Artificial Intelligence & Machine Learning

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At Solvoyo, technology is our most important resource. To help companies digitize their decision making process, we utilize adaptive learning techniques. Some have been known for quite a while such as regression analysis some are relatively new such as transfer learning. There are other new techniques that we have been experimenting with. These are three areas where we apply some successful use cases: 

Demand Driver Analysis

Competitor Analysis

Decision Making

Diagnose factors shaping the purchasing behavior of the customers using internal and external data. Examples: Do pentihose sales increase when there is a rain shower? How are ice cream sales affected by humidity? 

Use predictive analytics to determine your price index based on your competitors’ price offerings. To what extent competitor price actions impact your demand? Which products are more sensitive to changes in competitor products?

Solvoyo defines social life as a math problem. How do we help our customers make smarter supply chain decisions?  What is the effect of not being able to find a supply chain truck or run out of the stocks? 

Solvoyo AI & ML Capabilities

1. A Brief History

Artificial Intelligence (AI) research started in the 1950s with the aim of developing intelligent systems that think and act like people. Like people, systems who don't understand the environment where they live, cannot make the right decisions. AI addresses this deficiency. It is designed to analyze all of the influential factors and interpret large sets of data to make optimal decisions. That being said, let's deep dive into how our AI algorithms, called “The Solvoyo Mind”  by our developers, makes its intelligent decisions:

2. Demand Driver Analysis 

Effective supply chain management starts with a reliable demand forecasting process. What gives businesses a competitive edge in today’s dynamic business world is the ability to analyze the impact of external and real time data. Competitor actions, benchmark prices, demographics data, weather, and other events are important factors influencing demand.  

To utilize the impact of events on purchasing decisions, we have to understand the sales data clearly. Characteristics of the data and the probabilistic distribution of customer demand are crucial in helping us understand the patterns. We ask our engine various questions and apply crucial tests to validate the results. This enables us to determine what is necessary for the Solvoyo Mind to prevent Curse of Dimensionality which could be arising as a direct consequence of the sheer size of our client’s data. To obtain a statistically sound and reliable result, the amount of data needed often grows exponentially with the dimensionality. In high dimensional data, all objects appear to be sparse and dissimilar in many ways, which prevents common data organization strategies from being efficient. 

With Demand Sensing, Solvoyo detects factors influencing demand. In addition to historical sales data, we can integrate weather, promotions, store footfall, inventory and competitor data to enrich our predictive models. 

One such example is the analysis of weather conditions on ice cream sales. What is crucial here is to analyze the drivers which are correlational in effect. During summertime, while humidity levels could affect ice cream sales in a metropolitan city, it may have no effect in a coastal city! When the analysis is conducted at the right level from the insights of the relevant data, accurate forecasts lead to efficient decision making.  

3. Competitor Analysis

How does the relative price index to your competitors affect your market share? Analysis based on competitor prices has been done for years. To add more value, predictive analytics is used to determine the optimum price index. Solvoyo Mind offers a dynamic pricing capability by modeling purchasing behavior of the customers based on market prices and other environmental factors. With What-if Scenarios, it is possible to see the short and long term impact of possible pricing actions. This allows making fast and data-driven decisions, improving sales and reducing stock-out or excess stock risks. 

4. Forecasting

Forecasting demand is key in supply chain management. It ensures that resources are used efficiently while the expectations of customers are met. For accurate predictions, an accurate product segmentation algorithm is needed. We may have satisfactory forecast results for a product group, yet, knowing appropriate forecasts for their sub-groups is also necessary. Our aim is to accurately answer the questions such as:  What is the exact sales value for each brand, color, or size in the product group? Can we determine how much a new product will sell when released into the market? 

The Solvoyo Mind performs segmentation for every product level according to the past and future weather data, special days, and store attributes using advanced computational algorithms. While improving forecast results, we also find product similarities. We use Best-pick Forecast Methods, where Solvoyo’s adaptive algorithm selects which forecasting method will be used for which store/channel clusters, product aggregation level, and time periods.

5. Decision Making (Planning)

The need that started Artificial Intelligence in the 1950s was to create systems that can make decisions, like humans. In order to utilize machine learning and AI, we have to make sure the models fully understand the environmental factors influencing our goal and make the right decisions.

At Solvoyo, we aim to create an AI who would make logical decisions that a human would miss while managing the supply chain. To achieve this a decision-making system requires a comprehensive feature space. Solvoyo Mind focuses on adding all possible social effects to the model that could affect customers' decisions. We try to express social engineering problems as math equations. Solvoyo Mind creates optimum plans for customers by applying algorithms such as discrete optimization and game theory. We provide our customers automated and user-selected supply plan scenarios that are optimized for their needs. With the Multi-objective Optimization capability, they can select multiple objectives including best service, minimized cost, maximized revenue and more. ML algorithms of the Solvoyo Mind provide full automation in the decision making processes. If the user decides to override an automated recommendation, Solvoyo Mind collects the manual edits and learns from planners’ previous decisions to improve its model. Solvoyo enables its customers to optimize automated decisions and take fast actions. 

6. Tackling Data Discrepancies leveraging ML/AI capabilities of Solvoyo

Data from several sources are used in our models. When different data sources are manually maintained, discrepancies arise in the master and transactional data. With Solvoyo’s Automated Data Integration, changes in data are captured in real-time, thus minimizing the possibility of discrepancies. 

The Solvoyo Mind detects anomalies automatically in the master data as well to fill the missing data elements or recommends corrective actions. The AI algorithm also calculates the sales loss due to stock-outs and can generate unconstrained demand data to maximize sales potential for future periods. For missing or inconsistent historical transaction data it suggests a corrective action plan in order 

Solvoyo Retail Planning and Analytics Platform for E-Commerce

Ready to discover how you can digitize your workflows from financial planning to supply chain operations and spend more on your growth opportunities and less time analyzing data? We’ll do the data crunching so you can focus on the fun part! Our configurable and agile solutions will evolve with your business needs. You can pick and choose your solutions from our lego-like platform with the assurance that your workflows will be integrated as advance through your digital transformation journey. 

Solvoyo Differentiators

Simply stated, Solvoyo Elevation Platform is the most intelligent, powerful and flexible supply chain optimization platform that embodies all key analytics capabilities

AI & ML
Powered by state of the art Artificial Intelligence and Machine Learning Algorithms, Solvoyo provides great alternatives to time-consuming manual analyses.
Single & Integrated Platform
With our integrated solution, we provide end to end supply chain visibility within horizontal and vertical integration across decision points
Concurrent Optimization
The platform allows multiple objectives to be modeled giving you the ability to automatically generate alternate plans and scenarios with the same inputs.
Autonomous Supply Chain
Solvoyo’s analytics platform is tightly linked to your execution systems, minimizing -in some cases totally eliminating- the need for time-consuming and error-prone Excel hell. 
Fast Implementation
The single data model and platform means easier, flexible and secure integration that eliminates data exchange and conversion requirements, enables standards-based integration with all ERP systems, and reduces processing time and operating costs.
Performance Tracking
We track the user acceptance rates for our recommendations so we can constantly keep improving the solution.
Cloud Based
Solvoyo Elevation Platform is a multi-tenant supply chain management solution built on secure and scalable cloud infrastructure, delivered as a SaaS platform.
Configurable UI
The descriptive data analyses, the diagnostic alerts and the KPI reports all complement smart decisions coming out of Solvoyo’s robust engine are displayed in a flexible and fully configurable User Interface.
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Case Studies

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