#Software

Transportation & Logistics

Transportation Management Systems (TMS) strive to minimize delays and mistakes in the supply chain, specifically on the part of shippers and carriers, as these mistakes are costly and mostly absorbed by the retailers themselves.

LLR is leveraging our experience investing in supply chain software to back competitive platforms in the TMS category and help build a category leader. CEOs of companies in this sector and intermediaries working with relevant companies should contact Zack Hubbard to discuss opportunities.

The value that LLR has brought to Magaya extends far beyond its capital investment. The experience, leadership and knowledge the LLR team brings to the table are truly priceless. LLR has been instrumental in setting Magaya on our current course as a true leader in the digital transformation of the logistics industry.

Gary Nemmers, CEO of Magaya

External Pressures to Innovate

Impact of the “Amazon Effect” on shipping

Shipping costs and inefficiencies have become an acute pain point in the supply chain ecosystem, as the “Amazon Effect” pressures supply chain constituents to meet customer expectations and to maintain industry competitiveness.

Increased supply chain complexity

As supply chains become more diversified to mitigate issues with upstream suppliers and control costs, shippers and carriers are requiring solutions that can handle greater complexities. This is expected to drive adoption as TMS solutions are needed for greater diversification and contingency planning.

Prominent lack of drivers

The need for more efficient trucking practices is driven by an all-time high shortage of 78,000 U.S. truck drivers and climate change concerns.1

 

Pressure from retailers

Shippers and carriers are being acutely pressured on cost savings by retailers, who are absorbing ~25% of shipping costs.3 E-commerce tailwinds also support the need for dynamic systems that optimize supply chains.

A growing SMB market

The small and midsized shipper TMS market has grown 25%,2 as more TMS vendors are offering budget-friendly solutions and simplifying the implementation process – two criteria that have historically limited this end of the market.

No longer an option to wait

While the transportation industry has historically been a tech laggard, with shippers often classifying tech as a “next-year” problem, this luxury is no longer afforded. Facing these headwinds, shippers and carriers now require TMS solutions to optimize existing tools and automate manual workflows.

Opportunities for Transportation & Logistics Technology to Automate

78,000
1
shortage of truck drivers in the U.S.
13% 5-YR CAGR
2
growth in North American TMS market
25%
3
of shipping costs is absorbed by retailers

Get to Know LLR Partners

25 Years Investing in Technology

  • Founded in 1999, LLR is a growth oriented private equity firm investing in high growth, disruptive technology companies.
  • Raised over $7.0 billion of capital across seven funds.
  • Focused on organic, topline growth initiatives and complementary acquisitions to create value for all stakeholders.
  • Thesis-driven investment teams look to build fit-for-purpose strategies along side management teams.

Operational Support

  • Leverage best practices developed through codifying successful strategies across our 130+ investments since inception.
  • Access LLR’s Value Creation Team (strategy, talent, go-to-market, product, finance, M&A) to help accelerate growth.

Focus on Partnership

  • Flexible capital provider (majority or minority ownership).
  • Reward and motivate key players with equity.

Investment Criteria

  • $10M+ in ARR.
  • Ability to invest $40 – $150M of equity.
Select Industry Investments

LLR invests in the sectors where our investment experience indicates there are attractive business models and market trends supporting strong growth potential. Here are some of our related investments.

Latest GrowthBits

View All
#Software
My 8 Takeaways from Manifest 2024: The Future of Supply Chain and Logistics
Michael Pantilione / Partner

Meet the LLR Team

David Reuter

David Reuter
Michael Pantilione

Michael Pantilione
Zack Hubbard

Zack Hubbard
Jack Warren

Jack Warren
Rachel Wolfson

Rachel Wolfson
Catherine Fitzpatrick

Catherine Fitzpatrick

Related News

News

April 26, 2019

LLR Invests in Supply Chain Management Software Leader Magaya

LLR Partners announced an investment in Magaya Corporation, a leading provider of warehouse, cargo and supply chain management software solutions....

News

June 22, 2021

Vehicle Tracking Solutions (VTS) Secures $70 Million Investment from LLR Partners

Capital to help accelerate growth for IntelliShift, a division of VTS, by fueling product innovation and supporting a best-in-class customer...

News

May 15, 2015

Quintiq Acquisition Named Deal of the Year

At the 2015 PACT Enterprise Awards, LLR Partners and NewSpring Capital were honored with the Investment Deal of the Year...

References

  1. “Ways Congress can strengthen the trucking workforce,” American Trucking Association blog post, 2023, https://www.trucking.org/news-insights/ways-congress-can-strengthen-trucking-workforce
  2. Brock Johns, et. al. “Magic Quadrant for Transportation Management Systems,” Gartner, 2023, https://www.gartner.com/reviews/market/transportation-management-systems
  3. “5 Practical Tips to Solve Your Last Mile Problem,” Onfleet blog, 2023, https://onfleet.com/blog/last-mile-problem/
Disclaimer:

The information presented herein is intended for an audience of potential LLR portfolio companies and the intermediaries supporting their capital raise processes. Named LLR investments presented herein do not reflect a complete list of LLR investments and are provided for informational purposes only. Certain statements about LLR made by portfolio company executives and other quoted parties herein are intended to illustrate the work of LLR’s Value Creation Team with such portfolio companies or reflect the individual’s perspective on the featured industry sector. Such portfolio companies are controlled by investment vehicles managed by LLR. Quoted parties were not compensated in connection with their participation, although they generally receive compensation and investment opportunities in connection with their portfolio company or Senior Operating Advisor roles, and in certain cases are also owners of portfolio company securities and/or investors in LLR-sponsored vehicles. Such compensation and investments subject participants to potential conflicts of interest in making the statements herein.