The U.S. subsidiary of Roland, maker of electronic musical instruments, replaced its “mishmash” business system with IBS supply chain software. It paid for itself within a year.
Chuck Wright, VP of Operations at Roland US believe that powerful e-business software makes Roland number one.
Company background
Since its founding in 1972, the Roland Corporation's mission has been to create sounds that people like to hear. Based at its US corporate office in Los Angeles, Roland is a leading manufacturer and distributor of electronic musical instruments such as keyboards and synthesizers, guitar products, electronic percussion kits, digital recording equipment, amplifiers and audio processing devices.
Roland's products are the preferred choice of both professional and amateur artists. They are used extensively in recording studios, broadcasting companies, theatres, schools, public facilities and anywhere music is created. Roland sets the standards in music technology for the world to follow.
Roland has more than 1000 employees worldwide (+400 in the US) and generated global sales of USD 600m in 2002.
Business issues
In1994, Roland was operating three warehouses, with poor product storage, monitoring and distribution processes. Partially filled orders were being shipped while others were put on back order. Inventory turns and ordering cycles were based on pure guesswork, with no forecasting. Reordering parts from Japan was initiated only when the parts bin was empty, and dealers lacked online access for monitoring their orders. Operations had to be stopped for two days at the end each month just to clear outstanding paperwork.
And if all this was not enough, the new software would have to deal with Roland's diverse customer base, ranging from neighborhood music stores that place a mere 250 orders per year to giant mega-retailers that place a staggering 250,000 orders yearly. Each customer expects the same level of service, with quality online access to product information, stock availability, pricing, ease of ordering, credit clearance, shipping, tracking and invoicing.
The previous software being used was a non-harmonic mix of non-integrated products from a variety of vendors and there was no connection between inventory and distribution. Radical changes were required for Roland to make itself heard in the music world.
Solution and capabilities
After conducting a thorough in-house needs analysis, Roland sent a proposal to 18 business system software vendors. Eleven responded, including IBS, which eventually won the order. Roland chose to go with the IBS integrated supply chain management software suite, ASW. One of the most important factors was the close pre-sale relationship between the IBS sales and technical people and the Roland selection team. The excellent communication and interpersonal rapport between Roland and IBS during this period guided the company to the right decision. IBS' focus on distribution was another reason for Roland choosing ASW, as the customer service side of its business was suffering a case of the blues.
Roland's factories now have the benefit of putting a universal price code and serial number on every product. An Internet service is now in place for dealers giving them the ability to enter orders, check inventory and confirm shipping. The system also allows United Parcel Service (UPS) and other carriers to pass tracking numbers to this service, providing real-time shipping infor-mation for the dealers. All this has lead to an efficient and effective order fulfillment process for the dealers.
ASW is IBS' business software suite and consists of components for supply chain automation, warehouse and inventory management, logistics planning, sales-call planning, customer relations management, finance manage-ment, business analysis and e-business. The IBS solution speeds up sales and purchase processing, optimises stock levels, minimises errors and out-of-stock scenarios, and enhances logistics planning.
Benefits and value
Roland's results with ASW have hit the top of the charts: in the first twelve months, inventory dropped a million dollars, resulting in a significant reduction of inventory, optimised use of warehouse space and increased savings in associated costs.
Roland has also gained a competitive edge, because the company now holds valuable information about its dealer's activities such as sales trends, stock turns and ordering patterns. This information advantage gives Roland more accurate forecasting and planning and lets the company anticipate its customers' needs.
Customers are happier because of the efficiency of the ASW software. The number of operational staff has been decreased but there has been a corresponding increase in sales support personnel. Roland feels that IBS' professional and dedicated implementation team, along with the motivated Roland project team, were primary contributors to the ASW system paying for itself within one year.
The end-of-month close is now accomplished during the last calendar day, and Roland's sales in the US have increased to more than USD 200m, up from about USD 100m in 1994. Now Roland really is rocking and rolling!
Nimi: Roland Corporation Alue: USA Toiminta: Manufacturing and distribution Tuotteet: Musical instruments, digital recording equipment, amplifiers, audio processing devices Työntekijöitä: +400 in the US Liikevaihto: USD 600m worldwide Kotisivu: Roland Corporation
Haasteet
Products in the wrong location
Too many back orders
Inaccurate re-order process
No e-business capability
Lengthy and costly end-of-month procedure
Lack of business integration.
Ratkaisu
Integrated ASW business software suite
e-business
Sales order management
Customer relations management
Procurement
Inventory management
Warehouse management
Business intelligence
Financials.
Ominaisuudet
Serial number tracking
Enhanced logistics planning
Stock level optimisation
Supply chain visibility
Business performance measurement
24/7 dealer self-service
Enhanced procurement.
Arvo
ROI in just one year
Saved USD 1m in inventory costs during the first year
