Lokad

Lokad, founded by Joannes Vermorel, is a supply chain optimization software company that specializes in probabilistic forecasting and decision automation.

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Lokad provides AI-powered software to optimize supply chain decisions through probabilistic forecasting and automation.

Lokad, founded by Joannes Vermorel, is a supply chain optimization software company that specializes in probabilistic forecasting and decision automation. The company’s platform leverages advanced mathematical models to help businesses optimize inventory, pricing, and supply chain operations. Lokad’s approach is rooted in probabilistic forecasting, which allows companies to model uncertainty and make data-driven decisions.

The company has optimized over $20 billion worth of merchandise, serving industries such as retail, aerospace, automotive, fashion, and oil & gas. Lokad’s solutions are designed to integrate seamlessly with existing IT systems, enabling clients to automate supply chain decisions without overhauling their current processes. The company emphasizes financial optimization, focusing on metrics like rate of return (RoR) to guide decision-making.

Lokad’s client base includes notable names like Air France Industries, Trek, Celio, and Worten. The company has positioned itself as a challenger to traditional supply chain planning solutions, offering a flat subscription model with unlimited users and decision automation. Lokad’s market research series critiques established frameworks like Gartner’s Magic Quadrant, advocating for a more evidence-driven approach to supply chain optimization. Recent developments include the publication of detailed market studies comparing Lokad’s offerings to competitors like SAP IBP, highlighting cost advantages and technical capabilities.

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Who buys this

  • Retailers managing complex inventory and demand forecasting
  • Aerospace companies optimizing spare parts and maintenance
  • Automotive aftermarket businesses balancing part availability
  • Fashion brands managing seasonal collections and markdowns
  • Oil & gas companies optimizing maintenance and spare parts

Publicly disclosed clients

  • Air France Industries
  • Trek
  • Celio
  • Worten

Strengths and what to watch

Strengths

  • Probabilistic forecasting models that accurately account for uncertainty
  • Seamless integration with existing IT systems without requiring process changes
  • Flat subscription model with unlimited users and decision automation

Watch for

  • Competition from established players like SAP IBP and Dassault Systèmes
  • Complexity in scaling solutions across diverse industries
  • Dependence on client data quality for accurate forecasting

Key Information

Headquarters
Paris, Ile-de-France, France

Frequently Asked Questions

What is Lokad and what does it do?

Lokad provides AI-powered supply chain optimization software specializing in probabilistic forecasting and decision automation. It helps businesses optimize inventory, pricing, and operations by modeling uncertainty. The platform integrates with existing IT systems and has optimized over $20 billion in merchandise across retail, aerospace, and other industries.

How does Lokad's probabilistic forecasting work?

Lokad's forecasting models account for supply chain uncertainties using advanced mathematics. Unlike traditional methods, it quantifies probabilities of different outcomes, enabling data-driven decisions. This approach helps businesses prepare for demand fluctuations, manage inventory risks, and optimize financial outcomes through rate-of-return analysis.

Which industries use Lokad's supply chain software?

Lokad serves retail (inventory forecasting), aerospace (spare parts), automotive (aftermarket), fashion (seasonal collections), and oil & gas (maintenance). Clients include Air France Industries, Trek, and Worten. Each industry benefits from customized probabilistic models for their specific supply chain challenges.

How does Lokad integrate with existing systems?

Lokad's platform connects seamlessly to current IT infrastructure without process overhauls. It automates supply chain decisions while working alongside ERP and other systems. The flat subscription model includes unlimited users, making adoption easier compared to per-user licensing of traditional solutions.

How does Lokad compare to SAP IBP?

Lokad positions itself as a challenger to SAP IBP, emphasizing probabilistic forecasting over deterministic planning. Its market research highlights cost advantages and technical capabilities in handling uncertainty. Lokad's subscription model contrasts with SAP's traditional enterprise licensing approach.

What metrics does Lokad optimize for?

Lokad focuses on financial outcomes, particularly rate of return (RoR), rather than just operational KPIs. This approach aligns supply chain decisions with business profitability, considering factors like inventory costs, service levels, and demand uncertainty in a unified financial framework.

Sources

  1. www.lokad.com — Market research comparing Lokad to competitors like SAP IBP
  2. www.lokad.com — List of 130+ supply chain software vendors including Lokad
  3. www.lokad.com — Overview of Lokad’s supply chain optimization modules
  4. www.lokad.com — Lokad’s emphasis on rate of return (RoR) as a key metric