The struggle Tesla faced in scaling up its Model 3 production back in 2018, a time when the company was nearly on the brink of collapse, has given rise to a new company. Atomic, a fresh venture co-founded by ex-Tesla leaders Michael Rossiter and Neal Suidan, aims to revolutionize inventory management through artificial intelligence (AI).
Born out of DVx Ventures, led by former Tesla president Jon McNeill, Atomic leverages the expertise gained during the tumultuous days at Tesla to help companies streamline their supply chain operations. The company recently secured a $3 million seed funding round, led by DVx Ventures, with additional backing from Seattle-based Madrona Ventures.
Rossiter and Suidan experienced firsthand the pain of managing supply chains at Tesla, a struggle that motivated them to build a solution for others facing similar challenges. As McNeill explains, “Michael and Neil experienced this pain firsthand as leaders at Tesla in the supply chain, and I saw that work firsthand — because they worked for me.”
Atomic’s solution is a game-changer for inventory planning, enabling businesses to quickly simulate various supply chain scenarios, reducing time and cost. This agility, in turn, helps businesses strike a balance between having enough inventory without overstocking, freeing up capital to be used elsewhere.
The software developed by Atomic has already demonstrated its impact with pilot customers. One such customer was able to reduce inventory levels by 50% while maintaining a 99% in-stock rate, showing the effectiveness of the system in real-world conditions. “If you have too much capital tied up in inventory, you could really harm the business. And if you have too little, where you don’t have the right things in stock when the customer is ready to purchase, then you’re costing yourself big time,” McNeill pointed out.
Atomic’s software is designed for companies in industries such as consumer packaged goods, food and beverage, and apparel. It claims to have helped businesses in these sectors reduce inventory costs by 20% to 50%, a significant reduction that can enhance overall business efficiency.
Suidan further emphasizes the importance of adapting quickly to market volatility, stating, “With so much uncertainty in the world right now, there’s big demand for solutions like Atomic’s because existing ones aren’t built for this kind of volatility.” The flexibility of Atomic’s system allows companies to handle uncertainty with confidence, something that traditional planning systems fail to offer.
Rossiter and Suidan’s journey from Tesla to Atomic is a testament to their ability to solve complex problems. The planning systems they developed at Tesla transformed the company’s operations, something they now aim to bring to businesses across the world. Suidan reflects, “The way the business was planned when we started was a dozen different teams working in isolation, passing these spreadsheets around… our jobs became to build a system that could thrive and drive this company.”
Now, with Atomic, their vision is clear: “Our ambition, our vision, is to support every company that sells physical goods,” Rossiter said, emphasizing the scale and impact Atomic hopes to achieve.
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