Switchboard raises $1.5m to bring global supply chains into the AI era
Sydney-based supply chain integration platform Switchboard has raised $1.5m from Archangel, AfterWork, Investible, Skalata, StartMate,TEN13, and The Fund marking the end of a pen-and-paper industry and the beginning of a more efficient global logistics ecosystem.
While most industries quickly digitised during the pandemic, the supply chain industry has been slow - its average digitisation level languishing at 43%. There are signs it’s catching up – with the AI logistics market predicted to jump from $1.7 billion in 2018 to $12 billion by 2027 – but it’s a slow burn in a constantly changing environment.
In founder Hugh Dixson’s words: “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.”
Across roles at Uber and road freight scale-up Ofload, Hugh saw firsthand how supply chain data is stored across multiple and often outdated systems.
“Fast-paced businesses often allow manual processes to reign supreme – taking calls and scribbling down notes, then catching up on emails and systems later. Even with the best of intentions, operational efficiency is always compromised.” High costs of integrating IT systems with their partners have also priced out small and mid-sized players, ultimately favouring deep-pocketed incumbents.
Switchboard is accessible for all business sizes, helping customers optimise for maximum truckload, reduce cost per consignment, and forecast demand more precisely. It works by connecting different IT systems that power supply chains such as ERPs, TMS, and WMS – automating communication between customers, suppliers, logistics providers, and other trading partners.
The result is an elimination of errors and a reduction in staff costs, which provides significant cost savings. “As little as a 5% reduction in supply chain costs can double net profits for these organisations,” says Hugh.
Switchboard has already seen rapid traction across the manufacturing, retail, and food & beverage sectors.
“Our long-term 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.”
Globally, 40% of supply chain bosses have already integrated cloud computing, and are expecting inventory and network optimisation tools to be the most adopted technologies over the next 5 years.
Skalata Investment Director Tom Smalley is excited by the significant market opportunity: “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.”
