Being a demand planner is challenging. Period.
The role demands accurate forecasting amidst constant market changes. Relying on outdated tools and/or spreadsheets might just about work for long-term planning, but they fall short in handling sudden demand shifts and market disruptions.
Moreover, using only historical data to forecast demand is limited. Factors like seasonality, weather, and geopolitical conditions also influence demand, and ignoring these can compromise the accuracy of your forecasts.
This is where advanced demand sensing software can make a difference:
- It leverages real-time data to predict short-term demand, enabling quicker responses to market changes.
- It provides more immediate forecasts, ranging from days to even hours.
- It combines historical internal data with external factors like seasonality to offer a clearer, more accurate picture of demand.
Best Demand Sensing Software in 2025
The best demand sensing software to watch out for in 2025 are:
- Spreadsheets! (Don’t jump to any conclusion before you read the details below)
- ThroughPut AI
- O9 Solutions
- E2Open
- Kinaxis
- Solvoyo
- Logility
- Arkieva
- AWS
- RELEX
1. Spreadsheets?!
No, spreadsheets are NOT meant for demand sensing. Spreadsheets have been a great help. These are great to start with and handle small datasets. But real-time insights? Data integration? Advanced analytics? Spreadsheets are not designed with these features.
That’s why it fails when it comes to sensing near-term and real-time demands.
The simple reason why the spreadsheet is on our list here is as a reminder that it is time to step out of the spreadsheet comfort zone. In this era of new-age technologies, there are multiple innovative solutions available in the market.
If you have a local business with a small setup and limited product lines and restricted locations, like one store in one location, spreadsheets may be the ideal solution. But if your business dynamics are complex, and you wish to grow fast, it is time to look at the other tools listed here.
2. ThroughPut AI
With the help of advanced multiplicative regression algorithms, ThroughPut AI integrates external variables with internal data to deliver real-time demand sensing. It factors critical elements like market trends, weather patterns, holidays, and promotions to offer highly accurate demand forecasts, empowering data-driven decisions. This approach allows for rapid adaptation to market shifts, optimizing supply chain performance and boosting operational efficiency.
The platform is also a robust ready–to–plug–and–play data-driven forecasting tool. It supports faster and more accurate analysis and correlation of demand insights, while effectively managing fluctuating margins and inventory needs. It is considered the one of the best demand-sensing software in 2025 and a reliable solution for staying agile in a dynamic market environment.
Features
- Accurately identifies, predicts, and measures near-future demand patterns
- A 360-degree view of demand plans and data at your fingertips
- ABC|XYZ segmentation of sellable products
- Throughput rate tracking, focusing on OTIF and OSA per segment
- Product mix analysis month-over-month
Benefits
- SKU-level demand insights in real-time
- Actionable recommendations depending on real-time demand
- Analysis of internal and external variables
- Monitor shifting market sentiments
- Reduce Operational Wastages
3. O9 Solutions
O9 Solutions helps companies make their supply chain and commercial operations robust. Its demand sensing capabilities can help businesses respond to what customers want in the short-term.
Features
- Generates new product forecasts and determines the cannibalization impact of the new product
- Early visibility of opportunities and risks
- Collaborative analytics with continuous learning and planning
Benefits
- Streamlines planning processes
- Optimizes inventory and resource management
- Provides a holistic view of the business
4. E2Open
This cloud-based software facilitates end-to-end supply chain management. Its demand sensing capabilities help predict disruptions, seize opportunities, and boost efficiency and sustainability.
Features
- Real-time insights across the entire supply chain
- Seamless communication among all supply chain partners
- Advanced analytics for better decision-making
Benefits
- Increase in near-term forecast accuracy
- Reduction in extreme error
5. Kinaxis
Another best demand sensing software is Kinaxis. Kinaxis offers real-time visibility and agility through the entire supply chain network.
Features
- Real-time supply chain visibility and rapid scenario analysis
- Integrates all planning processes
- Predictive and prescriptive insights
Benefits
- More accurate short and long-term forecast accuracy
- Helps make informed decisions
- Optimized production, automated promotional plans, and maximized sales
6. Solvoyo
A single platform for collaboration that empowers stakeholders in the demand planning process, Solvoyo uses AI to drive actionable insights using internal and external data.
