Saturday, September 22, 2012

No. 31: Nippon Express introduces a system to manage inventory on a worldwide basis (September 22, 2012)

Nippon Express currently has warehouses in 278 locations with a total area of 1,700,000 square meters around the world. The warehouses are currently managed by systems that vary with the country, warehouse, and customer. The company will integrate them to manage the warehouses on a worldwide basis. Scheduled to be ready in 2016, the new system will support Japanese, English, and Chinese. It will allow Nippon Express to confirm the operation of all the warehouses on earth instantaneously in Japan, and its customers can realize the optimal inventory control and commodity supply on a world basis. 

The new system will utilize cloud computing. The servers will be installed in Japan and several locations abroad. The investment is about 1 billion yen. Although Nippon Express needs half a year to introduce a warehouse management system tailor-made to each customer, the new system can halve the required time to three months. With the introduction of the new system, the company reckons that it can reduce the personnel for system maintenance form the currently 100 to 50. This decision is part of the strategy to increase the sales in foreign countries from the current 30% to 50%.

Nippon Express in India

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