An Exploratory Study on Demand Sensing Approach to Develop Short-Term Forecasts Amid Covid-19 Pandemic in Cpg Industry

Abstract

The research aims to identify the factors which can help in building Demand sensing capability in the CPG industry. Demand sensing refers to understanding of real-time market conditions to develop accurate forecast. This study uses empirical investigation of factors by conducting survey on random samples with people involved in demand planning role in CPG industry. There are 5 major factors which can help to understand demand at granular level (Digitization, Environment, Information Available, Supply chain Collaboration and Consumer Behaviour). Factors are identified by performing exploratory factor analysis on responses collected through questionnaire. Factor classification serves as a theoretical framework to develop demand sensing approach for better demand analysis during uncertain time like COVID-19 pandemic and how companies can leverage market insights into evolving their current demand forecasting capabilities from traditional time-series forecasting methods. The conceptual discussion in this research agenda can be used to incorporate these factors in the demand forecasting model can help better understanding of demand and better short-term forecasts in periods of uncertainty