Dive Brief:
- Toyota recently announced that Kinaxis RapidResponse will now serve as its system of choice for managing supply and demand, Kinaxis said in a press release.
- Current manual planning systems will be replaced by Kinaxis' cloud-based supply chain management solution based on concurrent planning, in order to unify Toyota's global demand and supply planning, sales and production divisions, and to better manage vehicle and unit volume.
- Kinaxis has also worked with Ford, Volvo and Qualcomm, among others.
Dive Insight:
Technology will play an increasingly large role in how the auto industry brings its products to market.
Software innovation and digitization are predicted to level the playing field for auto manufacturers and suppliers, while demand-driven planning within the supply chain (DDSC) has the potential to achieve a 15% reduction in inventory.
Ford, meanwhile, is leaping ahead technologically by working to develop an open, cloud-based mobility service platform called the "Transportation Mobility Cloud."
As lead times become shorter and turnarounds faster, the auto industry needs to learn how to adjust to consumers' rapidly changing preferences and expectations. With a demand planning management solution like Kinaxis, Toyota shows it understands how e-commerce has disrupted supply chains and sales and operations.
Using Kinaxis could improve Toyota's supply chain, and give the company more of an edge over other automakers that may be struggling (like Tesla), at least when it comes to identifying and addressing consumer needs and then delivering.
