Dave Clark's Journey in Supply Chain Innovation
Dave Clark has experienced a dramatic career shift over the past two years. After resigning in June 2022 as CEO of Amazon’s global consumer division, a role he held for more than two decades, Clark moved to Dallas to take on the role of co-CEO at Flexport, a supply chain logistics company focusing on streamlining operations. During his tenure, he worked on the company’s preparation for a public offering, while founder Ryan Petersen transitioned to executive chairman.
However, Clark's time at Flexport was not without challenges. In September 2023, he faced pressure from the board, led by Petersen, to resign amid accusations of mismanagement. Clark argued he was addressing what he identified as "extensive" organizational issues. Subsequent reports supported Clark's perspective, but the fallout led to his departure from the company.
After considering a gubernatorial campaign in Texas and hiring strategists, Clark ultimately decided to pursue a different path. On Tuesday, he announced the launch of his new venture, Auger, which has successfully raised a substantial $100 million seed round from the VC firm Oak HC/FT. Auger aims to create an AI-powered tool for supply chain-dependent companies, integrating seamlessly with existing inventory management systems to provide real-time insights.
“Throughout my career, I’ve witnessed how broken supply chains affect not just companies but millions of individuals,” Clark expressed. “Delays prevent products from reaching store shelves, miscommunications lead to forced overtime, and inefficiencies contribute to rising consumer prices and a larger carbon footprint. These are real human challenges, not just business concerns. It’s time for a change.”
While the specifics of Auger’s platform remain somewhat under wraps, Clark mentioned that it will “unify” supply chain data in various ways, potentially including a chatbot feature. Users will be able to pose questions such as, “What is the inventory status for next week’s shipment?” and receive immediate responses through an easy-to-use interface.
Clark highlighted the prevalent reliance on outdated “Franken-software”—disconnected systems that complicate supply chain management. “This results in inefficient workarounds, forcing critical decisions to occur through tools like Excel, which are ill-equipped to manage the complexities of modern supply chains,” he noted. “Auger aims to deliver a streamlined solution for companies seeking enhanced capabilities.”
There is significant demand for technology that enhances supply chain visibility and management. A recent study revealed that 56% of retailers maintain weeks’ worth of "safety stock" as a buffer against visibility issues. The challenges of supply chain awareness, intensified by events such as dockworker strikes and geopolitical instability, are leading to significant disruptions in global shipping. According to a Federal Reserve Bank of New York survey, around one-third of service companies and almost half of manufacturers are struggling to secure supplies.
Clark emphasized, “Increasing disruptions and global tensions are causing ongoing changes in global manufacturing and goods distribution, pushing current technology to its limits.” These persistent and new challenges have fueled a rise in startups addressing supply chain visibility, with the logistics software market projected to reach $46.5 billion by 2025, according to Markets and Markets. This year alone, startups in this field attracted $15.4 billion in funding.
Auger, based in Bellevue, Washington, is venturing into a competitive landscape populated by established players. Altana recently raised $200 million to enhance its AI-driven platform for international supply chain visibility, while competitors like Everstream and Pando offer robust dashboards designed to improve transportation and supplier management systems.
Clark is confident that Auger will provide a unique solution. “Our platform will integrate diverse data sources, leveraging advanced AI and machine learning to generate real-time, automated insights,” he said. “This will create a comprehensive view across planning, forecasting, and financing, enabling teams to simplify their tasks and focus on innovation.”
With considerable experience in logistics—having championed robotic automation at Amazon, which saved the company substantial costs—and successfully scaling operations during the heightened demand of the pandemic, Clark is positioned to take on larger competitors in the SaaS supply chain software market.
Nonetheless, he acknowledges past management missteps, such as undervaluing the reception of Amazon’s physical stores and overextending warehouse capacities during the pandemic, which resulted in significant cost overruns.
Matt Streisfeld, a general partner at Oak, expressed strong faith in Clark's vision, describing him as a “once-in-a-lifetime” founder capable of transforming supply chain management software. “We are witnessing a pivotal transition, with an increasing amount of data moving to the cloud,” he stated. “This transition will provide more accessible information, allowing for real-time planning and enabling AI to automate workflows and provide valuable business insights for inventory management and forecasting.”
Looking ahead, Clark indicated that Auger, which has yet to establish a customer base or generate revenue, will release further details about its product roadmap and key milestones in the upcoming months. “Our founding team consists of relentless problem-solvers with a proven history of delivering scalable, transformative supply chain solutions,” he added. “This is just the beginning.”
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