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KOCH INVESTS: Smarter Supply Chains With Arkestro
KOCH INVESTS: Smarter Supply Chains With Arkestro
Published 09-19-22
Submitted by Koch Industries
Koch Disruptive Technologies is co-leading a $26 million Series A funding round in Arkestro. Through its predictive procurement orchestration platform, Arkestro automatically and intelligently helps customers save on costs while improving supply chain performance.
HOW IT WORKS: Arkestro engages a proprietary blend of behavioral science, game theory and machine learning to help businesses better manage their supply chains against their goals. It provides external validation and improved data quality by unifying data for real-time visibility across suppliers, spend and contract terms. The software connects with most enterprise resource planning (ERP) solutions.
- For Arkestro customer Box, the software has resulted in supplier equity and diversity that is above market average, and has improved its control over its supply chain.
WHY IT MATTERS: Resilient supply chains and nimble procurement processes are essential to business success. Arkestro’s platform intelligently leverages data to ensure mutually beneficial outcomes across supply chains. Customers say the software makes them faster and creates greater transparency across their entire supplier ecosystem.
- “Suppliers get faster purchase orders. Procurement gets faster savings, and the business ultimately gets the parts and services they need to please their customers,” Arkestro CEO Edmund Zagorin told TechCrunch.
WHY KOCH INVESTED: “We see significant potential for Arkestro and its technology platform in the supply chain; notably in terms of the value it will bring to the procurement market to help enterprises realize increased efficiencies and savings in their operations,” says Byron Knight, COO and managing director at Koch Disruptive Technologies. “KDT and Koch Industries have numerous investments and operations across the supply chain, and we're excited to help Arkestro explore the potential applicability of its solutions.”
KDT co-led the round with NEA, Construct and Four More Capital, a division of Henry Crown & Company, with participation from existing seed vendors Cervin, Correlation, El Cap, Forum, Illuminate and Tenacity.
THE BOTTOM LINE: For Arkestro, the investment represents additional validation of predictive procurement orchestration as a market category and its ability to help businesses spend more efficiently. For its customers, it’s a game-changer in helping them optimize their supply chains.
- “Our customers’ success is now creating a movement among investors that truly understand the transformative value of machine learning to drive continuous improvement in any procurement, sourcing and purchasing cycle,” Edmund says.
GO DEEPER: KDT’s investments in the logistics space now span procurement to delivery. Read more from Byron on KDT’s investments across the supply chain.
Koch Industries
Koch Industries
Creating value. Transforming life.
Our life’s work is to help people improve their lives by making and innovating products and services our customers value. Our focus is on delivering mutual benefit: Win-win outcomes that make life better for customers and employees alike.
Based in Wichita, Kansas, Koch Industries is one of the largest private companies in America. A diverse set of businesses and industries across the world, we work together to keep improving and exploring new ways to make life even better.
Koch companies are involved in manufacturing, agriculture, pulp and paper, packaging, consumer products, building materials, glass, automotive components, refining, renewable energy, chemicals and polymers, electronics, enterprise software, data analytics, medical products, engineered technology, project services, recycling, supply chain and logistics, global commodities trading, and investments. Since 2003, Koch companies have invested more than $150 billion in growth and improvements. With a presence in about 60 countries, Koch companies employ more than 120,000 people worldwide, with about half of those in the United States.
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Our approach to Environmental, Social and Corporate Governance (ESG) is different than most. We believe in people and seek a system of equal rights and mutual benefit where individuals succeed by helping others succeed – and where people are empowered to improve their lives and their communities. It’s why we focus on empowering individuals to improve their lives and communities through bottom-up solutions rather than top-down imperatives.
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Philanthropy. Health and safety. Diversity and inclusion. Meaningful, rewarding careers and community outreach. These are just some of the vital priorities of social stewardship that empower each of our employees to develop, contribute, self-actualize and create value for the world while supporting communities in which we live.
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Our management framework, Principle Based Management™, is based on proven principles of human progress and a deep appreciation for the dignity of every individual. Our private ownership, shared Vision, Values, compliance standards and oversight all help us focus on long-term value creation.
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