Logistyx Technologies

Status:
Current Investment

In May 2017, KCO, in partnership with McLarty Capital Partners, LLC, merged Advanced Distribution Solutions, Inc. (ADSI), Agile Network (Agile), and Pantechnik International (Pantechnik) to form the world’s first global parcel analytics platform, Logistyx Technologies.

Thesis

The explosive growth of e-commerce, along with the trend toward distributed warehousing, has fundamentally changed how companies ship products.  In particular, there has been a shift from shipping in “bunches” (full truckload or container load) to shipping in “eaches” (primarily through parcel).  While historically an afterthought, parcel has become a bigger area of focus for shippers, and shippers are increasingly using software and systems that automatically select carriers based on cost, speed, and service.  The growth in these systems has been very rapid in the last several years, due to the very short time to breakeven and overall ROI associated with these systems.  Shippers, particularly parcel shippers, need software and services to significantly reduce shipping costs, make better shipping decisions with more flexibility and visibility, and synchronize shipping processes across multiple shipping locations.

Company

With the industry’s largest geographic footprint and most capable products, Logistyx Technologies helps businesses reduce shipping costs by 40 percent by getting smarter about what label goes on each parcel. Its edge computing model combines the power and collaboration capabilities of the cloud with the speed and agility of onsite tools and technology to ensure seamless support of the world’s largest and most sophisticated warehouse operations, as well as small businesses relying on manual fulfillment processes. Headquartered in Tulsa, Oklahoma, Logistyx Technologies also has U.S. offices in Chicago, New York, Philadelphia, San Diego, and St. Louis and international offices in Amsterdam, Singapore, and Toronto.

KCO Value Add

  • Structured and financed simultaneous acquisition of three companies that comprised eight legal corporate entities, including introduction of new financial partners.
  • Filled newly created positions of Chief Executive Officer, Chief Financial Officer, Chief Revenue Officer, and Chief Marketing Officer.
  • Recruited several independent Board members with experience not only in the logistics software market but also experience in customer markets, international shipping markets, and acquisition integration.
  • Created detailed 100-Day Plan to guide executional priorities.
  • Implemented formal strategic planning and budgeting process.
  • Applied enhanced financial reporting and controls, including flash reports, operational dashboards, and audited financial statements.
  • Structured the financing to allow for ongoing liquidity, working capital, and future acquisitions.