Predicting prices of services, products and commodities through machine learning
Why use AI for Price Prediction
Predicting the evolution of prices is notoriously hard. For example, a raw material’s price can be influenced by several variables and precursors, that sometimes have never happened. Kantify has developed an AI model and technique to predict materials prices (for example in the petrochemical industry) with a high accuracy over time.
Higher accuracy : Limit surprises
Prices can be volatile, or just very difficult to predict in the long run. This is why Kantify has developed an AI model that has beaten existing forecasts on numerous occasions. By adapting our model on your data sources, Kantify can enable you to be the only one in your industry to identify the main drivers of a given price, predict how the prices will evolve, and enable you to plan accordingly.
Adjust your procurement or sales strategy
When negotiating sales or procurement contracts, or planning your production, knowing how the prices will evolve in the future can give you a competitive edge over your competitors, clients, or suppliers. For example, by knowing the evolution of a price you will be able to purchase more when the price is at a year low.
Focus your efforts on strategy and decision-making instead of research
Traditional forecasting methods often have limited accuracy. This is why taking a decision based on these forecasts can be a difficult task. By providing you a reliable forecast, our price forecast solution can enable you to focus on strategy and decision, and enable easier decision making throughout the organization. .
One of our latest case studies is a price prediction model for a company active in the petrochemical industry.
The company was faced with volatile material prices. Traditional forecast methods did not manage to produce accurate figures. Our client’s need for accurate price prediction was two fold. On the one hand, identify the drivers behind price changes. On the other hand, have a more accurate prediction of what the price would be in the following months.
Kantify developed an AI based solution in order to enable our client to have a more accurate prediction of the past, week by week, over a 3 month period. Our solution identifies what are the drivers of price evolution. Employees can also generate what-if analysis as well to understand how prices will evolve if certain parameters change (such as production volumes).
For this project we were put into competition with other companies and we could provide the highest accuracy of them all. See by yourself; we areable to predict the price of a material 3 months in advance with an accuracy of 97%.
Are you interested to learn more ? Just get in touch.