Nandini Roy Choudhury, writer
Brief news
- Dave Clark, former Amazon CEO, launched Auger to unify supply chain management tools, addressing challenges faced by companies like Nike and Lululemon.
- After a turbulent tenure at Flexport, Clark aims to simplify supply chain operations, which often rely on outdated systems like Excel.
- Auger has secured $100 million in funding and plans to release its first product within nine months, with an anticipated workforce of 20.
Detailed news
Dave Clark, the former CEO of global consumer at Amazon, is making a comeback to the startup world after a brief stint as the head of logistics company Flexport.
Auger, a new venture that Clark launched on Tuesday, is designed to assist companies and governments in consolidating the disparate “Franken-software” that manages their supply chains into a unified platform.
Clark stated in an interview, “I was astounded by the extent of the challenge faced by these companies in the middle, such as Nike or Lululemon, and the extent to which they continue to rely on Excel, Smartsheet, Tableau, or another tool to consolidate the disparate data in order to facilitate action.” “A surprising number of supply chain operations continue to utilize Excel.”
Clark’s third act follows a brief but turbulent period at Flexport. Clark abruptly resigned as CEO of Flexport in September of last year, which enabled the company’s founder, Ryan Petersen, to return. Clark was repeatedly accused by Petersen of overspending and overhiring during his tenure at the freight forwarding startup. However, documents reviewed by CNBC and sources close to Clark revealed that Petersen and members of Flexport’s board assisted in the execution of decisions that Flexport has indicated were unwise. Since then, Petersen has implemented redundancies, overhauled its top management, and subleased excess warehouse space in order to revitalize the business.
Clark established a distinguished reputation as the architect of Amazon’s extensive logistics network during his 23-year tenure there, prior to his employment with Flexport. He became one of the most significant executives at the company after joining Amazon’s operations division in 1999 and rapidly ascending the levels. Clark was appointed as the director of Amazon’s primary retail business in 2020 following the departure of long-standing executive Jeff Wilke. In 2022, Clark left Amazon to join Flexport.
Clark joined Flexport in order to extend the capabilities he had developed at Amazon to “small businesses and other businesses around the world.” He departed the startup with the conviction that there was a continuing deficiency in the market for supply chain tools and subsequently began to formulate the concept of Auger. The drilling tool’s capacity to penetrate obstructions and penetrate depths is intended to be conveyed by its name.
Clark stated, “I have had the opportunity to contemplate the most effective approach to resolving this issue over the past year.” “What is my next objective?” Is it still my intention to attempt to resolve this issue? Is there anything else I would like to accomplish? I kept returning to the fact that this should not be a concern for corporations, given the technology that is currently available.
He stated that a typical company may have “eight to ten to 12 to 20” systems for enterprise resource planning, forecasting, and procurement. The systems are rarely integrated and can be clumsy. He aimed to develop a platform that would enable companies to manage their supply chains with the same level of simplicity and intuitiveness as the consumer applications they use on a daily basis.
Clark, who relocated with his family to Texas prior to his departure from Amazon, has returned to Seattle’s backyard to collaborate on the new venture. He aspires to leverage the extensive pool of technological expertise in the region.
Last year, Amazon introduced its own supply chain management platform, which is capable of managing the transportation of products from the manufacturer to the doorsteps of customers. However, the service is intended for businesses that utilize Amazon’s logistics and fulfillment network and sell on its marketplace.
Auger’s introduction coincides with a consistent decrease in the volume of venture deals over the past few years, with the exception of investments in artificial intelligence companies. According to a report published on August 29 by PitchBook, the exit value of U.S. venture capital is anticipated to be $98 billion this year, an 86% decrease from 2021. Additionally, venture-backed IPOs are anticipated to be at their lowest level since 2016.
Despite recent improvements in VC activity in the supply chain tech industry, it remains significantly lower than the levels observed in 2021 and 2022. According to Pitchbook, the third consecutive quarter of growth in the space saw global investment reach $2.4 billion.
Auger has secured $100 million in funding from Oak HC/FT, a venture capital firm. Clark anticipates that the company’s workforce will increase to approximately 20 individuals in the near future, and he plans to introduce a “V1” product within the next nine months.
Source : CNBC News
