Lucy Pilgrim is an in-house writer for Supply Chain Outlook Magazine, where she is responsible for interviewing corporate executives and crafting original features for the magazine,...
- Deputy Head of Editorial
Share
DENSO Corporation has announced a strategic partnership with Oracle Corporation to elevate supply chain systems through advanced digital foundations and the latest artificial intelligence technologies.
DENSO Corporation (DENSO) has entered a new phase of collaboration with Oracle Corporation (Oracle), establishing a strategic partnership focused on modernising its global supply chain systems. The initiative centres around deploying a unified, cloud-based core system built on Oracle Fusion Cloud Applications and enhanced with artificial intelligence (AI) capabilities.
The move reflects growing pressure within the automotive sector, where supply chains are becoming increasingly complex due to evolving vehicle technologies, the diversification of product lines, and rising geopolitical risks. In response, DENSO is aiming to standardise and strengthen its operations through digital transformation.
By integrating supply chain processes with existing finance and HR systems already running on Oracle platforms, the company plans to create a single, scalable global system. This approach is expected to enhance visibility across procurement, manufacturing, and logistics whilst improving operational consistency worldwide.
AI-DRIVEN TRANSFORMATION
At the core of the partnership is the use of AI to streamline and optimise supply chain activities. The new system will centralise data-spanning planning, procurement, production, delivery, and accounting, enabling real-time visibility across DENSO’s global operations.
With this integrated data foundation, AI will automate routine processes and generate recommendations, reducing manual workloads and allowing employees to focus on higher-value tasks. In parallel, advanced analytics will support faster and more informed decision-making by identifying risks and running simulations across multiple scenarios.
“As supply chain operations continue to grow in complexity, advanced technologies such as AI, together with analytics and forecasting platforms based on integrated data, are no longer optional – they are prerequisites.”
Hirotsugu Takeuchi, Chief Technology Officer, Chief Digital Officer, Head of R&D Centre, and Head of Production Innovation Centre at DENSO
“This initiative goes beyond simple efficiency improvements; it represents a fundamental modernisation of our core systems to transform the quality and speed of decision-making on a global scale. By leveraging Oracle Fusion Applications to significantly enhance data accuracy and timeliness, and by embedding AI into day-to-day operations, we will implement a supply chain that is resilient to change,” he adds.
EXPANDING A LONG-STANDING COLLABORATION
The latest agreement builds on an existing relationship between the two companies, which has already seen the deployment of cloud-based solutions in areas such as finance, indirect procurement, and human resources. The expansion into supply chain management marks a significant broadening of scope.
As part of the initiative, DENSO and Oracle will establish an AI Centre of Excellence to consolidate expertise and promote the use of advanced AI agents across operations. This hub will play a key role in scaling AI adoption and ensuring alignment across the programme.
“DENSO’s continued growth and the increased speed and complexity of its supply chain operations required a new AI-centric and integrated approach,” says Steve Miranda, executive vice president of Applications Development, Oracle.
“With Oracle Fusion Applications, DENSO can adopt an AI-powered system of outcomes that can work across the business to automate end-to-end workflows, boost supply chain performance, and drive efficient global growth.”
GLOBAL ROLLOUT AND LONG-TERM IMPACT
A pilot deployment at overseas locations is planned within approximately two years, followed by a phased global rollout. Once complete, the system is expected to deliver improved efficiency, reduced costs, and enhanced resilience across DENSO’s supply chain network.
Ultimately, the partnership aims to position DENSO with a more robust and adaptable supply chain, capable of responding quickly to changing market conditions whilst supporting long-term innovation and sustainability goals.
Lucy Pilgrim is an in-house writer for Supply Chain Outlook Magazine, where she is responsible for interviewing corporate executives and crafting original features for the magazine, corporate brochures, and the digital platform.
