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SDK's Heat Exchanger Div. to Introduce Twin SCM System

January 31, 2002

Showa Denko K.K. (SDK) has decided to introduce a "twin SCM system" in its Heat Exchanger Division as from March 2002 using SSA Global Technologies' Business Planning and Control System (BPCS). By fully utilizing the new system, SDK aims to ensure higher efficiency, saving of labor and speedier decision making in the heat exchanger business.

Since 1999, automotive parts suppliers have been coping with the drastic changes in the automotive industry caused by mergers of carmakers on a global scale and Japanese carmakers' shift to overseas production. Under the circumstances, auto parts suppliers are required to establish globalized operations and supply in the form of modules and systems.

SDK's Heat Exchanger Division has been proceeding with renovation efforts since March 2000 with a view to optimizing its operations. The Division has decided that it should introduce an integrated computer system to quickly respond to customer needs. After comparing various ERP packages, the Division has chosen BPCS as most appropriate system for auto parts manufacturers' production control. BPCS is a total package covering manufacture, marketing, distribution and accounting.

The twin SCM system represents a combination of supply chain management (integrated computer control over the whole process from receipt of order to delivery) and strategic cost management (cost simulations at the product planning stage using a data base), both running on BPCS.

The Introduction of the twin SCM system will enable SDK's heat exchanger operations to facilitate decision making, shorten lead time, reduce administrative personnel and halve inventory. SDK intends to realize such potentials as soon as possible and establish a competitive management/business system.

The new system will also be introduced at overseas subsidiaries engaged in the heat exchanger business and at other divisions within SDK's Aluminum Fabricated Products Sector.

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