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Demand Sensing in SAP S/4 HANA

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Demand sensing is a process that uses advanced algorithms and machine learning techniques to analyse real-time data and provide accurate demand forecasts. In SAP S/4 HANA, demand sensing is a module in Integrated Business Planning. (IBP) that enables companies to improve their supply chain planning by providing accurate and timely demand forecasts.

Demand sensing in SAP S/4 HANA works by collecting and analysing data from a variety of sources, such as point of sale (POS) data, social media, and weather forecasts. This data is then used to generate accurate demand forecasts, which can be used to optimise production, inventory management, and logistics.

Some of the key features of Demand Sensing in SAP S/4 HANA

  • Real-time data integration: Integration with a variety of data sources in real-time, providing accurate and up-to-date demand data.

  • Machine learning algorithms: Advanced machine learning algorithms to analyse data and generate accurate demand forecasts.

  • Multiple forecasting methods: A range of forecasting methods, including time series analysis, regression analysis, and causal analysis.

  • Scalability: SAP S/4 HANA can handle large volumes of data, making it suitable for use in large enterprises.

  • Integration with other modules: SAP S/4 HANA integrates with other modules, such as supply chain planning and inventory management, to provide end-to-end visibility of the supply chain.

What benefits does Demand Sensing in SAP S/4 HANA provide to your organisation?

  • Improved forecast accuracy: Demand sensing uses real-time data and advanced algorithms to generate accurate demand forecasts, which can help to improve forecast accuracy. This can help companies to better plan for future demand and avoid stockouts or excess inventory.

  • Increased supply chain agility: Demand sensing can help companies to be more responsive to changes in demand by providing real-time data and accurate demand forecasts. This can help to improve supply chain agility and reduce lead times.

  • Better inventory management: By providing accurate demand forecasts, demand sensing can help companies to optimise inventory levels and reduce inventory carrying costs. This can help to improve cash flow and reduce waste.

  • Improved customer service: By better understanding customer demand, demand sensing can help companies to improve customer service levels. This can lead to increased customer satisfaction and loyalty.

  • Cost savings: Demand sensing can help companies to reduce costs by optimising production planning, reducing inventory carrying costs, and minimising waste. This can lead to improved profitability and competitive advantage.

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