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Demand Sensing: Handling Current Market Demand Volatilities Aptly

Demand Sensing: Handling Current Market Demand Volatilities Aptly

By: Aiza Gill

What is Demand Sensing?

Demand sensing (as the name suggests) is the ability to detect demand signals which are usually accomplished by AI & ML powered bots. Also, computer vision & NLP augment the process of identifying subtle changes in the makeup of demand in supply chains. With consumers comes demand and the ever growing need to fulfill their needs plus wishes. Being responsive to such requirements through some platform such TradeEdge demand sensing is the key to growing a brand within a digital world framework. Forecasting sample predictions accurately, based on live statistical data and its extrapolation are literally a godsend for the many supply chain stakeholders out there. So much for intelligent algorithmic protocol!

What Contemporary Market Fluctuations Do Supply Chains Face?

Variations in demand can be unpredictable and include:

  • Consumer lag or loss of interest causes demand gaps which consequently induce supply chain aberrations. These can be offset with demand insights to better handle such volatility.
  • Inconsistent market expectations can create perplexity amongst suppliers and their resultant consumers, creating a supply-demand mismatch. Aligning these two factors is needed to restore the balance (typically by deploying demand sensing solutions)
  • Supply shortages due to geopolitical issues, including wars or manufacturing deficits.
  • Dynamic consumer demand, especially for products associated with seasonal variation, such as fashion, chilled food, specific tourist, or trip destinations and so on.
  • Logistical or worker discontinuity, owing to strike action, payment disputes, insufficient storage space in distribution centers and warehouses, plus a breakdown in traceability of shipments.
  • Lack of ownership when handling system-based integrity to ensure accuracy in real time to yield meaningful & reliable data.
  • Global competition and rapid technological evolvement (especially smartphones) both create a hostile environment amongst various contenders to remain abreast in such merciless industries.
  • Product personalization and upstream supply variability also contribute to ever changing demand rates.

These are the Main Causes of Demand Volatility.

How to Handle Such Market Volatilities With Demand Sensing?

  • Hypothetical preparedness via demand sensing software intelligence can really drive predictive analysis, thereby opening stakeholders to all future possibilities
  • Predictive forecasting (as aforementioned) to target unexpected scenarios in real time
  • Live responsive workflows ensure timely responses to surprise events to curb deviations and reduce processing time latency
  • Continual revision of the supply-demand landscape and high visibility notification alerts help workers to focus on pertinent data analytics to derive or extract useful information insights
  • Boost promotional and sales visibility with clearly well-timed publishing of offers to target audiences aptly
  • Reduce stock depletion by continually monitoring & matching data equipped intelligent pathways to ensure supply and demand alignment at all times

Demand Sensing in Supply Chains

Demand Sensing Software - ToolsGroup

Demand sensing from a supply chain perspective is imperative to ensure continuity of product or service flow. Demand sensing when market changes is what really determines the viability and versatility of supply chains to serve brands during unprecedented times. Be it supply shortages, item restrictions or economic disputes, the end result remains the same – interrupted output. Whether such events culminate into a complete stoppage of operations depends on how demand signals are (appropriately) handled to maximize any remedy and minimize disruption.

TradeEdge demand sensing is a prime product solution example of where decision grade analytics can inform stakeholders and guide them what to do and when – i.e., how to react to certain situations. The demand signals are detected, received, and then flagged for appropriate action. Agile workflows ensure quick responsive action and facilitate fidelity data production to drive efficiency rates. This promotes better productivity and reduces wastage, including avoiding ghost or phantom stocks as well as other associated inventory discrepancies.

Moreover, data harmonization ensures synced and synergized analysis across the board so that any stakeholder – be it the producer or consumer – can visualize what’s happening. This end-to-end transparency cements integrity within the supply chain. Finally, executive planning becomes easier so that customer preferences can be fulfilled, always prioritizing their needs and then wishes. What a great way to handle demand sensing!

Granular visibility and actionable insights drive supply chains in a ready-to-execute manner, fostering resilience against untoward events. In case production needs to cease due to overstocking or vice versa, such actions can be immediately implemented. This enables greater communication between all teams involved and ensures that the endpoint logistical output is always ready to deliver to consumers on or even before time. Punctuality and schedule adherence is the pinnacle in today’s market and any miss is frowned upon by customers – which is to be expected anyway. No surprises there.

The Future Of Demand Sensing In Supply Chains

As long as more and more brands accept the actual need to enhance existing processes with supply chain ordering, demand sensing will become commonplace. It’s set to revolutionize many existing processes in various industries to handle even the toughest situations within sensitive domains. Examples of this include the healthcare, medical and pharma industries who demand reactive solutions upon ordering emergency supplies…only the future will tell whether this smart solution will take the world by storm, acting as a technological savior!

Final Thoughts – Is The Case For Demand Sensing Conclusive?

Yes – demand sensing certainly is effective, although many brands are still yet to feel and witness the level of forecasting accuracy that it brings. The main issue is the (slow) adoption of such solutions and the consequent after effects of sluggish conventional practices. What is still considered acceptable are merely customary routes to fulfill a customer’s order. This works as:

order being placed > received, registered > then fed into a demand system which matches the supply availability of that product > and releasing it for shipment

The problem is that issues arise when that order cannot be fulfilled due to a mismatch in availability or supply. Demand sensing fixes this by already predicting customer trends and in case there’s a supply shortfall, directly communicating that via the demand signal to the producer to request for more supply on demand. This scales up the entire chain to fulfill all customer demand – ideally and theoretically, a win-win situation.

Nevertheless, demand sensing still faces its own challenges with a share of brands who aren’t prepared to supply on demand or lag in their response. As this becomes the accepted mainstay of supply chain operations, it’s yet to be seen how brands reinvent themselves to serve the contemporary consumer who usually expects nothing less than perfection. Then it’s a fair game.

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