote automation. We’ve enabled brokers in North America with similar tools for years. If you are not automating your Freight Quoting, you’re missing out on a vast opportunity and losing market share. Are you interested in learning more about Tabi Connect and its capabilities to help you win more freight, including automating your email quotes? let’s talk. https://lnkd.in/eSzpgJpW

13

1 Comment

In March I started working with a medium sized brokerage. There was an emphasis on growing their business in the dry van space. A piece of that strategy was to focus on RFPs Anyone who participates in RFPs/RFQs knows it’s a long-term strategy. Here are some results from the engagement ·      7000 lanes analyzed between 12 bids in a 3 month period ·      Between 70-80 lanes won between 1st, 2nd, or 3rd place ·      The company’s margin targets were between 8-20% ·      They won an estimated Spend of 1.5MM Most people know it’s hard to win, but don’t know how much patience, diligence, and persistence it takes. If done correctly, it can change the trajectory of your company. #bidseason #persistence #analysis

71

19 Comments

A recent article in Transport Topics highlighted C.H. Robinson implementation of AI technology to respond to Email Requests for Spot Rate Quotes. Several LinkedIn comments correctly suggested this wasn't groundbreaking news since companies like Direct Expedite LLC, Tabi Connect and Greenscreens.ai have been leveraging similar technology for years. At my brokerage company, Direct Expedite LLC, our customers benefit from automated responses to email quote requests within 45 seconds, ensuring guaranteed capacity. All of our rates come from my patent pending quoting system that I have been developing and perfecting with no help from 3rd party tech companies since 1990. But here's the REAL NEWS in Freight Rate Technology: Direct Expedite LLC is leading the way as the FIRST transportation provider to offer hands-free spot quotes through voice technology. Using an iPhone, our customers can simply ask #Siri for a rate quote, and get an accurate response in about 4 seconds. Our next innovation involves integrating instant rate quotes into our partner FreightValidate ✅ to combat fraud by flagging rates that deviate significantly from market averages. Click the link below to see Siri at work https://lnkd.in/e4r3hMDx Stay tuned for more updates on how we're revolutionizing the transportation industry! Nathaniel Ebel 7LFreight by Freightos The Logistics Lounge MyCarrierPortal Bill Robinson Aunica Sherwood Timothy Dooner Tim Higham FreightWaves FreightClub.us ThinkFreight Chris Jolly Grace Sharkey 🚛🤖💙

7

Great points !! The dynamics of selling a SaaS business, especially to Private Equity (PE), can be complex and emotionally challenging. When considering this path, founders need to evaluate their role, ownership, and influence in the company post-sale. Here’s my take: 1️⃣ If you’re the **majority holder** and believe in the business’s future, continue as CEO to maintain influence and control over the direction. Retain enough "skin in the game" to drive results and keep a hand on the wheel. 2️⃣ If you’re a **minority holder**, with a new PE-appointed CEO, it may be wiser to take a substantial payout and invest in a new venture. In this situation, you often lose decision-making power, risking becoming a spectator in a company you helped build. 🔑 **What’s crucial?** If you still have meaningful equity, you should have a say in the direction. When you’re not in the driver’s seat, it’s often better to start fresh, investing your energy and passion into something new where you’re not just "cheering from the sidelines." Selling is a monumental decision; make sure it aligns with your values and vision for your future. #SaaSFounders #ExitStrategy #PrivateEquity #BusinessOwnership #EntrepreneurJourney #Leadership

6

2 Comments

REPOWR Market Update: Heightened activity within the marketplace last week coming off the holiday weekend as expected with spot freight activity picking up. Markets: - OB IL with lane direction into the Southeast and Midwest spiked ~4.5x WoW - IB into Columbus, OH demand remains elevated - Intra CA, FL, and TX demand increased ~30% compared to the trailing 3 weeks Pricing: - Dry vans off the West Coast moving East continue to hover ~$5/day while Intra Southeast trailers are ~$22/day - Flatbed pricing trending up ~$2/day compared to previous 3 weeks as spot rates moved a bit more aggressively here. Currently hovering around $36/day. - Reefer pricing ranging from $30/day in areas like IL and OH to $36/day in FL Other thoughts: - Expect pricing to continue to move upward for flatbeds and reefers as spot volumes ramp up within these subsets of freight (construction, produce, food & beverage, etc.) - Dry van demand is slowly picking up across the country, but don't foresee material movements in pricing as long as rates remain rather deflated - Weather related network dislocation will start to come into play as hurricane season is upon us. With anywhere from 8-13 storms expected to reach hurricane status, it sounds like we could be potentially in for some very volatile markets in the coming months. Certainly not calling for a Harvey & Irma like impact that we saw in late 2017, but it doesn't sound like it's out of the cards either. We'll see how it plays out. Back next week with more!

