
“Increasing Importance of Last Mile Logistics with E-commerce Expansion”
The journey of products from manufacturers to consumers can be categorized into various stages. Typically, the movement from manufacturer to logistics center is referred to as the First Mile, between logistics centers or businesses as the Middle Mile, and the final delivery to consumers as Last Mile Delivery.
With the rapid expansion of the e-commerce market, the significance of last mile logistics has been steadily increasing. In the past, when consumers visited physical stores to purchase products, separate delivery services were unnecessary. However, as the share of e-commerce has grown, the demand for last mile logistics has inevitably surged. Additionally, last mile delivery significantly impacts user experience, prompting providers to differentiate themselves not only through delivery speed and quality but also by enhancing the overall user experience. Conversely, since last mile delivery involves dispersed final destinations, it imposes substantial cost burdens on providers, making profitability a critical concern.
“Conducting Due Diligence on a Comprehensive Logistics Provider Specializing in Last Mile Delivery”
Looxent conducted a Commercial Due Diligence (CDD) project for a comprehensive logistics company specializing in last mile delivery. The target company initially offered real-time delivery services using motorcycles and has progressively expanded its operations into broader last mile logistics. Its primary clients include B2C food and beverage franchises, commerce companies, and other sectors, positioning the company as a key player in the industry through industrialization led by entities like the target company.
The scope of the due diligence encompassed evaluating the capacity expansion prospects of major customers, assessing the target company’s competitive strengths, and projecting mid-to-long-term revenue growth. This comprehensive analysis aimed to support the client’s strategic decision-making for market share expansion and the identification of new business opportunities.
“Industry Overview and Market Dynamics”
The semiconductor process equipment market comprises essential functional components and various consumables that require periodic replacement. Typically, key functional components are supplied directly by equipment manufacturers with proprietary technologies from the US and Japan. In contrast, consumables that can be localized are initially supplied by these equipment manufacturers. Over time, domestic companies develop alternative products to reduce costs and supply directly to Integrated Device Manufacturers (IDMs) and foundries such as Samsung Electronics and SK Hynix, shaping the market structure.
“Revenue Projection Methodology”
To project revenue, we first calculated the mid-to-long-term wafer production forecasts for NAND, DRAM, and Foundry product lines of the target company’s major semiconductor customers. Applying the target’s market share per product line, we estimated the number of wafers to be supplied.
For the NAND line, we incorporated the generational roadmap, production share per generation, and changes in CMP and Etch process steps to forecast the required number of steps and, consequently, the projected sales based on steps per unit product. For DRAM and Foundry lines, which do not follow a stacked structure, we analyzed historical performance and the impact of EUV process adoption to estimate future step increases and final demand.
Leveraging Looxent’s extensive semiconductor expert network, we verified the foundational data, ensuring the accuracy and reliability of our projections.
“Risk Assessment and Mitigation”
We identified key risk factors, including potential changes in the lifecycle of major consumables, the target company’s reputation, and supply sustainability. To address these risks, we proposed PMI initiatives grounded in Looxent’s deep understanding of the semiconductor industry and extensive experience with post-merger integration projects.
“Strategic Recommendations”
Based on our analysis, we recommended the following strategic actions to enhance the target company’s market position and drive sustainable growth:
- Capacity Expansion: Invest in expanding production capabilities to meet the increasing demand from key customers, particularly in the Etch process segment.
- Product Diversification: Continue expanding the product lineup to include consumables for emerging semiconductor processes, ensuring alignment with market trends.
- Supply Chain Optimization: Strengthen relationships with existing customers and explore new partnerships to secure a stable supply chain and enhance market share.
- Technological Innovation: Invest in R&D to maintain technological leadership and develop advanced consumables that meet the evolving needs of high-end semiconductor manufacturing.
