The supply chain landscape has faced significant upheaval since 2020, primarily due to the disruptions caused by COVID-19 which affected traditional global supply chains. Recently, the trend dubbed “TikTok-ification” in retail has given rise to companies like Shein and Temu, which continually innovate their product offerings to keep pace with rapidly changing consumer preferences.
Pendulum is on a mission to enhance how businesses forecast supply and demand within this emerging on-demand economy.
The platform developed by Pendulum consolidates disparate internal data sources—such as inventory, procurement, and pricing—into a cohesive AI-driven framework that assists businesses in predicting and refining their supply and demand dynamics.
Benjamin Fels, co-founder and CEO, emphasized in an interview with TechCrunch that getting supply and demand aligned is crucial for companies seeking to bolster their profit margins and minimize waste. “The most impactful action a retailer can take to enhance sustainability is to accurately balance supply with demand,” Fels explained. “If you understand precisely what your customers are seeking, you can significantly lower your carbon footprint while greatly increasing your margins.”
Benjamin conceived Pendulum while working for several years on a derivatives trading floor, where he led teams in creating AI-based predictive tools for financial supply and demand. He speculated whether this methodology could be just as effective within the realm of supply chains.
In June 2013, he co-founded Macro-Eyes with Suvrit Sra at MIT to explore this idea. The duo invested years into research and development to validate their concepts. Upon preparing for commercialization and seeking institutional investment in 2023, they rebranded the company as Pendulum.
Pendulum is now serving a diverse clientele ranging from retail to healthcare and national defense, with notable customers including Adore Me, owned by Victoria’s Secret, and the U.S. Department of Defense.
Pendulum recently disclosed a successful funding round totaling $22 million, which comprises $11 million in non-dilutive funding directed towards research and development, and another $11 million in venture capital from investors like Lowercarbon Capital, Cross-Border Impact Ventures, and Decisive Point, among others. Fels indicated that the investment will be channeled towards scaling their services for a fundamental customer base, expanding their customer outreach, and refining their product offerings.
On top of the funding announcement, Pendulum revealed that Jean-François Gagné, the co-founder of Element AI—a company acquired by ServiceNow in 2020 for $230 million—will join as the chief strategy and product officer.
Fels remarked, “I realized that JF not only brought valuable insights in implementing AI in enterprises, but also possessed a rich background in supply chain and vital optimization challenges. After several in-depth discussions, it became clear that JF was the perfect fit to drive our product vision and develop our scaling strategy.”
The tech sector focusing on supply chains has surged in popularity ever since the pandemic exposed the vulnerabilities within global supply networks. According to Fels, Pendulum distinguishes itself through its algorithmic solutions developed over a decade of dedicated research and development.
“For thousands of years, attempts at optimizing supply chains have been made,” Fels noted. “However, in recent years, the volatility and uncertainty surrounding both supply and demand have impacted every retailer and organization connected to supply chains profoundly. We believed that this situation warranted a fundamentally different approach.”
Compiled by Techarena.au.
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