Cambridge Capital's $20M investment in ReverseLogix
Reverse logistics is "The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal."
The global pandemic compounded the need for, and thereby accelerated the adoption of, a myriad of trends that were, if perhaps somewhat slowly, ushering in a new era. Covid-19 hammered the gas pedal on key trends such as automation and digitisation, eCommerce, and sustainability. Reverse logistics is no exception. The increased focus on sustainability, merged with the massive shift to eCommerce, propelled reverse logistics up the priority list.
Considering the heavy environmental impacts of returns, it's nice to see ReverseLogix Corp. leading the way, at the forefront of innovation in a $1 trillion global market. Automating end-to-end reverse logistics for manufacturers, eCommerce brands and third-party logistics on a cloud-based platform, ReverseLogix is designed to manage every step of returns, repairs, and after-sales care for the entirety of the reverse logistics ecosystem.
Headquartered in Burlingame and founded in 2014, ReverseLogix is a pioneer of SaaS-based centralised returns management and serves top brands worldwide. With a long list of impressive customers like FedEx, Electrolux and Cole Haan, ReverseLogix is blazing the trail in an underserved market. Purpose-built for reverse logistics workflows, ReverseLogix modules are designed to manage returns initiation and processing, repair management, warehouse management and inventory optimisation.
Earlier this month, ReverseLogix announced it had raised $20 million in its first round of external funding from Cambridge Capital. The new capital will enhance the company's capabilities and resources to deliver a turn-key, modular SaaS platform to manage, plan and execute the complex end-to-end reverse logistics process for the world's largest eCommerce focused companies.
The Series A financing was provided by Cambridge Capital, a forerunning supply chain technology-focused investment firm. Along with the investment, Cambridge Capital's Benjamin Gordon and Matt Smalley have now joined ReverseLogix's Board of Directors.
- According to Bank of America and McKinsey, the global pandemic spurred growth in eCommerce in the US from 16% to 34% of all retail sales.
- With eCommerce seeing a return rate of 25%, total packages returned in 2020 increased by 70%, with significant continued growth expected.
- Managing returns is a manual and cumbersome process, costing eCommerce businesses 20% of the value of goods. Aiming to reduce costs, companies are looking to leverage best-of-breed technology solutions to streamline and better manage processes.
- ReverseLogix is capable of managing both B2B and B2C returns, empowering a truly circular supply chain and presenting a significant opportunity to industries that are able to recapture raw material costs through rework or reprocessing.
"After bootstrapping ReverseLogix for over 6 years, I am excited to announce this significant investment. Cambridge Capital is the perfect partner for us who has deep experience in logistics technology globally. Working with them will allow us to continue developing our platform, expanding our leadership team and extending our high-growth trajectory into 2021 and beyond, leveraging their industry relationships with key customers and partners," said Gaurav Saran, Founder and CEO of ReverseLogix.
"We are extremely excited to partner with Gaurav and ReverseLogix as the first outside investor. Our background as global business builders in supply chain, and our unique viewpoint as a group of operators, strategic advisors and investors focused exclusively in logistics, will allow us to help ReverseLogix continue to extend its market leadership in what we believe is a trillion-dollar reverse logistics market globally," said Benjamin Gordon, Cambridge Capital's Managing Partner.
"ReverseLogix's continuous growth with existing and new large customers, top-tier satisfaction with the most important customers globally, and best-of-breed cloud-native flexible technology platform are a validation of ReverseLogix's large market opportunity and excellent product-market fit," added Matt Smalley, Principal of Cambridge Capital.
Leveraging AI and machine learning to automate and optimise the reverse logistics process brings the opportunity to significantly reduce operational costs and increase customer satisfaction while enhancing visibility and remaining both customer and customs compliant. It's reverse logistics done right.
IHS Markit/CIPS: UK Manufacturing PMI near-record high
UK manufacturing trends
For the UK manufacturing sector, growth of output and new orders were both reported by IHS Markit and CIPS as among the best seen over the past seven years, which in turn has led to a strong increase in employment. Despite this, the sector continues to face supply chain delays and input shortages, which resulted in increased purchasing costs and record selling price inflation.
UK Manufacturing IHS Markit/CIPS Purchasing Managers’ Index® (PMI®)
Seasonally adjusted, IHS Markit/CIPS Purchasing Managers’ Index® (PMI®) rose to 60.9 in April, which was an increase compared to March (58.9) and above the estimated 60.7 for April.
Increasing for the eleventh consecutive month, the latest readings are the highest since July 1994 (61.0). The output growth for April has been attributed to the loosening of lockdown restrictions, improving demands and a rise in backlogged work.
“The manufacturing sector was flooded with optimism in April as the PMI rose to its highest level since July 1994, bolstered by strong levels of new orders and the end of lockdown restrictions opened the gates to business. It was primarily the home market that fuelled this upsurge in activity though more work from the US, Europe and China demonstrated there were also improvements in the global economy. This boom largely benefited corporates as output growth at small-scale producers continued to lag behind,” said Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply.
In addition to expanding production, total new orders rose for its third consecutive month, which was attributed to a revival of domestic market conditions, stronger client confidence, parts of the economy reopening and improving global market conditions.
While new exports rose in April, the rate was reported as weaker in comparison to new orders. “Companies reported improved new work intakes from several trading partners, including mainland Europe, the US, China and South-East Asia. Large-sized manufacturers saw a substantial expansion in new export order intakes, compared to only a marginal rise at small-sized firms,” said IHS Markit/CIPS.
UK Manufacturing’s outlook
Remaining positive at the start of the second quarter, 66% of companies forecast that output will be higher in a year's time, which is attributed to expectations for less disruption related to COVID-19 and Brexit, economic recovery, improved client confidence and new product launches.
“Further loosening of COVID-19 restrictions at home and abroad led to another marked growth spurt at UK factories. The headline PMI rose to a near 27-year high, as output and new orders expanded at increased rates. The outlook for the sector is also increasingly positive, with two-thirds of manufacturers expecting output to be higher in one year’s time. Export growth remains relatively subdued, however, as small manufacturers struggle to export,” said Rob Dobson, Director at IHS Markit.
Adding to comments from IHS Markit and CIPS, , Managing Director of Freight and Logistics at Accenture Global said: “While today’s figures are positive overall, the worsening supply situation is still a concern, with rates of both input costs and selling price inflation running far above anything previously seen. Shipping delays and material shortages are driving huge backlogs of uncompleted work and the surge in manufacturing orders is leading to many firms struggling to boost operating capacity to keep up with demand. With business expectations becoming even more optimistic as the economy rebounds, the big question will be whether firms will be able to cope with the surging inflows of new orders.
“As ongoing supply chain issues are still at large, companies with wide international footprints should look to reassess their logistics strategies by running supply chain stress tests and simulations in order to respond quickly to upswings and variability in demand. A flexible and resilient supply chain will be a key way for businesses to remain both competitive and stable as we emerge from the pandemic”