AI Demand Forecasting "Deep Predictor" Streamlines Inventory Ordering Operations by Approximately 63% at IKO International, a US Subsidiary of Nippon Thomson

AI CROSS Inc. (Minato-ku, Tokyo; Representative Director & CEO: Noriko Harada; hereinafter "AI CROSS") is pleased to announce that its AI demand forecasting and operations service, "Deep Predictor," has been implemented in the inventory ordering operations of IKO International, Inc. (hereinafter "IKO International"), a subsidiary of Nippon Thomson Co., Ltd. that sells mechanical components (bearings and precision equipment) in the US market. This implementation has resulted in approximately a 63% reduction in work hours across all US locations, from 3.8 hours per week to 1.4 hours per week (an annual saving of 124.8 hours). This case study is available on the AI CROSS official website.

Structural Challenges in Manufacturing: Labor Shortages, Personalization, and Supply Chain Sophistication

According to the "2025 Manufacturing White Paper" (*1) by the Ministry of Economy, Trade and Industry, the Ministry of Health, Labour and Welfare, and the Ministry of Education, Culture, Sports, Science and Technology, the number of workers in the manufacturing industry is projected to further decrease from 10.55 million in 2023 to 10.46 million in 2024, with labor shortages becoming a serious structural issue. The white paper points out that to maintain and improve productivity with limited human resources, it is essential to move away from personalized operations and to standardize and visualize work through DX and AI utilization.

Furthermore, manufacturing sites are increasingly facing demands for more sophisticated demand forecasting and inventory optimization, such as responding to high-mix low-volume production, preparing for supply chain disruption risks, and improving operational efficiency at overseas local bases. In particular, for the supply of critical mechanical components that support industries, such as bearings, balancing the avoidance of line stoppages due to stockouts with the suppression of financial burdens from excess inventory has become a management challenge.

In response to these structural challenges facing the entire industry, the AI demand forecasting and operations service "Deep Predictor" provides a solution that simultaneously achieves standardization of personalized operations and efficiency improvement for multi-location operations. This press release introduces the initiatives at IKO International, Inc., the US subsidiary of Nippon Thomson, as a representative implementation case.

*1 Source: Summary of the "2025 Manufacturing White Paper" by the Ministry of Economy, Trade and Industry, the Ministry of Health, Labour and Welfare, and the Ministry of Education, Culture, Sports, Science and Technology

https://www.meti.go.jp/report/whitepaper/mono/2025/

Background of Implementation

IKO International supplies mechanical components such as bearings and precision equipment to OEMs (*2) and distributors (*3) in the US market, with multiple sales bases across the United States, including New Jersey, California, and Illinois. Previously, inventory ordering operations at each base were manually managed using Excel, leading to the following issues:

Approximately 3.8 hours of work per week for a total of 4 staff members, as workers manually determined order quantities for each part number.

Excess inventory due to variations in order quantities and duplicate orders across bases, dependent on the experience of the person in charge.

As bearings are critical components used across all industries, balancing the risk of stockouts with excess inventory was a management challenge.

In addition, with the transition to a core system, the conventional operation of checking each part number one by one to determine order quantities became practically difficult, making a new inventory ordering system indispensable.

*2 OEM (Original Equipment Manufacturer): Refers to a finished product manufacturer that incorporates parts into its own products (industrial machinery, semiconductor manufacturing equipment, medical devices, etc.). *3 Distributor: Refers to a sales agent or wholesaler that purchases IKO products and sells them to end-users.

Implementation Effects: Approximately 63% Reduction in Work Hours, Resolution of Personalization and Standardization of Operations

Quantitative Effects

Item

Before Implementation

After Implementation

Effect

Inventory Ordering Work Hours (4 staff total/week)

Approx. 3.8 hours

Approx. 1.4 hours

Approx. 63% reduction

Annual Reduction in Hours

―

―

Approx. 124.8 hours

*Basis for Calculation of Quantitative Effects

・Reduced Hours: Weekly work hours for 4 staff members (Before implementation: Approx. 3.8 hours → After implementation: Approx. 1.4 hours, Difference: Approx. 2.4 hours)

・Annual Reduction: 2.4 hours × 52 weeks = Approx. 124.8 hours

Qualitative Effects

Eliminated variations in order quantities by worker and duplicate orders across bases.

Achieved standardization of ordering operations, moving away from reliance on individual experience.

Established as a core infrastructure for inventory management operations following the core system migration.

Comment from Mr. Asukada, Representative of IKO International, Inc.

*The following is an excerpt and edit from the case study interview published on the AI CROSS official website.

"Deep Predictor's ability to cover everything from demand forecasting to recommended order quantity calculation within a single service, and to support our operational reality, was the deciding factor in our selection. Also, in many cases requiring large investment decisions, Deep Predictor was accessible in terms of cost, which was a significant advantage. After implementation, we have achieved standardization of personalized inventory ordering operations and a significant reduction in work hours across all our US locations. Going forward, we aim to further improve operational efficiency, such as consolidating inventory bases and reducing the number of staff involved in ordering operations."

About the AI Demand Forecasting and Operations Service "Deep Predictor"

"Deep Predictor" is an AI demand forecasting and operations service designed with the concept of "Any Prediction, Easily by Anyone." It is a service that supports high-precision forecasting and decision-making by utilizing existing data, even for on-site staff without specialized knowledge.

Its features include generating outputs directly applicable to operations, not just simple forecasts, and it is designed as an "AI that can be used immediately on-site."

View Details

Future Outlook

AI CROSS will continue to support advanced decision-making and the elimination of personalization across a wide range of industries, including manufacturing, through "Deep Predictor." Together with IKO International, we plan to further advance initiatives for greater efficiency, such as consolidating inventory bases and reducing the ordering operations currently performed by 4 staff members to a single person.

Details of the Implementation Case Study

A detailed interview article on this case study is available on our official website.

▼Click here for the case study article

https://aicross.co.jp/deep-predictor/cases/iko/

【Company Profile of AI CROSS Inc.】

Company Name: AI CROSS Inc. (Stock Code: 4476)

Location: Toranomon Hills Tower, 4-3-1 Toranomon, Minato-ku, Tokyo, 20F

Representative: Noriko Harada, Representative Director & CEO

Established: March 2015

Business Activities: Guided by the philosophy of "Smart Work, Smart Life," the company supports corporate operational efficiency and productivity improvement through technologies such as SMS/RCS distribution and AI prediction analysis, and generative AI implementation support. Listed on the Tokyo Stock Exchange Growth Market in 2019.

Corporate Website: https://aicross.co.jp/

【Company Profile of IKO International, Inc.】

Company Name: IKO International, Inc.

US Locations: 7 locations in total - New Jersey / Massachusetts / Illinois / California (2 locations) / Georgia / Texas

Representative: Kenji Takamiya, President

Affiliated Group: Nippon Thomson Co., Ltd.

Business Activities: The US local subsidiary of Nippon Thomson Co., Ltd., responsible for sales and technical support of IKO brand linear motion guides, needle bearings, and precision equipment in the United States.

Corporate Website: https://ikont.com/

【Contact Information for Inquiries】

Company: AI CROSS Inc.

Contact: Public Relations Representative, Abdul

TEL: 050-1745-3057

E-mail: pr@aicross.co.jp

AI CROSS Inc.

AI CROSS Inc. is a company that provides messaging services for corporations and AI-powered solutions. Its main services include the SMS distribution service "Zettai Reach! SMS," the RCS distribution platform "Zettai Reach! RCS," and various AI-powered data analysis services such as "Deep Predictor," supporting corporate operational efficiency and smooth customer communication.