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?
  • Connected cars: what are the opportunities for the $30 billion market in machine-to-machine communication?
  • Electrification: where will electric vehicles gain adoption, as they expand 30% annually?
  • Shared economy: will “Uber for logistics” work, or will different gig economy models evolve?

Each of these themes for the future translates into investment opportunities today in transportation and technology. For instance, last-mile companies like Bringg, Grand Junction and Delivery Circle represent distinct examples. In consolidation, XPO has bought 17 companies in its quest to scale up logistics. And digital logistics firms like Convoy are raising tremendous amounts of capital to pursue their vision.

For more on this topic of future logistics opportunities, please see this video. For a longer article on key themes in supply chain, read this article.

In the coming year, we expect to see a plethora of outstanding companies pursue these and other strategies for innovation in the supply chain. Stay tuned!

Benjamin Gordon, Cambridge Capital