Dave Clark, Amazon‘s former CEO of worldwide shopper, who briefly helmed logistics firm Flexport, is returning to the startup world.
Clark on Tuesday launched a brand new enterprise, known as Auger, which goals to assist corporations and governments mix the mishmash of “Franken-software” overseeing their provide chains right into a single platform.
“At Flexport, I got to see all of these companies in the middle, like the Nikes or Lululemons, and I was amazed at how much of a struggle it is, and how much they still use Excel or Smartsheet or Tableau or something to bring all this disparate data together in such a way that they can do something,” Clark mentioned in an interview. “A shocking amount of supply chain still runs on Excel.”
Clark’s third act follows a brief however tumultuous stint at Flexport. Final September, Clark abruptly resigned as CEO of Flexport, permitting for the return of its founder Ryan Petersen. Petersen claimed repeatedly that Clark overspent and overhired throughout his time on the freight forwarding startup. However paperwork considered by CNBC, and sources near Clark, confirmed that Petersen and members of Flexport’s board helped implement selections that Flexport has urged had been ill-advised. Petersen has since taken steps to show across the enterprise by overhauling its prime ranks, implementing layoffs and subleasing extra warehouse area.
Previous to Flexport, Clark developed a storied fame throughout his 23 years at Amazon because the architect of its mammoth logistics community. He joined Amazon’s operations division in 1999 and rapidly rose by the ranks, turning into some of the essential executives on the firm. In 2020, Amazon tapped Clark to move its core retail enterprise after longtime govt Jeff Wilke left the corporate. Clark departed Amazon for Flexport in 2022.
Clark joined Flexport to convey what he had constructed at Amazon to “small businesses and other businesses around the world.” He left the startup feeling there was nonetheless a spot out there for provide chain instruments, and commenced to develop the thought behind Auger. The identify is supposed to convey the drilling device’s capability to interrupt by issues and dive deep.
Robots transport items to the staff in warehouse at Amazon achievement heart in Eastvale on Tuesday, Aug. 31, 2021.
the Riverside Press-enterprise | Medianews Group | Getty Photos
“I spent the last year with the chance to really sort of step back and think about the best way to tackle this problem,” Clark mentioned. “What do I want to do next? Do I still want to try to tackle this problem? Do I want to do something else? And I just kept coming back to, this should not be a problem for companies with the technology that exists in the world.”
He mentioned a typical firm may need “eight to ten to 12 to 20” methods for procurement, forecasting, and enterprise useful resource planning. The methods may be clunky and are hardly ever built-in. He wished to construct a platform the place corporations may handle their provide chain with the “same level of simplicity and intuitiveness as the consumer applications that they use every day.”
Clark, who moved together with his household to Texas earlier than leaving Amazon, has returned to his former employer’s yard in Seattle to work on the brand new enterprise, which will likely be based mostly in Bellevue, Washington. He hopes to tug from the world’s deep bench of tech expertise.
Amazon final yr rolled out its personal provide chain administration platform, which might deal with the method of transporting companies’ items from the producer to clients’ doorsteps. However the service is focused at companies that promote on Amazon’s market and use its logistics and achievement community.
Auger’s launch comes as enterprise deal quantity has steadily declined over the previous few years, other than investments in synthetic intelligence corporations. U.S. enterprise capital exit worth this yr is predicted to succeed in $98 billion, down 86% from 2021, in keeping with an Aug. 29 report from PitchBook, whereas venture-backed IPOs are anticipated to be at their lowest since 2016.
VC exercise within the provide chain tech business has proven latest enchancment, though it is nicely under the degrees seen in 2021 and 2022. International funding within the area hit $2.4 billion, marking the third straight quarter of development, in keeping with Pitchbook.
Auger has raised $100 million from enterprise agency Oak HC/FT. Clark mentioned he quickly expects to develop headcount to about 20 workers and intends to launch a “V1” product inside 9 months.
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