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http://www.marketwatch.com/news/story/NEC-Epson-Deliver-Global-SCM/story.aspx?guid={14579798-6DCC-4C7C-BBE0-F12302E8FAC0}
NEC and Epson Deliver Global SCM Reform for Printer Supplies
Planning Cycle Reduced From Monthly to Weekly; Aiming for a 7 Billion Yen Reduction in Inventory
TOKYO,
Dec 2008 — NEC Corporation announced today the creation of a new
weekly cycle system for implementing Supply Chain Management (SCM)
reform, in cooperation with Seiko Epson Corporation (Epson), which
applies to the global production, sales and inventory of approximately
6,000 printing supplies, including ink cartridges and media. The new
system has begun 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 born costs from a wide
range of locations in order to process manufacturing, sales and
inventory information that support its monthly planning cycle. However,
swift responses are required in order to handle changes in the printer
market, and an increasing number of printer supplies has brought
attention to the need for greater speed, accuracy and flexibility of
production, sales and inventory channels.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.Please see below for background on Epson’s new SCM system:
1) Production, sales and inventory planning cycle reduced from monthly
to weekly.
2) Market responsiveness and planning accuracy improved through a
reduced planning cycle period.
3) Production and sales data from company locations 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.NEC and Epson
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.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.About NEC Corporation
NEC
Corporation is one of the world’s leading providers of Internet,
broadband network and enterprise business solutions dedicated to
meeting the specialized needs of a diversified global base of
customers. NEC delivers tailored solutions in the key fields of
computer, networking and electron devices, by integrating its technical
strengths in IT and Networks, and by providing advanced semiconductor
solutions through NEC Electronics Corporation. The NEC Group employs
more than 150,000 people worldwide. For additional information, please
visit the NEC website at: http://www.nec.com
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