Following its establishment in 2017, the Connected Solutions Company (CNS) has been undertaking a variety of initiatives, including strengthening the competitiveness of its individual business units, with the aim of becoming a more competitive company. One of its biggest achievements during this period has been the acquisition of Blue Yonder. Read on to learn more about how “today’s” CNS is reinforcing Gemba Process Innovation through its collaboration with Blue Yonder.
Strong Culture Foundation for Robust Corporate Management
CNS was established in 2017, and from day one we have placed priority on corporate culture and mindset in the belief that robust corporate management must be rooted in a healthy culture. To maximize both individual and organizational performance, we have moved our head office to Tokyo, modernized our work style, reduced inward-looking work while shifting to high-value-added work, and are vigorously promoting diversity and compliance.
Enhancing Supply Chain Specialization
Blue Yonder is a software provider specializing in supply chain management and digital fulfillment solutions that serves 3,100 major brands around the world.
Blue Yonder’s solutions support the distribution of 50% of bottled water in the United States, demand for which has risen due to the COVID-19 pandemic, as well as 60% of the soap and 70% of all prescription drugs used worldwide. It also handles global shipment of 165 billion bottles of beer every year.
Blue Yonder supports real-time visualization of supply chains. When a distribution channel is shut off, visualization makes it possible to determine which products are where and in what quantity anywhere in the supply chain, allowing companies to quickly and flexibly dispatch alternative products across alternative routes — a unique capability that proved its worth in March 2021 when global logistics services were disrupted by the accident that closed down the Suez Canal.
Developing reliable supply chain software requires a genuine understanding of circumstances on the ground. No other company concentrates its resources to provide solutions that enable users to have such a comprehensive grasp of all points along the supply chain, from warehousing and logistics to labor management at retail stores and location-specific inventory forecasting. Combining Blue Yonder’s strength with Panasonic's know-how in sensing, image recognition, IoT, edge devices and robotics, will further enhance our competitiveness.
Recurring Business as Tomorrow's Earnings Engine
Businesses dealing solely in hardware subject to rapid change and quick commoditization have a difficult time playing the role of earnings engine for companies over the long term. Our mission is to create an earnings engine that can be maintained and passed on to the next generation. From that perspective, Blue Yonder — with its high rate of cloud-based recurring earnings — has tremendous strategic significance for CNS.
Supply chains constitute a core part of client businesses, and demand for solutions underpinning these businesses will continue to be strong. Blue Yonder's recurring ratio is close to 70%, meaning that 70% of its sales have already been locked in when a new fiscal year begins. As we continue our shift to a SaaS and recurring business model, I have no doubt that this business will be a particularly significant revenue engine.
Panasonic and Blue Yonder share an extremely high affinity due to their expertise in Gemba Process Innovation and commitment to helping customers improve on-site efficiency.
The logo of Panasonic Connect Co., Ltd., unveiled prior to the company’s formal establishment in April 2022, employs the same shade of blue used in the Blue Yonder logo — an expression of our two companies coming together as a single, committed team.
Striving to Realize Autonomous Supply Chains
Our vision for the future is to realize autonomous supply chains that automatically pull data from worksites and leverage the power of AI to achieve total optimization. Panasonic and Blue Yonder are working together to determine the types of data that will be needed to realize this vision in collaboration with client companies.
As part of the Panasonic Group’s transition to a holding company system, we will be making a new start in April 2022 as “Panasonic Connect Co., Ltd.” Keep an eye out for new Gemba Process Innovations as we continue to evolve.