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 Relying on outdated tools and/or spreadsheets might just about work for long-term planning, but they fall short in handling sudden demand shifts and market disruptions.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 2024
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
ThroughPut AI uses a multiplicative regression algorithm that integrates external regressors to sense demand in real time. By incorporating factors like market trends, weather changes, holidays, and promotions into the model, it delivers accurate demand forecasts that help you make informed decisions. This approach enables you to adapt quickly to changes, optimize your supply chain, and improve overall efficiency, making ThroughPut AI a reliable tool for your real-time demand sensing needs.
Key Benefit #1: SKU-level Demand Insights
ThroughPut AI offers a detailed view of each SKU, allowing you to identify high-value, low-value, high-demand, and low-demand items. This real-time, data-driven approach enables you to focus on key SKUs and maintain sharp performance metrics.
This capability enhances your supply chain strategy. Many of our customers prioritize high-value, high-demand SKUs to meet customer needs, maximize profitability, and respond swiftly to market changes.
ThroughPut AI features like ABC|XYZ segmentation of sellable products, month-over-month product mix analysis, and throughput rate tracking—with a focus on key performance metrics such as OTIF and OSA per segment—result in nearly a 10% increase in demand forecast accuracy and up to a 30% reduction in inventory.
Feature #2: Actionable Recommendations Based on Real-time Demand
ThroughPut AI shows you exactly what’s happening with the demand patterns for each of your SKU and how to enhance the situation or remedy it. Visibility is definitely one thing, but the recommendation of what can be done to optimize the supply chain is another. Recommendations include understanding which SKUs to discontinue, which to be manufactured more, and so on. Best demand sensing software will also advise the exact quantities to produce during peak seasons like festivals, weekends, etc.
In short, ThroughPut AI, a ready-to-plug-and-play demand sensing tool, transforms data into decisive actions. This improves business efficiency, product mix optimization, sustainable customer-centric demand management, and the flexibility to respond to market dynamics proactively.
This feature enables a 10% increase in forecasting accuracy.
Feature #3: Analysis of Multiple Internal + External Variables
ThroughPut AI takes different factors into account to give you a more holistic picture of demand. For example, weather conditions and seasonality will determine the spike in demand for winter clothing, especially during colder months.
Similarly, the software is programmed to include known future events, for example, a scheduled product launch. These events can lead to temporary dips or spikes in demand, and the same are, therefore, factored into forecasting models. Similarly, cyclical patterns like monthly and quarterly trends and seasonal shifts also help predict demand fluctuations, future planned events, promotions, holidays like Black Friday and Christmas, and cyclical and seasonal shifts. Business infrastructure-related changes like the store opening and closing schedules in specific locations are also considered.
Considering all these factors and multiple variables makes the demand sensing software more accurate in its demand forecasts.
Feature #4: Demand Predictive Capabilities
The demand predictive trend capabilities of ThroughPut AI help you compare realized demands with predictive trends, improving accuracy as more data is factored into the forecast. A predictive trend graph allows you to compare actual demand, forecasted demand, and your plan over time.
From building on demand trends and accurate forecasting capabilities to analyzing precise demand trends from the SPC perspective, monitoring OTIF/OSA trends, and prioritizing improvement efforts based on their impact on sales and throughput, ThroughPut AI equips you to make informed decisions that drive success.
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
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.
