The Largest-scale ERP Implementation in Japanese Manufacturing Industry Komatsu Completes Total Implementation of ERP

Komatsu has recently completed the total implementation of ERP (Enterprise Resource Planning) towards building a global network. This is the largest-scale implementation for primary ERP function (planning, procurement, manufacturing, sales, logistics and accounting) in Japanese manufacturing industry and approximately 5,000 users at 9 sites in 8 countries will use the system.

Since establishing a local overseas subsidiary in 1967, Komatsu has grown into a global operation with 28 construction and mining equipment plants worldwide. Within the intensifying global competition, Komatsu has actively constructed a global supply chain based on ERP due to the necessity of cross-sourcing, where products are efficiently exchanged among the various production bases, and to achieve more prompt and accurate responses to drastic changes in the business environment.

In 1997, Komatsu organized the Information Strategic Committee to introduce information technology, through digital engineering implementation, supply chain reformation and other measures via cross-organizational activities, which was cutting edge for the manufacturing industry. Furthermore, in April 2000, the company established the "e-KOMATSU Division" to extend global business development and pursuing corporate operations by exploiting information technology.

This completion of ERP implementation within the domestic manufacturing operations has enabled Komatsu to realize a centralized control organization for the production system all over the world. By completing a global supply chain that allows all data from each base to be grasped in real time. Komatsu is successfully and dramatically reducing its inventory and lead-time. This completion will enable Komatsu to extend global business operations and accelerate competitive advantages using IT.

"iBaanERP" of Baan Japan Co., Ltd., which has abundant functions for the manufacturing industry, has been selected as this ERP package. The enterprise server "IBM@serverz Series" by IBM Japan, Ltd., equipped with self-management functions, has been utilized as the platform for this system.

Last updated:2002/01/15 14:06

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