Background
Our client is a chemical company based in Austria and ranks among the world’s leading producers of polyethylene (PE) and polypropylene (PP), with 6.900 employees working across more than 120 countries. The company specializes in polyolefin, base chemicals and fertilizer solutions that it produces and distributes.
Challenge
To be successful in a challenging and complicated market, it is essential to adapt quickly to changing product prices. It demands a good knowledge of the movements of raw material markets, especially when those markets are now more volatile than ever.
Approach
• Gather as many data sources as you can (internal or/and external) and create a dataset that will leverage AI techniques. • Use Tangent Work’s cutting-edge timeseries predictive engine to feed that dataset and choose the best model from a range of automatically trained models. • Convert the results of the algorithm and present them in a user-friendly application, enabling the client to see the projected prices and key market drivers so that they can adjust their pricing process.
Key results
Benefits
Our client used a state-of-the-art AI model, which uncovered insights and market drivers that were not visible before. The solution also showed a strong ability to predict both short-term (1 month) and mid-term (3 months) prices, which helped them use this information in their pricing decision. It also gave our client a tool to analyze the causes of historical data, which enhanced their knowledge of the markets.
Technology partners
Tangent Works
Tangent Works specializes in automated predictive model-building engines. They automate forecasting and anomaly detection using time series data analysis, generating accurate models based on detected patterns.
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