Dynamo Dispatch. A 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 đ
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Supply Chain đŠ
â Walmart Eases Supplier Delivery Demands as Stocking Pressures Recede. Walmart is adjusting its requirements for suppliers and their on-time and in-full shipments, lowering the benchmarks from previous levels set in 2020 amidst heightened consumer demand of online orders during the Covid-19 pandemic. The move provides relief to vendors who struggled to meet stringent standards of 98% at its highest as a wide range of factors may impact on-time delivery, many outside of the vendors control. This shift reflects Walmart's efforts to rebalance its logistics network as the industry giant returns to more normal ordering patterns. Elsewhere, De-risking and Friendshoring Wonât Get Governments Supply Chain Security, Putting Their Economic House in Order Will.
New Freighters Could Ease Red Sea Cargo Disruptions. While the attacks in the Red Sea have caused shipping costs to soar, the introduction of a significant number of new container ships is expected to alleviate pressure on the industry. These vessels were ordered two or three years ago before the crisis began, but will now help shipping companies maintain regular service despite longer routes. Smaller businesses without long-term shipping contracts are to expected to face challenges, the new ships should stabilize the situation in the medium term even if the crisis in the Red Sea continues. Unrelated on the tech front, Flexport Relaunches Convoyâs Load Board and ShipBobâs TikTok Deal Spurs Growth but Profits Remain Elusive.
Donât Build That eComm Warehouse in My Backyard, More Communities Say. As the demand for eComm volume grows, so does community opposition to the construction of warehouses. Concerns over increased traffic, noise, and environmental impact are leading local governments to restrict or even ban new logistics hubs. This opposition is causing delays and higher costs for developers, highlighting the need for careful consideration of community concerns in industrial site selection. As eComm requires three times the amount of logistics space than traditional brick and mortar retail, expect to see continued squeeze for space even as developers delivered over 500M square feet in 2023. Price wise, US Warehouse Lease Rates Climb Even as Demand for Space Slows.
Rising Inflation Driving Food Supply Chain Robberies. As food prices rise, so does food theft, with food and beverage accounting for over a fifth of all thefts globally last year. Criminals are using sophisticated methods to steal while the goods are in transit, putting additional strain on the already stressed food industry. Food is a particularly easy target compared to pricier goods as they tend to be shipped without tracking or anti-theft tech. The food supply chain was already strained by climate change and supply chain disruptions, and this only exacerbates the need for innovation and advancement in the industry. Outside of the food industry, JB Hunt Buys Walmartâs Intermodal Container and Chassis Fleets.
Facing a Water Crisis, Panama Canal Pledges $8.5B Towards Climate Resilience. The Panama Canal Authority is investing over $8.5B in sustainability projects over the next five years, exceeding the cost of its expansion project, to address severe drought and combat climate change effects. Water-saving measures and rainfall improvement allowed the Authority to maintain ship transits, but significant investments in infrastructure upgrades, water management, and decarbonization are planned to ensure long-term resilience. This move aligns with the Canal's goal of achieving net zero carbon emissions by 2050 and underscores its commitment to sustainability amid challenging environmental conditions. For other climate goals, Walmart Reaches Major Carbon Emissions Goal Six Years Early and Coca-Colaâs Sustainability Chief on Building a Circular Economy and Adding Exec Comp Goals.
Mobility đ
â US Bid to Loosen Chinaâs Grip on Key Metals for EVs Is Stalling. The Biden Administration is intensifying efforts to secure critical metals supply chains, with a focus on cobalt and other essential materials for military and civilian technologies like EVs. However, challenges persist, from navigating diplomatic complexities in sourcing from countries like Congo and to addressing market volatility. Reforms like the National Defense Authorization Act aim to enhance the stockpiling program's flexibility and funding, but the effectiveness of these measures remains uncertain amidst political divisions and global competition. Related, Chinese Automotive Suppliers Establish Plants in Mexico, Aiming for US Market and US Should Block Cheap Chinese Auto Imports from Mexico, US Makers Say.
Stellantis CEO Calls Small EVs a Tough Sell in US. Stellantis CEO Carlos Tavares believes that focusing solely on small EVs won't appeal to American consumers given the regionâs propensity for large trucks. Instead, the company plans to offer a diverse range of battery-powered vehicles, including pickups, SUVs, and âmuscle carsâ, adopting a more segmented approach to the market. This statement comes as rivals like Ford and Tesla announce plans to develop inexpensive, compact electric cars. Tavares aims to leverage partnerships, like the $1.1B stake in Chinese EV maker Zhejiang Leapmotor Technologies, to enhance Stellantis' EV manufacturing capabilities and expand its market presence beyond China, anticipating challenges in the EV market due to slowing growth and supply chain disruptions. Also, Ready for an 800-Volt Jolt? Carmakers Are Unveiling New Fast-Charging EVs.
Waymoâs Application to Expand California Robotaxi Operations Paused by Regulators. Waymo's bid to extend its robotaxi service in Los Angeles and San Mateo counties has been halted for 120 days by the CPUC's Consumer Protection and Enforcement Division, pending further staff review until June 2024. Despite maintaining its driverless operations in San Francisco, this suspension delays Waymo's plans for expansion. The CPUC cites the suspension as a routine part of their review process, although San Mateo County officials express concerns over public safety. Waymo's efforts to engage with various government and business entities demonstrate its commitment to expansion, despite facing opposition from several organizations and regulatory bodies. Also, GMâs Cruise Prepares to Resume Robotaxi Testing After Halt.
