Nissin Foods is deploying an AI-driven supply and demand planning tool from technology provider Blue Yonder as part of its broader digital transformation initiative. According to a press release issued on July 22, the company aims to enhance inventory management and forecast accuracy through the platform, and optimize its operational cost structure.

Nissin Foods owns well-known brands such as Cup Noodles and Top Ramen. With the platform, the company expects to shift from capital-intensive investments to more predictable spending patterns, thereby reducing operational costs. The press release noted that the supply and demand planning tool will also help Nissin improve order fill rates and lower inventory levels.

The system leverages artificial intelligence and machine learning to automate forecasting, enhancing prediction accuracy. Yukio Yokoyama, Chief Representative and President and CEO of Nissin Foods Americas, stated that this technology deployment aims not only to improve internal operations and planning but also to better support customer demand.

"This transformation will strengthen our partnerships with customers, helping us better meet their needs, anticipate demand shifts, and adapt to evolving consumer preferences," Yokoyama said in the press release.

Beyond Nissin, numerous other food manufacturers are also experimenting with and applying AI tools in their supply chains. For example, Hormel Foods last year implemented o9 Solutions' integrated supply and demand planning capabilities, aiming to improve forecast accuracy and strengthen supply chain operations. Meanwhile, Mondelēz International plans to install automation and AI systems at five of its distribution centers as part of its $1.2 billion, multi-year supply chain and ERP system overhaul.