Alps Alpine Upgrades to Advanced Production Planning Processes for Global Supply Chain

Alps Alpine Co., Ltd. (TSE: 6770; President & CEO: Toshihiro Kuriyama) has implemented a project to upgrade to advanced production planning processes within the company’s global supply chain. The project’s objectives were to improve the accuracy of forecasts within production planning and thereby reduce inventories and opportunity losses, as well as to remove dependency on specific individuals for certain jobs and raise job efficiency.

AI-Based Demand Forecasting Models Developed by ABeam Consulting.

ABeam Consulting Ltd. (Chiyoda-ku, Tokyo; President and CEO: Tatsuya Kamoi) provided comprehensive support, for example through road map formulation and development of demand forecasting models employing artificial intelligence.

Background to the Project
Business today is conducted on the global stage and a corporation’s ability to quickly and accurately identify fluctuations in demand in countries and regions across the world and formulate highly accurate production plans has a direct bearing on its competitiveness. At Alps Alpine, poor accuracy of the pre-existing demand forecasting system and variance in the frequency and content of data entry among sales bases were factors undermining the effectiveness of the existing system. This diminished demand forecasting accuracy within production planning processes, leading to issues such as opportunity loss and dependence on specific individuals for certain jobs.

Project Outline
The implementation of a project to upgrade to advanced production planning processes within Alps Alpine’s global supply chain and the development of highly accurate demand forecasting models employing artificial intelligence.

Alps Alpine has been working to unify management infrastructure since 2009 with aims to bolster competitiveness on the global market. Activities are currently underway in 10 countries. ABeam Consulting has provided support for these efforts and it is now clear we anticipate a 15% improvement in demand forecasting accuracy by combining this management infrastructure with highly accurate AI-based demand forecasting models.

The Role of ABeam Consulting
Applying knowledge of global supply chain management processes and expertise in AI-based analysis and design, as well as automated machine learning (AutoML) tools for automatic processing at the development stage for key forecasting models, ABeam Consulting provided comprehensive support for the project, for example through formulation of a project road map, examination of planning processes for supply chain management, improvements to existing business processes, and development (selection of applicable products, data maintenance and analysis, and model development through to evaluation) and operation of AI-based demand forecasting models for individual applicable products.

Upcoming Plans
Alps Alpine will work to expand the range of device products covered by demand forecasting and gradually expand coverage to other domains. Using digital technology, Alps Alpine will promote advanced and efficient business processes within the supply chain, such as through more accurate production planning, with aims to strengthen corporate competitiveness.

www.alpsalpine.com

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