DENSO and Oracle Forge AI Deal to Transform Supply Chains

DENSO has announced a strategic partnership with Oracle to automate finance, Human Resources (HR) and supply chain operations in the cloud. Under the partnership, the leading automotive technology manufacturer will deploy a new global core system based on Oracle Fusion Cloud Applications to incorporate new AI capabilities, helping build an advanced digital foundation for its supply chain operations.

This extension of the Oracle-DENSO partnership could help the company further optimise its procurement, manufacturing and logistics processes to increase efficiency and enhance the overall employee experience. The move comes as DENSO looks to replace multiple supply chain systems with a single, AI-powered solution integrated with finance and HR functions.

Steve Miranda, Executive Vice President of Applications Development at Oracle, says: "DENSO's continued growth and the increased speed and complexity of its supply chain operations required a new AI-centric and integrated approach. 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."

Automating operations with AI agents

As part of the strategic partnership between Oracle and DENSO, the automotive manufacturer plans to adopt AI agents and Fusion Agentic Applications to further automate supply chain operations. Oracle first launched its Fusion Agentic Applications in March 2026 as a "new class" of enterprise applications powered by teams of specialised AI agents.

According to Oracle, these applications are built to make and execute decisions within business processes by securely accessing workflow policies, approval hierarchies, permissions and transactional context. For DENSO, this could mean streamlined procurement decisions, faster manufacturing adjustments and more responsive logistics planning.

Steve says: "The way work gets done no longer matches the speed, complexity or expectations of modern business as too much time is spent managing processes instead of driving outcomes. With Fusion Agentic Applications, we are moving enterprise software beyond passive systems of record and providing our customers with applications that can reason, decide and act in pursuit of defined business objectives."

DENSO is using Oracle Fusion Applications to consolidate its supply chain technology infrastructure. The company says that tools such as Oracle Fusion Cloud Human Capital Management have already helped it increase productivity and improve financial controls across its operations.

Building supply chain resilience

DENSO has said it will begin to test this new core system with an overseas pilot deployment programme before rolling it out globally in stages. This phased approach could help improve operational efficiency while helping its overall supply chain network become more adaptable to change and disruption.

The partnership reflects growing recognition within the manufacturing sector that advanced technologies such as AI, analytics and forecasting platforms based on integrated data are becoming essential for supply chain competitiveness. Companies across the automotive industry are increasingly seeking integrated solutions that can respond to market volatility and supply disruptions.

By modernising its core systems, DENSO aims to create a more agile operational framework capable of handling the complexities of global manufacturing. The company's investment in cloud-based infrastructure represents a significant commitment to digital transformation across its supply chain network.

Hirotsugu Takeuchi, Chief Technology Officer and Chief Digital Officer of DENSO, says: "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. 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."

Enhancing procurement and logistics

By leveraging Oracle Fusion Applications, DENSO aims to significantly enhance data accuracy and timeliness across its supply chain operations. The integration of AI into day-to-day operations could enable more informed procurement decisions, improved manufacturing coordination and more efficient logistics planning.

Hirotsugu adds: "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."

The unified platform approach allows DENSO to break down data silos that previously existed across different systems and geographical regions. This integration supports real-time visibility into supply chain operations, enabling faster response times to potential disruptions and improved collaboration across departments.

The partnership positions DENSO to address the increasing speed and complexity of automotive supply chain operations through a unified, AI-powered platform. As the company rolls out the system globally, it expects to see improvements in end-to-end workflow automation, supply chain visibility and operational agility across its procurement, manufacturing and logistics functions.