Amazon’s ex-retail boss Dave Clark launches new startup to solve supply chain ‘Franken-software’

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

Clark on Tuesday launched a new venture, called Auger, which aims to help companies and governments combine the mishmash of “Franken-software” overseeing their supply chains 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 said in an interview. “A shocking amount of supply chain still runs on Excel.”

Clark’s third act follows a short but tumultuous stint at Flexport. Last September, Clark abruptly resigned as CEO of Flexport, allowing for the return of its founder Ryan Petersen. Petersen claimed repeatedly that Clark overspent and overhired during his time at the freight forwarding startup. But documents viewed by CNBC, and sources close to Clark, showed that Petersen and members of Flexport’s board helped implement decisions that Flexport has suggested were ill-advised. Petersen has since taken steps to turn around the business by overhauling its top ranks, implementing layoffs and subleasing excess warehouse space.

Prior to Flexport, Clark developed a storied reputation during his 23 years at Amazon as the architect of its mammoth logistics network. He joined Amazon’s operations division in 1999 and quickly rose through the ranks, becoming one of the most important executives at the company. In 2020, Amazon tapped Clark to head its core retail business after longtime executive Jeff Wilke left the company. Clark departed Amazon for Flexport in 2022.

Clark joined Flexport to bring what he had built at Amazon to “small businesses and other businesses around the world.” He left the startup feeling there was still a gap in the market for supply chain tools, and began to develop the idea behind Auger. The name is meant to convey the drilling tool’s ability to break through things and dive deep.

“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 said. “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 said a typical company might have “eight to ten to 12 to 20” systems for procurement, forecasting, and enterprise resource planning. The systems can be clunky and are rarely integrated. He wanted to build a platform where companies could manage their supply chain with the “same level of simplicity and intuitiveness as the consumer applications that they use every day.”

Clark, who moved with his family to Texas before leaving Amazon, has returned to his former employer’s backyard in Seattle to work on the new venture, which will be based in Bellevue, Washington. He hopes to pull from the area’s deep bench of tech talent.

Amazon last year rolled out its own supply chain management platform, which can handle the process of transporting businesses’ goods from the manufacturer to customers’ doorsteps. But the service is targeted at businesses that sell on Amazon’s marketplace and use its logistics and fulfillment network.

Auger’s launch comes as venture deal volume has steadily declined over the past few years, aside from investments in artificial intelligence companies. U.S. venture capital exit value this year is expected to reach $98 billion, down 86% from 2021, according to an Aug. 29 report from PitchBook, while venture-backed IPOs are expected to be at their lowest since 2016.

VC activity in the supply chain tech industry has shown recent improvement, although it’s well below the levels seen in 2021 and 2022. Global investment in the space hit $2.4 billion, marking the third straight quarter of growth, according to Pitchbook.

Auger has raised $100 million from venture firm Oak HC/FT. Clark said he soon expects to grow headcount to about 20 employees and intends to launch a “V1” product within nine months.

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