Nippon Steel Tries SRM

Manufacturer using i2's supplier relationship management solution to streamline transactions with supply chain

Dallas  September 13, 2002  Nippon Steel Corporation, Japan's top steel products manufacturer, has implemented a supplier relationship management (SRM) solution from software company i2 to streamline transactions with its supply chain.

Nippon Steel is using i2 SRM to better manage the automotive steel coils known as "flat products" from receipt of order through delivery. The steel company is using this system when engaging in material-related transactions with Toyota Motor Corporation.

Nippon Steel introduced the material allocation and demand collaboration functions of SRM designed to optimize the distribution of the materials used for manufacturing within the value chain, thus reducing production costs.

The company says that the SRM solution has provided it with value chain visibility and that it now can exchange information in real-time, whereas previously the company had to use phone, fax or e-mail for correspondence. Overall, the steel company reports that the SRM solution is helping it to better meet market demands.

The company is implementing the system in two phases. The initial phase, now live, is enabling real-time management of the ordering, production and quality data from the steel materials, coil centers and other steel plant divisions. Simultaneously, all points along the value chain  Toyota Tsusho Corporation, Toyota Steel Center Co., steel plants, sales offices and others  are able to access and input information, as needed, using the Web.

The second phase, now underway, is designed to enable optimized simulation of materials, and optimize production, processing and shipment throughout the procedure.