Alps Alpine Upgrades to Advanced Production Planning Processes for Global Supply Chain
— AI-Based Demand Forecasting Models Developed by ABeam Consulting —

Alps Alpine Co., Ltd.
ABeam Consulting Ltd.

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. 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.

Alps Alpine, a leading manufacturer of electronic components and automotive infotainment systems, has brought the world numerous “First 1” and “Number 1” products since its founding in 1948. Currently operating 110 bases in 26 countries and regions, the Alps Alpine Group supplies roughly 40,000 different products and solutions to around 2,000 companies worldwide. Those offerings include devices such as switches, sensors, data communication modules, touch input panels, actuators and power inductors; electronic shifters, remote keyless entry systems and other automotive units; consumer electronics like car navigation and audio-visual systems; and systems and services such as digital keys based on smartphone app and blockchain technology, and remote monitoring.
Website: https://www.alpsalpine.com/e

ABeam Consulting provides business transformation services that create strategic advantage, improve business processes, leverage technology innovation, and enhance organizational performance for leading multinational and domestic companies worldwide. ABeam partners with clients to diagnose and solve their real challenges with solutions that combine industry and operational best practices with technical expertise. Pragmatic approaches ensure that clients gain measurable value more quickly. Headquartered in Tokyo, ABeam’s 6,500 professionals serve clients throughout Asia, the Americas and Europe. ABeam Consulting creates the future together with corporations and other organizations. As a creative partner leading the way reliably through change, we contribute to industrial and societal change. For more information, please visit https://www.abeam.com/jp/en

Alps Alpine Co., Ltd.
Hiroaki Goishi
Public Relations Team, Sustainability Promotion Office
1-7, Yukigaya-Otsuka-machi, Ota-ku, Tokyo 145-8501, Japan
TEL: +81-3-5499-8001
email: Hiroaki.Goishi@alpsalpine.com

ABeam Consulting Ltd.
Yamato Uehara, Yumiko Yoshida  
Corporate Communications Unit
TEL: +81-80-9207-4247 (Uehara), +81-80-1367-7405 (Yoshida)
FAX: +81-3-6700-8145
email: yauehara@abeam.com, yumyoshida@abeam.com