Demand Sensing

Demand sensing is a technique used in demand planning to improve the accuracy of forecasts by using real-time data. Instead of relying solely on historical sales data, it incorporates current market trends, customer behavior, and events like promotions or seasonality. This approach allows businesses to quickly adjust their production and inventory levels in response to actual demand signals, ensuring they meet customer needs more effectively. By sensing changes in demand earlier, companies can reduce excess stock or shortages, leading to better efficiency and customer satisfaction.