AI-Driven Supply Chain Planning | Pendulum

The Evolving Landscape of Supply Chains

Recent years have presented significant challenges for supply chains, starting in 2020 with the disruptions caused by the COVID-19 pandemic to established global networks. Currently, the rapid trend of consumer-driven retail, exemplified by companies such as Shein and Temu, is accelerating the demand for constant product innovation.

Introducing Pendulum: AI-Powered Supply Chain Optimization

Pendulum is designed to assist businesses in more effectively forecasting and managing supply and demand within this emerging on-demand economic environment.

How Pendulum Works

The company’s software integrates a company’s disparate internal data sources – including inventory levels, procurement processes, and pricing information – into a unified, AI-powered model. This model aims to enhance a company’s ability to predict and optimize its supply and demand planning.

According to Co-founder and CEO Benjamin Fels, accurate supply and demand management not only improves profitability but also minimizes waste. “Achieving precise alignment between supply and demand is the most impactful step a retailer can take towards greater sustainability,” Fels stated. “Knowing precisely what consumers desire allows for substantial reductions in carbon emissions and significant margin increases.”

From Financial Trading to Supply Chain Solutions

Fels’s inspiration for Pendulum stemmed from his experience on derivatives trading floors, where he led teams developing AI-driven prediction products for financial supply and demand. He questioned whether this same methodology could be successfully applied to the complexities of physical supply chains.

In June 2013, he and Suvrit Sra launched Macro-Eyes at MIT to investigate this possibility. Years were dedicated to research and development surrounding this concept. Upon readiness for commercialization and institutional funding in 2023, the company was rebranded as Pendulum.

Current Clients and Industries Served

Pendulum currently serves enterprise clients across a diverse range of sectors, including retail, healthcare, and national defense. Notable customers include Adore Me, owned by Victoria’s Secret, and the U.S. Department of Defense.

Recent Funding and Future Plans

Pendulum has announced a $22 million funding round, comprised of $11 million in non-dilutive capital designated for research and development, and $11 million in venture capital from investors such as Lowercarbon Capital, Cross-Border Impact Ventures, and Decisive Point. Fels indicated that these funds will be used to scale operations with existing customers, expand the customer base, and further refine the product.

New Leadership Addition

Alongside the funding announcement, Pendulum revealed that Jean-François Gagné, co-founder of Element AI – acquired by ServiceNow in 2020 for $230 million – is joining the company as Chief Strategy and Product Officer.

“I quickly recognized that Jean-François possessed not only a deep understanding of integrating AI into enterprise solutions, but also a wealth of experience in supply chain optimization and related challenges,” Fels explained. “Following extensive discussions, it became clear that he was the ideal leader to shape our product vision and guide our scaling strategy.”

The Rise of Supply Chain Technology

The pandemic has underscored the vulnerabilities of existing global supply chains, leading to increased investment in supply chain technology. Fels believes Pendulum differentiates itself through its algorithmic approach, which is built upon a decade of dedicated research and development.

“Supply chain optimization has been a pursuit for millennia,” Fels noted. “However, the recent surge in volatility and uncertainty, impacting both supply and demand, has presented unprecedented challenges for retailers and organizations reliant on supply chains. We believe this necessitates a fundamentally different response.”