A new technology provider is aiming to bring advanced forecasting capabilities to an industry still heavily reliant on spreadsheets and static ERP rules. Lantern, a newly launched demand forecasting platform, uses machine learning to help distributors optimize purchasing decisions, reduce excess inventory and free up working capital.

Founded by Matt Rojas (CEO), Conor Leen (President), Jay Shitole (CTO) and Shaurya Rathore (Founding Engineer), Lantern was born out of research the team conducted at Stanford University, where they interviewed more than 200 distributors about their operational and technological pain points. The findings revealed a consistent challenge: balancing inventory investment and product availability across tens of thousands of SKUs without modern forecasting tools.

“Distributors told us the same story again and again,” Leen told MDM. “If they buy too much, they tie up millions in slow-moving inventory. If they buy too little, they miss critical sales. With AI, that cycle can finally be broken.”

Read all about the findings of Rojas and Leen’s research here on MDM.

Lantern’s system learns from a distributor’s historical sales and purchasing data, blending it with external inputs such as weather, regional demand shifts and regulatory changes to deliver daily purchasing recommendations. Unlike traditional models based on averages or preset ERP rules, Lantern’s AI detects cross-SKU and regional dependencies and evolves alongside customer and supplier behavior.

“Only giants like Amazon and Walmart have had access to this level of technology,” said Shitole. “We’re democratizing it for every distributor, no matter their size.”

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Early users, including Schaedler Yesco, R&E Supply, CAPP and Kele, have reported results such as up to 40% higher inventory turns and 99% fill rates, along with faster onboarding and smoother implementation. The company says the platform can also predict lead times, optimize order frequency, allocate safety stock and inform bulk purchasing decisions — all tuned to a distributor’s unique business rhythm.

Rojas said Lantern arrives at a critical time for the $8 trillion U.S. distribution sector. “Every distributor is under pressure from supply chain volatility, inflation and tighter capital,” he said. “AI-driven systems like Lantern are the next evolution in how the industry plans and purchases.”

Industry observers note that interest in AI-powered planning tools has surged in recent quarters as distributors face mounting pressure to modernize their tech stacks. With generational ownership transitions, private equity investment and an influx of new digital talent, the sector is increasingly seeking data-driven systems that improve working capital efficiency and decision-making speed.

Lantern’s leaders believe distributors are ready for that shift. “They’re watching AI transform every other industry and know their time has come,” Rojas said. “With Lantern, they don’t need data scientists — just a desire to win.”

Lantern is backed by Pear VC and a group of angel investors from within the distribution industry.

Learn more at www.lanternhq.com.