Polaris embarks on supply chain transformation, selects JDA as partner
Polaris, one of the world’s largest powersports companies, has embarked on a multi-phase supply chain transformation initiative and has selected JDA Software Group, Inc. as its “supply chain backbone”.
As part of enabling Polaris’ strategic Retail Flow Management (RFM) vision, Polaris has selected JDA for a multi-phase approach, beginning with an enterprise sales, inventory and operations planning (SIOP) model as the foundation from which Polaris can continue to leverage its supply chain as a strategic asset.
“An end-to-end digitalised supply chain is crucial to satisfy customer demand and drive increased engagement,” said Kirk Kroft, vice president, information services, global operations & supply chain, Polaris.
“JDA’s breadth, depth and commitment to Polaris’s success will help us improve efficiency and better leverage the best team in powersports.”
Polaris has selected a broad range of JDA technologies, including Sales & Operations Planning, Enterprise Supply Planning, and Demand and JDA Inventory Optimisation.
Polaris will also leverage end-to-end JDA Services, including JDA Cloud, JDA Consulting, JDA Education and JDA Implementation Services to ensure a seamless deployment.
Polaris said it selected JDA because of its strong reputation in the industry, commitment to a strategic relationship, and ability to enable Polaris to shorten its supply chain and increase speed to market, and help create a superb customer experience.
In a release, Polaris said it will use JDA to enable a holistic, integrated set of demand, supply and inventory processes that support bottom-up sales and operations planning processes. “This evolution results in better decision making, and balances Polaris’ needs across business support and profit centres,” it added.
Puneet Saxena, group vice president, supply chain planning, JDA, commented: “Becoming more customer-centric is a common theme for our customers as they embark on their digital supply chain transformations.
“Digitalisation goes hand-in-hand with customer-centricity as a catalyst to not only drive company growth, but to deliver superior customer experiences and sharpen competitive advantage.
“We look forward to embarking on this supply chain transformation with Polaris over the next several years as this multi-phased strategic deployment gets underway.”
Japan Seeks to Revive Stalled Semiconductor Industry
Post-pandemic, Japan has seen the consequences of relying solely on foreign imports for its semiconductors. Over 64.2% of its chips are usually imported from South Korea and Taiwan, leaving the country dependent on its neighbours. Industries from auto manufacturers to consumer electronics firms wait for chips, to no avail. But now, the Japanese government looks likely to put real funding behind its semiconductor industry, with top officials emphasising their support.
Domestic supply chains have never been more important. Rather than remain tied to international shipping routes during shortages and delays, governments are doing everything in their power to develop local lines of supply. But the question remains: can Japan pull it off?
How Will Japan Pay For It?
Herein lies our first issue. Japan’s debt has rapidly increased over the past few years, and the semiconductor industry will need roughly a trillion yen—US$9bn—in this fiscal year alone. This cost, however, pales in comparison to what Japan could lose if it fails to keep up with Europe and the US. Both nations have launched aggressive funding measures to revive their local semiconductor industries. And if Japan refuses to invest due to its debt, it could slow down progress in fields ranging from artificial intelligence to autonomous driving.
According to Tetsuro Higashi, the former president of Tokyo Electron and Japan’s top government advisor in semiconductor strategy, ‘If we miss this opportunity now, there may not be another one’. Yet one advanced wafer fabrication factory can cost more than US$10bn, and any money poured into the industry will go fast. That’s why Japan, rather than invest trillions and trillions in failing domestic firms, is considering a second option.
What Do They Plan To Do?
Japan now intends to look abroad and convince overseas chip foundries to come to its shores. Its past failures mostly centred on trying to merge domestic firms that were already going through tough times. ‘This sort of made-in-Japan self-reliance approach hasn’t worked out well’, said Kazumi Nishikawa, a director at the Ministry of Economy, Trade, and Industry’s IT division. ‘This time the goal is to offer a strong incentive for an overseas logic foundry to come to Japan’.
As follows, Japan will now reach out to industry partners and leaders in other countries, including the industry heavyweight Taiwan Semiconductor Manufacturing Co. (TSMC), to build Japanese bases. According to the South China Morning Post, the heart of Japan’s mission is a US$337.2mn research and development project in Tsukuba that will involve TSMC and more than 20 Japanese firms. ‘I think we need to cooperate with our overseas counterparts’, said Akira Amari, a senior member of the ruling Liberal Democratic Party. ‘[And] TSMC is the world’s top logic chipmaker’.
Indeed, if that’s Japan’s strategy, the future looks bright. TSMC recently set up a venture near Tokyo to research energy-efficient 3D chips with several Japanese partners. And in the future, the multinational chipmaker may consider expanding its Japanese operations—that is, if government incentives pave the path forward.