Dynamo Dispatch. Weekly update from Dynamo Ventures covering the latest and greatest in supply chain, mobility, and building venture-scale businesses.
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Weekly Commentary 💭
Happy New Year! We’re excited to have three Venture Fellows joining us at Dynamo to start 2022. Please give Charles, Leo, and Warren a warm welcome.
We Are Dynamo,
Santosh, Jon, Barry, Ted, Clay, Katie, Charles, Leo, and Warren
Note: please add “dynamo@substack.com” to your email client, so you don’t miss future issues due to aggressive spam filters.
Supply Chain 📦
Meet the Global Supply Chain Pressure Index (GSCPI): A New Barometer of Global Supply Chain Pressures. Since the start of the COVID-19 pandemic, supply chain disruptions such as factory shutdowns and transportation restrictions have led to major challenges in logistics networks, increases in shipping costs, and longer delivery times. Given measures used to gauge these disruptions tend to focus on selected dimensions of global supply chains, the Federal Reserve Bank of New York created a new gauge that integrates a number of commonly used metrics with an aim to provide a more comprehensive summary of potential disruptions affecting global supply chains. More specifically, the GSCPI Index draws from indicators focused on cross-border transportation costs and country-level manufacturing data
Chip Delivery Times Are on the Rise Again, Shortages to Continue. According to research by Susquehanna Financial Group, lead times increased by six days m/m to about 25.8 weeks in December, marking the longest wait time since 2017. Historically, lengthening lead times have been followed by painful periods of oversupply. With concerns of potentially double ordering, customers may try to purchase more than they need now in an effort to ensure they get chips only to later cancel the requests. Also, Expect More Shipping Chaos as Omicron Forces Transport Workers to Quit
IDC Research Makes the Case for AI-driven Supply Chain Forecasting. The firm highlighted its top ten predictions and underlying drivers that will have the biggest impact on manufacturers' IT investments in 2022 and future years to come. Simon Ellis, Program Vice President, offered a handful of interesting thoughts related to the need for companies to balance forecasting with responsiveness if they are going to be resilient to demand fluctuations – whether that means agile inventory or manufacturing capacity flexibility. In their predictions, IDC addressed remote operations, supply chain management, product and service innovation, security, data, and application sharing, B2B commerce, low code/no code, and sustainability. For more interesting forecasts, check out the 2022 Robotics Predictions from Industry Experts
MSC Surpasses Maersk As Largest Container Liner. According to Alphaliner, MSC is the top container liner in the world as measured by TEU capacity. MSC has a capacity of 1,888 TEUs more than its Danish rival who is pushing further into being an end-to-end logistics provider. Elsewhere, Companies Shift from ‘Just in Time’ to Just in Case’ and an Interview with Ryan Petersen
3PLs Embracing Buy and Build Strategy. As 3PLs embrace technology, there is a realization that they must embrace a multi-prong strategy that includes customizing off-the-shelf solutions from incumbent vendors, proprietary builds, and startup-sourced solutions. It comes down to culture and strategy that helps drive where the company wants to focus its own resources while leaning on third parties to cover the rest. Balancing ROI with maintaining defensibility remains the name of the game in corporate innovation. Elsewhere, Ikea Looking to Double Automation Projects to manage volumes and costs
Why The Holiday Armageddon Never Materialized. While many were bracing for a holiday season wrought with delay, UPS and USPS performed superbly with on-time deliveries near 97% while FedEx floundered and clocked in at 88% due to labor shortages according to ShipMatrix. The reasons were multi-fold but much of it had to do with demand being spread out over a greater period of time (as early as October) with many consumers taking the opportunity to leave their homes to shop after 18 mos of lockdown. It’s expected that retailers and the parcel carriers will use 2021 as a template to handle future volume growth - offer promos earlier to spread out holiday demand. Related, Customers Willing to Pay for Fast Fulfillment
UPS to Handle Record 60M Returns in Peak Season. Similar to years prior, UPS shed some light on the returns it expects to handle after the avalanche of forward-deliveries during the holidays. The 60M figure is up 10% y/y with nearly one-third of US adults expecting to make a return with nearly 1 in 4 already having made at least one return before Christmas.
