Demand sensing technology has been around for more than 15 years, yet there are still many myths around just what it is, what it does and the prerequisites to use it, with that in mind, the aim of this blog is to confirm or dispel these myths and set the record straight.
Myth #1: “POS is required to sense demand.”
This is one of the most common misperceptions.
All you need to start sensing demand are three inputs – your demand planning forecast, orders, and shipments.
Conveniently, these all reside in your internal systems.
More than three-quarters of demand sensing implementations use just use these three internal signals and on average they achieve a 40% reduction in forecast error.