The partnership between LAPP and Merantix Momentum was centered around LAPP’s strategic initiative to accelerate their transition toward AI-powered forecasting and process optimization. 

The primary focus was on implementing AI for demand forecasting within their integrated business planning vision. Merantix Momentum launched a proof of concept (PoC) specifically targeting the LA EMEA region and organizations using SAP systems, to assess the feasibility of AI for enhancing forecasting accuracy. This collaborative effort aimed to demonstrate the potential of AI, determine the necessary data requirements, and establish integration strategies for optimizing business planning, thereby setting the stage for successful AI implementation across LAPP’s operations.

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To tackle the challenges faced by LAPP in demand forecasting and process optimization, Merantix Momentum adopted a probabilistic modeling approach. Unlike traditional models that provide a single forecast outcome, the probabilistic model developed by Merantix Momentum offers multiple potential future scenarios, each accompanied by uncertainty bounds.  

This approach allows for a more comprehensive understanding of possible outcomes, enabling LAPP to make more informed decisions by considering the range and likelihood of future events. This method not only enhances the accuracy of forecasts but also supports strategic planning with a robust analytical foundation.

The project proved that the advanced Probabilistic Demand Forecasting Model works effectively. This model helps improve decision-making by providing accurate forecasts and assessing risks, which is crucial for LAPP’s strategic planning. Merantix Momentum recommended using metrics that better matched LAPP's business goals and worked together to figure out the data and IT needs for integrating this system with SAP in a seamless way. The successful test showed the model’s potential and set the stage for further development and discussions about a comprehensive End-to-End (E2E) solution.