Use of averages in supply chain planning and execution hides important nuances.

Many companies consider the impact of demand drivers uniformly across relevant skus and geographies. It turns out to be error-prone as the actual impact at various sku-geography combinations is far more nuanced.

For example, intensity of summer varies widely across geographies, impacting demand for cold drinks and air conditioners. Soaps lather differently in hard and soft water areas. Moisturiser sales are impacted by humidity in that geography. Inflationary environment affects the demand for smaller and larger packs differentially.

Treating them uniformly is akin to treating covid as just another virus! We also know how human genome sequencing has enhanced the impact of tailored medications, built on individual nuances.

It’s time to get more nuanced in supply chain planning and execution. Demand Sensing is the first step in this direction.