Japanese construction machinery manufacturer strengthens production and supply plans with Blue Yonder to build resiliency to market fluctuations

Manufacturers need to see, analyze, decide, and act to changes in near real-time. That’s why Kobelco Construction Machinery Co., Ltd. (KCM), a leading manufacturer of construction machinery, has deployed Blue Yonder’s demand and supply planning capabilities to digitally transform its global production and sales operations to be more resilient to demand fluctuations.

KCM globally offers a wide variety of construction and transportation machinery and is continually innovating. The company is dedicated to supplying customers with products, services, and information that have true value, while contributing to the creation of a prosperous society. However, KCM was dealing with an environment of constant supply chain challenges and disruptions, as well as challenges with its speed of decision-making in response to market fluctuations and the optimization of Production, Sales, and Inventory (PSI). The company was looking for a solution that could immediately create an optimized production and supply plan to cater to market fluctuations at its global locations, so it turned to Blue Yonder.

With Blue Yonder’s capabilities, KCM will be able to achieve the following:

• Transform its global manufacturing and sales structure to be more resilient to market fluctuations.
• Visualize, control and orchestrate its supply and demand processes across its global network of suppliers and production facilities.
• Establish a system that can quickly respond to changes in the market and adjust production levels accordingly by providing support to each site (with automatic data collection/distribution) and controlling supply when production increases/decreases.
• Gain near real-time, end-to-end collaboration across its entire supply chain to optimize inventory management and improve cash flow.

"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."

Blue Yonder’s demand and supply planning capabilities allow KCM to stage the right inventory throughout its distribution network, minimizing stock-outs while reducing lost sales opportunities, lowering manufacturing costs, and maximizing profits. The capabilities also allow KCM to gain a strong return on invested capital, minimize cost-to-serve and cash-to-serve, and maintain a high level of customer service.

“We are honored 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.”

“We worked closely with KCM to help them realize their goal of strengthening and transforming their global supply chain with Blue Yonder’s capabilities,” said Daiju Watanabe, representative director and president, Blue Yonder Japan. “During the implementation, we prioritized 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.”

Additional Resources:

• Learn more about Blue Yonder’s demand and supply planning capabilities

About Kobelco Construction Machinery

Kobelco Construction Machinery Co., Ltd. (KCM), as a member of the KOBELCO Group, is engaged in the development, production, sales, and service of construction machinery. The company offers three main product lines: hydraulic excavators, cranes, and environmental recycling machines. Currently, KCM has production bases in Japan, China, Thailand, and India, and are expanding the business globally. With the identity of "User Site Principle," KCM aims for its construction machinery to harmonize with urban landscapes and people, making them feel familiar. Therefore, KCM has adopted a distinctive blue-green color for its products.

In addition to its well-established environmental technology development, such as "low fuel consumption and low noise," KCM is advancing the commercialization of "Koto" business with ICT construction machinery and DX solutions under the slogan "Worksites where anyone can work." For more details, please visit www.kobelcocm-global.com.

About Blue Yonder

Blue Yonder is the world leader in end-to-end digital supply chain transformation. With a unified, AI-driven platform and multi-tier network, Blue Yonder empowers businesses to operate sustainably, scale profitably, and delight their customers — all at machine speed. A pioneer in applying AI solutions to the most complicated supply chain challenges, Blue Yonder’s modern innovations and unmatched industry expertise help more than 3,000 retailers, manufacturers, and logistics service providers confidently navigate supply chain complexity and disruption. blueyonder.com

“Blue Yonder” is a trademark or registered trademark of Blue Yonder Group, Inc. Any trade, product or service name referenced in this document using the name “Blue Yonder” is a trademark and/or property of Blue Yonder Group, Inc. All other company and product names may be trademarks, registered trademarks or service marks of the companies with which they are associated.

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