6 days ago
Kobelco boosts supply chain resilience with Blue Yonder tech
Kobelco Construction Machinery has implemented Blue Yonder's demand and supply planning capabilities to enhance its production and sales operations and build greater resilience to market fluctuations across its global business.
The Japanese construction machinery manufacturer, which has a considerable presence across the Asia-Pacific region, faced persistent challenges within its supply chain, including the need to accelerate decision-making in response to rapidly changing market conditions and to optimise production, sales, and inventory (PSI) management. By introducing Blue Yonder's digital planning solutions, Kobelco Construction Machinery aims to establish a more responsive and robust global production and sales structure.
Enhancing global capabilities
Kobelco Construction Machinery produces and sells a diverse range of construction and transportation equipment worldwide. The company's commitment to providing customers with reliable products, services, and information was tested by ongoing supply chain disruptions and market volatility. According to the company, it needed a solution that could immediately generate optimised production and supply plans to address fluctuations across its global operations.
The implementation of Blue Yonder's planning capabilities is expected to allow Kobelco Construction Machinery to visualise, control, and orchestrate its demand and supply processes throughout its international network of suppliers and manufacturing sites. The system provides support to each site via automatic data collection and distribution and can adjust supply in response to both increases and decreases in production. This enables near real-time, end-to-end collaboration along the supply chain, aiming to improve inventory management and cash flow.
Confidence in digital transformation "Blue Yonder's demand and supply planning capabilities have long been trusted by global manufacturers to support their planning operations, giving us confidence that their high level of expertise would drive operational transformation for KCM," said Yoshio Nishida, executive officer, Kobelco Construction Machinery. "Thanks to Blue Yonder, we are building a foundation to support our goal of a global production and sales system that is resilient to demand fluctuations."
With Blue Yonder, Kobelco Construction Machinery expects to stage inventory more effectively across its distribution network, thus reducing the risk of stock-outs and the loss of sales opportunities, as well as lowering manufacturing costs. The company also anticipates improvements in return on invested capital, minimised cost-to-serve and cash-to-serve metrics, and maintenance of a high level of customer service.
Supplier and technology provider perspectives "We are honoured that KCM selected to digitally transform its planning capabilities with Blue Yonder," said Antonio Boccalandro, president, APAC, Blue Yonder. "Today, excess inventory will worsen cash flow, while insufficient inventory will cause missed business opportunities, so it is essential for manufacturers to develop optimal supply plans. With Blue Yonder, KCM will be able to solve their current challenges and improve planning accuracy across their enterprise and products."
Daiju Watanabe, representative director and president, Blue Yonder Japan, added, "We worked closely with KCM to help them realize their goal of strengthening and transforming their global supply chain with Blue Yonder's capabilities. During the implementation, we prioritised the operation and integration of the solution in real-world settings. As a result, KCM can now be more resilient to demand fluctuations and disruptions, enabling them to better meet the needs of their customers."
Future direction
Kobelco Construction Machinery currently operates production bases in Japan, China, Thailand, and India and continues to expand its international presence. The company has focused on environmental technology, such as equipment with low fuel consumption and noise emissions, while also advancing the use of digital and ICT solutions under its "User Site Principle."
Blue Yonder, through its AI-driven supply chain platform, works with over 3,000 manufacturers, logistics providers, and retailers globally, assisting them in managing complex supply chains and business disruptions. Kobelco Construction Machinery's collaboration with Blue Yonder is intended to further enhance the company's ability to respond to global market changes and customer needs effectively.
