A New Frontier in Forecast Accuracy
Evolving customer behavior and rising market volatility have underscored the opportunity to sense and react in near real-time to changes to changes in the demand supply network. Yet these shifts have also exposed the limitations to traditional forecasting techniques.
One Network’s Demand Sensing is a next generation forecasting methodology that greatly improves current levels of forecasting by employing a set of mathematical techniques which are designed to analyze daily demand information, thereby creating a much more accurate forecast of near-term demand based on the current realities of consumer sell through.
We knew we needed to find a way to deliver more value to our customers and trading partners while reducing inventory and operations costs. We’ve chosen One Network because of its unique and highly innovative technology.
- Global Director, Materials & Logistics, Dana
Demand Sensing enables companies to incorporate detailed short-term demand data into their forecasts to reduce their forecast error by up to 50%, increase inventory accuracy by up to 20%, and optimally deploy available inventory whether it’s in transit, shipped from the DC, cross docked, flowed through or shipped direct from the manufacturer.
This jump in forecast accuracy helps companies manage the effects of market volatility and gain the related benefits of a demand-driven value network, including more efficient operations, increased service levels, and a range of financial benefits including higher revenues, improved profit margins, decreased inventory levels, better order performance, and a shorter cash-to-cash cycle time.
Demand Sensing at a Glance
- Drives forecast accuracy from the traditional 60% to over 80% at the SKU/shelf/location level
- Reduces inventory requirements and transportation costs
- Scales to process the high volumes of data associated with hundreds of thousands of item and location combinations
- Underlying platform supports seamless environment between planning and execution
- Enables ability to replenish the high frequency demand signals with optimized execution
Intelligent Demand Resources
Achieve 30-45% reduction in days of supply inventory and greater than 99% store in stocks. Intelligent Demand uses a single integrated forecast that is enhanced and updated daily based on consumer sales. Benefits include reduced inventory (cost and days of supply), increased on-shelf availability, increased sales, and lower transportation and labor costs.