28

1 Comment

There’s a reason incumbents have an advantage on shipper bids - They provide less friction. - There is familiarity. - Most likely they have good service. But it doesn’t mean you can’t win some lanes if it’s your first time bidding on the RFP. It starts with having a strong, aligned company wide approach. Target lanes based on geography, potential volume, strong carrier base, or historical data. Use the unique capabilities or your business and get precise What it shouldn’t be - Looking at your company history or a 3rd party site and adding “XX” percent - Reading the latest headline and applying that to your bid submission Why? - Not all lanes are created equal for your company - Macro-economic conditions provide direction, but don’t apply to every lane

25

2 Comments

Future-Proofing Manufacturing: Strategic Trends for 2024 and Beyond - Explore FreightPOP's take on key 2024 trends in manufacturing, from AI and robotics to supply chain management and data analytics. #Manufacturing #SupplyChainManagement #Industry4.0 #DigitalTransformation https://hubs.ly/Q02vzrDl0

1

Capitalizing On Capacity - ProvisionAi Tom Moore shares how #ProvisionAI provides seamless integration of planning and execution. #transportation https://hubs.li/Q02GzXnS0

1

I hope all of us see Anthony Miller's post as a call to action to prioritize #LogTech results over buzzwords. Remember blockchain and the promise of streamlining global trade? Or RFID and perfect warehouse inventories with no manual counts? It's like chicken little - people have desensitized to the 'next big thing' because the last one (and the one before that) didn't move the needle. Companies, in an effort to drum up interest/awareness, make more noise and are more direct with their messaging. We're at the point where companies only want to hear about results and return on investment.

12

3 Comments

Freight Executive Insights with Curtis Garrett, CEO & rate HERO Founder at ULTL. Michael Vincent and Curtis Garrett talk about his experience learning from the ground up in the LTL business, how ULTL started, and share insights for the road ahead. 💡 Please subscribe / follow for awesome content including: Top supply chain executive interviews Industry news and insights Personal stories that inspire and motivate Keys to success and pitfalls to avoid Occasional special talents and other entertainment More… Do you want to reduce your fuel spend by 10% to 23% net cost savings? Here are some of the things happening on that front: ✅ Measured case studies show an average 26.39% fuel economy gain ✅ Money back guarantee pilot program to experience the results ✅ 6-in-1 green fuel technology, support, and engineering analysis included ✅ Burn fuel more completely, reduce emissions, and reduce repairs ✅ Over 70,000,000 gallons of fuel treated ✅ EPA-certified products compliant with Magnuson Moss Warranty Act ▶ Click Below for Up to 23% Net Cost Reduction on Your Fuel Spend: https://lnkd.in/gCKDWrFz... To your success, Andy Hedrick CEO – Green Path Tech #supplychain #executiveinsights #keystosuccess https://lnkd.in/gM4yfJVy

5

2 Comments

Digital freight networks and private carrier relationships aren't competing forces – they're complementary pillars that create unprecedented value for brokerages. Today marks a significant milestone in this evolution: Parade is partnering with Uber Freight to bridge these worlds further than ever before. This partnership brings my journey full circle. After building driver growth systems during Uber's early ridesharing days, I experienced firsthand how technology could transform fragmented networks into scalable marketplaces. Now at Parade, we're applying these lessons to help brokerages scale their carrier networks while maintaining the relationships they've carefully built. The future of freight isn't about choosing between marketplace efficiency and relationship-driven business – it's about empowering brokerages to leverage both. When brokerages can seamlessly manage their trusted carrier relationships alongside quality marketplace capacity, everyone wins. Immense gratitude to Brooks McMahon, Vivek Ojha, and Sara Blair at Uber Freight for sharing this vision of a more connected freight ecosystem. And to our own Derek Netelenbos for driving this partnership forward. A new chapter in freight is unfolding. Here's to the brokerages leading the way. #FreightTech #Innovation #SupplyChain https://lnkd.in/giAHkzZb

138

13 Comments

🤔 Thinking of Insourcing or Outsourcing Your Fulfillment? 👋 Max Garland from Supply Chain Dive has a great article on whether to insource or outsource #fulfillment. This decision can be complex, but some key factors can help you make the best choice for your business. Cost Efficiency is King 👑 One of the biggest factors companies consider is cost. Insourcing gives you more control over the fulfillment process, but managing in-house labor, warehouse space, and equipment can also be more expensive. Outsourcing to a #3PL or #LSP can be a cost-effective solution, especially for companies that are just starting out or don't have the resources to manage their fulfillment. 🇲🇽 Nearshoring with #Mexico for the Win! Companies can enjoy significant tariff reductions on goods imported through Mexico and shipped to the US, greatly reducing overall supply chain costs. And skilled labor for pick-pack-ship, returns and other critical functions. I'd love to hear your thoughts on this topic! What other factors do you consider when making decisions about your fulfillment strategy? Jim Waters FreighTech Advisors Chad Jacobsen Luke Hoefs Aaron Hatfield Joe Lynch ★ The Logistics of Logistics Walmart https://lnkd.in/em5RkyYV P.S. Don't forget to subscribe to Supply Chain Dive for more great content like this!

9

3 Comments

I hope all readers find "Sustainable Supply Chain Orchestration - Unlearning for a Better Tomorrow" an inspiring yet practical guide to change 'aspiration' into 'action'! #sustainability #sustainablesupplychains #ASCM

31

Lead Times are big deal. This is not a 'set and forget' field. A lot of things can change lead times from your #SupplyPartners: ❗ Capacity changes from other customers, time of year ❗ Machine/tool issues ❗Staffing ❗Weather ❗Freight ❗World events/conflict ❗Material shortages ❗Quality issues Finding out at the time of PO placement that lead time has doubled or tripled is very very very very very unpleasant. Ideally, you should stay in contact with your partners and they should keep you informed of changes or issues... but what if you/they do not? Then own that responsibility and reach out and connect with your partners. Put a reminder on your calendar (or whatever tool you use to stay organized) to stay current on this. And if there is a change, update your Team AND your system. One of the worst #SupplyChain experiences is to find yourself suddenly facing a months long backorder because of missed communication. #SupplierRelationships #Communication #CPGBrands #Operations #Procurement Have you ever experienced this?

14

9 Comments