NEC Nexsolutions Streamlines Ichinen Chemicals with EXPLANNER/NX ERP Implementation

NEC Nexsolutions Enhances Ichinen Chemicals with EXPLANNER/NX ERP System

NEC Nexsolutions, a leader in innovative IT solutions based in Minato, Tokyo, has partnered with Ichinen Chemicals, a chemical manufacturing company, to implement the specialized ERP system, EXPLANNER/NX. This collaboration aims to address distinct operational challenges faced by chemical manufacturers. By refreshing their core system, Ichinen Chemicals intends to standardize processes, enhance operational efficiency, and bolster decision-making capabilities across different facets of their business.

Background of Ichinen Chemicals

Ichinen Chemicals is renowned for developing and selling a broad range of products, including lubricants, rust inhibitors, cleaning agents, and fuel additives. In a competitive market, the firm has consistently sought to improve price competitiveness, secure profits, and enhance product value by collaborating with over 300 suppliers. Despite their vast efforts, their core system, which had been in operation for over 15 years, struggled to meet the growing demands of today’s dynamic business environment.

The existing system lagged in functionality, flexibility, and processing capacity, hampering its ability to align with modern operational needs. Manufacturing chemicals poses unique challenges such as varied production methods for different products, inventory management suitable for variable material conditions, accurate cost calculations, and tailored handling of shipping inaccuracies. To overcome these hurdles, Ichinen Chemicals identified the need for a robust ERP system that handles specific chemical manufacturing requirements while enhancing operational resilience.

The Choice of EXPLANNER/NX

NEC Nexsolutions proposed the EXPLANNER/NX system as the optimal solution, highlighting its rich history of deployment in more than 400 chemical manufacturers in the NEC group. The solution was chosen for its capability to integrate production and sales processes, specialized features for chemical manufacturing, robust lot management, and ability to offer flexible customization. The transition promised to not only streamline existing processes but also provide a solid foundation for future expansion and adaptability.

Implementation Outcomes

Enhancements in Production Management and Risk Mitigation

With EXPLANNER/NX, Ichinen Chemicals has successfully centralized the management of both forecasted and custom-made products. The system enables comprehensive MRP handling across all products, effectively eliminating human errors related to material orders. During custom production, the integration of MRP with forecasting processes has significantly improved the efficiency of order management. Furthermore, the introduction of handheld terminals for data entry has allowed for real-time tracking of essential information related to material reception, manufacturing, and shipment.

Standardization and Efficiency in Operations

By unifying individual departmental workflows, the ERP system has standardized operational processes, including automation of order processing for direct shipments from suppliers to customers. This enhancement has considerably reduced lead times, improving overall operational efficiency. Key business functions such as inventory, receivables, payables, and export-import operations are now standardized, creating a more streamlined approach across the enterprise.

Accelerating Business Intelligence

Prior to the implementation of EXPLANNER/NX, monthly closing processes required extensive overnight batch processing, but the new system has enabled parallel processing capabilities. Consequently, the duration for monthly close has been shortened from four business days to just three, allowing for quicker access to critical financial data necessary for informed managerial decision-making.

Conclusion

The case study of Ichinen Chemicals illustrates the significant advantages offered by NEC Nexsolutions' EXPLANNER/NX ERP system. By addressing the company's unique challenges and optimizing their operational processes, the partnership has laid a foundation for sustainable growth and efficiency.

For a comprehensive overview of the implementation, including feedback from staff involved, download the detailed case study brochure from NEC Nexsolutions' website.