Honda Trading Asia Co. Ltd. is a subsidiary of Honda Trading Corporation, engaged in procuring parts, equipment, dies, molds and raw materials, including steel, aluminum, and resins. It provides logistics services such as customs clearance, just-in-time delivery operations and warehousing. With its extensive supply chain and strategic operations, it plays a crucial role in supporting Honda's manufacturing and service centers throughout Thailand.
Historia de éxito
Honda Trading Asia
Honda Trading Asia Optimizes Inventory and Supply Chain Performance with Blue Yonder
Improved customer service levels through precise demand forecasting
Reduction in expediting costs by optimizing inventory management
Enhanced operational efficiency with a unified data system
La compañía
El desafío empresarial
Honda Trading Asia Co., Ltd. faced supply chain disruptions intensified by the COVID-19 pandemic, leading to supply and demand fluctuations and escalating expediting costs for last minute, overseas, express shipments. The company’s reliance on in-house spreadsheets, a legacy system for demand and supply calculations resulted in data inaccuracies and inefficiencies which, in turn, led to low on-hand inventory, severe stock shortages, and on other occasions, wastage from excess inventory holdings.
La solución
Honda Trading Asia Co., Ltd. leverages Blue Yonder Inventory Optimization and Demand and Supply Planning solutions to improve forecasting accuracy and streamline its supply chain operations. This replaced manual, ad-hoc methods, allowing Honda Trading Asia to align its inventory strategy with market demand efficiently.
“Our mission was ultimately to enhance working capital. Honda Trading needed an integrated approach to better balance demand and supply, right-size inventory, and meet customer service requirements with improved fulfillment rates. To achieve this, we turned to Blue Yonder for data accuracy, supply chain visibility, and the ability to act swiftly and share information, as speed of decision-making is crucial in the automotive parts industry.”
–Somya Mayuraskoon, Director, Honda Trading Asia Co., Ltd.
Transforming supply chain dynamics with inventory solution
Blue Yonder Inventory Optimization was a pivotal element in Honda Trading Asia’s supply chain transformation. Combined with Blue Yonder Demand and Supply Planning, it can accurately forecast demand and adjust inventory levels to optimize inventory performance and meet market fluctuations. This strategic shift not only minimizes supply chain risks, but also significantly reduces expediting costs and improves overall service delivery.
Honda Trading Asia is experiencing notable improvements in operational efficiency and decision-making processes due to the automation of manual tasks and the unification of previously fragmented data sources. The company is focusing on cost management strategies that have led to a decrease in unnecessary expenditures through optimized inventory levels, and have shown an increase in customer satisfaction as a direct result of its updated operations.
A key success factor of the successful implementation was the role of Blue Yonder partner Nexus, which provided strategic integration and rigorous data management services. Nexus actively addressed the business challenges Honda Trading Asia Co., Ltd. aimed to solve with Blue Yonder solutions and provided step-by-step guidance to achieve its goals.
Mirando hacia el futuro
Blue Yonder has helped Honda Trading solve immediate challenges such as monitoring customer buying behavior, right-sizing inventory and optimizing postponement and replenishment supply chain strategies. It has also positioned the company toward achieving long-term operational excellence and played a critical role in Honda Trading Asia Co., Ltd.’s ongoing commitment to enhancing customer service across Thailand, Vietnam, Taiwan and the Philippines.
