Nissan Taps SF Startup Arkestro for AI Procurement

- Arkestro's co-founder and CEO, Rob DeSantis, was also a co-founder of Ariba, a major player in procurement software that was acquired by SAP. He was also an early angel investor and board member at LinkedIn. - The company's technology is built on what it calls "three sciences": Negotiation Science, Supplier Science, and Process Science, which leverage AI, behavioral science, and game theory to optimize procurement. - Arkestro has raised significant venture capital, including a $26 million Series A round in June 2022 and a subsequent $36 million strategic investment to further develop its AI-powered platform. - Nissan has been actively working to make its supply chain more resilient, implementing strategies like "dual sourcing" (using multiple suppliers for the same part) and increasing production and reliance on local suppliers in North America to mitigate the impact of tariffs and global disruptions. - The adoption of AI in automotive supply chains is a growing trend, with McKinsey estimating it can lead to a 15% reduction in logistics costs and a 35% decrease in inventory levels. - Other major automakers are also heavily investing in AI for their supply chains; for example, BMW uses an AI system to monitor for disruptions in real-time, and Toyota has applied AI to optimize inventory and logistics. - Arkestro’s founder and Chief Strategy Officer, Edmund Zagorin, has a background in network analysis and auction theory and previously worked as a consultant on data-driven supplier negotiations for large companies. - Prior to its collaboration with Nissan, Arkestro has worked with other notable companies to improve their procurement processes, including Box and Bel Brands.