Mobility 🚗
Car Shortage Could Change Buying Behavior Forever. Vehicle supply chain disruption has led some companies to begin to move to an order-based purchasing system. This is a silver lining for both consumers and producers as the former gains more customization of their vehicle while the latter is able to stave off significant costs from having to guess demand. This shift to the European model of the car buying could lead to a better buying experience for everyone. Related, No End In Sight for Auto Sales Slump as Chip Shortage Continues
GM, VW Build Up Their Battery Supply Chains Amid EV Push. The arms race for cheap and reliable EV supply chains is in full swing as GM, VW, and other vehicle companies announce their plans to internalize EV production. Knock-on effects include spikes in lithium as demand increases further. This shift is magnified by the recent semiconductor shortage, placing an emphasis on in-house production. If you’re interested in the race for vertical integration check out Ford, GM Step Into Chip Business, and Car Companies Buckle Up for Extended Chip Shortage
European Commission Prioritises Cyclists and Pedestrians for the “first time in history”. The European Commission has proposed a package that would require the 424 largest cities in the Trans-European Transport Network (TEN-T) to emphasize sustainable urban mobility. The EU has already invested a significant sum of money into cycling and walking projects, around €2B from 2014 to 2020. These initiatives are good news for micromobility players in becoming a dominant mode of transport for many consumers. If you want to learn more about Europe’s transition to micromobility check out London, New York, and Paris Give Streets to Cyclists and Pedestrians and €2B for Bikes: EU 3x Spending on Cycling Initiatives
Prototype Battery Powers Tesla Model S For 752 Miles On Single Charge. One Energy, a startup based in Michigan, retrofitted a Tesla Model S to be able to drive 752 mi on one charge. The potential of a battery capable of essentially having double the energy density is immense and could eliminate range as a barrier to EV adoption. The company hopes to put its Gemini battery into production by 2023. On the topic of range, Lucid Air EPA Range Rating Amazes At Up To 520 Miles
American Households Might Use EVs as Backup Power With A Bidirectional Charger. Wallbox Industries announced its second-generation bidirectional charger at CES 2022. The Wallbox Quasar 2 provides up to 11.5KWh of power. The potential of this type of technology would be the use of EVs as energy storage units, both for emergencies and cost-saving purposes. Several companies have announced bidirectional functionality as a built-in feature for their next generation of EVs, including VW, Hyundai, and Kia. Elsewhere in charging, Shell Converts Gas Stations to Charging Stations
Meet John Deere’s Self Driving Tractor. Last week, Deer & CO unveiled their next new product, a fully autonomous tractor. The new tractor incorporates cameras and AI technology in order to react to dynamic environments. This could prove to be an incredibly large shift in agriculture production and mitigate the current labor shortage issues. This innovation adds yet another industry through which AV technology can develop. Elsewhere in the realms of autonomy, Las Vegas Hosted the First-Ever Head-to-Head AV Race.
CES 2022 Round-Up: Smarter, More Powerful eBikes Debut at CES, Google Launches Ripple Radars, Automakers Announce New EVs and EV Concepts at CES 2022, and Autonomous and Electric Trucks Show Progress at CES 2022.
Fundraises and M&A 💸
FoodMap Raises $3M Co-Led By Vulpes Ventures And Beenext. FoodMap is an agtech eComm platform that connects farmers and food producers directly to B2C and B2B customers. They currently supply products from over 300 farmers and producers in Vietnam. The funds will be used to increase their B2B presence.
Groyyo Raises $4.6M Led By Alpha Wave Incubation. Groyyo is a B2B platform that helps manufacturers grow and improve efficiency. Additional investors include Deepak Jain and Arpan Seth of Bain, Maninder Gupta of OYO Group, and Anjali Bansal of Bombay Chamber of Commerce. The funds will be used for hiring and expanding its presence across the US and Middle East.
