Today we are in Market-Driven experienced economy where Market activity, Market sentiments from Social Network, enterprises are trying to sense and shape demand for their product and services. As a result, Traditional statistical forecasting methods replaced with pattern-based recognition of demand; hence short-term accurate demand plan becomes vital.
With Industry 4.0 revolution, majority of the Supply Chain Planning horizons reduced from 1 to 2 years to 6 weeks to 8 weeks as well as Planning cycles moved away from monthly or quarterly to Weekly or even daily. Hence enterprises are looking at means and ways for better and adjusted production plan, better transport plan for volatile market and shift in demands.
VisionTree implements SAP Demand Sensing solution as part of its SAP Integrated Business Planning (SAP IBP) Service to predict daily demand requirements for its customers:
Some of the key benefits of SAP Demand Sensing Solutions are:
- Improve short-term forecasts by 15-50%
- Reduce inventory 5-8%
- Increase demand agility
- Access actionable insights
- Insights in promotion performance with sell-in and sell-out data
- On-Shelf-Availability during promotion execution
SAP IBP For demand solution has in-built demand sensing algorithms which delivers daily sensed demand plan considering Shipment data, Sales Order Data, Trade Promotion Data, and Point-Of-Sales Data to improve the Forecast Accuracy by nearly 10% based on Predictive Forecasting to reduce forecasting errors considerably.
Customers can manage the end-to-end process from demand signal capture, both from structured and unstructured data to short-term and long-term forecasting, leading to an eventual increase in sales revenue and a decrease in inventory costs.