Features
- Integrates data from multiple channels for accurate forecasting
- Automates key decisions in the supply chain based on demand predictions
- An easy-to-navigate intuitive interface to support technical and non-technical users
Benefits
- Reduced risks of over- or under-stocking with more precise demand predictions
- Optimized inventory management, production schedules, and distribution strategies, leading to lower operational costs
- Helps businesses respond faster to market changes
7. Logility
This is another demand sensing software in 2025 facilitating speedy decision-making. The power of AI and Generative AI helps improve accuracy in supply chain decisions.
Features
- Converts near real-time demand signals into realistic insights to respond faster to unplanned demand changes
- Supports cross-functional collaboration between operations, sales, and finance
- What-if scenarios helps assess demand and supply impacts on the supply chain
- Cloud-based deployment for reduced IT overheads
Benefits
- Reduces forecast errors by using real-time data, leading to better demand planning and supply chain efficiency
- Enables companies to respond faster to market changes, disruptions, and customer demands
- Fosters greater collaboration across departments and with external partners, ensuring everyone is aligned on business goals
8. Arkieva
This is another full-suite demand planning tool that supports in demand sensing, shaping, and response to demand proactively.
Features
- Smart Forecast Modeling engine helps proactively predict demand
- Helps collaborate with cross-functional teams with the Arkieva Workbench
- Build One Centralized Demand Plan for continuous improvement process.
Benefits
- Effortless management of your product lifecycle from launch to phase-out
- Understanding of how promotions influence demand forecast
- Helps factor in uncertainties for a more accurate planning approach
9. AWS
AWS is another demand sensing software that is AI-driven with a transformative potential to reshape processes for determining supply chain forecasts and plans. It works with internal and external market data for accurate predictions even when the market is extremely volatile.
Features
- Processes vast amounts of real-time data from multiple sources
- Scalable, cloud-based platform that can handle the increasing complexity and volume of data without performance issues
- Effortless integration with existing ERP and supply chain systems
Benefits
- Facilitates accurate short-term demand forecasts, allowing businesses to respond swiftly to changes
- Reduces forecast errors and improves supply chain efficiency
- Supports growing businesses by scaling operations without the need for significant hardware investment
10. RELEX
RELEX is another recommended demand sensing software in 2025 that helps solve unique pain points. It can be custom fit and assists in optimizing even the most complex supply chains. The tool equips your team with the tools and insights to deliver measurable business value.
Features
- Unifies data from various sources like sales, weather, promotions, and supply chain data into a single platform
- Uses advanced AI and machine learning to predict demand patterns based on real-time and historical data
- Offers specialized tools for forecasting the impact of promotions on demand at the SKU level
Benefits
- Accurate and consistent demand forecasts
- Reduces forecast error, enabling businesses to better match supply with actual demand and minimize waste
- Accurate planning during promotional events, preventing both overstock and stockouts, and maximizing sales opportunities
What is Demand Sensing and Why Does It Matter?
Demand sensing uses real-time data and advanced analytics to predict and respond to customer demand, enabling companies to optimize their supply chain and inventory management. Unlike traditional forecasting, which relies on historical data, demand sensing focuses on short-term trends by analyzing current factors such as consumer behavior, weather, and economic shifts.
Why does it matter?
Demand sensing lets businesses remain agile and responsive in a volatile market, offering a competitive advantage through swift and accurate decision-making. Incorporating real-time data from point-of-sale systems, online sales, and social media trends helps companies adjust strategies almost instantaneously. The competitive advantage of using demand sensing software in 2025 is that it gives your business the ability to anticipate market trends and adjust inventory levels, reducing excess costs and avoiding stock shortages. This agility leads to improved customer satisfaction and positions companies to quickly capitalize on new opportunities, staying ahead of competitors.
Key Features to Look for in Demand Sensing Software
The demand sensing software must include the following features:
- SKU-Level Demand Insights: Demand sensing software must provide detailed SKU-level insights, helping identify high-value and low-demand SKUs. SKU can be prioritized based on ABC/XYZ segmentation, product mix tracking, and SKU performance metrics (OTIF, OSA),to make data-driven decisions. This insight helps improve customer experience, profitability, and revenue while minimizing operational costs.
- Actionable Recommendations Based on Real-Time Demand: Advanced demand sensing software, like ThroughPut AI, not only offers visibility but also provides actionable recommendations. It suggests which SKUs to produce, discontinue, or adjust for peak demand, optimizing supply chain management. This enables customer-focused demand management, minimizes demand variability and optimizes product mix.