Geniemode Raises $7M Led By Info Edge Ventures. Geniemode is a digital platform that helps global buyers source for supplies across categories like home textiles, furniture, and apparel. This latest funding round comes in the wake of a $2.3M seed round completed just four months ago. The funds will be used to help the company scale its technology, boost design capabilities, expand geographically, and add new buyers and vendors to the platform.
Living Food Raises $7.5M Led By Amasia. Living Food is a marketplace platform that offers access to locally sourced fresh produce. Additional investors include SOSV, Blume Founders Fund, Sid Yog of Xander Group, and Sandeep Singhal of Nexus Venture Partners. The funds will be used for expansion to other markets in India, hiring, product, and launching new brands.
AIMMO Raises $12M Series A. AIMMO is a data annotation platform that makes data labeling faster for enterprises. Seven firms participated in the latest round: DS Asset Management, Industrial Bank of Korea, Hanwha Investment & Securities, S&S Investment, Toss Investment, Korea Asset Investment & Securities, and Venture Field. With the new funding, they are focused on serving the smart city and autonomous driving industry.
Whitebox Raises $20M Led By Delta-v Capital. Whitebox helps businesses market, fulfill, and ship eComm orders from across different marketplaces. Additional investors include Noro-Moseley Partners, TDF Ventures, Kilkea Charles, and MRE Capital. The funds will be used to further develop their platform and scale operations by hiring senior talent.
StoreDot Raises $80M Led By VinFast. StoreDot is developing an extremely fast charging (XFC) battery technology for EVs. The investor leading the round is a Vietnamese EV manufacturer, who plans to scale up manufacturing and deploy StoreDot's battery technology in its platform. The funds will be used for the completion of StoreDot's R&D and mass production scale-up of silicon-dominant XFC battery cells by 2024.
Lineage Logistics Raises $1.7B To Fuel Growth. Lineage Logistics is a temperature-controlled industrial and logistics solutions provider. Participating investors include BentallGreenOak, CenterSquare Investment Management, Cohen & Steers, D1 Capital Partners, Healthcare of Ontario Pension Plan (HOOPP), NYSTRS, OP Trust, Oxford Properties, QuadReal Property Group, Rabobank, and StepStone. The funds will be used to double down on their commitment to offering end-to-end supply chain solutions for their customers worldwide.
Schneider Acquires Midwest Logistics System For $236M. Schneider is a provider of truckload, intermodal, and logistics services. With the acquisition, Schneider is on track to generate $1 billion in annual revenue with over 5,000 trucks. Schneider financed the deal through cash on hand. MIdwest Logistic System will continue operating as an independent subsidiary.
Company Building 🛠️
How Managers Should Ask for Feedback. Santosh personally leverages the open-ended question and restating what he heard to ensure he is actively listening.
Layering Sales into a Bottoms-Up or Self Serve Product. “There are two primary reasons to add salespeople to a self-serve commercial motion: 1) To facilitate the penetration or expansion of your solution into an organization where it has an initial foothold, and/or; 2) To help raise conversion rates of your self-serve offer.”
Cloudflare CEO on Owning the Talent Process. If the CEO of a $500M+ revenue business with 2,500+ employees can play a meaningful role in talent, so can the rest of us leaders. It’s something we’ve seen over the years… one of the portco CEOs landed 3-4 senior executives candidates because “the CEO emailed us over a random recruiter.”
Who's Hiring? 👩💻
Decision Engineering Lead at Nextmv in Philadelphia, PA (remote ok).
Senior Web Application Engineer at Gatik AI in Toronto, ON.
ML Engineer at Milk Moovement in St. John’s, Halifax (remote ok).
💥 Have you seen any interesting startups recently? Introduce us.
❤️ We would love your support. Please forward to friends and share on social media.
🗞️ If you were forwarded this and found it interesting, please sign up.
🎙 Check out Dynamo's podcast series, The Future of Supply Chain.