Introduction to the Company & Supply Chain Management:

In today’s world, especially post-COVID, the term supply chain has become more familiar to most of us. This company operates in that vital space, helping businesses manage the flow of goods—from sourcing raw materials to delivering finished products to customers. Think of the process behind creating and delivering an iPhone: sourcing the aluminum, making the screen, assembling the parts, and finally getting it into your hands. That whole process is the supply chain.

The company’s focus within this vast field is supply chain planning. They help businesses manage three essential areas:

1. Demand Planning: Predicting how much of a product customers will need in the future.
2. Replenishment: Ensuring stores and warehouses have the right stock levels, without overstocking or running out.
3. Integrated Business Planning (IBP): Aligning product demand forecasts with financial and operational plans to ensure the resources needed are available to meet customer demand.

Their mission is to ensure businesses have the right products, in the right quantities, at the right time—using data-driven, modern technology solutions rather than outdated guesswork.

How Their Solutions Work:

Imagine walking into a large retail store and seeing shelves stocked with everything from toothpaste to car tires. There's a whole team behind the scenes making sure those products are available when you need them. The company’s software helps manage the stock levels of hundreds of thousands, sometimes millions, of different products.

Here’s a simplified breakdown:

• Understanding Demand: They collect historical sales data for each product and use advanced machine learning algorithms to forecast future demand. Whether it's toothpaste or Halloween costumes, the system predicts how much of each product the store will need in the coming days, weeks, months, or even years. For example, they help customers anticipate demand spikes for Halloween costumes in September and October, and then adjust to zero afterward.
• Inventory & Supply Optimization: The company also gathers supplier information, like how long it takes for a supplier to deliver a product. It tracks stock levels at various locations—whether it's a warehouse or a retail store—and combines this data to ensure the right products are ordered and stocked. For fast-moving items like toothpaste, they calculate safety stock levels (the minimum amount you should always have on hand) to avoid shortages.
• Smarter Replenishment: After calculating demand and inventory needs, the system generates purchase orders. These orders tell retailers and distributors exactly how much of each product they need to buy from suppliers to keep their shelves stocked. The system constantly updates this information, running these calculations every night (!!!) so that the stock forecasts stay accurate and up-to-date.

Machine Learning & Customization:

The company uses a set of 12 different machine learning models to predict demand, such as moving averages and Holt-Winters models. What’s unique is that the system continuously adapts these models based on product type and seasonality. For instance, the best model for Halloween costumes might only be relevant during the season (mid-September to October), and afterward, the system adjusts to focus on the next relevant product.

Every week or month, depending on the client, the models are retrained to ensure forecast accuracy. Since seasonality and market conditions change, so too do the machine learning algorithms.

Industry Focus:

The company is particularly strong in several industries:

• HVAC (Heating, Ventilation, and Air Conditioning): This industry makes up around 40-50% of their customer base, relying on the software to ensure equipment like air conditioners and heaters are always in stock.
• Food Distribution: Another major sector, accounting for roughly 20-30% of their clients, specifically in packaged foods. They assist food distributors in managing stock for products like snacks or canned goods.