Overhaul Secures $55M to Combat Supply Chain Theft

Supply Chain Challenges and the Rise of Overhaul

Companies relying on the physical movement of goods – encompassing the facilities and transportation networks involved – are currently navigating significant hurdles. These range from labor shortages to heightened expectations from consumers. The intensity of these pressures shows no sign of diminishing.

A recent survey conducted by Prologis, a real estate investment trust, reveals that approximately two-thirds of executives are experiencing considerable anxiety related to supply chain issues.

From FreightWatch to Overhaul: Identifying a Gap

Barry Conlon and David Broe personally encountered these difficulties during the establishment of FreightWatch. Their initial venture focused on providing “cargo visibility” and bolstering supply chain security for corporate clients.

Following the sale of FreightWatch in 2012, Conlon and Broe recognized an opportunity to address supply chain inefficiencies through a more forward-thinking approach, leveraging telemetry and data analysis.

Four years after exiting FreightWatch, they channeled their accumulated knowledge into Overhaul. This platform is designed to assist businesses in tracking the location of their goods throughout the supply chain, while simultaneously working to prevent theft.

Combating Cargo Theft and Ensuring Quality

Overhaul also provides reporting on product quality and adherence to regulations during transit. Furthermore, the platform aims to pinpoint potential areas for cost reduction.

Cargo theft is demonstrably increasing, fueled by the growing confidence of organized crime groups. Data from CargoNet, a leader in cargo theft prevention and recovery, indicates a 14% year-over-year increase in cargo theft across the U.S. and Canada during the third quarter of 2024.

The total value of stolen goods for that quarter surpassed $39 million.

“A significant challenge for many within our industry is achieving comprehensive visibility into their supply chains, particularly when managing numerous suppliers and partners,” stated Conlon, CEO of Overhaul, in an interview with TechCrunch. “Without this visibility, effectively identifying and mitigating risks becomes exceedingly difficult.”

Overhaul’s Technology and Client Base

Currently serving around 350 customers, including prominent companies like Microsoft, Dyson, and Bristol Myers Squibb, Overhaul develops software capable of predicting potential delays in freight shipping.

The software’s functionality is powered by AI models trained on telemetry data collected during transit, alongside contextual information. These models can identify situations where a cargo shipment is at risk, according to Conlon.

“Our platform enables alerts to be sent to our global security operations team,” Conlon explained. “They can then transmit shipment and cargo data, via a ‘smartlink,’ in real-time to local law enforcement, facilitating swift action to prevent theft and recover stolen goods.”

A Competitive Landscape and Funding Trends

Overhaul operates within a highly competitive market for supply chain visibility software. Estimates suggest this market could reach a value of $12.6 billion by 2032.

Key competitors include Tive, Altana, Project44, and FourKites.

Securing funding for supply chain startups is becoming increasingly challenging. PitchBook data reveals that only $7.1 billion was invested in the sector through the third quarter of last year, a substantial decrease compared to the $63.7 billion invested in 2021.

Strategic Growth and New Offerings

To maintain a competitive edge, Overhaul has introduced several new products and services. These include an “intelligence as a service” offering, a cargo insurance program, and a specialized cold chain quality solution for clients in the pharmaceutical and food & beverage industries.

This strategic approach has attracted new investors. Overhaul recently announced a $55 million funding round led by Springcoast Partners, with participation from Edison Partners and Americo.

Future Plans and Expansion

With this latest funding, Overhaul’s total raised capital now stands at approximately $150 million. The new funds will be allocated to product development, strategic acquisitions, and the expansion of the Austin-based company’s 600-person team, as stated by Conlon.