What is demand sensing issue in SAP SCM-IBP-DM - Demand?

SAP Term: demand sensing issue

• Component: SCM-IBP-DM

• Component Name: Demand

• Description: A significant difference between the results of a short-term demand plan in other words, sensed demand and the values of the long-term consensus forecast. The short-term demand plan is based on demand signals such as existing sales orders. If the demand signals show, for example, that there is more demand for a product at a location than previously thought, the sensed demand is adjusted automatically. The user can still overwrite the sensed demand calculated by the system.

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• Key Concepts: 
  Demand sensing is a process used in supply chain management to predict customer demand. It uses data from various sources, such as sales orders, customer orders, and market trends, to create an accurate forecast of future demand. The goal of demand sensing is to ensure that the right amount of inventory is available at the right time. 
  
  How to use it: 
  Demand sensing can be used to improve inventory management and reduce costs associated with overstocking or understocking. It can also be used to identify potential opportunities for new products or services. The SAP SCM-IBP-DM Demand Sensing component provides a comprehensive set of tools for analyzing customer demand and creating accurate forecasts. 
  
  Tips & Tricks: 
  When using the SAP SCM-IBP-DM Demand Sensing component, it is important to ensure that the data being used is up-to-date and accurate. Additionally, it is important to consider external factors such as market trends and customer preferences when creating forecasts. 
  
  Related Information: 
  For more information on demand sensing and the SAP SCM-IBP-DM Demand Sensing component, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed tutorials and best practices for using this component.