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On - Forecasting Discussion (Giannis/Federico) - 2026-01-30

Metadata

  • Date: 2026-01-30
  • Company: On
  • Attendees: Federico Morando, Art Koci, Simon Jonsson, Giannis
  • Type: Customer Call
  • Source: Notion Customer Success Meetings

Summary

Forecasting Model Architecture Overview

  • Current V2: global setting -> entities -> accounts -> categories with transactions
  • Forecasting at transaction-level categories, then ensembling for better category predictions
  • Bottom-up reconciliation using neural, statistical, ML and deep learning models
  • Model selection based on 13-month historical performance evaluation
  • V3 planned: multi-level scenario planning, human-interactive assumptions, more sophisticated modeling

Federico's Presentation Goals & Timeline

  • Final month at On Running — building case for Palm's continued partnership
  • Presentation to senior director (Christoph) end of January
  • Content: technical deep-dive, 8-week Palm vs Kyriba accuracy comparison, accuracy across forecast horizons
  • Check-in scheduled February 11th

Model Performance & Improvement Process

  • 181% improvement in VMAPE across global level
  • Clustering approach: categories grouped by characteristics (volatility, density, sparsity)
  • Different treatments per cluster type
  • Upcoming dashboard features: VMAPE, weighted MAPE, scaled MAPE, signal-to-noise ratio, mean absolute error, exportable data

Integration Priorities

  • BigQuery integration critical for AP/AR data to improve model accuracy
  • Cash pool forecasting identified as major gap — needs better categorization, country-specific considerations
  • APAC and Brazil particularly challenging
  • IC transaction forecasting in development pipeline

Synced from Notion: https://www.notion.so/2f8c47335ffb81238669c93e48ad7f3b