Demand sensing and demand forecasting are two important concepts in the business world that are often confused. Demand sensing is the process of using data from multiple sources to get a real-time understanding of customer demand. It is used to detect and respond to short-term changes in demand and is a more reactive approach to supply chain management. Demand forecasting, on the other hand, is the process of predicting customer demand over a longer period of time. It is used to anticipate future customer demand and is a more proactive approach to supply chain management. The two processes are complementary and should be used together to ensure an effective supply chain strategy. Demand sensing provides a better understanding of short-term changes in demand, while demand forecasting helps anticipate long-term trends. By combining the two processes, businesses can make more informed decisions about their supply chain and ensure that they are prepared for any changes in customer demand.