How demand sensing helps conquer FMCG supply chain chaos
Published by RELEX
COVID-19. High inflation. Market uncertainty.
Consumer goods companies remain under pressure to maintain some semblance of control over their supply chain even after years of intense disruption. The manual forecasting processes many companies use to stay centered through the chaos have been pushed past their limits. Consumer demand is constantly shifting based on the latest gloomy economic projections, leaving companies reliant on forecasts based on historical order data unable to accurately predict even the immediate future.
Companies looking to get out from under the immense strain of these disruptions have increasingly turned to demand sensing to do so. Demand sensing refers to the practice of integrating internal data with retailer point-of-sale (POS) data and other external data sources to create and adjust short-term forecasts. The inclusion of external data and the use of machine learning software helps companies “sense” what’s happening regarding consumer demand and make changes accordingly. Forecasts built using demand sensing solutions achieve better accuracy and adjustment times than ones created using traditional forecasting processes.
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