SCW.AI is driving critical efficiencies for manufacturers, particularly in highly regulated industries.
Digital commerce has grown a staggering 50% since 2019. While the onset of the pandemic accelerated e-commerce activity, adoption has continued to grow steadily ($250 billion in Q4 2021 to $265.9 in Q2 2022).1 As global demand has risen, supply chains have become more complex, causing manufacturers to struggle with maintaining agility and transparency across their operations.
They're aware of the issue. Many manufacturers have tried to address it — spending on digital transformation software tops $24 billion annually.2 Unfortunately, many of these costly solutions, like OEE (Overall Equipment Effectiveness) platforms, offer poor UX and are insufficient to solve specific needs. They end up sitting on the shelf as the companies fall back on antiquated, manual processes to track critical functions. The result is costly fragmentation and sweeping inefficiencies (time, capacity, budget, availability of supplies, asset use, product quality, visibility, and workforce utilization). All of the issues negatively impact the ability to meet demand.
While these issues are dangerously restrictive for companies across most industries, for the 35,000 pharmaceutical manufacturing plants across the globe, the lack of digital transformation also negatively impacts compliance. Many of these organizations have been underserved by existing software platforms, positioning them to fall short of meeting strict Track & Trace mandates imposed by the 2013 Drug Supply Chain Security Act (DSCSA). These federal regulations require that pharma companies pass, receive, and maintain prescription drug product and distribution information through every step of the complex supply chain. And that's a near impossibility without a sophisticated supply chain platform.
A Visionary Founder and a Next-generation Supply Chain Solution
Solving the disconnect requires deep knowledge of pressing supply chain challenges and of the ways advanced technologies can produce a relevant and useable solution. Enter Dr. Evren Ozkaya, founder and CEO of Supply Chain Wizard (SCW.AI).
"Evren sent a cold email that I picked up one evening just before leaving the office," said BIP VenturesManaging Partner Mark Buffington. "Something about the email caught my eye — its crisp description of the market and problem he was solving, clear demonstration of revenue traction, and more importantly, its confident attribution about why and how he would continue growing at a rapid pace. The more I researched, the more I liked," continued Buffington. "First, Evren immigrated from Turkey to the United States to attend Georgia Tech. We love first-generation entrepreneurs at BIP Ventures. They often have a heightened clarity of purpose and drive."
After earning a bachelor's degree in Industrial Engineering and Ph.D. in Supply and Logistics from Georgia Tech, Evren went to work with McKinsey & Company, where he was a consultant within the Americas Operations & Supply Chain practice. From there, he led the supply chain transformation program and global Track & Trace program at Novartis, one of the largest multinational pharmaceutical corporations in the world.
"Evren's resume showed that he had strong training and relevant knowledge about solutions to supply chain problems," concluded Buffington.
The instincts were correct. Evren's challenging, empirical work gave him insight into the specific and pressing digital transformation needs of pharma manufacturers. He built SCW.AI to solve resource and visibility inadequacies with artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT). The scalable, user-friendly digital factory SaaS solution is differentiated through its value propositions. It provides end-to-end visibility into network performance and factory operations. Elegant productivity tools automate functions, and decision-support tools equip employees to streamline and accelerate activities.
"If Evren's passion and know-how weren't enough, the potential of SCW.AI was clear from its strong revenues and customer base. The company had amassed almost three dozen happy, best-in-class customers and $1.8M in ARR in less than three years. There was no doubt in my mind that this partnership would be positive and lucrative for the SWC.AI team, our investors, and industries like pharma that are absolutely reliant on flawless supply chain functions," said Buffington.
Broad and Meaningful Impacts on the Global Supply Chain
As manufacturers work toward self-driving factories, they become better positioned to stay ahead of even the most challenging market and regulatory demands. And as global commerce becomes ever-more digitally driven, that position is key to a strong financial and operational position. SCW.AI recognizes that the speed, simplicity, and efficiencies offered by a digital factory solution are vital to the health of any company. But for pharmaceutical companies facing DSCSA requirements, the ability to digitize manufacturing operations is even more consequential. It means the capacity to deliver critical resources with true reliability and efficiency.
And for the SCW.AI team, that's where the real value lies. Using technology to help companies deliver potentially life-saving prescription medications to a wider population.
BIP Ventures is proud to have helped SCW.AI raise a $10M Series A venture funding round. The funding enables the company to replicate its success and speed growth, providing more scalable and meaningful progress for manufacturers, particularly in the pharma space.