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
The proper isolation of resources is essential for multi-tenant environments. The traditional approach to isolate resources is, however, rather heavyweight. In his session at 18th Cloud Expo, Igor Drobiazko, co-founder of elastic.io, will draw upon their own experience with operating a Docker container-based infrastructure on a large scale and present a lightweight solution for resource isolation using microservices. He will also discuss the implementation of microservices in data and applicat...
Join IBM June 8 at 18th Cloud Expo at the Javits Center in New York City, NY, and learn how to innovate like a startup and scale for the enterprise. You need to deliver quality applications faster and cheaper, attract and retain customers with an engaging experience across devices, and seamlessly integrate your enterprise systems. And you can't take 12 months to do it.
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
As you respond to increasing requests for new analytics, you need fast and flexible technology in your arsenal so that you can deploy the right workload to the right platform for the need at hand. Do you need self-service and fast time to value? Do you have data and application control and privacy needs, along with strict SLAs to meet? IBM dashDB™ is data warehouse technology powered by in-memory computing and in-database analytics that are designed for fast results, scalability and more.
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 ...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
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...
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...
The paradigm has shifted. A Gartner survey shows that 43% of organizations are using or plan to implement the Internet of Things in 2016. However, not just a handful of companies are still using the old-style ad-hoc trial-and-error ways, unaware of the critical barriers, paint points, traps, and hidden roadblocks. How can you become a winner? In his session at @ThingsExpo, Tony Shan will present a methodical approach to guide the holistic adoption and enablement of IoT implementations. This ov...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...