Case Study on Material Procurement Improvement in the Electrical Equipment Manufacturing Industry: Japan Radio Co., Ltd.

Successful significant reduction in business workload through the integration of the purchasing system and Monotaro! Here we present a case study that achieved cost reduction by reviewing the purchasing flow!

Japan Radio Co., Ltd. has over 40 locations, including headquarters, branches, sales offices, and factories, and procured indirect materials through two methods. Products frequently used company-wide are stored in their own warehouse for inventory management, while other products were requested by employees at various locations to the administrative staff, who would obtain quotes and place orders. The former incurred unnecessary costs related to inventory management and delivery, while the latter involved employee work hours, highlighting inefficiencies in the traditional purchasing flow. Additionally, employees often made cash purchases and processed reimbursements, which created issues with the lack of records for "what was purchased and how much." To address these problems, they decided to implement a purchasing management system and utilize Monotaro's services. 【Implementation Effects】 ■ Elimination of the need for inventory stock due to the realization of short lead-time procurement ■ Reduction of labor hours and costs associated with ordering ■ Cost reduction of direct materials through the review of indirect material procurement methods ■ All purchases are digitized, achieving visibility *For more details, please refer to the PDF document or feel free to contact us.

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