We are excited to explore how we can add value to your demand sensing and inventory planning approach

This form uses grid for its layout. Adjust and reorganize the divs inside the Form Grid to fit 1 or 2 grid columns as needed.

Fields marked with an asterisk (*) are required.
Thank you! Your submission has been received. Our team will get back to you within 24 hours.
Oops! Something went wrong while submitting the form.

9 Signals Kronoscope Uses for Accurate Demand Sensing

Demand Forecasting VS Demand Sensing
By
Niki Khokale
February 16, 2022
5
min
Share this
Blog

9 Signals Kronoscope Uses for Accurate Demand Sensing

Demand Forecasting VS Demand Sensing
Share this
In a world driven by supply and demand, businesses constantly strive to find balance between out-of-stock losses and avoiding excess inventory by predicting demand as accurately as possible across each decoupling point in the supply chain.

In the domain of Supply Chain Management and Operations Planning, Demand Forecasting and Demand Sensing are often used frequently and interchangeably. Nevertheless, there lies a clear distinction between the two concepts. Being cognizant of these differences can help businesses take their supply chain efficiency to the next level.


While Demand Forecasting is a theoretical and statistical way of predicting consumer demand based on historical sales data. Typically, forecasts are done over 18-24 month cycles but may vary based on product category and industry. Demand Forecasting is a once in a cycle activity and has related issues like data latency, lack of real-time insights, no consideration of external influencing factors, inaccurate prediction for products with random variations in demand, and myopic predictions as a result of not including other data sources such as marketing or finance data. Traditional Demand Forecasting also provides limited insights into a new product launch or a new store launch.


Demand Sensing on the other hand is the new age method of utilizing AI/ML, IoT, and other advanced technologies to provide more accurate, real-time demand predictions. Demand Sensing takes Demand forecasting to the next level by considering short-term trends, incorporating baseline data adjusted for external and internal factors to create an ever-evolving real-time demand forecast. Demand Sensing provides higher accuracy in demand predictions, day-by-day sensing by leveraging a high level of data granularity to analyze daily demand information as close as possible to the end customer and immediately detect changes in demand behavior.


Why Demand Sensing is important for F&B and FMCG businesses


Building capability for and investing in Demand Sensing technologies is crucial especially for businesses operating in F&B and FMCG domains. It is important for these industries that deal with perishables, fast-moving, and high-demand SKUs to maintain a balance between accurate demand prediction and stock-outs. Demand Sensing reduces demand latency and includes daily PoS data to gain insights and improve service. It also gives demand planners the capability to right-size their SKUs inventory by incorporating marketing campaign data, price changes based on price elasticity, seasonality, and weather. This approach will help F&B and FMCG businesses maintain on-shelf availability while ensuring optimal levels of working capital being spent on inventory.


Kronoscope’s approach towards Demand Sensing

Fountain9’s predictive inventory planning product- Kronoscope is an extremely capable, cost-effective, and reliable solution for accurate Demand Sensing.

Baseline Demand Prediction: Baseline predictions deal with SKU, Channel, Store level demand predictions by factoring the following variable

1. Historical Trends: Kronoscope’s AI engine analyzes historical sales data to identify growth or decline trends in all the SKUs as per different attributes like geography and time.

2. Seasonal Effects: Kronoscope’s algorithms also identify with the help of date attributes the effect of seasonality on a particular SKU. Kronoscope establishes a relation of sales data with long time frame seasonal influences like winter, spring, summer, and autumn. This helps the Predictive engine to factor seasonality for future predictions.

3. Cyclicity: Kronoscope in a similar approach predicts the cyclicity of a particular SKU i.e the effect of a short time frame on the sales of SKUs. These may be the first day of the week effect, the last day of the month, or workdays vs. weekends. Thus training the predictive engine to factor demand patterns in future predictions.

4. Outlier Corrections: Kronoscope identifies any anomalies in the Historical data to reduce the error percentage while predicting demand.

Factor Adjusted Demand Prediction: The next level to demand sensing in Kronoscope gives demand planners to predict accurate demand depending on changes in product pricing and promotional offers.

5. Changes in Pricing: Kronoscope seamlessly factors in price changes, wastages, and availability to accurately predict demand.

6. Marketing/Promotional Campaigns: Kronoscope can also incorporate liquidation offers, promotional calendar, marketing spends by channels, and website metrics to accurately predict demand

7. Holiday/Weather: Kronoscope is a powerful product to predict the demand of products that have irregular demand cycles. This is done by factoring in regional data like events, holidays, weather, geography, etc.

Similarity Adjusted Demand Prediction: A unique capability of Kronosope is to accurately sense demand for new product launches or even new store launches.

8. Product Similarity & Attributes: Demand Sensing for new product launches by intelligently associating similar or existing products assortments.

9. Store Similarity & Attributes: Demand Sensing for new store launches by intelligently associating similar or existing stores and factoring related SKU demands in those stores.

