Mazda Joins Surgere to Optimize Supply Chains

By Thomas Price Saturday, November 28, 2020

With shipping and major streams of items and supplies being sent in all different directions, especially during the COVID-19 pandemic, desires for more analytics and efficiency have continued to climb. As a result, many large companies have been working with different firms and businesses to help improve this section of their own work. This is why it comes as no surprise to see Mazda Motor Corporation looking to do the same. The company has recently become a member of AutoSphere, the community created by the company, Surgere. So, what exactly does Mazda’s new integration with AutoSphere mean, and what impact could this have for the future of supply chain efficiency?

Mazda and Surgere’s Partnership

Before understanding the work happening between the two companies, it is important to first understand who Surgere is and what type of business they are. Surgere is an internet of things (IoT) technology company that works and focuses heavily on sensor-based science. The 99.9% data accuracy the company’s sensor technology produces allows for a level of visibility and analysis toward supply chains never seen before. Surgere’s technology has allowed it to provide all different types of businesses end to end supply chain analytics, extremely accurate data, and solutions based on their sensor technology to help streamline these efforts. This brings it back to Mazda Motor Corporation.

Mazda Motor Corporation recently entered into the vast community of original equipment manufacturers (OEMs) and suppliers, which is now the largest ecosystem of IoT in the world. The partnership with Surgene, using Advanced Microsoft Analytics, will provide visibility to assets like reusable parts and packaging through every step of the supply chain. This type of joint effort could make a serious difference for automotive companies considering the $3.2 billion cost associated with supply chains and packaging.

Using Surgere’s sensor-based technology, over 22 million different reusable container assets are tracked along the supply chain through every step of the process. Tracking can help reduce costs and create higher productivity and efficiency by reducing the likelihood of lost or misdirected packages, the cost of expedited freight, and the massive quantities of cardboard that are currently being used. Mazda’s participation in the AutoSphere community does not represent the first company to join, though it may be the most significant so far. This may be equally important to Mazda considering the difficult year they have had so far in 2020.

Mazda and the Automotive Industry’s Struggles

Mazda has unfortunately been a part of the larger struggles that the entire auto industry has been subject to this year. In particular, Mazda has seen their stock prices drop from a high of $4.43 per share on January 15th down to less than $3, where it currently stands. When looking at the auto industry as a whole, sales in the United States in March and April dropped by a third. This decrease was followed by a near-global two-month shutdown of nearly all auto factories. Beyond this, Morgan Stanley has predicted that the United States’s demand for new automobiles will decrease to 15.5 million from the previous expectation of 17.1 million new vehicles, a drop off of almost 2 million vehicles. The situation is further exacerbated by the possible second round of factory shutdowns worldwide, already taking place due to the rise in COVID-19 cases. In fact, General Motors had to cut production at two different plants — one in Kentucky and one in Texas. Possible shutdowns for Mazda make it even more pressing for the company to reduce costs throughout their supply chain.

Final Conclusions

Surgere welcoming Mazda as a new AutoSphere client is a major step forward for both companies. The more businesses that AutoSphere works with, the better the technology and analysis that Surgere can provide these businesses with. For Mazda, it could mean savings across every step of the supply chain, helping the company save money in a year that has already been so difficult for the auto industry. As Surgere’s sensor-based technology continues to develop, more efficiencies and savings in the supply chain will certainly follow.

About the Author

Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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