Short-Term Demand Forecasting: Taking Demand Sensing to the Next Level with CX Sense

Blog / Short-Term Demand Forecasting: Taking Demand Sensing to the Next Level with CX Sense

As we delve into the festive season, many retail leaders are grappling with a harsh reality: the traditional methods of demand forecasting are no longer cutting it. The rapid shift in consumer mindsets, the unpredictability of their journeys, and the sudden market shifts heavily influenced by marketing campaigns on social media are reshaping the retail landscape, especially in micro-segments like fast fashion retailers.

Traditional demand forecasting tools, reliant on stale data, are failing to paint an accurate picture of real-time consumer needs.

This Christmas, the struggle is evident. Retailers, basing their predictions on outdated models or reliant on Excel-based manual decisions, are facing discrepancies in sales expectations versus reality. Inventories are ballooning, sales are not hitting targets, and there’s a growing disconnect between what consumers want and what’s available on shelves.

ACME Corp’s Valentine’s Day Cookie Strategy: Last Year vs. This Year with CX Sense

	Last Year (Traditional Methods) with SAP IBP	This Year with SAP IBP + CX Sense
Data for Product Assortment	Relied on last year’s sales data for assorted cookie selection	Utilized real-time Google Trends data for popular cookie flavors
Demand Forecast	Generic forecast based on historical patterns	Advanced sensing of real-time shifts in cookie preferences
Inventory Decisions	Ordered equal quantities of all cookie varieties	Adjusted orders based on trending flavors and reduced others
Marketing and Promotions	Standard advertising without customization	Targeted promotions for trending cookie types identified by CX Sense
Supply Chain Response	Fixed supply chain strategy	Agile response to market demands for specific cookie types aligned with your Salesforce CRM trends
Sales Performance	Inconsistent with market demand	Aligned with current consumer interest, leading to better sales. Correlating your trends with opportunities.

By embracing CX Sense, ACME Corp is now positioned to respond effectively to real-time market demands, aligning their production and inventory with actual consumer needs, and setting a new standard in retail responsiveness and efficiency.

Immediate Benefits of CX Sense: Quantifying the Impact

With our experience in successfully implementing demand sensing solutions for companies such as Levi’s, California Design Den, and Tacori, we can provide a precise estimate of the value and impact offered by a platform like CXSense.

1. Implementation of CX Sense can boost forecast accuracy by 10-20% within a short span of 4 weeks, leading to a more effective inventory management.
2. With enhanced forecasting, retailers can see a reduction in overstock by up to 20% and stockouts by as much as 15%, optimizing inventory levels and minimizing wasted resources.
3. Accurate forecasting can lead to a potential increase in revenue by up to 10%, as well as improve customer retention rates Better demand prediction can lead to an estimated 5-10% reduction in operational costs related to inventory management, contributing to a healthier bottom line.

Why Do Demand Planners Love CX Sense Over Traditional Software and in Some Cases Over Spreadsheets? 

CX Sense is your Decisions Intelligence Platform with spreadsheet reimagined – only quicker, smarter, and more insightful. By infusing external datasets with AI and scalable decision intelligence, it revolutionizes the way planners operate. Here’s why planners excel with CX Sense:

• Get Access to 250+ External Signals: Dive into a world of insights with over 250 external data sources. We bring the external datasets to you.
• Stay Loyal to Your Spreadsheets: No need to leave your comfort zone. CX Sense works alongside your ERP, filling in the gaps right where you are. We connect data via connected sheets and google sheets so that your centralized data is available for your pivot table analysis as well.
• Customize and Control the Data Models: It’s all about your needs. Tweak, adjust, and stay in charge with our clear ‘Glassbox’ approach.
• Collaborate and Explore: Work together easily, just like you do with spreadsheets. It’s that simple and user-friendly.
• See Results in Just 4 Weeks: No long waits. We deliver fast, tangible results, making your demand planning more effective in no time.
• Talk to Your Data with Gen AI: Ask your planning questions out loud. “What will the demand be next quarter?” Get your answers instantly, no coding needed.
• Stay Connected With the Entire Supply Chain: With Pluto7, demand sensing is just the start. Seamlessly connect with Planning in a Box for inventory optimization and Konnect Manufacturing to boost manufacturing efficiency. It’s all integrated into one cohesive ecosystem.

Become a Demand Sensing Jedi in 2024

2023 might have been a year of guesswork and hunches, but 2024 is all about making smart, data-driven decisions. With CX Sense, step into a new era of understanding your customers better and elevating your service levels. Don’t just forecast demand; anticipate and shape it with precision.

Join us at our Gen AI Bootcamp. Here, we’ll dive into your unique challenges and uncover how to supercharge your demand forecasting. In just 4 weeks, we’ll transform your approach, equipping you with the tools and know-how to make 2024 the year you become a true Demand Sensing Jedi.