How does IBP support "Demand Sensing"?

Demand sensing in SAP Integrated Business Planning (IBP) refers to the process of leveraging real-time data and demand signals to make informed adjustments to forecasts. This capability is crucial for businesses to react quickly to changing market conditions and consumer behavior.

When demand sensing is utilized, forecasts are not static but are instead continuously updated based on the most recent demand information and trends. This results in more accurate and responsive demand planning, allowing organizations to align their supply chains effectively with the actual demand. By adjusting forecasts based on these real-time signals, businesses can better manage inventory levels, optimize production schedules, and improve service levels, ultimately leading to enhanced customer satisfaction and reduced costs.

This aspect of IBP enhances overall agility in demand management, enabling companies to respond proactively to fluctuations in demand and maintain a competitive edge in the market.