Demand Sensing
Demand Sensing is a modern approach to predicting what customers will buy or need in the near future. Unlike traditional forecasting that mainly looks at past sales, demand sensing uses real-time data from many sources like point-of-sale systems, weather forecasts, social media trends, and economic indicators. It's like having a smart crystal ball that helps companies stock the right amount of products at the right time. Companies use this to reduce excess inventory, avoid stockouts, and save money. This approach is becoming increasingly important as supply chains become more complex and customers expect faster delivery times.
Examples in Resumes
Implemented Demand Sensing technology that reduced excess inventory by 25%
Led Demand Sensing and Demand Planning initiatives across 5 distribution centers
Used Demand Sensing tools to improve forecast accuracy from 65% to 85%
Typical job title: "Demand Planners"
Also try searching for:
Where to Find Demand Planners
Professional Organizations
Online Communities
Job Resources
Example Interview Questions
Senior Level Questions
Q: How would you implement a demand sensing program in a company that currently uses basic forecasting?
Expected Answer: A strong answer should discuss gradually introducing real-time data sources, training team members, selecting appropriate technology, and measuring improvements in forecast accuracy. They should mention change management and stakeholder communication.
Q: How do you handle conflicting signals from different demand sensing data sources?
Expected Answer: Should explain how to prioritize different data sources based on reliability and relevance, using historical accuracy to weight different inputs, and having clear escalation procedures for major discrepancies.
Mid Level Questions
Q: What data sources would you recommend for improving demand sensing accuracy?
Expected Answer: Should mention point-of-sale data, weather forecasts, social media trends, promotional calendars, and competitor activities, with examples of how each helps improve forecasting.
Q: How do you measure the success of demand sensing initiatives?
Expected Answer: Should discuss metrics like forecast accuracy, inventory levels, stockout rates, and carrying costs, with emphasis on comparing before and after implementation results.
Junior Level Questions
Q: What's the difference between traditional forecasting and demand sensing?
Expected Answer: Should explain that traditional forecasting mainly uses historical data, while demand sensing incorporates real-time data from multiple sources for more accurate short-term predictions.
Q: What are the basic components of a demand sensing system?
Expected Answer: Should mention data collection tools, analysis software, reporting systems, and basic understanding of how these components work together to create forecasts.
Experience Level Indicators
Junior (0-2 years)
- Basic forecasting concepts
- Data collection and reporting
- Understanding of supply chain basics
- Experience with Excel and basic planning tools
Mid (2-5 years)
- Advanced forecasting techniques
- Experience with demand planning software
- Data analysis and interpretation
- Cross-functional collaboration
Senior (5+ years)
- Implementation of demand sensing programs
- Strategic planning and optimization
- Team leadership and program management
- Advanced analytics and modeling
Red Flags to Watch For
- No experience with modern forecasting tools or methods
- Lack of understanding of real-time data sources
- Poor analytical skills or data interpretation abilities
- No knowledge of supply chain management basics
Related Terms
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