Welcome!

News Feed Item

ToolsGroup is First to Raise Demand Forecasting Accuracy by Embedding Machine Learning Technology

BOSTON, March 4, 2014 /PRNewswire/ -- ToolsGroup, a global provider of market-driven demand analytics and supply chain optimization software, is the first vendor in its class to embed machine learning into a commercially available demand forecasting product. The new technology has been proven to significantly improve forecast accuracy in major global customer installations (see below).

Forecast accuracy is an important driver of business outcomes.  Analyst firm Gartner writes, "Benchmarking data of 70 supply chains across multiple industries shows the best forecasters gaining the following: 15% less inventory, 17% stronger order fulfilment and 35% shorter cash-to-cash cycle times." (Gartner How Good Is Your Forecast? by analysts Noha Tohamy and Debra Hofman, published February 11, 2011).  

Yet most demand forecasting systems today often produce disappointing results and significant forecast errors. The standard models found in these systems cannot easily identify trends in the data. Their inability to model the underlying causes of demand variability can also lead to poor trade promotion execution and failed new product launches. And they can be manually intensive, resulting in poor planner productivity.

A data-driven approach using more intelligent software has been shown to improve forecasting accuracy. ToolsGroup's innovation is to embed machine learning technology into its SO99+ forecasting solution to solve problems that planners face every day and yet have vexed organizations for a long time. It harnesses the power of machine learning to accurately model demand in difficult forecasting scenarios such as trade promotions, new product introductions, extreme seasonality and product cannibalization.

Machine learning takes demand forecasting to new heights because older technologies didn't solve the difficult problem of measuring the impact of external stimuli on baseline demand.  ToolsGroup's demand modeling creates a reliable baseline, then uses machine learning to adjust the baseline by identifying the effect of stimuli and demand indicators at a detailed channel level. It analyzes all the relevant variables and the complex interactions among them in a highly automated fashion.  

ToolsGroup's machine learning technology creates a major improvement in demand visibility, forecast quality and level of forecast detail, which are all critical for reliable supply chain planning.  It has already been successfully deployed in the forecasting process of multiple clients, including:   

  • Leading food company Danone deployed it to identify the effects of promotional and media events. Its trade promotion forecasting covered a wide range of fresh products characterized by dynamic demand, short shelf life and the need for accurate demand forecasting. The project resulted in a 20% reduction in forecast error, 30% reduction in lost sales, and a 10 point ROI improvement in promotions.  
  • Leading heating and air conditioning (HVAC) manufacturer Lennox deployed it to sift through hundreds of thousands of SKU-Locations to identify "clusters" of those with similar seasonality profiles. Defining seasonality groups for forecasting was very challenging due to many slow moving parts, diverse demand behaviors, and an extremely seasonal business. Machine learning has allowed Lennox to automate the process and create an improved inventory mix over its large distribution network. 

    "By enhancing our seasonality clusters, machine learning substantially increased our peak period forecast accuracy and improved our supply chain responsiveness during a period of strong growth," according to Keith Nash, Vice President, Supply Chain Logistics, Lennox Residential.
  • Other ToolsGroup customers are using machine learning for new product introduction (NPI) to identify which new products will have significantly above average sales. Identifying those successful new products early on allows companies to determine  the most advantageous way to allocate additional marketing, purchasing and replenishment resources to "up and coming" products.

ToolsGroup CEO Joe Shamir said: "After pioneering machine learning to enhance demand forecasting, we are excited to have taken the next step to embed this technology into our standard product footprint. We are proud to be the first supply chain planning vendor to offer a seamless solution to improving demand planning and forecast accuracy through this new technology."

ToolsGroup's embedded machine learning is available as part of its SO99+ version 7.3.1 demand forecasting solution. An embedded approach also has the benefits of shrinking the software footprint, integrating the forecasting process, and offering users a standardized solution.

About ToolsGroup
ToolsGroup is a global provider of "Powerfully Simple" supply chain planning and demand analytics software. Our customers overcome volatile demand and challenging supply chains to generate accurate forecasts and outstanding customer service levels with less global inventory. Reliable behind-the-screen technology and scalable statistical models enable highly intelligent data-driven decision making, combined with ease of use. ToolsGroup's solutions span key supply chain planning areas such as Demand Forecasting and Collaboration, S&OP, Demand Sensing, Promotion Forecasting and Multi-Echelon Inventory Optimization.

About Lennox Industries
A worldwide leader in residential and commercial heating and air conditioning systems, Lennox Industries Inc. is based near Dallas, Texas, and is part of Lennox International Inc.'s Worldwide Heating & Cooling business segment. Lennox Industries is a subsidiary of Lennox International, which operates in over 100 countries and is a global leader in the heating, ventilation, air conditioning and refrigeration markets.

About Danone
One of the fastest-growing food companies in the world, Danone is present in over 120 countries on five continents. In 2010 Danone had more than 160 production plants and around 100,000 employees, generating sales of €17 billion. The group holds top positions in healthy food through four businesses: it ranks # 1 worldwide in Fresh Dairy Products, # 2 in Bottled Water and Baby Nutrition, and is Europe's # 1 Medical Nutrition company.

CONTACT:
   Jeffrey Bodenstab
   1-617-263-0080 x1013
   [email protected]

SOURCE ToolsGroup

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Redis is not only the fastest database, but it is the most popular among the new wave of databases running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 19th Cloud Expo, Dave Nielsen, Developer Advocate, Redis Labs, will share the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.