How does demand sensing improve inventory management?

Demand sensing has a direct and measurable impact on inventory performance. By detecting demand accelerations early, it triggers timely replenishment to prevent stockouts. Equally important, when demand decelerates, it prevents over-ordering that leads to excess stock, markdowns, or waste — a critical issue in food, beverage, and perishable goods.

The net effect is a tighter alignment between inventory levels and actual market demand: higher availability with less total stock. Saint-Gobain, for example, achieved a 9.25% reduction in inventory levels with Flowlity, because the system continuously recalibrates the optimal stock position based on real-time signals rather than static safety stock rules.