Companies that rely on physical supply chains (the networks of facilities and transportation systems used to move materials from one place to another) face many challenges, from staff shortages to rising customer expectations. facing. The pressure doesn't ease. According to a survey by real estate investment trust company Prologis, two-thirds of executives say they are losing sleep over supply chain-related issues.
Barry Conlon and David Broe encountered some of these stressors themselves when founding FreightWatch, a startup that provides “freight visibility” and supply chain security solutions to commercial customers. After selling FreightWatch in 2012, Conlon and Broe saw an opportunity to address supply chain blockers in more innovative ways that leverage telemetry and data.
So, four years after FreightWatch's exit, Conlon and Brough put what they learned into an overhaul. Overhaul is a platform that helps businesses track the location of goods in their supply chains while combating theft. The overhaul will also report on the quality and compliance of the product in transit and attempt to identify areas where cost savings can be made.
Cargo theft is on the rise due to increased activity by organized crime groups. According to CargoNet, a company focused on cargo theft prevention and recovery, cargo theft across the U.S. and Canada increased 14% year over year in the third quarter of 2024. Total stolen property for the quarter exceeded $39 million.
“Many in our industry struggle to gain supply chain visibility, especially when dealing with multiple suppliers and partners,” Overhaul CEO Conlon told TechCrunch. “Without visibility, it is difficult to identify and mitigate risks.”
Image credit: Overhaul
Overhaul, which currently has about 350 customers including Microsoft, Dyson and pharmaceutical giant Bristol-Myers Squibb, develops software that predicts freight delays. Powering the software is an AI model trained on in-transit telemetry and contextual data that can detect events such as when a cargo load is at risk, Conlon said. Masu.
Mr. Conlon added, “Our platform can alert our global security operations and transmit real-time shipping and cargo data via 'smart links' to local law enforcement agencies. “We can take action to prevent and recover cargo in the event of theft,” it added. ”
Indeed, with an overhaul, competition continues in the supply chain visualization software market, which by one estimate could reach a value of $12.6 billion by 2032. Tive, Altana, Project44, and FourKites are some of Overhaul's biggest competitors.
And it's never easy for supply chain startups to raise capital. According to PitchBook, only $7.1 billion was invested in the sector through the third quarter of last year, a stark difference from 2021, which brought in $63.7 billion.
To stay competitive, Overhaul has launched new apps, “intelligence-as-a-service” products, a cargo insurance program, and cold chain quality solutions for pharmaceutical and food and beverage customers.
This strategy allowed the company to attract new investors. Today, Overhaul announced that it has raised $55 million in a funding round led by Springcoast Partners with participation from Edison Partners and Americo.
The total funding for the overhaul will be approximately $150 million, and Conlon said the new cash will be used for product development, strategic acquisitions and growth of the Austin-based company's 600-person team.