Honda saves 400,000 labor hours annually using Oracle Procurement
The automaker consolidates purchasing by four companies using Oracle Procurement, allowing staff to focus on strategic cost reduction initiatives.
Japan | Automotive OEM
“Honda has a long history and a particular way of doing things. With Oracle Procurement, we found a way to align ourselves with the global standard for purchasing processes.”
Video: Honda Motor Co., Ltd. uses Oracle Procurement to reform indirect material purchasing (4:04)
Honda is a global automaker known for innovative engineering and reliable, long-lasting vehicles. In its constant search for lower costs, the company targeted the inefficiency in indirect materials purchasing across its domestic operations in Japan, involving four group companies that issue about one million purchase orders annually. Each of those four groups had its own process. Honda implemented Oracle Procurement, which is part of the Oracle Fusion Cloud ERP suite of applications, to consolidate purchasing processes, centralize purchasing data for visualization and analysis, and integrate with an online shopping site, allowing purchases of indirect materials without involving procurement staff. In all, the improvements saved about 400,000 labor hours annually. Using the global standard purchasing process built into Oracle Procurement, Honda achieved major efficiencies in its procurement approach, such as freeing up staff to focus on cost reduction initiatives for higher-value items and helping the company quickly adopt industry norms and best practices.