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Strategic Advice for Logistics Companies with Benjamin Gordon of Cambridge Capital In the latest Future of Supply Chain podcast episode, B ​ enjamin Gordon​ of Cambridge Capital​ joined Santosh to talk about Ben’s entry into the supply  chain industry, current private equity trends, and the areas of supply chain  that are thriving despite the current recession.  Ben is an advisor, investor, entrepreneur in logistics, supply chain, and  transportation companies. He’s a graduate of Harvard Business School and  Yale College, and is the CEO of West Palm Beach, Florida-based  Cambridge Capital and BG Strategic Advisors.   Ben hosts the CEO-level conference B ​ GSA Supply Chain​ for all areas of the  industry.   Cambridge Capital is an investor in the transportation, distribution,  logistics, and technology segments of the supply chain.   According to Ben, when it comes to investing, C ​ ambridge looks for  “companies with a big problem, compelling solution, the right team, and a  deal that makes sense.” 


How Ben Got His Start in Supply Chain Ben is both a banker and active private equity investor. For him, supply  chain was something of a family business.   “My grandfather had a truck leasing company, and he had expanded it  over time into dedicated contract carriage, logistics, and other areas,” he  says.   Ben got his start as a strategy consultant at CDI, a generalist firm, then  attended business school. He observed CDI’s truck leasing and contract  carriage operations—“trucks going out full and coming back empty,” he 


says and decided there must be a way to automate the backhaul using the internet.  He wrote a business plan detailing his ideas for automation, but CDI was  quickly sold to Ford Motor Credit instead. Ben mulled over the plan he’d  written out and decided to build out and implement it himself.   “I thought, well, I've gone to this effort to lay out a plan,” he says. “If I  believed in my plan, I had to have the courage of my convictions. So I  decided to go for it.”  In 1999, Ben launched his first company, 3PLex, as one of the first  internet logistics companies (which would now be considered SaaS).   Next, Ben became involved in other companies. He sold 3PLex to  Maersk, which was later sold to IBM.   Logistics companies took an interest in their software, and logistics  CEOs began to seek Ben out to ask his thoughts about where the  industry was headed. But more than that, they began to ask his advice on  mergers, acquisitions, and deals in the logistics arena. Thus, B ​ G  Strategic Advisors​, an investment banking firm for the supply chain  industry, was born.   Some of BGSA’s most successful investments include companies like  XPO Logistics and Grand Junction. BGSA acts as the advisory side of 


Ben’s business, while Cambridge Capital is centered around principal investing.  

Current Private Equity Trends Private equity has ​evolved tremendously​ over the last decade, according  to Ben.   “A decade ago, you sold platform investments in areas like truck  brokerage, warehousing, freight forwarding,” he says. “It was all about  finding great platforms in proven areas.”  Now, he says, the market emphasis has shifted to contract logistics and  brokerage businesses. Both were successful.   “Today, I think there's more interest in and recognition of the power of  technology in the supply chain,” Ben says. “So you see more private  equity interest in tech businesses that, maybe 10 years ago, would have  been viewed as too risky or too early-stage.”  To date, more than $2 billion has been invested in venture and growth  capital in the supply chain. According to Ben, “The themes we see in  private equity now are—more interest in technology, more interest  overall, and more dollars.” 


What Supply Chain Services are Poised to Win?   Currently, the supply chain is experiencing a recession, with a record  number of bankruptcies for companies in that arena. Investors are  looking to recession-resistant areas like asset light logistics,  tech-enabled supply chain services. Some truck brokerage areas, like  C.H. Robinson, are also holding strong.   On a global scale, Israel is leading the pack in l​ ogistics technology​, while  China is winning the battle for w ​ arehouse robotics​.    “I don't think it means tech companies are immune to the cycles,” Ben  says, “but it simply means that, if you have a company that's tracking  trace in an area that's 90% under-penetrated, the biggest factor for them  is whether they can take penetration from 10% to 50%.  “At some market-clearing price, I think these deals will still get done. So  for asset-light and tech-enabled, I think there’s a very bright future.”  Ben has also observed ​explosive growth​ in e-commerce fulfillment,  which he expects to continue to grow rapidly over the next few years.  Food delivery and last-mile delivery are also strong opportunities for  companies and investors alike. 


Listen to our full interview with Ben Gordon h ​ ere​.  

Original Source: https://blog.dynamo.vc/p/strategic-advice-for-logistics-companies 

Profile for Benjamin Gordon

Strategic Advice for Logistics Companies with Benjamin Gordon of Cambridge Capital  

In the latest Future of Supply Chain podcast episode, Benjamin Gordon of Cambridge Capital joined Santosh to talk about Ben’s entry into the...

Strategic Advice for Logistics Companies with Benjamin Gordon of Cambridge Capital  

In the latest Future of Supply Chain podcast episode, Benjamin Gordon of Cambridge Capital joined Santosh to talk about Ben’s entry into the...

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