| Shinsho American Generates
Competitive Advantages with 3rdwave Supply Chain Management
Solution
UNIFACE-based
Solution Boosts Productivity and Strengthens Business Relationships
for Sophisticated Importer/Exporter
Compuware Magazine, September 2000
"Shinsho
American now is in a position to actively pursue growth
opportunities, both domestically and internationally, with
significantly increased efficiency. With 3rdwave, our business
information is now integrated with our business processes."
Michele Byrne, Project Manager, Shinsho American
Corporation
Success in business usually means doing
at least one thing better than your competitors. Shinsho American
Corporation does several things exceptionally well - concurrently
and flawlessly. Its secret? Superior IT.
The American trading arm of Kobe Steel
Group, Shinsho is a multifaceted supplier of steel, raw materials,
nonferrous metals, machinery and electronics. The company
also develops market-specific products for export and import.
Their mix includes automotive parts, office equipment and
agricultural produce.
"We are a diverse company," says
Michele Byrne, project manager, Shinsho. "We serve many
different customers and run many different lines of business.
Prior problems included knowing what is in the pipeline, the
product pricing and current exchange rates, which is typical
of the type of information we need each day. Reliable, accurate
and easy-to-access information is essential for our operations."
With no formal IT department, Chicago-based
Shinsho found it difficult to harness and coordinate crucial
information from the five U.S. branches for reports to its
Japanese parent. Shinsho needed a solution that enabled the
company to operate independently while remaining responsive
to a diverse customer and vendor base.
Shinsho turned to Blinco Systems Inc.,
a Compuware Business Partner, to develop an enterprise solution
that could pull together numerous business applications, multiple
users and numerous locations. Using 3rdwave, a supply chain
integration ERP-style suite built using Compuware UNIFACE
technology, Blinco Systems created a company-wide information
system for Shinsho that provides transparency into the entire
supply and distribution chain, with real time transaction
processing.
Challenge: Harnessing Information Resources
Shinsho’s Chicago HQ provides financial
and administrative support to the five branches, each of which
operates independently and specializes in one area of business,
serving unique customers and handling different product lines.
Shinsho tried to keep an eye on its widespread
operations with a disparate IT architecture. Multiple elementary
applications performed inventory control, vendor accounts,
customer relations, currency exchange and for other business
functions. None of the front- or back-office applications
was integrated. And no programs were fully functional between
offices, Chicago and the overseas headquarters.
To find information for a report, a manager
had to physically locate a folder, find the requisition, then
track down where the item was located in the supply chain.
Shipping information, billing status and U.S. pricing were
determined separately. Reporting daily, let alone in real-time,
seemed an impossibility, Byrne recalls.
Applying the Right Technology
"We used a consulting firm to help
us find the right enterprise solution, but the trick was finding
something that would fit across our broad spectrum of product
lines and make everybody happy," Byrne says. "We
decided to go with Blinco Systems. Software from other companies
seemed capable of handling our needs if we only had one line
of business, while 3rdwave worked across all of our lines
of business. The other significant factor in our decision
was Blinco's experience with international trading companies."
For Shinsho, 3rdwave provided them
with the ability to see their entire supply chain, allowing
managers to identify additional costs of inventory. Our
target is to help them reduce inventory by 20-30% within
six months."
Ned Blinick, Vice President, Blinco Systems
Blinco Systems' 3rdwave solution integrates
knowledge of international supply chain and logistics management
with client-specific business requirements. Shinsho branches
now receive administrative support from the head office in
a seamless environment. With direct access to required information,
branches are now able to focus on managing the supply chain.
For example, 3rdwave's purchase order track and trace capabilities
provide the Shinsho buying and logistics group with complete
item status anywhere within the supply pipeline. Other system
elements include procurement, sourcing, transportation, credit
reporting, compliance documentation and other functionalities
needed for international commerce.
Shinsho decision-makers said they were
pleasantly surprised to discover how quickly Blinco Systems
was able to create their enterprise solution, Byrne said.
Typically, developing and deploying similar business information
systems would take 18-24 months, minimum. The UNIFACE development
environment enabled Blinco Systems to build and deploy the
Shinsho application in just 10 months.
UNIFACE provides the ideal framework for
developing, deploying and integrating business-critical applications.
UNIFACE-based applications like 3rdwave can be adapted quickly
to meet the needs of business in a rapidly changing competitive
and technological environment.
"I am amazed by how easily we have
been able to improve our new system," Byrne says. "If
we need to modify a particular area or module, the programmer
will usually revise the program within one or two days."
Measures of Success
"My goal was to eliminate as much
manual work as possible," Byrne says. "The feedback
I have received from the operators tells me that the system
has lessened their workload. Upon utilizing the new software,
the users were appreciative of the ease of retrieving vital
information. They could see the quantity of the incoming steel
on a daily basis; discover exactly where the item ordered
was in transit; and know how much credit was issued on a given
day.
"With this technology, Shinsho American
is now able to fully support our independent branch structure.
We now provide direct and responsive customer service and
vendor contact. And we have centralized our administrative
and accounting services. Our management now has access to
accurate, synchronized information across all branches and
administrative departments."
The system is designed to help Shinsho
reduce inventory up to 20%, a major cost savings. Byrne also
cites the strategic benefits: "Shinsho American now is
in a position to actively pursue growth opportunities, both
domestically and internationally, with significantly increased
efficiency. Our business information is now integrated with
our business processes."
Solutions Partners
Blinco Systems, of Toronto, Ontario, is
recognized for delivering solutions that provide tight integration
with existing business information systems. 3rdwave and 3rdwave
Logistics, the Blinco Systems flagship products, are built
in UNIFACE. Used by more than 400 Compuware Business partners
worldwide, UNIFACE is a development environment for building,
renewing and integrating strategic applications.
"The Compuware UNIFACE development
environment enables us to create solutions designed specifically
for each of our clients' businesses," says Ned Blinick,
vice-president of Blinco Systems. "The UNIFACE business
module components are quickly adaptable, which helps us design
and implement a prototype system quickly.
"For Shinsho, 3rdwave provided them
with the ability to see their entire supply chain, allowing
managers to identify additional costs of inventory. Our target
is to help them reduce inventory by 20-30% within six months."
Real-time Business Information
"Mid-size companies need complete
enterprise solutions," Blinick says. "Simply taking
a more robust solution and scaling it down is not the answer.
3rdwave provides a complete, robust enterprise-wide solution
without compromising performance, functionality or flexibility.
"The solution we developed for Shinsho
allows the company to compete against larger organizations
with larger IT staffs. The demands Shinsho faces from clients
are no less than their very large competitors face.
"One of the hot topics in IT today
is the 'virtual close,' where a headquarters gets reports
from branches and operations around the world to determine
how the business is doing at the end of the day. With 3rdwave,
Shinsho gets something better than a virtual picture. Shinsho
gets real-time reporting. That's a true picture."
Currently, over 400 packaged application
vendors have developed more than 700 solutions available for
financials, human resources, workflow management, sales and
marketing, distribution and more. Applications are also available
supporting more than 50 different vertical markets.
© 2000 Compuware Corporation.
For related information, please
go to:
3rdwave MTD (for
Metals Trading and Distribution)
3rdwave
CGD (for Consumer Goods Distribution)
Shinsho Case Study |