What a Biden Administration Means for Business Owners… and Logistics

On November 3, the American people voted. We still don’t know the full and final election results, due to unprecedented volumes of vote-by-mail. However, the New York Times just called the White House election in favor of Biden. In addition, polling suggested a Democratic sweep of the White House, Congress, and Senate, although the Senate results will now depend on January runoffs in Georgia. Meanwhile, Wall Street increasingly expects a Blue Wave.

Let’s take a closer look at the Democratic wins and their implications for business owners.

First, in the Presidential election, Biden is currently favored by an 87/13 margin.

Second, in the Congressional elections, Democrats are even more likely to maintain their advantage. …

What CEOs Say Behind Closed Doors, at the Invitation-Only BGSA Supply Chain Conference in Palm Beach

Industry insiders call it the “Davos of Logistics.” Every January, over 200 supply chain CEOs gather at the tony Breakers Hotel in Palm Beach to discuss strategy and deals at an invitation-only event. For 14 years, the BGSA Supply Chain Conference has been the place where the best and brightest converge. The event is press-free, which allows CEOs to speak with remarkable candor.

So what did we learn this year?

Let’s start with the financial markets. …

Key Insights from the CEOs at the Invitation-Only BGSA Supply Chain Conference in Palm Beach

Many people call it the “Davos of Logistics.” Every January, over 200 supply chain CEOs come to Palm Beach to discuss strategy and deals at an invitation-only event. For 14 years, the BGSA Supply Chain Conference has been the place where the best and brightest converge. The event is press-free, which allows CEOs to speak with remarkable candor.

So what did we learn this year?

Let’s start with the financial markets. As Benjamin Graham has said, “In the short run, the market is a voting machine, but in the long run, it is a weighing machine.

2019 was a winning year for the supply chain public markets. In fact, the BGSA Supply Chain Index, which tracks nine segments and 63 companies in all areas of the sector, increased 26% in 2019. In addition, all nine segments produced a positive return. …

Why are Investors Excited about This Logistics Sector?

Cold chain logistics is on fire.

In the last year, we have seen a string of deals in temperature-controlled supply chain services. Buyers and investors have funded aggressive initiatives in this market, in the US and around the world.

On the technology side, Cold Chain Technologies sold to Aurora Capital. The deal marked a milestone for CCT, a leader in temperature-sensitive packaging solutions.

On the warehousing side, we have witnessed a massive consolidation of facilities. The two largest players, Lineage Logistics and Americold, have gobbled up key competitors in a bid to dominate the sector. Recent deals include

• In Asia and Latin America, the Lineage Logistics acquisition of Emergent Cold from Elliott for $900…

What Venture Capital Investors Discuss Behind Closed Doors

“How do I raise money for my company?”

This is one of the questions I get asked the most frequently. It’s very simple, yet incredibly important.

If you can attract A-list investors to your venture, you may be on your way to building the next unicorn. If you can’t, then you may be at risk of hitting a wall.

Why do I get asked this question so often?

I’ve founded four companies, starting in 1999 with a SaaS logistics company called 3Plex. Since then, I’ve invested in several companies via Cambridge Capital, a private equity firm focused on logistics, supply chain, and technology. And I’ve advised many others, through BG Strategic Advisors, an investment bank for dozens of major companies in the supply chain sector. …

Why Cold Chain Logistics is on Fire

Cold-storage warehousing is hot.

In the past year, we have seen a flood of capital pouring into temperature-controlled logistics facilities. Investors and buyers have rushed into the sector, eager to snap up the facilities that support the food supply chain.

Industry leaders Lineage Logistics and Americold, in particular, have been on a tear. Recent deals include

• In Asia and Latin America, the Lineage Logistics acquisition of Emergent Cold from Elliott for $900 million
• In Canada, the Americold acquisition of Nova Cold Logistics from Brookfield for $253 million
• In the United States, the Lineage purchase of Preferred Freezer for over $1…

Eight Winning Themes, from Self-Driving Cars to Cross-Border Trade. Chapter 5 in the Supply Chain Innovation Series.

The world of logistics is changing quickly. What does the future hold?

At Cambridge Capital, we see eight key themes as particularly important. They include

• Last mile: how does freight get from your website purchase to your home?
• Globalization: how do companies navigate cross-border regulations and conduct trade?
• Consolidation: in the fragmented world of supply chain, how do the big get bigger via acquisition?
• Digital logistics: where can companies automate legacy processes to save time and money, in freight as well as ecommerce fulfillment?
• Autonomous vehicles: how will self-driving cars, trucks, and warehouse robots evolve from Level 2 (today) to Level 4 and beyond? …

Supply Chain Innovation Series, Chapter 4

Amazon has disrupted logistics. As a result, the supply chain sector looks radically different today.

This video interview explains why.

Robotics is a case in point. In 2012, Amazon bought a warehouse robotics company, Kiva, for $775 million, marking the 2nd-most-expensive acquisition in its history to date. This month, Shopify acquired 6 River Systems for $450 million to challenge Amazon on this same turf.

Ecommerce fulfillment is a second illustration of the increasingly recognized value of supply chain innovation. On the one hand, disruptors like ShipBob are using technology to provide lower-cost e-commerce fulfillment solutions. …