SupplyPike took in $25 million in Series B funding to continue developing software that will allow consumer packaged goods companies and brands to more efficiently deliver products on time.
The market for supply chain management will be worth about $10 billion in 2020. A shift in consumer behavior caused the supply chain to be very unpredictable over the past two years, according to SupplyPike co- founder and CEO TJ Sangam.
He said in a recent interview that the demand for products shot through the roof when people started consuming goods more than services. When retailers and brands did not know how much demand there would be, there was a lot of volatility. The models they use are based on historical trends and it is very different than it was a few years ago.
Competition between retailers increased to make sure products were always available at the lowest prices. The only way to keep up with demand was to put restrictions on suppliers.
Some 200 different rules can be imposed on suppliers by retailers, such as Walmart and Amazon, to deliver during a certain window of time.
Failure to comply could result in out-of- stock, compliance fines, deductions and chargebacks. In addition, all of those fines, deductions and lost sales can eat away at your bottom line.
There is a lot of sub-optimal supply chain if you don't understand it. The fundamental problem is that the product isn't in the right place at the right time or in the right quantity. Supply Pike helps with that.
In order to return some of that bottom line, SupplyPike goes in and finds all of the rules, documents them, converts the rules into software, and applies machine learning to the data. According to the company, having all of the rules in one location at the time of shipment can cut down on processes by up to 80%.
Noro-Moseley Partners and Frontier Growth invested in the four-year-old company and will join the board. The company has received 40 million dollars in funding so far.
The company went from no customers and no revenue to nearly 400 customers and an average of 2x annual revenue growth over the last two years. SupplyPike is working with large and small brands, including Hanes, Johnson & Johnson, Exploding Kittens and a lot more.
The new funds will be used to develop a product that can detect and fix expensive supply chain issues. More than 60 jobs will be added in the areas of engineering, product, sales, design, marketing and customer success.
The supply chain space is a great opportunity for innovation due to the scarcity of ships and trucks. She is an investor in SupplyPike.
The issues and how outdated the systems are were made worse by the P.H. epidemic. When I met TJ at the beginning of the year, I thought SupplyPike was a really interesting company, and what they are solving is a very time consuming, expensive problem for customers. There is a tremendous opportunity for them to change the landscape.
How tech can build more resilient supply chains
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