Nidec Techno Motor

Realization of SCM（Supply Chain Management）

Cooperation of SCM between Japan and China of NIDEC CORPORATION

Company profile

Establishmen	October 1998
Numbers of employee	Japan：700, China：3,200, Thailand：1,300
Capital Stock	JPY 1 billion
Net sales	JPY 20 billion（March 2004）
Business Category	Manufacturing
Business segment	Small Precision Motors, General Motors, Machinery, Electronic & Optical Components and other products
Contents of introduction	Introduced purchasing management, Inventory management, sales management, production management, financial management, accounting management of SAP ERP to both Japan and China. Introduced SAP BW at the same time.
Period	China（SAP　ERP、BW）from January 2004 to December 2004（Parallel operation from October 2004） Japan（SAP　ERP、BW）from July 2004 to August 2005 (Parallel operation from July 2005)

Problems customers had

In the market where there were various kinds of home appliances, product cycle was accelerating, and sales prices were getting lower, the key issue for NIDEC CORPORATION was to construct the mechanism for those changes.
Because the amounts and kinds of products were increasing, working with the original members for original span was being difficult although they made a plan for production based on the information of manufacturing, sales and stocks at monthly meeting. On the other hand, they were using different information system in Japan and China.

Because of the difference and because the system to change delivery deadline and plan was different as well, there were many problems.
They had to translate task codes, communicate with phone call, and take so much time to exchange information. And what was even worse, the speed and accuracy of communication was decreasing.
They felt the necessity to improve the quality of tasks, improve the quality of information, and speed up their tasks.
As they considered constructing the infrastructure by which they could share information in Japan and China, SAP and IPS public package was selected because those could make it possible for them to catch up the movement of products and money, and to cope with those changes with low cost and short terms.

Why is it possible to realize SCM by IPS Public package?

Based on the concept of Market-in, IPS Public package provides functions which optimize all of business, promotes, practical business and improves customer service by coordinating sales, production and purchasing.
And focusing on not only normal tasks but abnormal tasks, IPS Public package is equipped with various functions and ingenuity for people who are in actual sales and manufacturing to use easily.
For example, it includes flexible response to Order Promising and changing a plan, reporting systems, and support functions to manage products.

Effect of introduction of the IPS public

"Accuracy of information" and "speed up decision"

1. Improvement of accuracy to input data by cooperation of system of each department: Before introduction of SAP ERP, the logistic system and accounting system had been separate, and they had needed different information input process. By linking up with two of those systems, they just needed only one input, and they improved accuracy of input.
2. Normalization of the quantity of purchase by improving accuracy of management of remains of order and stock: By clearly grasping the number of stocks and remains of order, the amount of order was improved to proper quantity.
3. Implementation of a centralized information sharing environment: Block the delivery of excess from the vendor from Chine.
And, sloppy inventory management of the subcontractor has been improved by grasping the quantity by their own.
4. Implementation of a centralized information sharing environment: Previously, some of the limited members could get information.
However, after introduction of SAP ERP and BW, anybody can get any information they want. By sharing information between sales person and product management person, they made standardized tasks which in not depending on personal experiences.

In this way, NIDEC CORPORATION evaluates the effect of “speed up decision” and “improvement of information accuracy” which is necessary in charge of business and management. Now, in addition to effective utilization of SAP ERP and BW in China, they are aiming at realization of SCM between Japan and China that is the biggest goal of SAP ERP project.

"Management efficiency" and "improve customer satisfaction"

1. Realization of SCM between Japan and China: Realization of SCM between Japan and China
2. Immediate evaluations between Japan and China: Get the information for evaluation
and speed up management decision by unifying the database between Japan and China.

Recently, many companies are interested in SCM which improves customer satisfaction and increase the efficiency of the management along with the changes in market environment. IPS provides solutions to realize SCM with low cost and short term to such companies.