Maxell energizes Asia with IBS ERP system

Customer Story

Maxell is a global giant in information storage and battery power. As it moves to capitalize on boom business in Asia, it has chosen IBS ERP software to revitalize its supply chain needs.

The Asia of today includes some of the biggest and rapidly changing economies. With analysts forecasting that the Asian arena will drive some of the most exciting business growth in coming decades, the most muscular and recognizable global names are hustling to boost investment and activity there.

There are few bigger in the dynamic electronics industry than Maxell, specialists in data storage, battery energy, vision and sound. In an age where mobility is a by-word and where proliferation of go-anywhere technology is a sign of our time, Maxell is targeting boom-time Asia, where it began.

Its aim is to be in the top three in each of its product categories by 2006, and it is closing fast.

With Maxell’s ambition to consolidate information globally, Maxell Asia, as in Europe, Japan, and the United States, has turned to IBS for supply chain solutions to help procure a competitive cutting edge.

The world wants mobility

Founded in 1961 in Osaka Japan, Maxell produced dry cell batteries, its name a compression of “maximum capacity dry cell.” Now a household brand in storage media and batteries, it has been at the forefront for decades in audiocassettes, floppy disks and battery technology itself.

Chances are you might find a Maxell battery in your laptop, or use a Maxell DVD to store data.

Maxell’s mission is "to maximize memory capacity and mobility." Says Kamemoto Masaru, the chairman of Asian Global Sales and Marketing, “Ubiquitous communications are becoming a reality. The world wants mobility and we are making this possible, so it is a good time for us.

Mobile phones and computers, PDAs, digital cameras, Apple i-Pods, mini-disks, CDs, DVDs – everywhere mobile and digital technologies pervade our lives. And mobility depends on product factors such as endurance, size, safety and storage capacity – all of which Maxell specializes in.

Growing demand

Take mobile phones, says Kamemoto: “Worldwide, the market is growing 20 to 30 percent a year. Some 620 million mobile units were sold in 2004. The opportunities are huge and Asia is an area in which the take-up of these technologies is rapidly advancing as wealth expands.”

He says one of the challenges for Maxell is that technology is changing so fast. “We see 20 to 30 percent capacity improvement a year, while prices fall 10 to 20 percent. So we must innovate.”

A huge driver for Maxell has been the desire of companies to store information digitally – a trend initially born of the year 2000 (Y2K) fears. One of Maxell’s biggest areas is in the development and provision of compact data storage technology, such as DVDs.

Good experience

It is a feather in the cap of IBS that Maxell chose an IBS ERP software solution for its supply chain needs, most importantly to pursue global business process re-engineering and financial consolidation. The decision to implement in Asia followed success in Europe, where IBS supply chain software was set up in 2002. IBS beat SAP and Oracle “because we believe that IBS experience and its ERP software is so much better.”

Kamemoto identifies classic supply chain problems in Asia, such as heavy inventory and concerns about supply responsiveness, as reasons why the company sought supply chain solutions. By December last year, the IBS ERP system was installed and beginning to operate across all of Maxell’s Asian operations, except Shanghai , which is set to go live in October. IBS distribution software, financial software, manufacturing software, alert management software and business intelligence software drive the business today. Kamemoto expects consolidation to be complete by the middle of this year.

“Our experience with IBS supply chain software in Europe proved its value. Everyday we need to see our stock status, manage stock movements and work towards consolidation. It is too early yet to see the results but we are confident the system will improve our logistical performance and help us win market share.”

Positive outlook

Kamemoto expects to achieve clear cost savings and increased supply chain efficiency.

“On the financial side, we will be able to see our figures everyday and achieve consolidation. We can analyze status achievement and profit achievement. To be leaders in our markets we need to be able to immediately break down figures such as turnover, sales, revenue and stock movement. We need to disclose information to the Stock Market fast. With IBS ERP software, all this is possible.”

As a key objective behind the purchase, Maxell’s global financial consolidation and business re-engineering should be complete by 2006, allowing the company to pursue maximum efficiencies. “One flick of the key will provide data to give us an edge. The IBS supply chain solution will help us perform at our peak.”

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