Roland – Rocking and Rolling with IBS software
The U.S. subsidiary of Roland, maker of electronic musical instruments, replaced its "mishmash" business system with IBS software. It paid for itself within a year.
Company background
Since its founding in 1972, the Roland Corporation's mission has been to create sounds that people like to hear. Based at its US corporate office in Los Angeles, Roland is a leading manufacturer and distributor of electronic musical instruments such as keyboards and synthesizers, guitar products, electronic percussion kits, digital recording equipment, amplifiers and audio processing devices.
Roland's products are the preferred choice of both professional and amateur artists. They are used extensively in recording studios, broadcasting companies, theatres, schools, public facilities and anywhere music is created.
Roland sets the standards in music technology for the world to follow.
Roland has more than 1,000 employees worldwide (400 in the US) and generated global sales of $600 million in 2002.
Business issues
In 1994, Roland was operating three warehouses, with poor product storage, monitoring and distribution processes. Partially filled orders were being shipped while others were put on back order. Inventory turns and ordering cycles were based on pure guesswork, with no forecasting. Reordering parts from Japan was initiated only when the parts bin was empty, and dealers lacked online access for monitoring their orders.
Operations had to be stopped for two days at the end each month just to clear outstanding paperwork.
And if all this was not enough, the new software would have to deal with Roland's diverse customer base, ranging from neighborhood music stores that place a mere 250 orders per year to giant mega-retailers that place a staggering 250,000 orders yearly.
Each customer expects the same level of service, with quality online access to product information, stock availability, pricing, ease of ordering, credit clearance, shipping, tracking and invoicing.
The previous software being used was a non-harmonic mix of non-integrated products from a variety of vendors and there was no connection between inventory and distribution.
Radical changes were required for Roland to make itself heard in the music world.
Solution and capabilities
After conducting a thorough in-house needs analysis, Roland sent a proposal to 18 business system software vendors. Eleven responded, including IBS, which eventually won the order. Roland chose to go with the IBS integrated supply chain management software, IBS ENTERPRISE. One of the most important factors was the close pre-sale relationship between the IBS sales and technical people and the Roland selection team.
The system paid for itself in the first year.
Chuck Wright
VP of Operations
Roland Corporation US
The excellent communication and interpersonal rapport between Roland and IBS during this period guided the company to the right decision. The focus on distribution was another reason for Roland choosing IBS software, as the customer service side of its business was suffering a case of the blues.
Roland's factories now have the benefit of putting a universal price code and serial number on every product. An Internet service is now in place for dealers giving them the ability to enter orders, check inventory and confirm shipping. The system also allows United Parcel Service (UPS) and other carriers to pass tracking numbers to this service, providing real-time shipping information for the dealers. All this has lead to an efficient and effective order fulfillment process for the dealers.
IBS business software consists of components for supply chain automation, warehouse and Inventory Management, logistics planning, sales-call planning, customer relations management, finance management, business analysis and e-Commerce. It speeds up sales and purchase processing, optimizes stock levels, minimizes errors and out-of-stock scenarios, and enhances logistics planning.
Benefits and value
Roland's results with IBS ENTERPRISE have hit the top of the charts: in the first twelve months, inventory dropped a million dollars, resulting in a significant reduction of inventory, optimized use of warehouse space and increased savings in associated costs.
Roland has also gained a competitive edge, because the company now holds valuable information about its dealer's activities such as sales trends, stock turns and ordering patterns. This information advantage gives Roland more accurate forecasting and planning and lets the company anticipate its customers' needs.
Customers are happier because of the efficiency of the IBS ENTERPRISE software. The number of operational staff has been decreased but there has been a corresponding increase in sales support personnel. Roland feels that IBS' professional and dedicated implementation team, along with the motivated Roland project team, were primary contributors to the IBS ENTERPRISE system paying for itself within one year.
The end-of-month close is now accomplished during the last calendar day, and Roland's sales in the US have increased to more than $200 million, up from about $100 million in 1994. Now Roland really is rocking and rolling!
Contact IBS for more information. »
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