Syrup Tech gets $6.3 million to develop inventory planning software

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Knowing how much and what kind of inventory your brand needs requires a complex web of data that companies often use through spreadsheets or legacy systems that don’t give a complete picture of the business.

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Syrup Tech, now armed with $6.3 million in new funding, feeds all that data like transactions, marketing and inventory and combines it with other data like social media trends and even weather to make predictive inventory recommendations with using artificial intelligence and machines. education. This way, merchandisers and planners get more accurate information about what they need and can cut some of the wastage.

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“I previously worked at McKinsey and was shocked to see merchandisers working hours and hours on spreadsheets,” James Theuerkauf, co-founder and CEO of Syrup Tech, told TechCrunch. “My idea was to let the AI ​​handle the numbers and let the merchandiser make creative decisions using the AI ​​as support.”

Theuerkauf explained that forecasting inventory has become more difficult, especially as brands struggle with shortages, forcing them to make up for it by ordering more. This can lead to overstocking and markdowns, which we have seen recently. both Walmart and Target need to clear their inventory.. All these surpluses often end up in landfills.

Syrup Tech Inventory Management

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Syrup Tech Inventory Dashboard. Image credits: Syrup Tech

Supply chain issues are also hampering inventory management mechanisms and Syrup Tech is working to provide recommendations as soon as possible, so if the wait is 40 days, merchandisers should get their orders now, and if the wait is 10 days. days, they can postpone these decisions.

He says Syrup Tech’s customers (the company currently operates eight) are seeing double-digit increases in profits by reducing inventory, reducing excess stock and waste, and saving time by eliminating manual workflows.

“The global supply chain is kind of a ‘blessing’ because the focus is now on inventory, a lot of interest in figuring it out, and moving from other legacy systems to modern systems,” Teuerkauf added.

Indeed, the fully remote company began working on its AI-powered SaaS forecasting tool in 2020 and operates in a sector that other stock-focused companies have recently raised venture capital, including Zipedi as well as inventory.

According to Theuerkauf, what sets Syrup Tech apart is that it uses an AI-assisted strong predictive approach that fits into the workflow of merchandisers. He believes that no one realized this before his company.

Meanwhile, revenue is up 14 times in the past 12 months and 2.5 times since the start of 2022, Toyerkauf said. As mentioned, the company is currently working with eight clients, mostly in fashion footwear, with five more on the waiting list.

The company completed a funding round in June, giving it a total funding of $7.3 million. Gradient Ventures, or GV, led the newest round, which includes Flybridge Capital, Firstminute Capital, Rackhouse Ventures and a group of angel investors from former Adidas, Bonobos, Salesforce, ASOS, ThredUp, Zalando and Stripe executives. 1984 Ventures, which led Syrup Tech’s preliminary round last year, also invested.

Teuerkauf plans to use most of the funds to increase the company’s staff of 14 people. He is also involved in product development and adding additional use cases. The company has mainly looked at seasonal items but is now looking to move up the pipeline to focus on sourcing and manufacturing recommendations.

The new funding also puts the company in a “solid position for the next few years,” he added.

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