Dave Clark announced the launch of his new venture, Auger on Tuesday. The logistics software startup has successfully raised an impressive $100 million seed funding led by VC firm Oak HC/FT.
Auger implements AI technology to assist businesses that are reliant on supply chains. The tools have been designed to integrate with existing inventory management systems and give insights in real time.
After an astounding 20 years serving as the CEO of Amazon’s worldwide consumer division, Clark moved to Dallas to join the supply chain logistics firm Flexport. He served first as co-CEO and later as CEO. Significant organizational issues compelled him to resign in September 2023. His attempt to transition Flexport into a comprehensive logistics provider was met with resistance. Ultimately, founder Ryan Petersen resumed the CEO role, leading to Clark’s departure.
The prospect of launching a new business ultimately took root during the years Clark was considering a run for governor in Texas.
Auger marked a new era—one he could lead according to his vision. Following his exit from Flexport, Clark established Auger in Bellevue, Washington. It was valued at $8 billion in 2022.
Despite numerous challenges, resulting in revenue declines and layoffs, the business remained committed to its mission. Clark’s extensive years at Amazon where he played a key role in rapidly expanding the delivery network during the pandemic equipped him with a strategic mindset, enabling him to spot supply chain issues early on.
Further in a LinkedIn post, Clark addressed how Auger’s use of AI will simplify supply chain processes and improve efficiency. A notable feature of the platform is its capability to connect with various tools and databases, providing up-to-date information without needing complex queries or lengthy training sessions.
Clients can easily access the information and understand the situation. Meanwhile, the software helps them respond rapidly to changes or make a call for adjustments when required. The platform is designed to be user-friendly, so anyone can use it effectively.
Clark told The Information that the software is primarily aimed at midsize to large businesses, which often find it difficult to successfully manage supply chains due to resource constraints.
“Dave is right in noting that many midsize and large companies lack the ability to analyze their logistics data thoroughly and make informed business decisions,” remarked global supply chain expert Brittain Ladd. He believes Clark will provide valuable insights for developing new supply chain and logistics software with Auger. Given his industry experience, he knows exactly what problems these companies face, like using old tools like Excel to handle supply chains worth millions of dollars. Ladd added that Clark’s plans for Auger might go more quickly if they partnered with companies like Pallet or ThroughPut AI.
Oak HC/FT believes Auger has a promising future ahead. The financial technology (fintech) and healthcare-focused investment group is now seeing potential in logistics technology, which includes tools and systems for supply chain management and optimization.
“The timing is perfect for this innovative solution, which will redefine the future of global supply chains with a true operating system for planning, forecasting, and financing. Auger is set to deliver the supply chain product the market has been waiting for,” stated Matt Streisfeld, general partner at Oak, in Clark’s post.
Clark also informed TechCrunch that Auger hasn’t yet signed up any customers or made any money. However, he plans to keep the industry informed about the company’s progress and developments.
By leveraging their expertise and resources, Lading Logistics aims to provide efficient and reliable international shipping and logistics solutions for their clients.
