NEC and ABeam Consulting Jointly Deliver Core System for Maruchan, Inc.
Tokyo 2008/12/17: NEC Corporation and ABeam Consulting Ltd., a leading global provider of operational consulting services, announced today the completion of a core ERP system supporting Maruchan, Inc., the North American market leader (*1) for instant ramen noodles.
The new SAP business-critical software, SAP ERP (R), began full operation in October 2008, and has established itself as a total management system that supports everything from Maruchan’s order processing, manufacturing and sales, to the company’s accounting and operational systems.
The new system also enables Maruchan to collect performance data in real time, allowing the company to “visualize” the performance of promotional campaigns and to make strategic adjustments in order to maximize the distribution of resources and reduce company costs.
Maruchan is the North American production and sales branch of Toyo Suisan Kaisha, Ltd., a leading Japanese CPG (Consumer Packaged Goods) company, and has held the top share of instant ramen sales in North America, with an 83% share by quantity in Mexico and 63% share by quantity in the United States (*2).
The SAP deployment at Maruchan has delivered the following benefits:
Timely performance information enables improved supply and demand forecasts: The SAP ERP (R) system enables Maruchan to conveniently view real time order, manufacturing, inventory and sales information, which were formerly separate and dated, in order to make timely adjustments to market demands and maximize company resources.
Improved sales promotion through the “visualization” of costs: Major providers of consumer goods have long faced a myriad of challenges in calculating the effectiveness of sales promotions and events. This new system capitalizes on promotional services (*3) from Synectics Group, Inc. (*4), and allows Maruchan to follow the latest sales patterns, compare them to current sales promotions, and adjust promotional expenditures in order to meet the market’s needs. This “visualization” of costs helps Maruchan maximize the efficiency of company resources and recognize market weaknesses.
Flexible adjustment to changing business environments: EDI (*5) systems contribute to the management of purchase orders, shipping recommendations and the distribution of information, which enables flexible adaptation to changing business environments and facilitates expanding client bases. The system’s versatility also creates opportunity for increased business volume by supporting a wide range of customer requirements, including the introduction of RFID.
The implementation of this project represents the creation of a comprehensive business value chain that includes purchasing, manufacture, sales and accounting activities. Furthermore, the system’s introduction features global cooperation between offices in North America, Japan and China, where each partner capitalizes on unique individual strengths to provide a superior unified service.
Looking forward, NEC and ABeam Consulting intend to continue their development of collaborative services that help joint customers solidify sales and business practices on a global scale.
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.
About ABeam Consulting
ABeam Consulting provides business transformation services that create strategic advantage, improve business processes, leverage technology innovation, and enhance organizational performance for leading multinational and domestic companies worldwide. ABeam partners with clients to diagnose and solve their real challenges with solutions that combine industry and operational best practices with technical expertise. Pragmatic approaches ensure that clients gain measurable value more quickly. Headquartered in Tokyo, ABeam’s 3,500 professionals serve more than 700 clients throughout Asia, the Americas and Europe. For more information, please visit http://www.abeam.com.
(*1) Source: Nikkei Business – March 31, 2008
(*2) Source: Maruchan, Inc. As of September ‘08 for Mexico, as of November ‘08 for the US market.
(*3) “Account Review”
(*4) Headquarters: Pennsylvania, United States
(*5) EDI: Electronic Data Interchange Business transaction information configured in a standardized format and electronically shared among business locations.
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