According to AMR Research, "Terra Technology has redefined a critical process in demand management for the CP industry: a change from rules-based consumption in the order duration, or the operational forecasting horizon (0-12 weeks) to demand sensing on a daily basis. This technology can improve even a supply-centric demand planning implementation."1

End-to-end planning requires end-to-end forecasting, intelligently reconciling multiple daily demand signals from all echelons in the supply chain including Point-of-Sale data, channel inventory, and retailer forecasts. Although "scan one, make one" sounds like a compelling strategy, it will not work for promoted or seasonal products, since yesterday's sales will not be the best indication of tomorrow's demand. Manufacturers need to look beyond recent scanner data to understand what drives retailer order patterns.

Multi-Enterprise Demand Sensing (MDS) delivers better end-to-end planning by creating a single, more accurate forecast that analyzes and reconciles multiple daily demand signals. MDS uses pattern recognition mathematics to more accurately predict retailer requirements.

Multi-Enterprise Demand Sensing empowers consumer products companies to improve their bottom line by:

Correctly anticipating retailer order patterns
Understanding what drives retailer order patterns gets the right products on retailer shelves.

Enabling an accurate, current and consistent view of demand
Analyzing streams of daily channel data provides real-time information about shifts in consumer demand.

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.

1 February 8, 2007 - Own the Shelf Replenishment Problem

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