What is demand sensing and how is it different from forecasting?

Demand sensing uses near-term signals — recent point-of-sale data, current order rates, retailer inventory positions — to adjust a forecast over the next days or weeks. Classical forecasting works from historical patterns over months. Sensing corrects for what is happening now; forecasting sets the baseline it corrects.

Sensing only pays where you can still act on the signal. If the lead time is twelve weeks, knowing demand shifted this week changes the next order; the one in transit is already committed.

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