TOYOTSU SYSCOM CORPORATION

Supporting collaborative outsourcing using global resources in core SAP system operations and maintenance for Toyota Tsusho’s overseas branches
Case Study
  • Automotive
  • Trading
  • Outsourcing
  • Global

Toyota Tsusho is a general trading company in the Toyota Group that deals not only in automotive materials, parts and finished vehicles, but also in a variety of other commercial materials including food products and textiles. TOYOTSU SYSCOM CORPORATION, which builds, operates and maintains many operational systems as Toyota Tsusho’s IT subsidiary, builds deploys and operates core SAP systems for Toyota Tsusho’s overseas branches. It selected ABeam Consulting as its problem-solving partner because of our understanding of challenges unique to systems intended for global use, and is working with us to improve its operations and maintenance.

Challenge

  • In SAP systems for local branches, geographic and linguistic barriers between users and the Japan maintenance team has led to decreased user satisfaction towards maintenance services. Problem analysis as a means of addressing this is an urgent task
  • With the lack of SAP personnel in Japan, the costs of operations and maintenance structures are inflating. Companies need to revise their cost structures and rethink their operations and maintenance service organizations
  • Due to a lack of SAP personnel among client proper employees, there is decreased capacity to drive projects in development teams. Formulating plans for smoothly advancing projects is essential

ABeam Solution

  • Stocktaking of present operations, problem analysis, transfer target country selection/evaluation, transfer planning and transfer support with a view to transferring operations and maintenance work for SAP systems for overseas branches to foreign countries
  • In Thailand, which the country to which operations and maintenance work was transferred, we formed a unified client-ABeam operations and maintenance service organization and performing said services
  • We performed PM support making use of ABeam Systems personnel for development teams and supported planning for the nearshoring and offshoring of development teams

Success Factors

  • We formulated stepped operational transfer plans that take into account the degree of difficulty of operations, and completed the transfer of operations while minimizing risks
  • We improved user satisfaction by improving contact points for the Thai operations and maintenance team and users, deepening their operational understanding, and seeking to optimize costs
  • We jointly performed program management for the development project as a whole, taking on PM work for important, high difficulty projects. We contributed to lessening the client side PM burden and smoothly advancing the project as a whole

Client Challenges

How can we make the operations and maintenance services in use globally more efficient and higher quality, and thus raise user satisfaction?

From 2004, beginning with its European subsidiaries and continuing to expand to all countries over more than 10 years, the operation and maintenance of SAP systems for local subsidiaries (WEST) has been performed by a team of Japanese professionals from multiple SI vendors, under the leadership of TOYOTSU SYSCOM CORPORATION. However, as more and more members with the English skills and operational knowledge to be involved in roll outs were redeployed to deployment projects, barriers emerged in terms of communication and operational understanding between the remaining operations and maintenance team and key users in each country, stemming from language, location and time difference issues. As a result, the team needed longer lead times to address inquiries from users or change requests, so there was a deterioration in service quality, with the team only able to offer surface-level answers, and user satisfaction declined to a lower level.

ABeam Consulting got involved from the 2013 WEST upgrade. Since that time, as we executed on feature extension and European deployment projects, we have been credited for our understanding of the WEST system and our ability to address global issues, which is how, from 2015, we came to provide support for formulating a vision for the operations and maintenance system.

Key Project Success Factors

Selecting key client overseas locations and forming a unified operations and maintenance team with the client

While working on the vision for operations and maintenance, multiple candidate countries for where to transfer operations were raised. These included Singapore, Toyota Tsusho’s regional HQ, Malaysia and China, global outsourcing sites for ABeam Consulting, and Thailand, a major business site for Toyota Tsusho. We ultimately settled on Thailand for the following reasons.

1. Importance as a business site
As the most important location for Toyota Tsusho in business terms, Thailand handled a wide array of operations. We decided we could most improve operational understanding by placing the site closer to users.

2. Generating synergies
We managed to gain synergies by making use of personnel from Toyota Tsusho Systems (Thailand), an affiliated company of TOYOTSU SYSCOM, and by working with personnel from ABeam Consulting Thailand.

When transferring operations and maintenance work, we began by taking stock of and organizing necessary documentation, using our own ABeam Method established operations methodology. Next, after performing knowledge transfer and deepening the team members’ understanding of operations, we created opportunities to perform shadowing and reverse shadowing during actual work, and for overseas team members to visit Japan and learn directly from the current team.

We moved forward with a stepped transfer, depending on the degree of difficulty of the work. We performed gate checks at each phase, so that we could reliably transfer the operations while minimizing risks.

ABeam’s Contribution

Improving satisfaction and realizing unified and purposeful operations and maintenance through collaborative outsourcing under a global structure

Transferring operations and maintenance work to Thailand helped facilitate better communication with users. At the same time as we improved operational understanding by organizing the information needed during operations and maintenance work. As a result, we improved the pre-transition average satisfaction scores of 3.6 (out of 6) to 4.0 post transfer. As the new team’s mastery of operations has improved, this has climbed to 4.5 in recent years. In the Southeast Asia and India locations, where it is particularly easy for users to speak to the team directly, we have achieved an average of 5.0.
Additionally, as part of our program management support for development projects, we have created a unified PM team with the client, contributing to the smooth progress of projects, including coordination of requirements with overseas branches.

Customer Profile

Company name
TOYOTSU SYSCOM CORPORATION
Estd.
2002
Business
Providing various services to Toyota Tsusho Group (standalone and consolidated subsidiaries) beginning with building, operating and consulting services on IT systems
Capital stock
310 million yen
TOYOTSU SYSCOM CORPORATION

Mar 11, 2025

Professionals

  • Taro Matsumoto

    Principal Head of Digital Technology Business Unit

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