It all started in 1976 with a young MIT master’s graduate and a major inventory problem.
Eugenio Cornacchia joined MIT-associated Draper Lab to help Fiat Automotive’s spare parts division fix their unmanageable inventories and service levels which was one of the lowest in the European automobile industry. He realized that their traditional inventory theory wasn’t up to the challenge of the real world. So, he brought together a group of talented MIT graduates and together they invented a new spare parts system in less than a year. It was the world’s first “stochastic” software that incorporated probability-based algorithms across an entire supply chain planning system. Fiat was happy. The company increased its service levels to “best in class” 92% while carrying less than two months of inventory.
Then in 1980, Cornacchia met Joseph Shamir, and the two made history.
Working together at ITP, they pioneered the concept of “factories of the future” and paved the way for the Factory 4.0 movement. Finally in 1993, it was time to bring their innovative supply chain planning model to market. Using the same approach that had turned Fiat service levels around, Cornacchia and Shamir launched ToolsGroup. It was the first service-driven supply chain planning and automation software for the commercial market.
Today, ToolsGroup is still finding new ways to help organizations keep up with the shifting trends and unpredictable demands of the real world.
As we’ve grown, we’ve continued to push the boundaries on what’s possible, such as pioneering the use of machine learning and AI years ahead of its time. We’re now helping companies in every major region predict more behaviors, protect against surprises, and perform more efficiently in a constantly changing global economy.