The Big Miss on Electric Cars Is Remaking Europeâs Auto Industry. European carmakers like Volkswagen, Renault, and Stellantis are considering unprecedented collaborations with competitors to develop cheaper EVs as they face threats from Chinese rivals and Tesla. With a sense of urgency growing, CEOs recognize the need to adapt to the changing market dynamics or risk significant losses. Pressure mounts as European manufacturers face tighter emissions regulations and increasing competition from Chinese state-supported companies offering more affordable electric models. Talks of alliances, mergers, and joint EV platforms are underway, signaling a shift in strategy among traditional automakers grappling with the challenges of transitioning to electric mobility. Elsewhere, South Africa Announces Tax Incentives to Boost EV Production.
Boeing Replaces Head of 737 MAX Program Following Door Plug Blowout. Boeing has replaced the head of its troubled 737 MAX program after a near catastrophe on an Alaska Airlines flight last month, likely caused by missing bolts. Katie Ringgold now heads the program and production facility in Renton, Washington. The incident prompted the FAA to ground and inspect all 737 MAX 9 jets, revealing quality control issues. Previous crashes involving 737 MAX jets have heightened scrutiny on Boeing's production practices, with the NTSB indicating quality control issues were behind the recent blowout. As noted last week, these issues have led to a change in dynamic between the typical duopoly of Airbus & Boeing, Airbus now pulling ahead. Related, FAA Investigating Wing Issue that Prompted United Airlines Boeing 757 Flight Diversion, and elsewhere in leadership changes, Northvolt Fires the Top Leadership of Battery Subsidiary Cuberg.
The Future of Supply Chain đïž
Check out our podcast series thatâs been running since 2018. On each episode of the Future of Supply Chain, we sit down with a different entrepreneur, investor, or industry veteran to discuss innovation, technology, and the most exciting opportunities in supply chain as we build the future of the industry together.
Fundraises and M&A đž
Buildstock Raises $1.6M in Pre-Seed Funding. Buildstock is a B2B construction materials marketplace and fintech company. The funding will be used to expand third-party fintech, AI, and logistics integrations and grow the marketplace. The capital comes from Precursor, MGV, XFactor, and RefashionD.
Novity Raises $7.8M in Venture Funding. Novity is an industrial predictive maintenance startup leveraging AI and ML capabilities to prevent downtime. The funding will be used to expand its product into the chemicals, manufacturing, water, and environmental industries. WERU Investment led the round, along with participation from Myriad Venture Partners and Metawater Co Ltd.
Techtaka Raises $9.5M in Series B Funding. Techtaka is a South Korean online shopping fulfillment startup providing 3PL logistics services to eComm sellers. The funding will help the startup expand its partnership with marketplaces and other sales channels, in South Korea, the US, and Southeast Asia. The found was led by Altos Ventures.
Haomo Raises $14M Series B Funding. Haomi is an autonomous driving company which is developing Level 2 advanced driver assistance systems for passenger cars as well as Level 4 self-driving solutions for logistics vehicles. The funding will be used by the company to develop robotics for Wuhou, a central district of Chengdu. The round was led by Chengdu Wufa Private Equity Fund Management.
Crisp Raises $50M in Series B Extension. Crisp is a collaborative commerce firm providing retailers with real-time inventory data. The extension funding will support product development, expansion into new markets, and additional acquisitions. Existing investors including Blue Cloud Ventures, FirstMark Capital, Spring Capital, and 3L participated in the round.
Recogni Raises $102M in Series C Funding. Recogni is a startup which builds technology to support autonomous vehicles, now also focusing on the development of generative AI models. The funding will be used to manufacture and market the companyâs AI chips. The round was led by Celesta Capital and GreatPoint Ventures with participation from HSBC and Tasaru Mobility Investments.
Hadrian Automation Raises $117M in Series B Funding. Hadrian Automation is an industrial automation startup focused on CNC machining to revitalize the US industrial industry. The mix of equity and debt funding will be used to double the automation and software team to improve automation processes and meet new customer demand. RTX was a new investor in the latest round, with existing investors including Construct Capital, a16z, Founders Fund, and others also participating.
Antora Energy Raises $150M in Series B Funding. Antora Energy is a producer of zero-emissions industrial energy, leveraging renewable electricity to heat blocks of solid carbon. The latest round of financing allows the startup to ramp production. Decarbonization Partners led the round, along with participation from investors including Emerson Collective, GS Futures, and others.
Ascend Elements Raises $162M in Equity Funding. Ascend Elements is building sustainable lithium-ion battery materials in the US. This latest funding will advance construction of its apex 1 facility in Kentucky. Investors in this round include Just Climate, Clearvision Ventures, and IRONGREY.
Cooltra Acquires Cityscoot for âŹ400K. Cooltra is an European provider for shared electric moped services. Cityscoot also offers the same service focused in Paris. With the cooling of funding in micromobility, Cooltra is acquiring Cityscoot for its user base, keeping the startup from shutting down operations.
Who's Hiring? đ©âđ»
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Human Resources Business Partner at Zeelo in London, England.
Account Executive at PaintJet in Northvolk, VA (Remote).
Mechatronics Engineer at Manna in Dublin, Ireland.