DENSO CORPORATION (“DENSO”) announced today that it has established a strategic partnership with Oracle Corporation (“Oracle”) to modernize its core systems in the supply chain domain. The two companies began work on this initiative in April.
Under the partnership, DENSO will deploy a new global core system based on Oracle Fusion Cloud Applications, incorporating the latest AI technologies. Through this initiative, DENSO aims to build an advanced digital foundation for its supply chain operations.
The automotive industry is currently facing increasing complexity in supply chain operations that support manufacturing - including production planning, logistics, and procurement - driven by the advancement of vehicle systems and diversification of vehicles, as well as heightened geopolitical risks. To respond appropriately and swiftly to these changes, it has become increasingly important to strengthen and standardize business processes through the use of digital technologies.
DENSO and Oracle have previously worked together to modernize business processes based on cloud technologies in areas such as finance, indirect procurement, and human resources. Building on the knowledge gained through these efforts, the new strategic partnership expands the scope of collaboration to the supply chain domain.
Under this partnership, DENSO will combine its extensive expertise in automotive parts manufacturing with Oracle’s latest cloud applications and AI technologies, using Oracle Fusion Cloud Applications as the foundation to globally modernize its core supply chain systems.
In addition, DENSO and Oracle will establish an AI Center of Excellence (AI CoE), serving as a central organization to collect knowledge on AI utilization and to promote the full-scale use of advanced AI agents across the initiative.
Following a pilot deployment at overseas locations planned for approximately two years from now, the new core system will be rolled out globally in phases. Through the introduction of an AI-driven supply chain core system - a leading initiative within the automotive parts industry - DENSO aims to improve operational efficiency and sophistication while building a resilient, robust, and sustainable supply chain capable of adapting to change.
Key Business Transformations Targeted by This Initiative
Advancement of Business Processes
Data spanning planning, procurement, production, delivery, and accounting across globally dispersed operations will be centrally managed on a cloud-based system, enabling real-time visibility of the entire supply chain. Based on this integrated data foundation, AI will automate routine tasks and provide recommended actions, significantly reducing manual work and enabling employees to focus on higher-value, strategic activities.
Accelerated Management Decision-Making
By leveraging the same data foundation, AI will collect and analyze relevant information and run simulations based on multiple data sets, allowing early identification of procurement and supply risks that previously required manual intervention. This will enable the rapid formulation and evaluation of production, procurement, and supply strategies from a globally optimized perspective, in response to changing environments.
Comments from Executives
Hirotsugu Takeuchi
CTO (Chief Technology Officer), CDO (Chief Digital Officer), Head of R&D Center, Head of Production Innovation Center, DENSO Corporation
As supply chain operations continue to grow in complexity, advanced technologies such as AI, together with analytics and forecasting platforms based on integrated data, are no longer optional - they are prerequisites. This initiative goes beyond simple efficiency improvements; it represents a fundamental modernization of our core systems to transform the quality and speed of decision-making on a global scale. By leveraging Oracle Fusion Applications to significantly enhance data accuracy and timeliness, and by embedding AI into day-to-day operations, we will implement a supply chain that is resilient to change.
Steve Miranda
Executive Vice President, Applications Development, Oracle
DENSO’s continued growth and the increased speed and complexity of its supply chain operations required a new AI-centric and integrated approach. With Oracle Fusion Applications, DENSO can adopt an AI-powered system of outcomes that can work across the business to automate end-to-end workflows, boost supply chain performance, and drive efficient global growth.
DENSO will continue to partner with other companies to strengthen manufacturing competitiveness and address social challenges, contributing to the realization of a sustainable mobility society.