Fortience Consulting and Reizansha Establish 'SC Ecosystem Management Research Institute'

Fortience Consulting Co., Ltd. (formerly QUNIE Corporation, Headquarters: Chiyoda-ku, Tokyo, President and CEO: Shigeki Yamaguchi, hereinafter 'Fortience') has jointly established the 'SC Ecosystem Management Research Institute' with Reizansha Co., Ltd. (Headquarters: Suginami-ku, Tokyo, Representative Director: Yuji Yamada, hereinafter 'Reizansha'). This is a joint research project-based virtual research organization that explores the future of Japanese manufacturing, centered on autonomous decentralization and co-creation.

In recent years, the uncertainties surrounding supply chains, such as demand fluctuations, geopolitical risks, and supply constraints, have become multi-layered and increasingly severe. The destabilization of the situation in the Middle East is one example, and companies are required to have flexible and autonomous adaptability premised on such changes.

This institute will explore the ideal state of next-generation supply chain management (SCM), such as autonomous decentralized supply chain operations, by combining Reizansha's knowledge of organizational thought and management theory with Fortience's practical knowledge in supporting SCM and business process re-engineering (BPR).

The research results will be organized as knowledge that can be utilized cross-industrially and will be published sequentially on the websites of Reizansha or Fortience. In addition, these research results will be utilized to provide higher quality consulting services.

Background Until now, the SCM of many companies has developed as a centralized system in which the headquarters or central departments oversee the whole and manage the front lines in detail. While this concept has demonstrated great power in a stable environment, it is becoming difficult for central departments alone to grasp all changes and make rapid decisions in today's world where demand fluctuations and geopolitical risks are becoming more complex.

As mechanisms are required to capture changes quickly and generate new solutions and value while the front lines and related companies bring their respective wisdom, there is growing interest in mechanisms that use AI to support information sharing and decision-making by allowing each department, base, and company to make autonomous decisions according to the situation. The key to this is the combination of 'autonomous decentralization' and 'AI'. By cooperating while humans and AI play their respective roles, it becomes possible to realize a next-generation SCM that flexibly responds to changes and continuously evolves.

Reizansha has so far reinterpreted global organizational thought and management theory into the context of Japanese companies as Haier's Japan research organization. Fortience has accumulated knowledge in supporting SCM transformation in the manufacturing industry, such as responding to demand fluctuations and supply constraints and sophisticating cross-departmental decision-making, through business reform and knowledge design support in the areas of SCM and S&OP (Sales and Operations Planning).

Therefore, the two companies have decided to establish the 'SC Ecosystem Management Research Institute' with the aim of creating knowledge for the evolution of the Japanese manufacturing industry into the next era.

Overview of the Research Organization The 'SC Ecosystem Management Research Institute' is a joint research project-based virtual research organization that explores the future of Japanese manufacturing, centered on autonomous decentralization and co-creation. In the research, by multiplying the organizational thought held by Reizansha and the practical SCM field knowledge of Fortience, we aim to create knowledge with high implementation feasibility.

At this institute, based on regular corporate interviews and issues and advanced case studies obtained at consulting sites, we will conduct research that combines quantitative data analysis with narrative dialogue and observation. Going beyond mere case introductions and knowledge organization, we will form assertions through structuring and analysis, and derive implications for Japanese companies to continue creating value amidst change.

Research Content 1. Research on autonomous decentralized management in SCM By combining centralized supply chain management with autonomous decentralized management, we will explore the possibility of a transition from 'managed SCM' to an 'SCM ecosystem that moves, learns, and evolves on its own'. We will specifically examine SCM reform and organizational design, and the ideal state of decision-making and evaluation in autonomous decentralized organizations, from both theoretical and practical perspectives.

2. Research on models of both startups/digital companies and large companies Autonomous decentralized organizational and SCM models have been implemented in advance in startups and digital companies. In this research, we will explore the possibility of translating and applying the knowledge of these advanced models to the context of large companies and the manufacturing industry. In addition, rather than reforms closed within the company, we will grasp the entire supply chain, including business partners, as an ecosystem, and present a path for transformation that the Japanese manufacturing industry can actually adopt.

3. Research on knowledge circulation and value creation in autonomous decentralized organizations A system in which humans and AI cooperate while sharing roles is the key to future SCM innovation. In this research, we will explore whether AI can be utilized in autonomous decentralized organizations to connect tacit knowledge and field knowledge inside and outside the organization, and function as a mechanism to promote knowledge circulation and emergent value creation.

Dissemination of Research Results Research results will be sequentially published on the websites of Reizansha and Fortience, etc.