- Multivariable Analysis: Effective forecasting considers multiple factors beyond historical data, such as seasonality, weather, promotions, and product launches. Demand sensing software must include these variables to deliver more accurate forecasts, ensuring better alignment with real-world demand shifts.
- Predictive Capabilities: Using advanced analytics, demand sensing software must predict demand fluctuations by analyzing data like holidays, promotions, and weather. This allows businesses to adjust inventory, reduce stockouts, and optimize the supply chain based on precise demand trends. This feature helps improve forecasting accuracy, achieve better throughput with prioritized improvements, optimized inventory management and resource allocation.
How Demand Sensing Software Fits into Supply Chain Planning?
Demand sensing software plays a crucial role in modern supply chain planning today because it delivers the most-accurate short-term demand forecasts.
Here’s how it integrates and optimizes various supply chain functions:
1. Integration with Demand Planning
The tool complements traditional demand planning by focusing on short-term forecasts (days to weeks), while demand planning handles long-term forecasts. It uses real-time data to refine baseline forecasts and improve accuracy. Finally, the feedback from demand sensing enhances long-term demand planning.
2. Enhance Supply Planning
The tool provides accurate short-term forecasts for better production scheduling and inventory management. It also enables faster response to demand shifts, improving supply alignment, reducing forecast errors, leading to better supply-demand balance.
3. Inventory Optimization
The tool lowers safety stock levels with precise short-term demand predictions. It reduces stockouts and excess inventory through dynamic adjustments based on real-time demand data.
4. Improving Sales & Operations Planning (S&OP)
The tool delivers a more accurate near-term demand picture, enhancing S&OP discussions. Quickly detects demand-supply mismatches, ensuring better alignment between sales and operations.
5.Enhancing Order Fulfillment
The tool optimizes inventory allocation and reduces stock outs or delays, and improves on-time delivery performance through accurate demand forecasting.
Case Studies: Success Stories with Demand Sensing Software
Coffee Retail Chain
Committed to sourcing locally grown, fair-trade, high-quality organic ingredients, the chain specializes in hand-brewed, iced, and blended coffees, as well as fresh juices and smoothies. With the support of Throughput.AI, it has achieved remarkable growth.
Challenges
As the chain expanded, it faced significant challenges related to inventory management. Concerns about excess inventory, dead stock, overstocking, and food waste were on the rise. Additionally, the chain incurred high shipping costs for raw materials and products, driven by excessive fuel consumption. The company sought greater visibility into product performance to align its menu with evolving market tastes and trends.
Solution
Throughput’s Demand Sensing capabilities provided the chain with intelligent product optimization, near-term demand sensing, and the ability to adapt its menu dynamically to enhance profit margins and minimize food waste. By analyzing extensive data sets, the software delivered real-time visibility into inventory turnover and customer reorder frequencies. It assessed lead times for each premium SKU and shipping costs while utilizing Throughput’s demand-value matrix for product prioritization based on demand sensitivity.
Impact
Following the implementation of Throughput AI, the retail chain adapted seamlessly to shifts in demand with minimal operational disruptions and financial impact. The chain achieved SKU-level visibility into product performance and material movement throughout its value chain. With complete control over its operations, it ensured the right materials were available in the right quantities at the right time, streamlining the entire value chain to deliver products precisely when needed. This agility resulted in a competitive market advantage, improved cash flow, fresher products and ingredients, prevention of stockouts, and reduced resource wastage.
Results Achieved
- 15% reduction in inventory levels
- 5% increase in labor productivity
Church Brothers Farms
Church Brothers Farms, a family-owned vegetable enterprise, operates over 40,000 acres and serves clients nationwide, shipping 50 million cartons annually across the United States. Before engaging with Throughput AI, the company faced several disruptive challenges.
Challenges
One of the primary issues was product perishability, necessitating accurate near-term demand forecasting to optimize product mix, minimize waste, and enhance profitability. The company also contended with volatile market conditions, fluctuating commodity prices, seasonal demand uncertainty, unpredictable weather, logistical challenges, compliance with safety and quality standards, insufficient granular visibility, and shifting consumer preferences.
