Logility, a prominent player in prescriptive supply chain planning solutions, has inked a definitive agreement to acquire Garvis, a forward-looking SaaS startup renowned for its innovative combination of large language models like ChatGPT with AI-native demand forecasting.
This strategic move will usher in a new era of supply chain planning with DemandAI+. This cutting-edge approach transcends traditional methods by enabling demand and inventory planning to keep pace with market dynamics.
Unlike conventional models, Garvis has pioneered an AI-centric forecasting solution, now known as DemandAI+. By integrating Generative AI with machine learning algorithms, DemandAI+ introduces a contemporary, more inclusive, and intuitive planning paradigm.
It swiftly digitizes supply chain relationships and makes data accessible to stakeholders throughout the organization. Users, including planners, executives, and non-planners, can obtain real-time answers to unexpected queries simply by asking questions. This transparency empowers more informed decisions, saving valuable planning time.
DemandAI+, designed for cloud deployment, will be integrated into the Logility® Digital Supply Chain Platform as the designated solution for demand forecasting. The acquisition is expected to deliver accretive results within 12 months, positioning Logility as the sole supply chain planning platform leveraging Generative AI, advanced AI-driven algorithms, and machine learning.
This innovative approach comprehensively addresses various facets of demand forecasting within a single solution, encompassing base demand, promotional lift, causal forecasts, external data, and user insights. It thereby enhances forecast accuracy and aligns organizations with the rapidly changing dynamics of today’s markets.
Allan Dow, President of Logility, highlighted the imminent transformation in supply chain planning driven by technological advancements, generational shifts in planning roles, and the rapid pace of market changes and disruptions. He emphasized the revolutionary impact of Garvis, built on an AI-driven foundation, in transforming demand forecasting in dynamic markets.
The integration of Garvis into Logility’s portfolio aims to accelerate their shared vision of breaking free from the confines of traditional, myopic supply chain planning solutions.
Garvis’s AI-driven approach has already proven its worth through over 70 implementations. Clients have successfully translated purchasing behavior, market dynamics, and other factors into forecasts across products, locations, and customers. DemandAI+ empowers companies to respond to changes as they unfold, ultimately enhancing forecast accuracy and service levels, even for highly promoted, seasonal, or intermittent products.
Piet Buyck, CEO of Garvis, highlighted the remarkable results achieved by clients through AI-driven algorithms and natural language interfaces. These include a 70% reduction in weekly planning time, a 15-30% decrease in forecast error, and improved inventory management, all achieved with remarkably swift implementation times.
For Logility clients, this acquisition presents an immediate opportunity to harness AI-driven insights for supply chain planning, offering the potential for rapid returns on investment. The future of supply chain planning is here, and it’s poised to revolutionize the industry.