Core Mission and Technology Focus

The primary objective of Paretos is to "democratize data science." By providing an accessible "Decision Meta Model," the company enables medium-sized businesses and large corporations to leverage advanced predictive and prescriptive analytics?technologies previously accessible only to tech giants with massive internal data science teams.

The "Socrates" Algorithm

Paretos utilizes a proprietary, patented optimization algorithm named Socrates. This engine is designed for Multi-Objective Optimization (MOO), meaning it can simultaneously solve for multiple, often conflicting, business goals (e.g., maximizing profit while minimizing CO2 emissions or inventory costs). * Efficiency: Socrates is reportedly up to 65% more efficient than standard industry algorithms like NSGA-II. * Pareto-Optimal Solutions: The system identifies "Pareto-optimal" outcomes?scenarios where no single goal can be improved without sacrificing another?allowing leaders to choose the best strategic trade-off.

The Decision Intelligence Lifecycle

The platform moves beyond traditional Business Intelligence (BI) by addressing the entire decision-making loop: 1. Prediction: Highly accurate demand and trend forecasting using machine learning and deep learning. 2. Simulation (Digital Twin): Creating a virtual model of business processes to test "what-if" scenarios. 3. Optimization: Recommending specific actions (prescriptive analytics) to achieve target KPIs. 4. Automation: Executing decisions directly into third-party systems like SAP, Shopify, or Salesforce.

Products and Services

1. Paretos Decision Intelligence Platform

The core SaaS platform is a browser-based tool that integrates with existing corporate IT stacks. It is designed to be user-friendly, featuring interactive dashboards that visualize complex correlations and impact analyses.

• AI-Driven Demand Forecasting: Automates the selection of the best statistical model for a company's specific data, increasing planning reliability by an average of 40%.
• Scenario Analysis & Simulation: Allows users to compare different replenishment or pricing strategies before implementation.
• Proactive Alerts: Notifications regarding critical anomalies or market changes that require immediate attention.

2. Specialized Supply Chain Solutions

Paretos offers specialized configurations tailored for the most common bottlenecks in retail, manufacturing, and logistics.

• Replenishment Planning: Automates reordering processes for e-commerce and retail, reducing "out-of-stock" instances by up to 80% and minimizing expensive safety stocks.
• Inventory & Warehouse Optimization: Realigns inventory distribution across multiple depots to ensure that goods are as close to the end customer as possible, reducing logistics costs and delivery times.
• Resource and Workforce Planning: Uses predictive analytics to align staffing and machine throughput with expected volume, particularly useful for logistics centers and production facilities.

3. Pricing and Customer Intelligence

• Dynamic Pricing: Adjusts product prices in real-time based on competitor activity, market demand, and inventory levels to maximize margin or market share.
• Personalized Recommendations: Provides AI-generated cross-selling and upselling suggestions based on individual customer behavior and impact analysis.

4. Integration and Professional Services

• Seamless Connectivity: The platform features over 50 "out-of-the-box" integrations, including BigQuery, Snowflake, SAP Business One, and various Amazon/Google advertising tools.
• Strategy Consulting: Paretos provides expert guidance to help organizations transition from a manual, "gut-feeling" culture to a data-driven, automated operational model.

Strategic Impact and Success Stories

As of early 2026, Paretos has established itself as a market leader in the European DI space, recently closing an ?8.5 million Series A funding round led by Acton Capital. The platform is utilized by "Industry Champions" to drive measurable ROI:

• HelloFresh: Uses Paretos to level-load machine throughput and optimize production planning, significantly reducing manual labor hours.
• Hermes Germany: Improved forecast accuracy by 6 million parcels per quarter, leading to a massive reduction in last-minute, high-cost truck capacity procurement.
• Otto Group: Implemented nearly fully automated forecasting for various group companies, enhancing the quality of predictions across diverse product categories.
• EDEKA: Leverages the platform for demand-oriented article disposition in its grocery supply chain.

Leadership and Recognition

The company is led by its founders: * Thorsten Heilig (CEO): An expert in organizational transformation and co-author of the definitive work "Decision Intelligence" (Wiley Publishing). * Fabian Rang (CTO): The architect of the Socrates algorithm and a specialist in advanced machine learning.

Gartner has recognized Paretos as one of only a few representative European Decision Intelligence providers, highlighting its role in the global expansion of this technology.