What is Demand Sensing? According to AMR Research, “Demand sensing is the translation of downstream data with minimal latency to understand what is being sold, who is buying the product, and the impact of demand-shaping programs. These three demand elements are then translated into requirements to craft a profitable demand response through internal processes for demand translation.”¹

Terra Technology offers the first demand sensing solution. Terra’s Demand Sensing (DS) applies complex pattern recognition algorithms to downstream data to create an accurate prediction of demand. DS updates these daily forecasts every day as more information becomes available. Because the software responds to what is happening in your business right now, not just historical trends, forecast error typically drops by 50% or more.

Terra’s Demand Sensing solution is a bolt-on addition to traditional demand planning systems and is completely compatible with demand planning systems from all major ERP and supply chain vendors, including SAP, JDA/Manugistics and Oracle.

For consumer products companies, Demand Sensing is the first step toward building a Demand Driven Supply Network. Demand Sensing empowers consumer products companies to improve their bottom line by:

Improving customer service
Case fill and order fill can increase significantly because of more accurate deployment and better schedules.

Lowering inventory levels
Greater forecast accuracy yields a decrease in safety stock requirements as well as inventory left over from undersells.

Stabilizing production schedules
More accurate forecasts reduce the number of unplanned changeovers, minimizing disruptions and increasing efficiency.

Reducing transportation & warehousing costs
Accurate daily plans enable the optimal placement of inventory in the supply chain, reducing costs of redeployment, storage and freight.

Improving sales revenue
Improved perfect order percentages and reduced out-of-stocks yield higher commitment by retailers.

Campbell Soup

• Cut forecast error by 50%
• Decreased safety stock 20%
• Improved order fill 5%
• Saved $10 million in inventory

Procter & Gamble

• Cut forecast error by more than 30%
• Decreased safety stock by more than 10%
• Expects to increase cash flow by over $100 million

Read about the success of Demand Sensing at Procter & Gamble.

Read about the success of Demand Sensing at Campbell Soup Company.

Request more information about Demand Sensing.

1 AMR Research Alert, “What is Demand Sensing,” Lora Cecere and Robert Bois, March 22, 2007