Facepalms all around. Supply chains are hard, and the idea that you can just write software to "solve" them is a level of hubris that defies description. Supply chains aren't a problem you can solve with big data. They aren't a problem that be solved with machine learning. In fact, you could combine the worlds top researchers in Computer Science, Economics, Operations Research, Mathematics, and Statistics, put them in a room together for a decade, and still not "solve" even 1% of the problems that Supply Chains face. I know the ITA presentation on Air Travel Planning Complexity[1] has been circulated here many times, but it always blows peoples minds how complex that problem space is, and that type of problem is miniscule in comparison to end to end supply chain optimization. I work in a problem space that is the combination of 9 different NP-Complete/Hard problem spaces (I've counted) on a regular basis...we are barely scraping by with millions of lines of code and entire data centers of our servers running at peak utilization 24/7, and that is with state of the art heuristics solvers and hundreds of PhD-level researchers, and that is only a subset of the Supply Chain problems that my company faces. To say that Good Eggs bit off more than they can chew is a MASSIVE understatement.
Supply Chain Management is a field that is heuristic-driven because there isn't a solution. The heuristics that drive modern food distribution are the result of a real world genetic algorithm that is already thousands of generations deep...and miniscule incremental improvements have been the subject of PhD Theses for over a hundred years now. You don't optimize on top of that by writing a web service. Supply Chain Management may not be technologically advanced in its usage of enterprise software, but that doesn't mean that their ideas and processes are stupid. At best, it means there are some annoying frictions in the industry in the way that they interact with other industries (and there are actually plenty of viable startup opportunities to fix this). The presumption of stupidity[2] regarding the existing state of logistics and supply chain management killed this company, just like how it killed Webvan, and is going to kill a whole host of startups in the distribution and delivery space within the next few years. [3]
[1] https://static.googleusercontent.com/media/www.itasoftware.c...
[2] http://www.aaronkharris.com/presumption-of-stupitidy
[3] PS: If you are in VC and have a stake in any startup that is doing last mile delivery, liquidate now. There isn't a single startup in the space, whether they are currently valued at $1 or $1B, that can sustainably provide their existing value proposition that they are promising to their customers. It is possible to force scale some of them into something sustainable, but your valuations make me believe your cash flow neutrality projections are off by more than an order of magnitude.
Supply Chain Management is a field that is heuristic-driven because there isn't a solution. The heuristics that drive modern food distribution are the result of a real world genetic algorithm that is already thousands of generations deep...and miniscule incremental improvements have been the subject of PhD Theses for over a hundred years now. You don't optimize on top of that by writing a web service. Supply Chain Management may not be technologically advanced in its usage of enterprise software, but that doesn't mean that their ideas and processes are stupid. At best, it means there are some annoying frictions in the industry in the way that they interact with other industries (and there are actually plenty of viable startup opportunities to fix this). The presumption of stupidity[2] regarding the existing state of logistics and supply chain management killed this company, just like how it killed Webvan, and is going to kill a whole host of startups in the distribution and delivery space within the next few years. [3]
[1] https://static.googleusercontent.com/media/www.itasoftware.c...
[2] http://www.aaronkharris.com/presumption-of-stupitidy
[3] PS: If you are in VC and have a stake in any startup that is doing last mile delivery, liquidate now. There isn't a single startup in the space, whether they are currently valued at $1 or $1B, that can sustainably provide their existing value proposition that they are promising to their customers. It is possible to force scale some of them into something sustainable, but your valuations make me believe your cash flow neutrality projections are off by more than an order of magnitude.