Demand-sensing software solutions can help business planners accurately plan their operations and avoid any disruptions in their supply chain. This helps businesses in enhancing their productivity and enhance customer experience.
Home > Insight> Top Reasons for Using Demand-Sensing Software
Demand sensing is used by businesses to determine short-term demand terms. This short-term refers to a time span ranging from 4 to 12 weeks. As forecasting techniques focus on long-term demand patterns, it is difficult for businesses to adjust their operation for rapidly changing demand trends based on the forecasting data. The demand forecasting techniques analyze the sales data from last year’s sales. In contrast, demand sensing techniques use real-time data from different sources such as POS, weather, and other factors and predict demand on a weekly and even daily basis. This allows businesses to adjust their operations according to the rapid fluctuations in demand trends. For more efficiency and accuracy in sensing short-term demand trends, businesses need intelligent and agile solutions that can provide real-time insights into the demand trends in the near future.
Demand sensing software is an online platform that extracts data from different data sources, such as POS sales. It analyses them to accurately predict demand fluctuations in the short term. The software uses artificial intelligence and machine learning techniques to analyze huge amounts of data in real time. It gives insights that can help planners to plan their operations to meet customer requirements in the short term.Digital Demand Sensing
The software solution for sensing demand keeps track of every node of the supply chain network. It predicts the demand daily, providing supply chain planners with the agility required to plan their operations precisely according to emerging demand trends. This also helps optimize inventory levels and reduce losses because of overstocking or stockouts.
Here are the top reasons to use software solutions for demand sensing.
Using software tools for demand prediction increases the accuracy of demand forecasts by 15% to 40%. This ensures more reliable short-term demand forecast data enabling planners to reduce their inventory by 10% to 30%. This way, businesses can avoid stockouts and serve customers better.
The demand sensing technology provides real-time data about short-term demand and sales trends. When the planners have exact relevant data from the PoS in real-time, it becomes easier for them to improve their sales forecast and planning without the need for data from distributors and retailers. When earlier demand insights are received, it is easier for planners to reduce expediting and create more accurate short-term plans.
Having the right product in the wrong place can harm the business. Demand-sensing software can help optimize the in-stock inventory and ensure a better balance of the supply chain network. The demand-sensing process considers not only regional warehouse inventory but also the upcoming expected customer demands.
The demand-sensing solutions provide more insights into factors affecting demand, such as weather and promotions, that impact the normal seasonal demand trends. This helps planners quickly anticipate and react dynamically. This expands the visibility of the distribution network resulting in lower demand latency and an optimally driven supply chain network.
Obtaining real-time PoS data along with promotion attributes, products, and market data helps understand the promotion performance and enables better demand forecasts, which can use for uplifting future promotions.
3SC offers an agile and intelligent planning solution that uses advanced AI-based algorithms and provides accurate short-term demand-sensing data. Using advanced analytics, it optimally allocates stock and helps businesses significantly cut down inventory and obsolescence. Along with that, it allows business planners to design operations to reduce demand latency and enhance the quality of customer service. Get in touch with our experts to know more.