Dave Clark, AmazonThe former CEO of Global Consumer, who briefly ran logistics company Flexport, is returning to the world of startups.
Clark Launched on Tuesday A new venture called Auger aims to help companies and governments integrate the mishmash of “Frankenware” that oversees their supply chains into a single platform.
“At Flexport, I saw all these companies in the middle, like Nike or Lululemons, and I was amazed at how difficult it was and they were still using Excel or Smartsheet or Tableau or something to bring all these different data together. , so they can do something,” Clark said in an interview. “A surprising amount of supply chains still run on Excel.”
Clark’s third gig came after a brief but chaotic stint at Flexport. Clark abruptly resigned as Flexport CEO last September, allowing founder Ryan Petersen to return. Peterson has repeatedly alleged that Clark overspent and overhired during his tenure at the freight forwarding startup. But documents seen by CNBC and sources close to Clark show that Peterson and Flexport board members helped implement decisions that Flexport considered ill-advised. Peterson has since taken a number of steps to turn around the company, including restructuring senior management, implementing layoffs and Sublease excess warehouse space.
Prior to joining Flexport, Clark built a reputation as an architect of vast logistics networks during his 23 years at Amazon. He joined Amazon’s operations in 1999 and quickly rose through the ranks to become one of the company’s most important executives. Amazon tapped Clark to lead its core retail business in 2020 after longtime executive Jeff Wilke left the company. Clark left Amazon in 2022 for Flexport.
Clark joins Flexport to bring the products he built at Amazon to “small businesses and other enterprises around the world.” When he left the startup, he felt there was still a gap in the market for supply chain tools and began developing the idea behind Auger. The name is intended to convey the drill tool’s ability to break through objects and drill deeper.
Robots deliver goods to employees at an Amazon fulfillment center warehouse in Eastvale on Tuesday, Aug. 31, 2021.
Riverside Press | Media News Group | Getty Images
“Last year I had the opportunity to really take a step back and think about the best way to solve this problem,” Clark said. “What do I want to do next? Do I still want to try to solve this problem? Do I want to do something else? I just keep thinking back to the fact that this shouldn’t be a problem world for companies with existing technology.”
A typical company might have “eight to 10 to 12 to 20” systems for procurement, forecasting and enterprise resource planning, he said. These systems can be clunky and rarely integrated. He wanted to build a platform that would allow companies to manage their supply chains with “the same simplicity and intuition as the consumer applications they use every day.”
Clark, who moved to Texas with his family before leaving Amazon, is back in his former employer’s backyard in Seattle to work for the new company, which will be based in Bellevue, Washington. He hopes to draw from the region’s pool of technical talent.
Amazon last year rolling Launched its own supply chain management platform that can handle the process of shipping a company’s goods from the manufacturer to the customer’s doorstep. But the service is aimed at businesses that sell on Amazon’s marketplace and use its logistics and fulfillment network.
Auger launches at a time when venture capital deal volume has been steadily declining over the past few years, with the exception of investments in artificial intelligence companies. A report released on August 29 shows that the amount of U.S. venture capital exits this year is expected to reach $98 billion, a drop of 86% from 2021 Report Data from PitchBook shows that venture capital-backed IPOs are expected to reach their lowest level since 2016.
Venture capital activity in the supply chain technology industry has improved recently, albeit well below 2021 and 2022 levels.
Auger has raised $100 million from venture capital firm Oak HC/FT. Clark said he expects to increase the number of employees to about 20 people soon and aims to launch a “V1” product within nine months.
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