How to predict raw plastic material prices with an accuracy over 90%?

Challenge:

An international plastic pipe supplier wanted to have a solution that could help their procurement management team to predict raw plastic prices for the near future so that they can use these valuable insights in their contract negotiation with suppliers.

Provided solution:

Decision helping model that predicts raw plastic prices 2 months ahead with an accuracy of more than 90% and improves purchasing performance.

Technologies used: Azure, Docker, Python, SAP

Do you know how prices are generated for raw plastic materials? These prices highly depend on crude oil derivatives prices and various business, political and economic indicators. That is what we found out while making an unique AI solution for our customer, a international leading supplier of plastic pipe systems and solutions active in +40 countries.

Together with our partner Qando we created a pilot, an AI solution, that enables the customer to predict raw plastic material prices with an accuracy over 90%. Quite impressive, right?

Read the entire blogpost here.