Honda Motor Adopts Oracle Cloud ERP to Automate and Standardize Indirect Purchasing

Rhea-AI Summary

Oracle Corporation Japan announced that Honda Motor is implementing Oracle Fusion Cloud ERP to enhance procurement efficiency in Japan. This transition aims to consolidate purchasing of indirect materials, moving away from each company managing separate systems. By adopting Oracle's system, Honda expects to optimize costs, enhance resource usage, and improve operational agility while benefiting from continuous updates. The partnership supports Honda's 2030 Vision and aims to strengthen data-driven analyses for better supplier management, ultimately contributing to the sustainable growth of both companies.

Positive

• Honda Motor is enhancing procurement efficiency through Oracle Fusion Cloud ERP.
• The partnership aims to optimize costs and improve operational agility.
• Oracle Cloud Procurement will provide continuous updates and improve data-driven analysis.

Negative

• None.

TOKYO, Nov. 12, 2021 /PRNewswire/ -- Oracle Corporation Japan announced that it is helping Honda Motor improve the efficiency of its procurement for operations in Japan with Oracle Fusion Cloud Enterprise Resource Planning (ERP), optimizing the procurement cost of indirect materials.

Honda and its group companies are adopting Oracle Fusion Cloud Procurement, part of Oracle Cloud ERP, to consolidate purchasing of indirect materials for their operations in Japan. Previously, each company managed its own procurement systems and processes.

Standardizing on Oracle's cloud procurement system enables Honda to adopt the latest best practices, and centrally analyze data for the efficient use of corporate resources. This will enable better planning for future procurement strategies and increase agility to respond to changing external factors and minimize additional costs.

In line with Honda's 2030 Vision to serve people worldwide with the joy of expanding their life's potential, Honda is engaging in new business areas while solidifying its existing businesses, which form its foundation. As part of these efforts, Honda has decided to reform its procurement operations for indirect materials in Japan to optimize costs and improve operational efficiency within its group companies.

"By utilizing Oracle Cloud Procurement, we aim to improve the efficiency of our indirect material operations, optimize costs and shift to higher value-added operations," says Nobuyuki Hattori, General Project Manager, Interdepartmental Projects, Honda Motor Co., Ltd. "We also appreciate that it is a SaaS application that enables us to comprehensively analyze spending of combined data from group companies, is always updated with the latest technology, and can be used in remote and paperless environments. We will continue to promote efforts to optimize our overall procurement operations."

Honda plans to embrace the standard features of Oracle Cloud Procurement, organized by purchase request, quotation request, price determination, ordering, and payment. In the future, the company will accumulate reasons for selecting suppliers and transaction data in the system to strengthen data-driven analysis for forecasting management and optimal supplier selection. Oracle Fusion Cloud Applications' Oracle Guided Learning feature will help employees with step-by-step workflows that Honda's 4,000 indirect materials suppliers and 25,000 employees will follow.

"The automotive industry is rapidly developing new technologies such as next-generation vehicles and the use of renewable energy," said Toshimitsu Misawa, Member of the Board, Corporate Executive Officer, President, Oracle Corporation Japan. "With Oracle Cloud ERP, Honda Group will benefit from self-updating platform that provides new procurement capabilities every 90 days, giving it the ability to build, innovate, automate, and adapt on-demand. We expect Oracle Cloud Procurement will support the sustainable growth of the Honda Group."

"The past 18 months has propelled the procurement function to the front lines of business, and supply chain risks have been elevated to a board-level concern," said Tom Anthony, Vice President, Procurement Product Strategy, Oracle. "Oracle Cloud Procurement will enable Honda Group to simplify supplier management and enforce compliant spending to minimize supply chain risk and streamline indirect purchasing."

Reference links
•Honda Motor: https://global.honda/
•Oracle Fusion Cloud Procurement: https://www.oracle.com/erp/procurement-cloud/

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Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at oracle.com.

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SOURCE Oracle

FAQ

What is the new procurement system Honda is adopting with Oracle?

Honda is adopting Oracle Fusion Cloud ERP to automate and standardize indirect purchasing.

How does Oracle Fusion Cloud ERP benefit Honda's operations?

It consolidates procurement, optimizes costs, enhances resource usage, and enables better planning.

When did Honda announce its partnership with Oracle?

Honda announced the partnership on November 12, 2021.

What are the key features of Oracle Cloud Procurement for Honda?

Key features include centralized data analysis, streamlined supplier management, and continuous updates.

How many suppliers and employees will Honda's new procurement system support?

The system will support 4,000 indirect materials suppliers and 25,000 employees.