The global supply chain has been in a state of flux for years. From the initial shockwaves of the COVID-19 pandemic to the rise of ultra-fast fashion driven by social media trends, businesses are struggling to keep pace with volatile demand and complex logistical challenges. Enter Pendulum, an AI-powered platform designed to help enterprises navigate this new era of on-demand consumption and optimize their supply chains for both profitability and sustainability.
Pendulum's innovative approach connects a company's disparate internal data sources – think inventory, procurement, pricing, and more – into a unified, AI-driven model. This comprehensive view empowers businesses to predict and optimize their supply and demand with unprecedented accuracy. The goal? To minimize waste, maximize margins, and create a more resilient and responsive supply chain.
"The single most powerful thing you can do as a retailer to become more sustainable is absolutely nail supply versus demand," says Benjamin Fels, co-founder and CEO of Pendulum. He emphasizes that knowing precisely what customers want translates directly into reduced waste and a significantly lower carbon footprint. "If you know everything you make somebody wants, you are going to dramatically decarbonize your operations, and you are going to increase at massive scale your margins.”
Fels's vision for Pendulum stems from his experience on derivatives trading floors, where he oversaw teams developing AI-powered prediction tools for financial supply and demand. He recognized the potential to apply these same principles to the complex world of physical supply chains.
In June 2013, Fels partnered with Suvrit Sra from MIT to launch Macro-Eyes, the precursor to Pendulum. They embarked on years of rigorous research and development, refining their AI algorithms and building a robust platform. In 2023, with their technology ready for prime time, they rebranded as Pendulum and secured institutional funding to scale their operations.
Today, Pendulum serves a diverse range of enterprise clients across retail, healthcare, and even national defense. Industry giants like Adore Me (owned by Victoria's Secret) and the U.S. Department of Defense rely on Pendulum's insights to optimize their supply chains.
Fueling Growth and Innovation:
Pendulum recently announced a $22 million funding round, split evenly between non-dilutive capital for research and development and venture capital from prominent firms like Lowercarbon Capital, Cross-Border Impact Ventures, and Decisive Point. This infusion of capital will enable Pendulum to expand its customer base, scale its operations, and further enhance its product offerings.
A Strategic Powerhouse Joins the Team:
In a significant move, Pendulum has welcomed Jean-François Gagné, co-founder of Element AI (acquired by ServiceNow for $230 million in 2020), as its chief strategy and product officer. Gagné brings a wealth of experience in applying AI to enterprise solutions and a deep understanding of supply chain dynamics.
Fels highlights Gagné's unique blend of AI expertise and supply chain knowledge. "I realized that JF not only had this insight on bringing AI to the enterprise, but also this rich history across supply chain and across a lot of these fundamental optimization problems," Fels explains. "After multiple three-hour-straight conversations, it just clicked that JF needed to lead the product vision, and needed to lead strategy around how we take this to scale.”
Navigating a Volatile Landscape:
The supply chain technology sector has witnessed a surge in activity, particularly after the pandemic exposed the vulnerabilities of traditional global supply chains. Pendulum believes its decade-long investment in research and development gives it a distinct advantage.
"People have been trying to optimize supply chains for 5,000 years," Fels observes. "Over the last two or three years, the volatility and the uncertainty both around supply and around demand, has just hit every retailer, every organization that’s exposed to supply chain, with tremendous force. We felt that really required a different kind of response.”
Pendulum's Competitive Edge:
What sets Pendulum apart in this crowded market? Several key factors contribute to its unique value proposition:
- AI-First Approach: Pendulum's core technology is built on a foundation of advanced AI algorithms, honed over years of research and development. This allows for more accurate and nuanced predictions compared to traditional methods.
- Unified Data Model: By connecting all of a company's internal data sources, Pendulum creates a holistic view of the supply chain, enabling more informed decision-making.
- Focus on Sustainability: Pendulum's emphasis on optimizing supply and demand not only improves profitability but also significantly reduces waste and promotes more sustainable practices.
- Experienced Leadership: The combination of Benjamin Fels's vision, Suvrit Sra's technical expertise, and Jean-François Gagné's strategic acumen positions Pendulum for continued growth and innovation.
- Proven Track Record: Pendulum's work with high-profile clients like Adore Me and the U.S. Department of Defense demonstrates the effectiveness of its platform in real-world scenarios.
The Future of Supply Chain Management:
Pendulum is at the forefront of a revolution in supply chain management. By harnessing the power of AI, the company is helping businesses navigate the complexities of the modern economy and build more resilient, sustainable, and profitable operations. As consumer demands continue to evolve and global uncertainties persist, Pendulum's innovative approach will be essential for companies looking to thrive in the years to come. The company's recent funding round and the addition of Jean-François Gagné to its leadership team signal a new chapter of growth and innovation, solidifying Pendulum's position as a leader in the supply chain technology space. The future of supply chain management is intelligent, and Pendulum is leading the charge.
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