Papers

Demand Sensing Solution Utilizes Real-Time Data to Predict Near-Term Demand

This paper details why companies that use demand sensing receive the best forecast for response and execution time horizons, it also provides research from Nucleus about demystifying demand sensing. By E2open

November 21, 2018

Fast-moving trends and changes in consumer behavior make it critical to track demand closely.

Traditional demand planning techniques were developed decades ago when distribution channels were few and history was a relevant predictor of future events. Today this method is insufficient, and there are a number of obstacles to predicting near-term demand:

  • Volatility driven by changes in consumer preferences and social sentiment
  • Growth-through-innovation strategies and rapid stockkeeping unit (SKU) proliferation
  • Promotions and marketing programs designed to shape consumer behavior and change buying patterns
  • Omni-channel and e-commerce strategies that disrupt traditional distribution and make historical orders even less relevant to future demand

Instead of relying on historical information, E2open Demand Sensing uses real-time data across the supply chain to accurately predict near-term demand for make-to-stock products.

The result is a 30 to 40 percent improvement in short-term forecast accuracy compared to traditional time series approaches. Field-proven with more than a decade of use in over 180 countries for $250 billion in annual sales volume, the solution is a core part of the demand-driven digital transformation strategies of leading global companies.


Log in to download this paper.
Auto-login on future visits.
Forgot your password? · Not a member? Register today!

What’s Related

Resources

Control Tower Technology Value Matrix 2018
In this Value Matrix report, Nucleus evaluated the control market vendors based on their product usability and functionality and the value that…
Demand Sensing Solution Utilizes Real-Time Data to Predict Near-Term Demand
This paper details why companies that use demand sensing receive the best forecast for response and execution time horizons, it also provides…
Achieving End-to-End Visibility in Your Supply Chain
To run today’s supply chains requires a new paradigm, one that extends what ERP has done for the company within its four walls to the new reality…
More Resources