Demand Sensing
AI prediction of customer demand 2–4 weeks ahead by analyzing signals (orders, search trends, inventory levels, macroeconomic data) that correlate with actual purchase. Used by manufacturers to pre-position inventory and adjust production.
Why it matters
Demand forecasting has always been a guess; demand sensing turns it into a signal-driven prediction. Manufacturers reduce inventory carrying cost by 20–30% and expedited shipping by understanding demand in advance.
This term appears in
Cite this definition
Finocchiaro, Michael. “Demand Sensing.” DemystifyingPLM PLM Glossary, 2026, https://www.demystifyingplm.com/glossary/demand-sensing