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January 2, 2024 | Manju Devadas
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 Retailers, basing their predictions on outdated models or reliant on Excel-based manual decisions, are facing discrepancies in sales expectations versus reality.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.
|Challenges Facing Retailers
|Time with Traditional Tools
|Time with CX Sense (Gen AI)
Understanding Rapid Consumer Mindset Shifts
Weeks or Months
Instantly, in Near Real-Time E.g. response to ads
Adapting to Sudden Market Changes
Often Too Late
Swiftly, Within Days
Keeping Up with Social Media Trends Impacting Demand
Balancing Inventory with Real Demand
Ongoing, Dynamic Adjustment
Dealing with Post-Christmas Inventory Surplus
Immediate Remedial Actions
Innovating to Stay Ahead of Market Trends
Slow and Cumbersome
Fast and Agile
Christmas is over, and the next significant event on the horizon could be Valentine’s Day. For retailers, the difference between a successful season and a missed opportunity could hinge on one critical decision: investing in a demand-sensing platform like CX Sense. This Gen AI-enabled platform doesn’t just provide data; it offers actionable insights that are crucial for making informed, timely decisions in an ever-changing market.
It achieves this by integrating ERP data from systems like SAP and Oracle EBS with CRM data from platforms such as Salesforce. More importantly, it enriches this data with over 250 external signals, including insights from Google Adtech and Google Trends.
Key Benefits of CX Sense:
Last Valentine’s Day, ACME Corp faced low sales volumes in their assorted cookies category. However, this year, with CX Sense, the story is different. The platform’s ability to pick up on Google Trends and Adtech data, among other external signals, has provided ACME Corp with early indicators of rising consumer interest in gourmet cookie assortments. This data enables their demand planning team to adjust forecasts accurately, ensuring they meet the surge in demand without overstocking.
|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
|Generic forecast based on historical patterns
|Advanced sensing of real-time shifts in cookie preferences
|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
|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.
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.
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:
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.