When governance of traditional business becomes too fragmented, it takes a carefully-chosen ERP solution to reintegrate the business.
Japanese automotive components manufacturer Chuo Spring Co., Ltd., develops, manufactures, and markets springs, control cables, and other components incorporated into vehicles. Using its control cable technologies, the company is expanding its product range outside of automotive components as well, developing businesses in areas such as construction equipment and welfare-related equipment.
To enhance business visibility and standardize its operations globally, the company has chosen to incorporate enterprise resource planning (ERP) at its Indonesian sites.
Why ERP now?
Chuo Spring’s overseas network comprises 10 sites in five countries as part of its commitment to overseas expansion. However, because each overseas site operates different core business systems and conducts operations differently, it has been difficult for head office in Japan to obtain accurate real-time information.
As a result, each site has been left to implement its own business improvements; governance from the head office has been largely ineffective.
After detailed diligence, the company found a Cloud-based solution that is able to adapt Japanese standardized operations to its sites overseas and also support centralized management and global operations from its Japanese head office. This sealed the decision to use Infor CloudSuite Industrial as a dedicated core system for its overseas sites, and to deploy the solution in its Indonesian sites.
Chuo Spring deployed the ERP solution in the latter half of 2019, using the system to manage shipping, sales, procurement, warehousing, and accounting at its Indonesian sites.
The company is gradually deploying the single-instance ERP, built for global operations, across its overseas sites, starting with Indonesia. In this way, its head office in Japan will be able to understand data in real time across its global network, and drive business improvements based on companywide data (including from those overseas sites).
Along with adoption of the ERP system, Chuo Spring’s Indonesian sites are standardizing operations in line with Japan. They are improving the efficiency of their operations, including eliminating data entry work for shipping processes, reducing conversion time through a unified code system, and eliminating double entries through data centralization.
Going forward, in addition to more accurate inventory management, accelerated financial reporting and other operational improvements at its Indonesian sites, Chuo Spring will expand its standardization model to other overseas sites as well.
Said Kenta Koide, Vice President, Member of the Board, Chuo Spring: “To enable continued expansion at Chuo Spring, we needed an ERP solution to visualize our overseas site data in real time and enable data-driven business decisions. In addition to the rich functionality and proven achievements for global manufacturing businesses offered by Infor’s ERP solution, we were impressed with its versatility, flexible licensing structure, and development environment enabling easy implementation and meeting local requirements.”
Organizations and even entire governments have benefited from implementing ERP for their business processes with good outcomes. Besides leveraging ERP as a standard business enhancement process, enterprises can digitalize further by understanding their pain points, opportunities and data monetization strategies and then selecting holistic solutions for enhanced business intelligence.