Atomic, a Boston supply chain planning startup, has raised $12.5 million in Series A funding. The company automates purchasing, production and inventory decisions for physical-goods companies.
The round was led by Klass Capital and Madrona, with participation from DVx Ventures, Alumni Ventures and Sandberg Bernthal Venture Partners. Atomic has raised just over $15 million in total, TechCrunch reported.
Its software makes three planning decisions:
Purchasing: Sets purchase orders around supplier lead times, minimums and costs
Production: Builds production plans by SKU and facility
Inventory: Decides where inventory should sit across distribution centers, 3PLs, stores and sales channels
Atomic connects with NetSuite, SAP, Microsoft Dynamics and Oracle. Customers using Kinaxis, o9, SAP IBP or Relex can keep those systems. Atomic says its S&OP layer can go live in about 30 days. It charges an annual subscription based on a customer's cost of goods, rather than per user.
DoorDash’s DashMart runs 90% of its purchasing across hundreds of sites through Atomic. DashMart moved onto the platform in about three months. Good Chop, a HelloFresh brand, cut its inventory to four weeks from eight or nine while more than doubling revenue.
Atomic’s three co-founders, CEO Michael Rossiter, Neal Suidan and Jeff Goodrich, previously worked in sales and operations planning at Tesla during the Model 3 ramp. Former Tesla president Jon McNeill, whose DVx Ventures invested in the round, sits on Atomic’s board. McNeill told TechCrunch Atomic’s annual recurring revenue has quintupled since the start of the year.
