Mitsubishi Trucks powers on with new ERP systemCustomer Story Mitsubishi is one of the major suppliers of trucks and buses to the Australian commercial vehicle market. Currently, Mitsubishi offers around 60 model variants across the Canter, Fighter, Heavy and Rosa bus ranges, generating over $200 million in truck and bus sales annually in Australia. Mitsubishi Trucks Australia was officially opened for business in January this year at a purpose built site in Baulkham Hills, Sydney. In launching the new company, Australian President Roy Mizuno also announced the commissioning of a state-of-the-art business information and communications system. The system, implemented for Mitsubishi Trucks by IDS Enterprise Systems, was described at the launch as a key part of the new business, designed to support the customer base and dealer network. The aim is to maximise the company’s growth in the Australian market.
“In launching the new company, one of the key tasks facing our project team was to find and implement a business information and supply chain management system that would provide end-to-end support for a complex import distribution business,” said Jeff de Ridder, General Manger, Finance and Information Systems, Mitsubishi Trucks Australia.
The solution – an advanced ERP system
Mr de Ridder said the project brief was to design and implement a complete outsourced enterprise resource planning (ERP) system. There was an added challenge of going live by January 2001; a period of four months to scope, specify, commission, ‘fit’ against existing systems, customise and test.
“The truck market is a unique part of the automotive market,” Mr de Ridder said. “Unlike the car industry where a relatively small number of model variants are produced in volume, the truck market is practically a bespoke market and this creates a host of supply chain management issues which IDS quickly recognised.”
“Trucks are usually ordered and built for a very specific purpose,” added Mr de Ridder. “A Mitsubishi Canter that is used by NSW Fire Brigade for fire fighting is going to be a completely different vehicle from a Canter in cubic van format used for general haulage.”
“When a customer comes in to one of our 65 dealers around the country they sit down and build a truck solution around the functionality required,” Mr de Ridder said. “All of this is now done on-line through our Dealer Connect web ordering system developed by IDS.”
Once the dealer and customer settle on the order and lodge it, a string of information begins to flow through the supply chain.
The customer’s order is sent simultaneously to Mitsubishi Trucks in Sydney and the Mitsubishi truck factory in Japan; a build and completion date for the order is established (the truck takes about 10 days from order to travel down the production line); a shipping date is then determined; the location of the order determines how the cargo ship is loaded and at which Australian port the truck will be unloaded; necessary wharf handling procedures are determined; a Customs Clearing Agent is notified of delivery time and arrangements are made for Customs clearance or storage in bond; detailing, cleaning and preparation of truck is arranged through a specialist company; and finally the truck is picked up and road freighted to the ordering dealer and customer.
All of these communications occur automatically through the IDS system with messaging.
Technology and customers
“Our product has a great reputation in the market – which is paramount – but we see enormous gains from improving the way we interface with consumers and our dealers,” said Mr de Ridder. The IDS solution also contains sophisticated warranty control module that Mr de Ridder believes is the most advanced and responsive available.
“Even considering the extremes of use that trucks are put to, they are generally very reliable, more so than cars, so warranty claims and product recalls are quite rare,” said Mr de Ridder.
“However, it is important that genuine claims are identified quickly and passed to the manufacturer and all other claims are just as quickly identified and dealt with at the appropriate level.”
The IDS warranty module is a fully automated system with messaging, but with manual override. It references parts codes, warranty rules and can incorporate special requirements and circumstances. Efficiency gains and cost savings were being generated right through the supply chain.
“For every day a truck sits on a wharf waiting delivery to the customer, it costs the company around $100 in direct charges and plus the risk of damage,” he said.
“If we save one day on 3,000 plus units per annum, you can quickly see how a system like this comes to pay for itself.”
He added that the ultimate test is consumer satisfaction, the continued support of its dealers and market growth. Mr de Ridder said feedback from the dealer network and customers was very positive.
“The dealers are happy because the customers are getting the exact truck they want, in the timeframe they want,” he said. “Trucks represent working capital to a business so getting them to work as quickly as possible is a priority for our customers.”
Mr de Ridder said the system was also providing access to an array of business information that was previously unavailable or cumbersome to obtain.
Customised solution
Mitsubishi’s enterprise resource solution is built around the IDSe42 enterprise system. IDSe42 works on the key supply chain blocks of distribution, inventory, stock and final delivery. Its aim is to shorten product to market cycle and deliver to customers in full and on time. It allows a business to track, analyse and manage the flow of information not only across the supply chain, but across the entire enterprise.
As well as software and related consulting, the project also included the supply of all hardware, communication lines and set up of 30 laptops and desktops. The total value of the project was $1.5 million.
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