Supply Chain Optimization Across Portfolios
Maximize your private equity investment gains with IL2000
In 2021, private equity firms invested over $50 billion in logistics. That’s over triple the year prior and a third higher than in 2019, a record year that set the previous high-water mark for supply chain investment.
Now is a great time to invest in logistics. But no one makes a fortune blindly running at an opportunity. To make good investment decisions, you need more than favorable indications. You need sturdy tools and sharp industry insight. A good third-party logistics provider (3PL) is a vital part of that picture.
Why choose IL2000 as your 3PL?
IL2000 is unique among 3PLs, and a valuable partner if you’re a private equity firm handling a portfolio of companies facing diverse supply chain challenges.
Real consultation and far-reaching customization
If you’ve already spoken with a 3PL to discuss supply chain optimization, you probably noticed your conversation felt like it was on rails. Why? Because most companies in this space are constrained by prebaked off-the-shelf transportation management system (TMS) software and may miss the value of truly unique expertise for supply chain equity managers.
IL2000’s approach begins with consultation. Our team develops a textured understanding of the challenges and opportunities shaping your portfolio’s supply chain. We then build on that insight, customizing our industry-leading transportation management system (TMS) to deliver optimal results. We then take the extra step of becoming fully immersed in what’s making your organization unique and how we can maximize your portfolio’s performance through effective supply chain management.
If you’ve already spoken with a 3PL to discuss supply chain optimization, you probably noticed your conversation felt like it was on rails. Why? Because most companies in this space are constrained by prebaked off-the-shelf transportation management system (TMS) software.
IL2000’s approach begins with consultation. Our team develops a textured understanding of the challenges and opportunities shaping your portfolio’s supply chain. We then build on that insight, customizing our industry-leading transportation management system (TMS) to deliver optimal results.
Supply chain enhancements across your whole portfolio
Here’s the truth most 3PLs will steer you away from. Their approach wasn’t made for you; it was built to support the needs of the majority, not just your portfolio. IL2000 takes a different approach to handling the needs of supply chain equity managers.
A conventional 3PL caters to lone companies facing easily defined supply chain challenges. Competitive advantage across your whole portfolio is not their concern.
IL2000 sources expertise from every corner of supply chain management to deliver both a broader perspective and a deeper repertoire of services. We’re uniquely positioned to maintain eyes and ears across all companies within your purview, offering multifaceted solutions to complex challenges.
A vigilant eye for the bottom line
A TMS-only solution can save you money on shipments. A big consulting partner can offer insights encompassing R&D, manufacturing and the customer journey. Neither of these partners, however, can offer deep insight into end-to-end supply chain optimization.
Supply chain costs can consume up to 20% of a company’s sales dollar. IL2000’s freight audit and enhanced BI capability equip you to directly target this significant portion of operational expenditure, improving your portfolio’s bottom line and future-proofing freight operations in the process.
Leverage IL2000 to invest in your transportation equity with confidence
IL2000 supports private equity firms in ways other 3PLs can't.
Related blogs
How logistics management can improve profitability across a PE's entire portfolio of companies
Private equity firms look for an annual profit of between 20% and 25%. They estimate that one in every five companies they acquire will be a failure, so those who make profits should compensate the losses of those who fail, says One to One Corporate Finance.
The supply chain activities of most companies consume up to a fifth of their sales dollar. Today’s supply chain challenges impact businesses across, we venture to say, nearly all industries. But with every trial comes a huge opportunity for stabilization, improvement, and profit.
We’ll show you how enhancing a company’s supply chain can be the make-or-break factor in portfolio management today. Then we’ll show you why working with a seasoned 3PL partner is the way to do it.
Better logistics, bigger returns
Maximize your profit margin with managed supply chain optimization
A business needs a few key attributes if it’s going to succeed. Tenacious leadership, the courage to innovate, a crisp marketing message — there’s this organizational grab bag of obvious growth attributes that make a company desirable from an investment standpoint.
We’re not here to talk about any of that.
We’re interested in a less sexy but no less important aspect of a company’s profitability: its operational efficiency. Because ultimately, a healthy profit margin is a product not just of how much a business makes but also of how much it spends.
So with that in mind, are you ready for our big, bold claim?
Strategic supply chain optimization across your portfolio of companies is one of the most financially impactful operational improvements you can make in 2022.
Could clean tech innovations in supply chain and logistics improve a PEs profitability?
Private equity firms invested $27 billion in clean energy in 2021. This 74% jump in spending from 2020 shows the PE industry’s dedication to reducing carbon footprints and improving efficiency. And they’re laser-focused on supply chains.
The President of the American Investment Council, Drew Maloney, says PE firms' focus touches all levels of the supply chain, including production, distribution, and waste management, amongst others. Increasing investments in these areas will continue to lead to progressively cleaner processes.
Where does IL2000 come in?
The benefits of clean tech and improved logistics processes shouldn’t be restricted to one company or industry alone. IL2000 is equipped with extensive experience across a wide range of industries and is poised to bring supply chain optimization to all the businesses in your PE portfolio.
