Separate the Facts From Fiction in Demand Planning
Separate the Facts From Fiction in Demand Planning
Gartner, Inc.
Analyst: Noha Tohamy
Reference ID: G00226109
October 18, 2011
Read the article (Gartner subscription required to access research)
In this research, Gartner reports that managing demand volatility is a top challenge for every supply chain executive. Companies continue to search for best practices in demand management to improve their demand insights and enable a profitable supply response.
“The study found that the use of demand-sensing technologies (leveraging more recent market data to statistically forecast short-term demand) improves demand forecast accuracy over seven-day periods by a whopping 40%. Recall that demand-planning error is 48%. Augmenting demand planning with demand sensing reduces the forecast error to 27%.”
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