Which analysis is typically performed for demand sensing?

Time-based demand trend analysis is the correct approach for demand sensing because it focuses on capturing and interpreting variations in demand patterns over specific time intervals. This type of analysis allows businesses to respond rapidly to changes in customer behavior and market conditions. By examining demand trends on a time-sensitive basis, organizations can identify fluctuations in order patterns that may signal an immediate need for adjustments in inventory levels, production planning, or distribution strategies.

This methodology is essential in demand sensing as it leverages real-time data to predict short-term changes in demand, enabling organizations to make more informed decisions and optimize their supply chains effectively. It is particularly valuable in environments characterized by high variability in customer demand, as it helps firms not only respond to current trends but also anticipate future needs more accurately.

Other analysis types mentioned, such as seasonal trend analysis and competitive market analysis, are broader in scope and often rely on longer-term patterns and comparative data rather than the immediate, real-time insights critical for effective demand sensing. Real-time supply chain analysis, while useful, tends to focus more on the logistics and operational aspects rather than solely on the demand side. Therefore, time-based demand trend analysis stands out as the most relevant and direct approach for demand sensing within the framework of SAP Integrated Business Planning.