DENSO Corporation has announced a strategic partnership with Oracle Corporation to modernize its core systems in the supply chain domain. The initiative, which commenced in April, will see DENSO deploy a new global core system based on Oracle Fusion Cloud Applications, incorporating the latest AI technologies.
The automotive industry is grappling with increasing complexity in supply chain operations, driven by advancements in vehicle systems and heightened geopolitical risks. To address these challenges, DENSO aims to strengthen and standardize business processes through digital technologies.
This partnership builds on previous collaborations between DENSO and Oracle in areas such as finance, indirect procurement, and human resources. The new initiative expands the scope to include supply chain operations, combining DENSO's expertise in automotive parts manufacturing with Oracle's cloud applications and AI technologies.
As part of the partnership, DENSO and Oracle will establish an AI Center of Excellence to centralize knowledge on AI utilization and promote the use of advanced AI agents. A pilot deployment at overseas locations is planned for approximately two years from now, with a global rollout to follow.
The initiative aims to improve operational efficiency and sophistication while building a resilient, robust, and sustainable supply chain. Key transformations include advancing business processes by centrally managing data across planning, procurement, production, delivery, and accounting, allowing for real-time visibility of the entire supply chain.
AI will automate routine tasks and provide recommended actions, reducing manual work and enabling employees to focus on strategic activities. The same data foundation will allow for accelerated management decision-making by identifying procurement and supply risks early, enabling rapid strategy formulation and evaluation.
Hirotsugu Takeuchi, CTO and CDO of DENSO, emphasized the importance of advanced technologies such as AI, analytics, and forecasting platforms for modernizing core systems and enhancing decision-making on a global scale. Steve Miranda, Executive Vice President of Applications Development at Oracle, highlighted the need for an AI-centric approach to boost supply chain performance and drive efficient global growth.
DENSO plans to continue partnering with other companies to strengthen manufacturing competitiveness and address social challenges, contributing to a sustainable mobility society.
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