Kobelco Construction Machinery, a prominent Japanese manufacturer of construction and transportation equipment with a significant footprint across the Asia-Pacific region, has taken a decisive step to fortify its global production and sales operations amid ongoing supply chain challenges. The company has implemented Blue Yonder’s advanced demand and supply planning solutions, aiming to create a more resilient and responsive business structure capable of withstanding market volatility.
Persistent disruptions in supply chains and fluctuating market demands have posed considerable difficulties for Kobelco, necessitating faster decision-making and more efficient management of production, sales, and inventory (PSI). In response, the company has adopted Blue Yonder’s AI-driven digital platform, which is designed to deliver optimised production and supply plans almost in real time. This platform integrates automated data collection and distribution, enabling international collaboration and quick adaptation to changes in supply and demand across Kobelco’s global operations.
Yoshio Nishida, executive officer at Kobelco Construction Machinery, expressed confidence in Blue Yonder’s capabilities, noting that the technology would underpin the company’s goal of a robust global production and sales system resilient to demand fluctuations. The new system is expected to improve inventory staging across Kobelco’s distribution network, thereby reducing stock-outs and lost sales opportunities, while also lowering manufacturing costs. The company is optimistic about enhanced return on invested capital and improved cash-to-serve and cost-to-serve metrics, all while maintaining high customer service standards.
Blue Yonder’s president for the Asia-Pacific region, Antonio Boccalandro, highlighted the urgency for manufacturers to develop optimal supply plans in today’s environment, where excess inventory strains cash flow and shortages jeopardise business opportunities. He emphasised that Kobelco’s adoption of Blue Yonder’s solutions would help solve their current supply chain challenges and enhance planning accuracy across the enterprise. Daiju Watanabe, representative director and president of Blue Yonder Japan, added that the close collaboration during implementation was key to ensuring the system could operate effectively in real-world conditions, thus helping Kobelco become more adaptable to disruptions and better meet customer needs.
Kobelco currently operates production facilities in Japan, China, Thailand, and India, and is actively expanding its international presence. The company also prioritises sustainability and innovation, focusing on equipment with lower fuel consumption and noise emissions. This move towards digital transformation, including the integration of Blue Yonder’s AI-driven supply chain platform, aligns with Kobelco’s “User Site Principle,” which emphasises adopting cutting-edge technology to enhance operational efficiency and customer support.
The partnership with Blue Yonder places Kobelco among more than 3,000 global manufacturers, logistics providers, and retailers leveraging AI, machine learning, and advanced analytics to manage complex supply chains and navigate business disruptions. Industry data suggests that such technologies significantly improve forecast accuracy, inventory optimisation, and overall profitability by enabling companies to anticipate demand fluctuations and respond swiftly with intelligent supply planning.
In parallel, Kobelco has been pursuing strategic initiatives to address rising production costs and operational challenges. These include adopting lean manufacturing principles, expanding the use of robotics and AI within production lines, diversifying its supplier base to mitigate risks, and bolstering local production capabilities to reduce reliance on imports. These complementary efforts underscore Kobelco’s commitment to building a strong, agile supply chain that can withstand global disruptions and ensure business continuity.
By integrating Blue Yonder’s demand and supply planning solutions into its operations, Kobelco Construction Machinery aims not only to enhance responsiveness and efficiency but also to future-proof its global supply chain against ongoing uncertainties. This digital transformation marks a significant milestone in the company’s evolution, facilitating better inventory management, improved cash flow, and sustained customer satisfaction in an increasingly volatile market environment.
Source: Noah Wire Services
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