The Commercial Due Diligence project confirmed that the target company possesses strong competitive advantages and significant growth potential within the semiconductor consumables market. By implementing the recommended strategies, the company is well-positioned to enhance its market share, diversify its revenue streams, and achieve long-term sustainable growth. This project provided valuable insights not only into the target company but also offered a comprehensive understanding of the broader semiconductor industry, enabling our client to make informed strategic decisions.
“Increasing Importance of Last Mile Logistics with E-commerce Expansion”
The journey of products from manufacturers to consumers can be categorized into various stages. Typically, the movement from manufacturer to logistics center is referred to as the First Mile, between logistics centers or businesses as the Middle Mile, and the final delivery to consumers as Last Mile Delivery.
With the rapid expansion of the e-commerce market, the significance of last mile logistics has been steadily increasing. In the past, when consumers visited physical stores to purchase products, separate delivery services were unnecessary. However, as the share of e-commerce has grown, the demand for last mile logistics has inevitably surged. Additionally, last mile delivery significantly impacts user experience, prompting providers to differentiate themselves not only through delivery speed and quality but also by enhancing the overall user experience. Conversely, since last mile delivery involves dispersed final destinations, it imposes substantial cost burdens on providers, making profitability a critical concern.
“Conducting Due Diligence on a Comprehensive Logistics Provider Specializing in Last Mile Delivery”
Looxent conducted a Commercial Due Diligence (CDD) project for a comprehensive logistics company specializing in last mile delivery. The target company initially offered real-time delivery services using motorcycles and has progressively expanded its operations into broader last mile logistics. Its primary clients include B2C food and beverage franchises, commerce companies, and other sectors, positioning the company as a key player in the industry through industrialization led by entities like the target company.
The scope of the due diligence encompassed evaluating the capacity expansion prospects of major customers, assessing the target company’s competitive strengths, and projecting mid-to-long-term revenue growth. This comprehensive analysis aimed to support the client’s strategic decision-making for market share expansion and the identification of new business opportunities.
“Industry Overview and Market Dynamics”
The semiconductor process equipment market comprises essential functional components and various consumables that require periodic replacement. Typically, key functional components are supplied directly by equipment manufacturers with proprietary technologies from the US and Japan. In contrast, consumables that can be localized are initially supplied by these equipment manufacturers. Over time, domestic companies develop alternative products to reduce costs and supply directly to Integrated Device Manufacturers (IDMs) and foundries such as Samsung Electronics and SK Hynix, shaping the market structure.
“Revenue Projection Methodology”
To project revenue, we first calculated the mid-to-long-term wafer production forecasts for NAND, DRAM, and Foundry product lines of the target company’s major semiconductor customers. Applying the target’s market share per product line, we estimated the number of wafers to be supplied.
For the NAND line, we incorporated the generational roadmap, production share per generation, and changes in CMP and Etch process steps to forecast the required number of steps and, consequently, the projected sales based on steps per unit product. For DRAM and Foundry lines, which do not follow a stacked structure, we analyzed historical performance and the impact of EUV process adoption to estimate future step increases and final demand.
Leveraging Looxent’s extensive semiconductor expert network, we verified the foundational data, ensuring the accuracy and reliability of our projections.
“Risk Assessment and Mitigation”
We identified key risk factors, including potential changes in the lifecycle of major consumables, the target company’s reputation, and supply sustainability. To address these risks, we proposed PMI initiatives grounded in Looxent’s deep understanding of the semiconductor industry and extensive experience with post-merger integration projects.
“Strategic Recommendations”
Based on our analysis, we recommended the following strategic actions to enhance the target company’s market position and drive sustainable growth:
The Commercial Due Diligence project confirmed that the target company possesses strong competitive advantages and significant growth potential within the semiconductor consumables market. By implementing the recommended strategies, the company is well-positioned to enhance its market share, diversify its revenue streams, and achieve long-term sustainable growth. This project provided valuable insights not only into the target company but also offered a comprehensive understanding of the broader semiconductor industry, enabling our client to make informed strategic decisions.