Epson and NEC Deliver Global SCM Reform for Printer Supplies
Planning Cycle Reduced from Monthly to Weekly -
- Aiming for a 7 Billion Yen Reduction in Inventory -
– TOKYO, Japan.-Seiko Epson Corporation (“Epson”) announced today the creation of a new weekly cycle system for implementing Supply Chain Management (“SCM”) reform, in cooperation with NEC Corporation (“NEC”), which applies to the global production, sales and inventory of approximately 6,000 printing supplies, including ink cartridges and media. The new system is scheduled to begin operation in November 2008 throughout eleven worldwide locations.
The system was established in order to optimize the global supply and demand structure that governs the manufacture, sale and inventory of products. The organization consists of internationally located production centers linked with logistics and sales bases that each deliver weekly manufacturing, shipping and inventory data to a central processing center in order to develop a unified strategy for controlling supply flow.
Epson had traditionally required a large number of steps in order to process manufacturing, sales and inventory information, from a wide range of locations, that support its monthly planning cycle. However, as the printer market evolves and the number of printer supplies increases, swift responses to market changes are vital, and the need for greater speed, accuracy and flexibility of production, sales and inventory channels became an urgent issue.
The SCM reform now underway addresses Epson’s evolving logistics needs by implementing centralized planning and a responsive weekly cycle that optimize the organization of production, sales and inventory.
With the introduction of Epson’s new SCM system:
1. The production, sales and inventory planning cycle has been reduced from monthly to weekly.
2. Market responsiveness and planning accuracy has been improved through a reduced planning cycle period.
3. Production and sales data from company locations have become easily accessible.
Epson is aiming to reduce global costs related to printer supply inventories by nearly 7 billion yen by the end of 2010. Looking forward, the company is seeking to expand its SCM reform program to consumer and business printers, in addition to business practices and technologies that will deliver greater advantages to Epson.
Epson and NEC cooperatively developed this new SCM system through Global Supply Chain Consulting and cooperative analysis of Epson business practices, which resulted in innovative new business approaches, training outlines and operational proposals.
Epson has created a host of original products by following the spirit of “creativity” and “challenge” contained in its Management Philosophy. This SCM reform is one example of the operations process reforms that Epson is proceeding with, and, in addition to product and technological differentiation, will continue to work towards in the future.
NEC regards this important project as recognition of its ability to provide highly evaluated consulting and system development for a wide range of business partners. The company aims to continue its contributions to operational reform for clients serving both domestic and international markets.
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