Demand Sensing: Why Is This Crucial and Poorly Understood?

Demand sensing is a powerful yet often misunderstood tool. Unlike traditional demand planning, which predicts future demand, demand sensing focuses on immediate trends, reducing forecast errors by 30% or more by analyzing orders, inventory, and sell-out data.

It’s easy to implement if you have open order information. Start with orders and add inventory and sell-out data if available but always combine them with orders.

Demand sensing examines order patterns and can include inventory or sell-out insights. This approach can reduce forecast errors by 30% to 40%, translating to a significant reduction in safety stock.

In this session, you will learn: