Feb 21, 2024
- Feature Story
- Konosuke Matsushita
- Business Policy
- Diversity Equity & Inclusion (DEI)
Feb 21, 2023
Company / Press Release
Osaka, Japan - Panasonic Industry Co., Ltd. (Headquarters: Kadoma-shi, Osaka; Representative Director, President, CEO: Shinji Sakamoto) announced today that since the company's establishment in April 2022 as a result of the Panasonic Group's transition to an operating company system (holding company system), it has been driving initiatives to achieve its vision of "Looking ahead to indications of the future to lead social transformation together with our customers," which has been defined as the company's ideal for 2030.
As one of the strategies to this end, digital management reforms (DX) were recently launched as a part of greater company-wide activities. Furthermore, the company has signed a Strategic Partnership for Digital Transformation with IBM Japan Ltd. (hereafter IBM Japan) in order to accelerate the implementation of these initiatives. This will further ensure that the company is able to achieve its management goals, namely being sales of more than 1.8 trillion yen and an operating profit ratio of more than 15% in FY2031.
We will review operating rules and processes from scratch and optimize them to save labor and improve efficiency. We will also pursue centralized PSI (production, sales, and inventory) management to improve the accuracy of sales and production plans, maintain optimal inventory levels, and optimize procurement and logistics operations, while also integrating IT systems to standardize operations, with the aim of achieving a 30% increase in productivity from FY2022 in FY2031.
We will support employees' challenges in making reforms by creating an environment that helps to improve their DX literacy and encouraging all global employees* to participate in DX initiatives.
Moreover, in order to make these reforms permanent, we will nurture highly qualified DX human resources who can lead company-wide initiatives.
* Approx. 44,000 (as of April 1, 2022)
The development of a company-wide database will enable smooth information sharing, and the use of Blue Yonder (Panasonic Connect Group)'s solutions will facilitate the optimization of supply chain management (SCM) through radical reform.
In addition, we will create new customer value by promptly proposing cutting-edge products to customers who need them based on product development anticipating market needs and through cases where customers purchase the necessary quantity when needed with the shortest delivery time by directly confirming the necessary information online and then placing orders.
Through DX, we will review operating rules and processes from scratch, which varied by business division or region due to the past history of business restructuring, and optimize them to establish company-wide rules and processes to save labor and improve efficiency.
For instance, we will pursue centralized PSI (production, sales, and inventory) management to accelerate and improve the efficiency of interdepartmental cooperation and maintain optimal inventory levels based on highly accurate sales and production plans. We will also promote operational standardization by integrating IT systems across business divisions and regions, with the aim of achieving a 30% increase in productivity from FY2022 in FY2031.
In order to maximize the effects of DX-driven reforms, we will implement an internal training system to improve employees' DX literacy. We are supporting their challenges with the reforms by enabling all individuals seeking to participate in the training program to acquire the DX literacy required in their respective operations and encouraging all global employees to participate in DX initiatives.
Moreover, in order to make these reforms permanent, we will consolidate all DX-related assets within the company (human resources, technologies, expertise, etc.), and nurture highly qualified DX human resources who can lead company-wide initiatives by welcoming DX-savvy staff from IBM Japan as employees on loan and spreading new expertise throughout the company.
Developing a company-wide database as a replacement for those currently managed in respective business divisions and regions will enable smooth information sharing. This will allow optimal decision-making in the shortest possible time regardless of region, division, or hierarchy level.
Moreover, in order to optimize supply chain management (SCM), which has become complex due to past instances of business restructuring, we will introduce the planning, management, and other solutions offered by Blue Yonder (Panasonic Connect Group), who has a track record of providing such solutions worldwide, and promote the standardization of operating processes to eliminate operations overlapping between organizations, reduce the amount of coordination between relevant departments, automate repetitive tasks, and improve the accuracy of demand forecast.
For example, these initiatives will enable the prompt proposal of cutting-edge products to customers who need them based on product development anticipating market needs, as well as the automation of production planning, which has been labor-intensive. This will create new customer value through cases where customers purchase the necessary quantity when needed with the shortest delivery time by directly confirming information such as delivery dates online, thereby enabling one-stop ordering.
About Panasonic Industry Co., Ltd.
A global leader in developing innovative technologies and solutions for wide-ranging applications, the Panasonic Group switched to an operating company system on April 1, 2022 with Panasonic Holdings Corporation serving as a holding company and eight companies under its umbrella. Panasonic Industry, in charge of the Panasonic Group's device business as one of the eight companies in the Group, was established on April 1, 2022 with the mission "We will open the way to a better future and continue to contribute to an affluent society through a variety of device technologies." Against the backdrop of the labor shortage in manufacturing, the explosion of data with the rise of the information-based society, and greater demands for the environment and safety for the mobility society, the company focuses on areas where continuous evolution is required and provides customer value with distinctive features of unique material and process technologies such as capacitors, compact servomotors, EV relays, and electronic materials. For the year ended March 31, 2022, the company achieved net sales of 1,131.4 billion yen. Learn more about Panasonic Industry: https://www.panasonic.com/global/industry
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