An Infographic on Data Signals for Food Demand Sensing
It's the art and science of listening to the market in near real-time. Instead of just relying on past sales, demand sensing tunes into a wide variety of digital signals to create highly accurate short-term forecasts. For the food industry, this means less waste, fuller shelves, and happier customers.
By understanding subtle shifts in consumer behavior as they happen, companies can adjust their supply chains dynamically.
Companies using demand sensing can drastically improve their forecast accuracy for the upcoming 1-4 weeks.
A diverse range of data provides a holistic view of consumer demand.
The gold standard. Real-time checkout data shows what's selling, where, and when.
Viral recipes on TikTok or health trends on Instagram are powerful leading indicators of demand spikes.
Predicts demand for weather-sensitive items like ice cream, soup, and BBQ supplies.
Internal data on upcoming sales or marketing campaigns helps predict planned demand lifts.
Rising searches for "vegan cheese" or "quick dinner ideas" signal shifting consumer interest.
Knowing partner stock levels helps prevent stockouts and optimize replenishment orders.
Here’s how a real-time signal, like a viral recipe trend, can refine the forecast and trigger actions across the supply chain to meet sudden demand.
Signal triggers increased orders for raw ingredients from suppliers.
Production schedules are adjusted to increase output of the trending product.
Logistics are prioritized to move more product to high-demand regions.
Stores increase shelf stock to avoid empty spaces and lost sales.
The demand-sensed forecast more accurately tracks actual sales, reducing the gap that leads to stockouts or overstocking.
Data can be acquired through various channels, each suited for different types of signals.
Automated connections to services for real-time data like weather, social media analytics, or retailer data platforms.
Companies like Nielsen and IRI offer paid subscriptions to comprehensive POS, consumer panel, and market trend data.
Collaborating with retailers to share inventory and sales data provides a highly granular and accurate signal.