Supply Chain Disruptions and the Rise of Pendulum
The Turbulent Supply Chain Landscape
Supply chains have had a tumultuous few years, beginning in 2020, when COVID-19 upended legacy global supply chains. More recently, the "TikTok-ification" of retail has companies like Shein and Temu creating new products constantly as consumer demands change at the same rapid pace.
Pendulum’s Solution
Pendulum aims to help companies better plan for supply and demand in this new on-demand economy. The company’s software connects all of a company’s fragmented internal data sources, like inventory, procurement, and pricing, into one AI-powered model that is meant to help companies predict and optimize their supply and demand.
The Benefits of Getting Supply and Demand Right
Co-founder and CEO Benjamin Fels told TechCrunch that getting supply and demand right helps companies not only improve their margins but also reduce waste. "The single most powerful thing you can do as a retailer to become more sustainable is absolutely nail supply versus demand," Fels said. "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."
The Origins of Pendulum
Fels originally got the idea for Pendulum after he spent years on the derivatives trading floor and oversaw teams building AI-enabled prediction products for supply and demand on the financial side. Fels said he wondered if that same approach would also work for supply and demand in the supply chain world.
Pendulum’s Growth and Funding
Pendulum now works with enterprises across retail, healthcare, and national defense. Victoria Secret-owned Adore Me and the U.S. Department of Defense are customers. The company is announcing a $22 million funding round that includes $11 million of non-dilutive capital, for research and development, and $11 million in venture capital from firms including: Lowercarbon Capital, Cross Border Impact Ventures and Decisive Point, among others.
New Hire and Future Plans
In addition to the funding news, Pendulum also announced that Jean-François Gagné, the co-founder of Element AI — which was acquired by ServiceNow in 2020 for $230 million — is joining the company as the chief strategy and product officer. Fels said the company plans to use the funding to help the company get to scale with a core set of customers, continue to grow its customer base, and improve its product.
Supply Chain Tech and Pendulum’s Unique Approach
Supply chain tech has become a hot category ever since the pandemic shined a light on how fragility of existing global supply chains. Fels thinks that Pendulum stands out because its algorithmic approach was built on a decade of research and development. "People have been trying to optimize supply chains for 5,000 years," Fels said. "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."
Conclusion
Pendulum’s innovative approach to supply chain management has the potential to revolutionize the way companies plan for supply and demand. With its AI-powered model and decade-long research and development, Pendulum is well-positioned to help companies navigate the complex and ever-changing supply chain landscape.
FAQs
Q: What is Pendulum’s solution for supply chain management?
A: Pendulum’s software connects all of a company’s fragmented internal data sources, like inventory, procurement, and pricing, into one AI-powered model that is meant to help companies predict and optimize their supply and demand.
Q: What are the benefits of getting supply and demand right?
A: Getting supply and demand right helps companies improve their margins and reduce waste.
Q: How did Pendulum get its start?
A: Pendulum was founded by Benjamin Fels, who originally got the idea for the company after working on the derivatives trading floor and building AI-enabled prediction products for supply and demand on the financial side.
Q: Who is joining Pendulum as the chief strategy and product officer?
A: Jean-François Gagné, the co-founder of Element AI, is joining Pendulum as the chief strategy and product officer.
