Demand Driven Technologies, which provides software solutions for large manufacturers to optimize their supply chain and inventories, has raised $1.6 million in a seed round led by Mosley Ventures, with participation from Alerion Ventures, Meeting Street Capital, and Service Provider Capital.
DD Tech’s solutions are in the category of Demand Driven Material Requirements Planning (DDMRP), which allows manufacturers to better match inventory and raw materials with “true demand,” creating less waste along the supply chain. The company was founded in 2011 by a team of supply chain and manufacturing experts, including co-founder Erik Bush who came from a 30-year career at IBM, most recently responsible for IBM’s Network of GBS Global Delivery Centers.
“Currently, supply chain managers and planners are challenged to align material inventories with true market demand. Excessive reliance on inaccurate forecasts to generate replenishment orders results in suboptimal order fill rates and excess inventory,” says Bush. “DD Tech’s solutions enable users to pace resupply to actual market demand, reducing the impact of inaccurate forecasts.”
According to the company, their clients typically see 35-45 percent inventory level reductions. This optimization can add up to big numbers for large manufacturers who have to make sure they have enough inventory to meet customer demand, while minimizing overstock which creates waste.
The company currently has over 60 customers across six continents, including such brands as Unilever and Michelin.
“DD Tech’s offering is well-timed with the rapidly increasing demand for inventory and service level optimization solutions that drive business results,” John Vecchio of Mosley Ventures said in a statement. “We believe that global manufacturers — from fast moving consumer goods companies to automotive and industrial products — will continue their efforts to transform their supply chains into areas of competitive advantage.”
With the funding, Bush says they will be doubling their team from the current 10 to 20 in 2018, mostly with new sales and marketing hires. They’re also doubling down on product development.
Bush says new competitors are entering the demand driven technology space, but DD Tech stands out — as first to market with these tools, they have the deepest breadth of experience, along with a global network.
“DD Tech is very well positioned as the market moves beyond early adopters to early majority buyers who prefer to buy from a category leader with solid evidence of product capabilities, efficacy and ROI,” says Bush. “DD Tech is known for having the easiest to adopt, most-user friendly interface and most intimate and responsive support.”