Logistics spotlight: B2B replenishment & cold chain trends

We are pleased to present our views on the Last Mile B2B Replenishment landscape, doing so with the aim of helping increase transparency and communication among the companies themselves, as well as financial and strategic investors.

In general, these companies are providing B2B2C forward logistics serving restaurants, convenience stores, and direct-to-consumer businesses, while layering in analytics, software, and scale efficiencies to add value and capture margin; embedding their solutions into clients’ daily operations with sticky offerings.

The combination of labor shortages and the widespread effects of global supply chain bottlenecks has given rise to future-ready logistics companies driving efficiency and agility throughout the value chain. We see the companies showcased in this report as disruptors in the space, who are digitizing and transforming the ecosystem.

Our report also highlights several Last Mile B2B Replenishment trends and key success factors for B2B last-mile delivery players. We anticipate a rise in investment and consolidation as both financial and strategic investors seek opportunities in disruptive technologies that reshape the logistics industry.

Key trends:

  • The global last mile delivery (B2C and B2B) market is expecting 15.6% CAGR during 2022-27, to reach $165.6BN by 2027 driven by growth in the global e-commerce industry, premiumization of goods and merchandise delivery, and growth in the number of warehouses. The B2B segment constitutes ~25% of the overall market.
  • B2B customers seek B2C-like experiences including certainty and transparency in deliveries.
  • By integrating IoT solutions into cold supply chains, logistics companies can bring transparency and control in the storage and transportation processes, helping cut losses and enhance efficiency.
  • Blockchain offers companies a transparent and secure platform to manage and track inventory. Given the significance of consistent temperature control and monitoring in cold supply chain networks, blockchain presents numerous opportunities to accelerate change.
  • The logistics SaaS segment is yielding some of the highest forward EV / revenue multiples ranging from 8.5x and 7.8x for 2023E and 2024E revenue, respectively, with forward EV / EBITDA multiples of 26.4x and 21.4x for 2023E and 2024E revenue.
  • Private Placement funding has been vibrant since 2021, with the space witnessing 42 deals aggregating over $9.9BN (average ticket size of $235MM).