IBM-SAP Alliance Industrial Products Nifco, Inc. – Taking international manufacturing operations to the next level with SAP and IBM 2 percent reduction in annual material costs helps boost profit margins 50 percent less stock wasted by identifying and replacing inefficient equipment The transformation: Without close integration between its many subsidiaries, Nifco found it difficult to coordinate resources and operations on a global scale. By working with IBM Global Business Services to unify its entire business on SAP applications, the manufacturer has gained a new level of insight and control, helping support efficient international expansion. New insight into worldwide operations helps target new business opportunities Client Name: Nifco, Inc. Case study Link: http://www.ibm.com/common/ssi/cgi- bin/ssialias?subtype=AB&infotype=PM&appname=SNDE_SP_SP_WWEN&htmlfid=SP C03513WWEN&attachment=SPC03513WWEN.PDF Pull Quote: “Working with IBM Global Business Services to deploy SAP applications, we have been able to reduce annual material costs by two percent.” —Mr. Makoto Nisie, Senior Advisor & Senior General Manager, BPR Department Planning, Nifco Inc. Company Background: Nifco, Inc. manufactures industrial plastic parts and components for automobile, home electric appliance and white goods manufacturers. Founded in Japan in 1967, Nifco operates in 12 countries in Asia, Europe and North America. Solution components: Applications SAP ERP, including applications for Financials and Controlling, Materials Management, Plant Maintenance, Production Planning, Sales and Distribution SAP BusinessObjects business intelligence SAP Business Warehouse SAP Project System Services IBM® Global Business Services® Business challenge: Japan-based manufacturer Nifco wanted to increase its revenues and customer base by scaling up its international presence. With subsidiaries acting largely as independent units, the company found it challenging to gain the visibility and control it needed to effectively coordinate resources and maximize its opportunities on a global scale. The benefit: Deep insight and tight control of enterprise-wide operations helps Nifco support better planning and smarter decision making – cutting annual material costs by 2 percent and supporting efficient global growth. Solution components “Working with IBM Global Business Services to deploy SAP applications, we have been able to reduce annual material costs by two percent.” —Mr. Makoto Nisie, Senior Advisor & Senior General Manager, BPR Department Planning, Nifco Inc. Services IBM® Global Business Services® Applications SAP ERP, SAP BusinessObjects business intelligence, SAP Business Warehouse, SAP Project System SPP03246-WWEN-00 1