Demand Sensing Software
As demand volatility reaches unprecedented levels, reacting rapidly to changing trends is crucial. The fast-paced nature of internet-driven consumer expectations combined with volatility due to pricing strategies, new product launches, and promotions demands agility. ToolsGroup’s Demand Sensing Software manages demand variability by extracting signals from noisy data, helping businesses react faster to downstream demand and minimize the impact of demand fluctuations.
Demand sensing provides an immediate advantage by allowing you to adjust to changes in real time, keeping your stock levels responsive to actual market needs and helping avoid both overstock and stockouts.Improve service and reduce inventory with demand sensing
React faster to market changes
By leveraging demand sensing, ToolsGroup clients have improved forecast accuracy by 15-40%, reduced inventory by 10-30%, and boosted customer service levels by 2-5 percentage points. Stay ahead of market shifts and react promptly with real-time demand insights. Faster reactions to market changes mean less inventory risk and greater operational agility, making it easier to keep pace with competitors and maintain optimal service levels.
Reduce downstream demand latency
Extract valuable insights directly from PoS data to enhance sales forecasts without waiting for distributor or retailer updates. Early access to demand insights allows you to create more accurate short-term plans, reducing the need for expedited orders. By accessing real-time sales insights, you can adjust production and delivery schedules on the fly, leading to improved accuracy in short-term planning and reducing costly last-minute adjustments.
Optimize in-stock inventory
If your inventory is in the wrong location, demand sensing software dynamically optimizes stock and balances your supply network. It evaluates not only warehouse inventory but also real-time customer demand signals, enabling you to adjust inventory placement effectively. This smart adjustment of inventory placement means customers get what they need faster, reducing delivery times and enhancing satisfaction without overstocking.
Generate more accurate seasonal forecasts
Gain rapid insights into demand influencers like weather and promotions that can disrupt typical seasonal demand patterns. By expanding visibility across the distribution network, demand sensing minimizes latency and enhances supply chain efficiency, ensuring the right products are available at the right time. Detailed seasonal forecasting means less guesswork, with the ability to fine-tune stock levels and adapt quickly to seasonal shifts, lowering excess inventory and preventing stock shortages.
Understand promotion performance
Use AI to automatically leverage sell-in data such as promotion attributes, product details, and market information to better understand the impact of promotional activities and forecast future demand more accurately. Enhanced promotional insights allow for better planning and adjustment of inventory to match promotional demand, reducing the risk of stockouts or overstocking during campaigns.
"We introduced statistical forecasting to calculate baseline demand and equipped our team with tools to plan demand uplift during campaigns. We also optimized replenishment procedures and collaboration with suppliers. Amplifon's success illustrates how adapting inventory to real-time data can improve service while lowering costs, offering a competitive edge in customer satisfaction and operational efficiency."
Alessandro Nobile,
Group Purchasing and Supply Chain Director
- Optimized stock allocation using short-term demand sensing data
- Reduced inventory levels by 18% and obsolescence by 40%
- Significantly improved customer service quality
Key Features of Demand Sensing Software
Short-Term Forecasting
ToolsGroup’s SO99+ software analyzes granular daily demand data as close to the end customer as possible, providing instant insights into changing demand behavior and helping you stay agile in an unpredictable market. This feature enables fast adjustments to day-to-day shifts in demand, keeping inventory levels aligned with actual market needs and reducing excess.
Incorporate Sell-Out/PoS Data
By gaining visibility into downstream data, such as sell-out and PoS information, you can quickly identify demand trends, detect issues early, and bridge the gap between your supply chain plan and real-time market activity. Access to sell-out data provides an up-to-the-minute view of demand, allowing for timely responses that support strategic decisions in inventory placement.
Layer External Demand Causals
Demand sensing uses machine learning to incorporate external factors, including promotions, social media trends, weather conditions, and new product introductions. These variables ensure your forecasts accurately reflect shifting market conditions, so you’re always prepared for what’s next. By considering external factors, the software adapts forecasts to real-world influences, enhancing forecasting accuracy and making inventory planning more resilient.