Procter & Gamble Uses Demand Sensing Solution

The Procter & Gamble Company (P&G) selects Terra Technology's Multi-Enterprise Demand Sensing (MDS) solution to further improve forecast accuracy and demand visibility. In a recent model, the software reduced forecast error by more than 50 percent in certain categories for forecasts three weeks out or less.

Dick Clark, associate director, demand planning for P&G, says, "Procter & Gamble selected Terra Technology's Multi-Enterprise Demand Sensing to analyze the tremendous amount of daily demand information available from key retailers and create a single, more accurate forecast. MDS analyzes POS, channel inventory and retailer forecasts to determine what information is relevant and creates a significantly more accurate forecast for P&G."

MDS aims to reconcile daily demand signals from all echelons in the supply chain including POS data, retailer warehouse and outlet inventory, and retailer forecasts. MDS uses pattern recognition mathematics to decipher which information is predictive. P&G modeled the software in several businesses.