Panasonic to invest in supply chain software in its long-term growth strategy

Growth plans come after the $7 billion purchase of Blue Yonder.

Panasonic is planning to double down on providing supply chain software, according to the company’s newly released medium and long-term growth strategy.

The Japanese firm said it plans to spend $3.2 billion on "growth areas," which include supply chain software and automotive batteries. A further $1.6 billion will be used to develop other technologies, including hydrogen energy and CPS (Cyber Physical Systems).

Panasonic’s plans suggest the company is aiming for an accumulated operating profit of $12 billion from 2023 to 2025.

"While maintaining financial discipline, the group is to make groupwide strategic investments with the cash generated through enhancement of competitiveness, as well as the investments made by each operating company," Panasonic’s growth strategy document reads.

The company’s decision to target supply chain software as a growth area comes after it spent more than $7 billion to acquire supply chain management specialist Blue Yonder last April.

Blue Yonder develops AI-based supply chain software for the retail and manufacturing sectors.

The purchase, which was completed last September, would represent Panasonic’s largest acquisition in a decade after it bought Sanyo Electric and Panasonic Electric Works for $7.36 billion in 2011.

At last year’s AI Summit New York, Blue Yonder’s Tommy See told AI Business about the major importance AI brings to the supply chain.