Kobelco adopts digital supply chain platform to manage global production

Kobelco’s SK230SRLC-7 excavator at Bauma Munich. Image: Kobelco

The Japanese OEM, which manufactures excavators, cranes and environmental recycling machines, said the move was aimed at improving resilience to supply chain disruptions and better aligning production with market fluctuations across its sites in Japan, China, Thailand and India.

Kobelco selected US-based software provider Blue Yonder to help automate data collection and distribution across sites and support near real-time decision-making. The software will allow the company to visualise supply and demand conditions across its global network, manage inventory levels more efficiently, and adjust production volumes as needed.

Kobelco said the system will support automatic data collection and distribution across its factories, enabling more responsive production adjustments and optimised stock levels.

“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,” said Yoshio Nishida, executive officer at Kobelco.

Antonio Boccalandro, president of Blue Yonder, added that the software would help Kobelco balance inventory to avoid missed business opportunities and excess stock, both of which can impact cash flow. He said, “Excess inventory will worsen cash flow, while insufficient inventory will cause missed business opportunities. It is essential for manufacturers to develop optimal supply plans.”

Kobelco said the digital upgrade was part of a wider effort to improve decision speed and optimise its production, sales, and inventory (PSI) operations. It expects the model to help reduce production inefficiencies, avoid stockouts, and improve cash-to-serve ratios while maintaining service levels across its global customer base.

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