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NEC Corporation will begin offering its "NEC AI Agent Service for Procurement Negotiations" in Japan starting this December. This service utilizes NEC's proprietary AI technology,"Automated Negotiation AI," to autonomously generate optimal transaction terms for procurement operations in the manufacturing industry and to negotiate with suppliers.
This service automates complex delivery date and quantity adjustment negotiations in manufacturing, drastically reducing the time spent on transaction negotiations. It enables rapid response to demand fluctuations and significantly improves operational efficiency.
NEC conducted a proof-of-concept (POC) at an NEC Group company in November 2024, successfully automating delivery date and quantity adjustments with suppliers for the procurement of approximately 1,300 parts.
In this proof-of-concept, the "automated agreement rate" the percentage of agreements reached solely by AI without procurement personnel intervention reached 95%. Negotiations concluded under optimal conditions for both the supplier and NEC. This confirmed that the adjustment time from negotiation initiation to completion, which previously took several hours to days, could be reduced to just approximately 80 seconds, achieving a significant improvement in operational efficiency.
In recent years, negotiations among stakeholders in the manufacturing industry have become increasingly complex due to diversifying demand and the extensive supply chains spanning from raw material procurement to final product delivery. Amid demands for shortening overall supply chain lead times and adapting to high-mix, low-volume production, procurement operations must address risks in a VUCA environment, making efficiency and speed through digital transformation (DX) advancement an urgent priority.
However, many companies lack the capacity to swiftly optimize production systems and procurement plans in response to unexpected fluctuations in demand, hindered by factors such as labor shortages, overly personalized work processes, and cost pressures. Particularly, adjusting delivery dates and quantities for parts and raw materials is a critical task directly linked to production planning and potentially leading to lost sales opportunities. Yet, due to its complexity and the time required for negotiations, many items face the challenge of insufficient coordination.
NEC developed Automated Negotiation AI to address these challenges, leveraging its proprietary AI technology cultivated through years of research. This technology enables systems to autonomously negotiate with business partners without human intervention, supporting the formation of optimal agreements. This allows for the coordination of procurement timing even for vast numbers of items that were previously unmanageable manually. By curbing excess inventory, preventing stockouts, and avoiding delivery delays, it creates a supply chain resilient to demand fluctuations. Through this service, NEC resolves challenges in increasingly complex supply chains and contributes to enhancing customer competitiveness.
Overview of Automated Negotiation AI
Automated Negotiation AI is NEC's proprietary AI technology that adjusts and negotiates on behalf of humans for various coordination tasks traditionally performed by people. It automatically derives essential and desirable conditions for coordination and proposes optimal, mutually acceptable terms. It is designed not only for coordination and negotiation between AI and humans but also for coordination and negotiation between AI systems themselves.
Strengths of NEC’s Automated Negotiation AI
1. Proprietary Advanced Technology and an Overwhelming Intellectual Property Portfolio
NEC's Automated Negotiation AI is proprietary technology enabling optimal agreement formation. It boasts the industry's largest portfolio with 28 related patent applications (as of February 2025).
2. Leading Domestic Market Adoption Initiatives
NEC is vigorously promoting the automation and adoption of negotiation tasks in Japan through the establishment of the "Autonomous Negotiation SCM Consortium." Beyond merely providing technology, NEC contributes to strengthening the competitiveness of Japanese manufacturing by driving DX across the entire industry.
3. Global Trustworthiness Leading International Standardization
NEC's automated negotiation AI technology has been adopted as an international standard for E-Negotiation (*1) by the United Nations' standardization body (UN/CEFACT). It enables smooth collaboration and consensus-building compliant with international standards even in negotiations with international partners, contributing to the optimization of global supply chains.
Key Features of This Service
1. Automation and Efficiency for Massive Negotiation Workloads Difficult to Handle Manually
It automatically detects orders requiring delivery date and quantity adjustments to optimize inventory from all incoming orders and generates negotiation proposals. By presenting these proposals to business partners via AI agents and executing interactive negotiations, it significantly reduces the massive manual adjustment workload.
2. Optimization of the Entire Supply Chain and Avoidance of Lost Opportunities
The automated negotiation AI calculates optimal negotiation proposals based on transaction data, supporting mutually beneficial agreements. This prevents stockouts and delivery delays, reducing lost sales opportunities. It also helps curb excess inventory, achieving overall supply chain cost optimization while enhancing flexibility and stability.
3. Supporting Strategic Procurement Operations
By automating routine negotiation tasks, procurement personnel can focus on strategic activities such as developing advanced supplier strategies, risk management, and sourcing new suppliers. This contributes to increased productivity and value creation across the entire procurement department.
4. Seamless Integration with Existing Systems
Integration with various existing systems, such as ERP, enables a one-stop procurement process through DX. This allows for smooth implementation and operation while minimizing the burden of system renewal.
Notes:
(*1) uncefact.unece.org/spaces/uncefactpublic/pages/65667327/E+Negotiation
About NEC
The NEC Group leverages technology to create social value and promote a more sustainable world where everyone has the chance to reach their full potential.
NEC Corporation was established in 1899. Today, the NEC Group’s approximately 110,000 employees utilize world-leading AI, security, and communications technologies to solve the most pressing needs of customers and society.
NEC is a registered trademark of NEC Corporation. All Rights Reserved. Other product or service marks mentioned herein are the trademarks of their respective owners. ©2025 NEC Corporation.
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