Denso uses Logility platform to anticipate supply chain disruptions

Japanese automotive parts supplier Denso turned to Logility to help it deal with the complexities of maintaining the right spare parts inventory. Thanks to Logility’s supply chain tool, the company now has a tighter grip on turbulent market conditions, Marco Turk revealed during the S&OP Selection Day organized by Supply Chain Media on 16 November.

Maintaining the right inventory of spare parts is becoming an increasingly complex task for Denso Europe, according to Marco Turk, Manager of Demand & Inventory for the aftermarket. He has faced one supply chain disruption after another. Delivery times from Japan increased sharply during coronavirus-related lockdowns, and the war in Ukraine forced Denso to hurriedly shut down its operation in Russia.

“In the past, there was continuous consultation between departments on how to adapt our stock levels in response to such incidents and which future scenarios we had to take into account. After all, you don’t just make a decision for the current situation, but you also have to have a Plan B ready each time in case the situation changes again.”

Tighter grip on turbulent market conditions

Thanks to Logility, however, Denso is now equipped with a supply chain tool that gives the company a tighter grip on turbulent market conditions. Potential inventory shortages due to disruptions are detected at the earliest possible stage and the tool supports decision-making about a suitable reaction. “We now see any hurdles coming well in advance and are in a position to implement appropriate measures in good time.”

According to Turk, the platform offers useful possibilities for advanced analytics, scenario planning, and collaborative forecasting with suppliers and customers alike. “By sharing our forecasts, we enable our suppliers to know where they stand so they can supply us more reliably. And since involving customers in the forecasting process too, reliability has increased from 85% to 95%.”

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