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Demand Sensing helps in faster and continuous testing of assumptions.
Demand Planning process in consumer companies is based on various assumptions, some with a major impact and many others with minor ones. These assumptions are tested and evaluated as part of the S&OP process. However, these are rarely comprehensive and timely.
How do we test these assumptions while these are being rolled out? Better still, can we use it to fine tune the in-field execution?
Demand Sensing helps in providing this continuous feedback on the roll out of various demand drivers in the marketplace. All we need to leverage it fully is a process to incorporate this feedback in the supply execution process.
Leading consumer companies have put in place a robust Demand Sensing process and use it to make mid-course corrections in their supply execution.