New Investment: GenLots, a Swiss-based startup that has optimized supply planning
We’re excited to be backing GenLots, a Swiss-based startup that uses machine learning SaaS to optimize supply planning, saving up to 30% on inventory values and 50% on inbound logistics costs.
Supply planning is the process of ordering materials (or parts, or components) for production. As simple as that. A building block of any manufacturing company’s profitability as you might imagine. But it sounds too simple and obvious, and it must be done already.
The reality? It hasn’t changed in 30 years since the emergence of the first ERPs and a central component called MRP - for Material Requirement Planning. It is still largely handled through that process which doesn’t show the costs involved. Oh - and through Excel sheets flying around which often differ from one site to the other within the same company.
The catch? With this system, people can’t measure the performance of the way they place orders. Without inventories going through the roof or repeated stockouts, as long as materials arrive on-site, performance gaps go unnoticed. However, this comes at a price, namely millions in hidden losses, given the sizable budgets tied in purchasing.
GenLots is the first platform fully dedicated to supply planning.
They do it through a combination of a new costing model and self-made reinforcement learning, which builds optimal supply strategies, breaking down the financial impact of planning decisions in real-time and drawing simulations on purchasing parameters and more.
With this, GenLots achieves up to 50% reduction in inbound deliveries (which positively impacts the CO2 footprint), up to 30% reduction in inventory, and leverages discounts negotiated by procurement departments. These results become visible within three months as GenLots is served by rapid integration - as SAP Silver Partner.
Furthermore, GenLots enhances the experience for supply planners and their colleagues in related departments and helps create a standard throughout the company.
The Team behind GenLots
GenLot’s idea was originally crafted by Simon Schenker while studying at ETH Zürich. Convinced by the untapped potential, fellow entrepreneur Arnaud teamed up to create GenLots, now headquartered close to Geneva, Switzerland.
They benefit from the active support of Professor and Dr. Stephan Wagner, chair of logistics management at ETHZ - and regarded as one of the top supply chain experts worldwide.
The Partnership with Plug and Play
As GenLots’ traction accelerates amidst renewed interest for supply chain resilience, and their product proves easier to implement, Plug and Play joins the team on their dynamic journey in February 2022, supporting with financial participation and connecting their network of corporate partners.