Businesses can overcome the challenges, shortcomings, and associated frustration that comes with relying on demand forecasts by adopting a more agile approach to planning, i.e. Demand Sensing. Developing and investing in this capability will surely help F&B and FMCG businesses to identify changing demand patterns and optimize working capital with the help of accurate demand predictions.

Access The Case Study

Schedule A Consultation

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Blog

9 Signals Kronoscope Uses for Accurate Demand Sensing

Demand Forecasting VS Demand Sensing
Share this
In a world driven by supply and demand, businesses constantly strive to find balance between out-of-stock losses and avoiding excess inventory by predicting demand as accurately as possible across each decoupling point in the supply chain.

In the domain of Supply Chain Management and Operations Planning, Demand Forecasting and Demand Sensing are often used frequently and interchangeably. Nevertheless, there lies a clear distinction between the two concepts. Being cognizant of these differences can help businesses take their supply chain efficiency to the next level.


While Demand Forecasting is a theoretical and statistical way of predicting consumer demand based on historical sales data. Typically, forecasts are done over 18-24 month cycles but may vary based on product category and industry. Demand Forecasting is a once in a cycle activity and has related issues like data latency, lack of real-time insights, no consideration of external influencing factors, inaccurate prediction for products with random variations in demand, and myopic predictions as a result of not including other data sources such as marketing or finance data. Traditional Demand Forecasting also provides limited insights into a new product launch or a new store launch.


Demand Sensing on the other hand is the new age method of utilizing AI/ML, IoT, and other advanced technologies to provide more accurate, real-time demand predictions. Demand Sensing takes Demand forecasting to the next level by considering short-term trends, incorporating baseline data adjusted for external and internal factors to create an ever-evolving real-time demand forecast. Demand Sensing provides higher accuracy in demand predictions, day-by-day sensing by leveraging a high level of data granularity to analyze daily demand information as close as possible to the end customer and immediately detect changes in demand behavior.


Why Demand Sensing is important for F&B and FMCG businesses


Building capability for and investing in Demand Sensing technologies is crucial especially for businesses operating in F&B and FMCG domains. It is important for these industries that deal with perishables, fast-moving, and high-demand SKUs to maintain a balance between accurate demand prediction and stock-outs. Demand Sensing reduces demand latency and includes daily PoS data to gain insights and improve service. It also gives demand planners the capability to right-size their SKUs inventory by incorporating marketing campaign data, price changes based on price elasticity, seasonality, and weather. This approach will help F&B and FMCG businesses maintain on-shelf availability while ensuring optimal levels of working capital being spent on inventory.


Kronoscope’s approach towards Demand Sensing

Fountain9’s predictive inventory planning product- Kronoscope is an extremely capable, cost-effective, and reliable solution for accurate Demand Sensing.

Baseline Demand Prediction: Baseline predictions deal with SKU, Channel, Store level demand predictions by factoring the following variable

1. Historical Trends: Kronoscope’s AI engine analyzes historical sales data to identify growth or decline trends in all the SKUs as per different attributes like geography and time.

2. Seasonal Effects: Kronoscope’s algorithms also identify with the help of date attributes the effect of seasonality on a particular SKU. Kronoscope establishes a relation of sales data with long time frame seasonal influences like winter, spring, summer, and autumn. This helps the Predictive engine to factor seasonality for future predictions.

3. Cyclicity: Kronoscope in a similar approach predicts the cyclicity of a particular SKU i.e the effect of a short time frame on the sales of SKUs. These may be the first day of the week effect, the last day of the month, or workdays vs. weekends. Thus training the predictive engine to factor demand patterns in future predictions.

4. Outlier Corrections: Kronoscope identifies any anomalies in the Historical data to reduce the error percentage while predicting demand.

Factor Adjusted Demand Prediction: The next level to demand sensing in Kronoscope gives demand planners to predict accurate demand depending on changes in product pricing and promotional offers.

5. Changes in Pricing: Kronoscope seamlessly factors in price changes, wastages, and availability to accurately predict demand.

6. Marketing/Promotional Campaigns: Kronoscope can also incorporate liquidation offers, promotional calendar, marketing spends by channels, and website metrics to accurately predict demand

7. Holiday/Weather: Kronoscope is a powerful product to predict the demand of products that have irregular demand cycles. This is done by factoring in regional data like events, holidays, weather, geography, etc.

Similarity Adjusted Demand Prediction: A unique capability of Kronosope is to accurately sense demand for new product launches or even new store launches.

8. Product Similarity & Attributes: Demand Sensing for new product launches by intelligently associating similar or existing products assortments.

9. Store Similarity & Attributes: Demand Sensing for new store launches by intelligently associating similar or existing stores and factoring related SKU demands in those stores.