Solution
Throughput AI’s tool extracted and analyzed historical data from a variety of sources encompassing 60 commodities, 25 value-added products, and 490 product groups, focusing on sales volume and revenue. This enabled continuous transformation of the supply chain, allowing for precise forecasts regarding optimal timelines, workflows, and routes for order fulfillment. The comprehensive supply chain optimization facilitated efficient inventory management, cost reduction, and maximize profitability, ultimately leading to improved customer satisfaction.
By minimizing disruptions and product wastage, the tool enhanced demand sensing, predicted near-term buying patterns, and identified underperforming SKUs, best sellers, and slow-moving products. It pinpointed sales fluctuations by product and assessed demand impacts, enabling the identification of top-selling items since 2017 that generated maximum revenue over the past seven years. This insight allowed the company to transition from a traditional make-to-stock model to a more efficient make-to-order approach.
Results Achieved
- 40% increase in short-term forecasting accuracy compared to traditional time-series methods.
- Reduction of excess stock and optimization of production capacity.
- Achievement of the 5 R’s: the right stock, in the right quantity, at the right cost, available at the right time and location.
The Future of Demand Sensing Software
The future of demand sensing software is set to evolve rapidly, with several key trends shaping its trajectory. These advancements promise to enhance forecasting accuracy, data integration, and overall supply chain efficiency.
Advanced AI and Machine Learning
The next generation of demand sensing software will harness increasingly sophisticated AI and machine learning models. These technologies will:
- Process larger, more diverse datasets
- Identify subtle patterns and correlations
- Continuously learn and adapt in real time to improve forecast accuracy
Expanding Data Sources
Future solutions will incorporate a broader range of data inputs, providing a more comprehensive view of demand. This may include:
- Social media sentiment analysis
- IoT sensor data
- Geospatial and economic indicators
Enhanced Usability and Visualization
User interfaces will become more intuitive, making demand sensing accessible to non-technical users. Expect to see:
- Interactive dashboards and visualizations
- Natural language query capabilities
- Mobile-friendly interfaces for insights on the go
Focus on Sustainability
As sustainability grows in importance, demand sensing software will increasingly optimize for environmental impact. Key features may include:
- Carbon footprint tracking and reduction
- Waste minimization algorithms
- Recommendations for sustainable sourcing
FAQs
- What is the difference between demand planning and demand forecasting?
The main difference between demand planning and demand forecasting is their role in the supply chain. Demand forecasting predicts future customer demand based on data, while demand planning turns those forecasts into actionable strategies.
Forecasting answers “what” and “how much,” while planning focuses on “how” to meet that demand, considering inventory, production, and procurement. Demand planning also involves collaboration across departments like sales, marketing, and finance to ensure a unified approach that aligns with business goals.
- What are the different demand sensing techniques?
Demand sensing methods use advanced technologies like machine learning, AI, and traditional statistical techniques to analyze and predict customer demand in real time. These methods enhance a company’s ability to respond quickly to market changes and improve supply chain efficiency. At the core of modern demand sensing, machine learning and AI process large datasets to identify patterns and predict demand. These technologies adapt over time, refining forecasts with new data, helping businesses optimize inventory, anticipate demand surges, and respond to market shifts. Statistical Techniques like regression analysis and pattern recognition complement AI by offering insights into factors influencing demand, such as price changes or seasonal trends. Clustering algorithms further help group products with similar demand patterns.
- What is the role of AI in demand sensing?
AI enhances demand sensing by enabling faster, more accurate data analysis and decision-making. It processes vast real-time data, identifies patterns, and makes precise predictions, often detecting subtle signals traditional methods miss. AI systems continuously learn and adapt, improving forecast accuracy over time, allowing businesses to stay agile and responsive to market changes.
Precise Demand Sensing with ThroughPut AI
ThroughPut AI is an AI-driven supply chain decision intelligence tool that enhances not only the precision of your demand forecasts but also the quality of the decisions that follow. By leveraging advanced AI and machine learning algorithms, ThroughPut AI delivers accurate, real-time, and near-term demand forecasts, helping you reduce uncertainty and optimize your end-to-end supply chain operations.
ThroughPut AI enables you to embrace a demand-driven approach that is more agile, responsive, and financially smart. Unlike other tools, ThroughPut AI offers a financial perspective on your decisions, allowing you to clearly connect supply chain operations with company revenue. And the best part? You can start seeing results within 90 days, as ThroughPut AI works seamlessly with your existing data.
