Augment Acquires Merlin to Enter Wholesale Distribution Market
Augment, a supply chain AI company that develops productivity software for logistics operations, has acquired Merlin, an AI startup focused on wholesale distribution. The deal integrates Merlin’s technology into Augie, Augment’s core AI platform, marking the company’s initial entry into the U.S. wholesale distribution sector.
This acquisition extends Augment’s reach beyond its existing customers—brokers, carriers, and shippers—into wholesale distribution, a market valued at more than $8 trillion. Wholesale distributors often operate some of the largest private fleets in the country and rank among the top shippers of full truckload and less-than-truckload freight.
Professional drivers who haul for these distributors may see changes in how freight is coordinated and managed. The combined platform targets the quote-to-cash process, handling order entry from sources such as email, phone, text, and PDF, along with supplier coordination, freight management, and access to internal product and operating data.
Merlin’s tools address challenges common in wholesale distribution, including fragmented ERP systems, inconsistent product data, and variable processes across branches and business units. Many operations in this sector still rely on outdated systems and spreadsheets.
Alex Moazed, a distribution industry veteran and founder of Applico Capital, joins Augment as president of wholesale distribution. He leads Merlin’s co-founders: Nick Johnson, managing partner at Applico Capital, and John Schumacher, who previously served as vice president of product management and data science at Grainger and head of AI there.
“AI is finally ready to solve them, but no provider was meeting the needs of enterprise wholesale distributors,” Moazed said. “This industry runs on trust, and distributors rely on us not only to deliver AI automation, but to safeguard their data, one of their most valuable assets.”
Early enterprise clients adopting the platform include Ewing Outdoor Supply, a $1 billion landscape distributor; Insco Distributing, a family-owned HVAC-R distributor; Brooks Safety Solutions, one of the largest fire and safety distributors in the country; and Reece, a $3.5 billion leader in plumbing and waterworks distribution.
Augment, which has raised $110 million, built Augie as an AI teammate for logistics workflows. The acquisition builds on this foundation by adding distribution-specific capabilities.
“The more of the supply chain Augie manages, the better it understands every transaction on it—where freight is coming from, why it’s moving, and what happens on either end,” said Abbott, an Augment representative. This expanded visibility could improve efficiency for drivers interfacing with distributors’ freight operations.
Wholesale distributors’ significant role in freight shipping means their adoption of AI tools like the integrated Augie-Merlin platform could streamline load planning, tracking, and coordination. Drivers hauling full truckloads or LTL for these firms stand to benefit from more reliable data on origins, destinations, and handling requirements.
The move reflects a trend where AI platforms originally designed for logistics are incorporating distribution functions for more integrated supply chain management. Augment’s platform now supports a broader range of users, from initial order capture to final delivery.
For truck drivers, this means potential improvements in freight visibility and reduced errors in shipment details. Distributors’ private fleets and third-party hauls often involve complex routing across multiple branches, and AI automation aims to handle these variations more effectively.
Moazed’s leadership, combined with the expertise of Johnson and Schumacher, positions the wholesale division to tackle enterprise-scale operations. Schumacher’s background at Grainger, a major distributor, brings direct experience with large-scale product management and data science in distribution.
Augment’s expansion comes at a time when wholesale distribution seeks modernization. The sector’s reliance on manual processes has created opportunities for AI to automate routine tasks, freeing personnel—and by extension, drivers—for higher-value activities like on-road execution.
Drivers working with early clients like Ewing, Insco, Brooks, or Reece may encounter the platform’s features in daily operations, such as automated freight tenders or real-time updates from quote-to-delivery.
The acquisition provides Augment with a foothold in a massive market while enhancing its value to existing logistics partners. As the platform evolves, it promises tighter integration across supply chain segments, which could lead to more predictable freight flows for professional drivers nationwide.