Maxell Europe delivers the goods with IBS ERP software
Customer Story
Maxell is a global giant in information storage and battery power. As it moves to capitalize on the accelerating pace of global markets, it has chosen IBS to revitalize its supply chain needs.
Martyn Lloyd, Senior European IT Manager of Maxell Europe appreciates the approach, philosophy and friendliness of IBS.
Company background
Since its formation in Japan in 1961, Hitachi Maxell has earned a deserved worldwide reputation as a provider of quality products and services. The company has shown the way for the development and supply of state-of-the-art energy, data and audio-visual products for over 30 years. Maxell opened its first European operations in Germany in 1976. Since then, the company has established nine sales companies and two manufacturing sites in Europe.
Maxell’s European headquarters are based in the UK and offer support to all subsidiaries and distributors throughout Europe. Maxell employs more than 450 people on the continent and had sales in excess of EUR 378 million in 2002.
Business issues
The electrical products industry demands flexibility and the ability to cope with rigorous market demands. Long lead-times and deteriorating prices are the norm. A leading-edge ERP software solution is essential for survival.
Maxell also had to contend with the great variety of complex accounting, legal and financial practices across Europe. In addition, the company was faced with the further difficulty of consolidating information from its multiple subsidiaries, all of which were using vastly differing IT systems.
The company faced a similar problem on the manufacturing front, as a separate manufacturing system was being used for production control. An integrated, total solution controlling all processes from raw material to finished product would show greater cost benefits and efficiency.
Maxell required a long-term ERP software business partner to facilitate information flow. The company also wanted to harmonize its European operations in the areas of accounting, legal and financial practices.
Solution and capabilities
Before choosing IBS, Maxell considered two other systems. Both were rejected on the grounds of cost and complexity. After seven years with its original system, Maxell chose to go with IBS integrated supply chain management software.
IBS ERP system software is developed to enhance customers’ profitability by increasing sales, reducing costs, shortening lead-times, improving customer service, realizing greater efficiency in internal and external processes and excellent visibility of management information.
IBS supply chain management software is scaleable and ideal for multinational organizations such as Maxell, particularly for handling cross-company financial transactions over a wide range of currencies and languages.
IBS focus on distribution was another reason for the choice. The customer service side of Maxell’s business needed improvement. The fact that IBS also had an integrated, demand-driven manufacturing system was a bonus, since Maxell was looking to replace its existing Enterprise Requirements Planning system.
Designed to enhance efficiency, the IBS manufacturing software provides operational tools for controlled capital and lean production. It allows for production planning on several levels and with different time frames, but can also be streamlined for less advanced manufacturing processes. This helps Maxell make the right planning and operations decisions at every stage.
Implementation
A combined team of Maxell and IBS staff worked together to customize and implement IBS ERP software so that it met all of the company’s requirements. To ensure a smooth switchover, a team of 30 Maxell employees took part in the implementation process.
Maxell has implemented IBS ERP software at four of its European locations. The first site to go live was Belgium, closely followed by the European headquarters in the UK. Rollouts in Germany and Hungary followed later.
After IBS provided the initial training, the project team was broken down into smaller operational groups (finance, manufacturing, export, etc.). IBS and Maxell jointly managed the project, which was successfully completed on time.
Along with the ERP system, IBS facilitated the installation of the hardware and will be involved in any further hardware requirements or software enhancements.
Benefits and value
IBS ERP software allows Maxell to react quickly to business changes. It can easily accommodate information processing for the entire Maxell European network. The flow of information from country to country is seamless, providing immensely improved efficiency in the supply of statistics across all divisions.
The IBS ERP system has meant profound changes for the Maxell Company. The system not only works superbly: it has provided unexpected improvements for more than just processes and profits, by creating a better sense of teamwork throughout the group.
Even with the accelerating pace of global markets, Maxell foresees a long and fruitful future with IBS. IBS developed the ERP system in close cooperation with Maxell, and will continue to refine and upgrade the product as Maxell’s business requirements evolve.
The successful implementation of IBS ERP sofwtare in Maxell’s European operations proves how well the IBS supply chain solution can be adapted to a multiple-country environment. Because of this compatibility, Maxell is considering the possibility of implementing the IT solution on a worldwide basis.
