We are at an incredible turning point in manufacturing strategy, where the manufacturers that win in the next ~10 years will be those that build resilience into their supply chains. Historically, investing in resilience and agility has been an expensive strategy that only a few companies could implement. It required networks of local suppliers and untenable orchestration for most companies. Instead, companies have spent decades designing just-in-time production processes that were optimized for cost reduction and best-case scenarios, with little-to-no margin for error.
When COVID shut down most of the world in 2020, these fragile systems broke. Supply chains were thrown into turmoil. While COVID has ebbed, the supply chain chaos has continued. A bullwhip effect set in, with disruptions and shortages driving hoarding and stockpiling that then exacerbated shortfalls for some and created inventory gluts for others. The pandemic highlighted the problem, but the problem is much bigger. In light of economic uncertainty now, manufacturers are looking for immediate solutions to optimize supplies and production, quickly and in a cost effective way. Simply put, historical supplies from overseas are consistently uncertain and in some cases, no longer cost effective. A new solution is needed for the new future. We’re excited to announce our seed investment in Amplio, whose software hits at the core of how supply chains should operate in a digital, connected world.
The Amplio platform has the unique ability to not only identify supply chain risks proactively to achieve strong, on time production results, but also to allow customers to uncover great new suppliers in the process. From contract manufacturers to tiered suppliers to original equipment manufacturers (OEMs), Amplio works with stakeholders on all sides of the supply chain to eliminate the need for tradeoffs between resilience and cost. To date, they’re working with customers ranging from growth stage hardware companies to one of the largest electronic parts manufacturers in the world.
We are excited to back co-founders and supply chain veterans Trey Closson and Taha Zinifi as they usher in a more transparent, more resilient future for the manufacturing industry. We were joined in this round by Slow Ventures, Koch Disruptive Technologies, Alpaca, Flexport, and industry leading angels. Check out some of the press around the recent financing or reach out to learn more about opportunities to join the team!