Dave Clark, Amazon's former retail chief, launches a new startup to address the complexities of supply chain software.

• Auger, a new company founded by Dave Clark, a former Amazon executive and brief head of Flexport, is entering the startup world.
• Auger strives to unify the fragmented software systems overseeing supply chains into a single platform for companies and governments.

Dave Clark, the former CEO of global consumer, who briefly led logistics company Flexport, is returning to the startup world.

On Tuesday, Clark launched a new venture called Auger, which aims to simplify the complex software systems used by companies and governments to manage their supply chains into a single platform.

"I was astonished to see how many companies in the middle, such as Nikes and Lululemons, struggle to bring together their disparate data using Excel, Smartsheet, Tableau, or other tools," Clark stated in an interview. "It's astonishing how much of the supply chain still relies on Excel."

Flexport's CEO, Clark, resigned abruptly last September after a brief stint at the company. Petersen, the founder of Flexport, claimed that Clark overspent and overhired during his time at the freight forwarding startup. However, documents viewed by CNBC and sources close to Clark revealed that Petersen and members of Flexport's board helped implement decisions that were ill-advised. Since then, Petersen has taken steps to turn around the business by overhauling its top ranks, implementing layoffs, and subleasing excess warehouse space.

As the architect of Amazon's logistics network, Clark developed a storied reputation during his 23 years at the company. He joined Amazon's operations division in 1999 and rose through the ranks, becoming one of its most important executives. In 2020, Amazon appointed Clark to head its core retail business after Jeff Wilke left the company. However, Clark left Amazon for Flexport in 2022.

Clark left Flexport to address the gap in the market for supply chain tools and developed the idea behind Auger, a drilling tool that can break through things and dive deep.

"Clark stated that he spent the previous year with the opportunity to reflect on the most effective approach to solving the problem. He questioned whether he still wished to tackle the issue or if he should pursue a different path. Despite his contemplations, Clark ultimately concluded that the problem should not be a challenge for companies with the available technology."

A typical company may have between eight to ten to 12 to 20 systems for procurement, forecasting, and enterprise resource planning, which are often clunky and not integrated. He aimed to create a platform that would allow companies to manage their supply chain with the same level of simplicity and intuitiveness as the consumer applications they use daily.

Clark, who relocated to Texas with his family prior to leaving Amazon, has returned to Seattle to work on a new venture. He aims to leverage the city's extensive pool of tech expertise.

Amazon introduced its own supply chain management platform that manages the transportation of businesses' goods from manufacturers to customers' doorsteps. However, the service is designed for businesses that sell on Amazon's marketplace and utilize its logistics and fulfillment network.

Despite a decline in venture deal volume over the past few years, except for investments in AI companies, Auger's launch is expected to occur. The U.S. venture capital exit value this year is projected to reach $98 billion, which is 86% lower than 2021, according to a report from PitchBook on August 29. Additionally, venture-backed IPOs are predicted to be at their lowest since 2016.

Despite recent improvement in VC activity in the supply chain tech industry, it is still below the levels seen in 2021 and 2022. Meanwhile, global investment in the space sector has grown to $2.4 billion, marking three consecutive quarters of growth, according to Pitchbook.

Auger, a startup, has secured $100 million in funding from venture firm Oak HC/FT. Clark, the CEO of Auger, anticipates increasing his team's size to approximately 20 members and plans to launch a "V1" product within the next nine months.

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