Businesses can overcome the challenges, shortcomings, and associated frustration that comes with relying on demand forecasts by adopting a more agile approach to planning, i.e. Demand Sensing. Developing and investing in this capability will surely help F&B and FMCG businesses to identify changing demand patterns and optimize working capital with the help of accurate demand predictions.

Access the

Blog

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
In a world driven by supply and demand, businesses constantly strive to find balance between out-of-stock losses and avoiding excess inventory by predicting demand as accurately as possible across each decoupling point in the supply chain.

In the domain of Supply Chain Management and Operations Planning, Demand Forecasting and Demand Sensing are often used frequently and interchangeably. Nevertheless, there lies a clear distinction between the two concepts. Being cognizant of these differences can help businesses take their supply chain efficiency to the next level.


While Demand Forecasting is a theoretical and statistical way of predicting consumer demand based on historical sales data. Typically, forecasts are done over 18-24 month cycles but may vary based on product category and industry. Demand Forecasting is a once in a cycle activity and has related issues like data latency, lack of real-time insights, no consideration of external influencing factors, inaccurate prediction for products with random variations in demand, and myopic predictions as a result of not including other data sources such as marketing or finance data. Traditional Demand Forecasting also provides limited insights into a new product launch or a new store launch.


Demand Sensing on the other hand is the new age method of utilizing AI/ML, IoT, and other advanced technologies to provide more accurate, real-time demand predictions. Demand Sensing takes Demand forecasting to the next level by considering short-term trends, incorporating baseline data adjusted for external and internal factors to create an ever-evolving real-time demand forecast. Demand Sensing provides higher accuracy in demand predictions, day-by-day sensing by leveraging a high level of data granularity to analyze daily demand information as close as possible to the end customer and immediately detect changes in demand behavior.


Why Demand Sensing is important for F&B and FMCG businesses


Building capability for and investing in Demand Sensing technologies is crucial especially for businesses operating in F&B and FMCG domains. It is important for these industries that deal with perishables, fast-moving, and high-demand SKUs to maintain a balance between accurate demand prediction and stock-outs. Demand Sensing reduces demand latency and includes daily PoS data to gain insights and improve service. It also gives demand planners the capability to right-size their SKUs inventory by incorporating marketing campaign data, price changes based on price elasticity, seasonality, and weather. This approach will help F&B and FMCG businesses maintain on-shelf availability while ensuring optimal levels of working capital being spent on inventory.


Kronoscope’s approach towards Demand Sensing

Fountain9’s predictive inventory planning product- Kronoscope is an extremely capable, cost-effective, and reliable solution for accurate Demand Sensing.

Baseline Demand Prediction: Baseline predictions deal with SKU, Channel, Store level demand predictions by factoring the following variable

1. Historical Trends: Kronoscope’s AI engine analyzes historical sales data to identify growth or decline trends in all the SKUs as per different attributes like geography and time.

2. Seasonal Effects: Kronoscope’s algorithms also identify with the help of date attributes the effect of seasonality on a particular SKU. Kronoscope establishes a relation of sales data with long time frame seasonal influences like winter, spring, summer, and autumn. This helps the Predictive engine to factor seasonality for future predictions.

3. Cyclicity: Kronoscope in a similar approach predicts the cyclicity of a particular SKU i.e the effect of a short time frame on the sales of SKUs. These may be the first day of the week effect, the last day of the month, or workdays vs. weekends. Thus training the predictive engine to factor demand patterns in future predictions.

4. Outlier Corrections: Kronoscope identifies any anomalies in the Historical data to reduce the error percentage while predicting demand.

Factor Adjusted Demand Prediction: The next level to demand sensing in Kronoscope gives demand planners to predict accurate demand depending on changes in product pricing and promotional offers.

5. Changes in Pricing: Kronoscope seamlessly factors in price changes, wastages, and availability to accurately predict demand.

6. Marketing/Promotional Campaigns: Kronoscope can also incorporate liquidation offers, promotional calendar, marketing spends by channels, and website metrics to accurately predict demand

7. Holiday/Weather: Kronoscope is a powerful product to predict the demand of products that have irregular demand cycles. This is done by factoring in regional data like events, holidays, weather, geography, etc.

Similarity Adjusted Demand Prediction: A unique capability of Kronosope is to accurately sense demand for new product launches or even new store launches.

8. Product Similarity & Attributes: Demand Sensing for new product launches by intelligently associating similar or existing products assortments.

9. Store Similarity & Attributes: Demand Sensing for new store launches by intelligently associating similar or existing stores and factoring related SKU demands in those stores.

Businesses can overcome the challenges, shortcomings, and associated frustration that comes with relying on demand forecasts by adopting a more agile approach to planning, i.e. Demand Sensing. Developing and investing in this capability will surely help F&B and FMCG businesses to identify changing demand patterns and optimize working capital with the help of accurate demand predictions.

Like what you read?

Subscribe to receive a monthly digest of our most valuable resources like blog posts, whitepapers and much more

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Related Resources