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
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
"CA has been doing a lot of things in the area of DevOps. Now we have a complete set of tool sets in order to enable customers to go all the way from planning to development to testing down to release into the operations," explained Aruna Ravichandran, Vice President of Global Marketing and Strategy at CA Technologies, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, discussed how by using ne...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...