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Why Now is the Time for Leaders to Invest in Demand Sensing Software

by | Nov 10, 2023

In today’s rapidly changing business landscape, being a forward-thinking leader in the supply chain industry is more critical than ever. The role of the Chief Supply Chain Officer, Vice President of Supply Chain, or other supply chain leaders has never been more complex, demanding, and pivotal to driving company performance. We understand that your schedules are tight, and your plates are full, yet your challenges persist. So, let’s talk about the advantages of acting now on demand sensing software and how you can empower your supply chain planning team, especially those responsible for demand planning and channel-specific performance.

Why Demand Sensing Software Matters to Supply Chain Leaders

Supply chain leaders understand the immense challenges that the industry faces. The global disruption caused by the COVID-19 pandemic altered the way businesses operate. Historical data and conventional forecasting models can no longer guarantee accurate demand predictions. In addition, consumer behavior has shifted significantly, with a 40% increase in online e-commerce in just one year.

The Benefits of Acting Now

For supply chain leaders, the benefits of investing in Demand Sensing are substantial:

1. Capturing More Revenue: With accurate demand sensing, businesses can meet customer needs with precision, resulting in increased sales and revenue growth. This is not just about profitability; it’s about outperforming competitors in an ever-changing market.

2. Accelerating Inventory Turns: Demand Sensing optimizes inventory levels, reducing carrying costs, and minimizing stockouts. According to IBF, this can lead to a 12% reduction in inventory for every 15% improvement in forecast accuracy. The financial implications are substantial, contributing to a healthier balance sheet.

3. Enhanced Customer Service: Meeting customer demand consistently leads to improved customer satisfaction and loyalty. This positively impacts brand reputation and customer retention. It’s about ensuring your business remains a trusted choice for consumers, leading to a loyal customer base.

4. Boosting Profitability: By reducing carrying costs, optimizing inventory, and increasing sales, Demand Sensing enhances overall profitability. IBF research suggests a 15% improvement in forecast accuracy can deliver a 3% or higher pre-tax net profit improvement. This is a direct impact on the bottom line, enhancing financial health.

5. Capturing incremental revenue: By accurately predicting short term demand, CPG companies cn capture incremental revenue from their most profitable channels.

Results Achieved by Firstshift Customers

But don’t just take our word for it. Our customers have experienced remarkable results:

  • Increase Forecast Accuracy by 30%: Firstshift.ai customers have significantly improved their forecast accuracy, allowing for more precise planning and resource allocation.
  • Increase Sell-Through During Promotions: Leveraging Demand Sensing, our customers have seen increased sell-through rates during promotional periods, maximizing the return on their marketing investments. 
  • Capture Additional Revenue by as much as 20%: Businesses using our platform have reported capturing additional revenues, a testament to the power of accurate demand sensing. 
  • Improve Order Fulfillment and On-Time Delivery (OTD) to Amazon DCs: Firstshift.ai has enabled customers to enhance order fulfillment and consistently meet on-time delivery requirements to Amazon Distribution Centers, ensuring a strong partnership with this e-commerce giant.
  • Decrease Chargebacks by 40%: By reducing inaccuracies and streamlining operations, our customers have seen a substantial reduction in chargebacks, positively impacting their bottom line.

How Firstshift Makes It Easier

Investing in Demand Sensing has never been easier than with Firstshift.ai. Our easy-to-use AI-driven platform is designed to provide supply chain leaders with the tools and insights needed to navigate the complexities of today’s market. We understand the unique challenges you face, and we’re here to support your journey.

Ready to Future-Proof Your Supply Chain?

If you’re a supply chain leader looking to make better decisions, gain greater leverage from your talented team, and quickly address demand variability in a dynamic market, now is the time to make that investment in Demand Sensing. Schedule a call with the experts at Firstshift and let us guide you through the transformative journey of AI-powered Demand Sensing. The future of supply chain management is within your reach, and it’s more critical now than ever.