The first supply chains, which were established after the Industrial Revolution, gave rise to demand forecasting. While demand sensing has its roots in demand forecasting, it incorporates advanced technology, such as artificial intelligence (AI) and machine learning (ML), to help companies make their supply chains more proactive and responsive to fluctuating demand. It’s a game-changer for companies with large sales volumes.
Demand sensing can further augment a company’s revenue. If a company’s warehouse management system is integrated with other supply chain systems, that company can gather real-time data from all operations and disciplines — including vendors and suppliers that also support demand sensing — to enable fast and efficient product replenishment.