Switchboard raises USD $1.5 million to revolutionise supply chains

Sydney-based supply chain integration platform Switchboard has successfully raised USD $1.5 million in a funding round backed by investors including Archangel, AfterWork, Investible, Skalata, StartMate, TEN13, and The Fund. The capital injection heralds what the company describes as the dawn of a more efficient global logistics ecosystem, signalling an end to traditional, manual processes.

Despite the rapid digitisation of many industries during the pandemic, the supply chain sector has been notably sluggish, with digital adoption averaging just 43%. Nonetheless, the market for AI-based logistics solutions is on an upward trajectory, expected to rise from USD $1.7 billion in 2018 to USD $12 billion by 2027. This shift is anticipated to address the complex and dynamic nature of the supply chain industry, which is ripe for technological transformation.

Hugh Dixon, founder of Switchboard, highlighted the pressing need for modernisation within the sector, stating, "The vitality of supply chains is on the rise. While we're going through an era of immense change within an industry that's overdue for updating, the core themes that make the supply chain such a dynamic industry will continue." Dixon's experiences in roles at Uber and the road freight scale-up Ofload underscored the inefficiencies inherent in the current supply chain data management, which often relies on outdated systems spread across multiple platforms.

Switchboard aims to revolutionise this landscape, offering a solution accessible to businesses of all sizes. Its platform facilitates the optimisation of truckload capacity, reduces costs per consignment, and enables more accurate demand forecasting. The technology works by integrating various IT systems that power supply chains, such as Enterprise Resource Planning (ERP), Transportation Management Systems (TMS), and Warehouse Management Systems (WMS), thereby automating communication between customers, suppliers, logistics providers, and other trading partners.

By eliminating errors and reducing staffing costs, Switchboard promises significant cost savings. Dixon noted that even a modest 5% reduction in supply chain costs could potentially double net profits for organisations. The platform has already made significant inroads in various sectors, including manufacturing, retail, and food and beverage.

Dixon further elaborated on the company's long-term objectives, "Our vision is to become the system of record for the global supply chain, using our proprietary data set to create further products. This funding will enable us to accelerate product development and broaden our reach across new markets."

The broader industry context also supports Switchboard's initiatives. Globally, 40% of supply chain leaders have already integrated cloud computing and expect inventory and network optimisation tools to be the most widely adopted technologies over the next five years.

Tom Smalley, Investment Director at Skalata, expressed enthusiasm for the company's potential, "Leveraging its foundation as a digital infrastructure player, Switchboard presents clear avenues into data, network, and financial ancillaries. We look forward to working with Hugh and Switchboard as they grow customer numbers, increase share of wallet, and expand their global-from-day-one presence."