OLYMPUS TECHNOZONE Vol.51 2001-09

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On Its Own, the System Is Just a Tool-It Comes Alive When It Is Used

Sumio Kawai Screen sequence showing G-SCDB global inventory search.
Sumio Kawai
Screen sequence showing G-SCDB global inventory search.
(Click on image to expand it)
Sumio Kawai
----Your current plan calls for the overall system to go online in March 2003. What does this involve specifically?

Mr. Itoh: 
At the very least, all the Olympus Group's key locations will be able to access the GPO and G-SCDB, creating a system that allows real time responses.

----Investment in the system amounted to 300 million yen, but it is apparently forecast to yield profits of 100 million yen per year. What is this calculation based on?


Mr. Itoh: 
That's as maybe, but since it's just a piece of infrastructure, it doesn't mean that we are suddenly going to make money on it. I think it's more a question of how much we'll make by eliminating waste and improving efficiency. I think it's just our projection of the system's secondary impact. The key thing is that it will boost the efficiency of the entire supply chain. We are looking at cuts in overall supply chain costs. To this end, each operational group will build the SCM, and it envisions using the GPO and the G-SCDB as foundations. I believe that synergies will start emerging once this happens.

----You appear to be thinking in terms of pushing it up to the third phase of system development. Does this mean the system will not simply remain within the Olympus Group?

Mr. Takeuchi: 
I believe it could go as far as to involve component materials suppliers and sales agents, though that will occur a little further down the road.

Mr. Sanpei: 
As far as overseas shipments are concerned, it is true that after the goods are actually transferred to the shipping company, we don't get to see the information until the goods arrive at the local destination and ready to be picked up. For example, if we could obtain data from the shipping company after the goods have been loaded, and input them into the G-SCDB, local subsidiaries would be able to trace when the goods where loaded aboard ship or a flight, and even when they could be expected to pass through customs at the local port. We intend to build our system with this kind of situation in mind.

Ms. Kobayashi: 
As far as the GPO is concerned, the impact emerges only when everyone starts using it, and I think it is significant. I honestly wish everyone would go ahead and make full use of it.

Mr. Takeuchi: 
Absolutely right! It's all meaningless if people don't use it. It won't evolve unless people use the system and steadily change the way they go about doing their own jobs as a result. Don't you think everyone points their fingers at others when something happens at work? They're probably saying "it's their fault!" (Laughs). The company will not change in a broad sense so long as that sort of approach continues. That's why we're looking for opportunities to stir up demand. We intend to engage in activities to popularize the system.

Mr. Itoh: 
It used to be that the job of starting up in-company systems was a task that receives little recognition. While there is a strong element of this here, we're in a situation where IT could trigger operational reforms and become a powerful weapon in business. Surely we should make a more upfront appeal?

Mr. Takeuchi: 
This kind of job is not glamorous, but it is absolutely necessary.

Mr. Itoh: 
Many companies are working to introduce systems for SCM, but actually, many of them are not too clear on how to do it. What Olympus is doing to tackle its intra-group infrastructure this time is definitely worthwhile. Although it is the sort of unpretentious effort that typifies Olympus, we will announce it in newspapers and magazines.

Mr. Takeuchi: 
hat's why we really want everyone to make use of it.
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