Powerfully Simple Demand Sensing
Demand Sensing allows you to incorporate detailed short-term demand data into your forecasts to reduce forecast error by up to 30-50% and increase inventory accuracy by up to 10-20%.
Downstream data, such as customer and channel data, is employed to identify demand trends, provide advanced warning of problems, and remove the latency between plan and what is really happening in the supply chain. The quicker deviations can be identified, the quicker and more intelligently a company can respond.
Demand Sensing imports fresh daily demand data, immediately senses demand signal changes compared to a detailed statistical demand pattern, and evaluates the statistical significance of the change. It analyzes partial period actual demand to perform automatic short-term forecast adjustments using probabilistic pattern recognitionand predictive analytics. Advanced statistical analytics identify and rapidly react to replenishment issues or sudden changes in customer demand.
ToolsGroup’s Demand Sensing can analyze the demand signal from:
• the next downstream step in your demand chain, such as at a store or warehouse
• further downstream, such as POS data or EDI transactions, expanding the ability to sense the extended supply chain
• more advanced sources of unstructured “big data” in Demand Signal Repositories (DSRs), such as macroeconomic trends, social media and customer web behaviour. (See also ToolsGroup’s Promotion Forecasting)
For a complete description of our Demand Sensing solution and our customer experience, please contact the ToolsGroup office nearest you.