Optimization of the Entire Supply Chain (Utilization of Information and Technology)

Progress of DX Strategies

Through the use of Information and Communications Technology, we aim to achieve distribution reform by thoroughly digitalizing trading company operations and promoting efficiency throughout the supply chain. For this purpose, we have developed a new steel distribution DX platform that covers a wide range of areas, including processing centers, and have decided to digitalize the entire trading company operations, from order inquiry to quotation, order receipt and placement, processing, shipping, and money collection. As shown in the overview below, four systems related to order placement work, inventory management, exchange of transaction data, and processing site management will begin operation during fiscal 2021 and fiscal 2022.

This will lead to

  1. 1.improved efficiency of the entire flow involving customers, distributors, and suppliers,
  2. 2.significant improvement in accuracy of operations and quality control, and
  3. 3.reduction in inventory / loss and improvement in logistics efficiency and productivity through real-time usage and visualization of information.

Overview of DX measures

Began operation in the second half of fiscal 2021. Functional expansion and increase of the number of product categories are issues that we are continuing to address.

“SPOD” Improved order entry system
Standardization of order placement work and strengthening the check functions are intended to improve accuracy and efficiency, and work towards zero human errors.
“N-SCM” Integrated inventory management system
Automation of inventory control in repeating transaction fields is intended for quicker responses to changes in the situation.

Will begin operation in fiscal 2022. Functional expansion and deployment to new sites will be carried out over the Medium- to Long-Term.

“NST Business Online” Information exchange portal
A new interface infrastructure for business partners that will yield smoother and more efficient exchange of transaction data.
“EXCS” New coil center system
The core business management systems at NST subsidiary coil centers will be updated and consolidated.

DX promotion, ICT training, etc.

The DX Promotion Department was established directly under the President in July 2020. Some members of the Department are concurrently placed in business divisions in order to conduct review and development in response to the actual state of sales operations. As described above, the Steel Division will carry out full digitalization in distribution of steel products, and the Industrial Supply & Infrastructure Division, Foodstuffs Division, and Corporate Planning & Administration Division will also study and develop DX measures from the unique perspective of their individual fields.

In order to prepare the environment for the use of the latest ICT, we plan to spend ¥17 billion over the five years from fiscal 2021 to fiscal 2025 for introduction of systems, including approximately ¥5 billion for DX measures.

In order to operate in an integrated manner with management, the DX project roadmap will be regularly discussed at the executive level and also reported to the Board of Directors. We are also developing a personnel training plan to improve ICT literacy among all employees.