19.11.2020 – Datapred – based at EPFL Innovation Park, developed a machine learning software for direct material procurement, enabling their clients to make better decisions and to reduce costs, which the Covid-crisis has made crucial. The Foundation for Technological Innovation (FIT) has chosen to support Datapred with a Tech Growth loan of CHF 500’000.
Industrial buyers of raw materials face a tough environment, with major pressure for cost savings, high market volatility, and mountains of data to be analyzed, slowing execution down and leaving no time for strategic thinking. By bringing about a tough economic context, the current pandemic has even exacerbated these challenges: “The Covid-19 crisis is having a violent impact on energy and raw material markets, but the traditional concept of price volatility doesn’t capture the many aspects of that instability, and is actually misleading in some cases. Chief Procurement Officers need finer insights to optimize buying decisions in the post Covid-19 world”, explains Thomas Oriol, director of Datapred.
If you are buying spot, when and how much should you buy? What is the optimal mix between spot and term-based contracts? How should you structure the price adjustment mechanism of your term-based contracts? Understanding market drivers and anticipating price trends are key to answering these questions. So is considering your industrial constraints, like expected demand, production schedules, inventory capacity, lead times… With its machine learning software, the start-up helps industrial buyers of raw materials centralize tens of internal and external data streams and make better buying decisions, saving up to 5% of their raw material spend, year over year.
Datapred was co-founded in 2017 by Nicolas Mahler, an engineer with a PhD in Machine Learning and an experience in market finance, and Thomas Oriol, a tech entrepreneur with a background in economics and investment banking. Two years later, in 2019, Datapred was named a Cool Vendor by Gartner and won the international machine learning competition organized by Airbus. In 2020, the start-up is among the Top 50 Companies to Watch by Spend Matters and closed its first institutional fundraising round with Berlin-based JOIN Capital. The FIT Growth loan follows this investment round. For its further development, Datapred plans on expanding internationally with a focus on Germany, and the FIT loan will help the expansion.
Source : FIT Press release
Picture: Datapred team (c) Datapred 2020
Co-founder and director