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How to increase trust and visibility in complex legacy supply chain architectures

How to increase trust and visibility in complex legacy supply chain architectures

Owen Dowden

Owen Dowden

Senior Director, Digital Enterprise EMEA

Owen has over 20 years of experience in operational and IT consulting. He is currently the Commercial Lead for Hitachi’s Enterprise Application practice in EMEA, overseeing the strategic partnership with Oracle.

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August 1, 2024

Satisfied customers are the lifeblood for every supplier organisation. But many supplier businesses are not delivering.

Customers are being let down by delayed shipments, unsatisfactory product quality and lack of availability – all of which hurt customer confidence, which in turn holds businesses back from increasing market share.

In our experience, there are several reasons for this:

  • Lack of supply chain visibility
  • Poor supplier management
  • Out-of-date systems and processes

We can help overcome all of these issues to transform supply chain and customer confidence. And here are two example projects that demonstrate our approach.

A leading plumbing and heating merchant
Our client is one of the UK’s largest plumbing, heating, and cooling trade specialists offering over 300,000 different products. Hitachi helped define a new supply chain operating model, and implemented Oracle Supply Chain Suite to create digitally enabled processes across planning, inventory management, order fulfilment, purchasing and supplier management.

Our work helped streamline the supply chain, with some significant results:

  • Reduced overall stock by 15%
  • Improved customer OTIF by 6%
  • Reduced stockouts
  • Improved stock availability by 9%

The Oracle solution hasn’t just transformed stock management – it sets new standards in product and supplier management too.

For example, the Product Data Hub is responsible for the creation and maintenance of the company’s products, providing a single source of business product definitions. And Oracle Purchasing Cloud paves the way for operational excellence by streamlining and automating the procure-to-pay process and providing visibility into full transaction history.

With centralised planning, purchasing and stock management functions, our client can make intelligent decisions to reduce the cost of fulfilment – and ultimately to improve customer satisfaction.

The UK’s leading builders’ merchant
Our client is the UK’s largest distributor of materials to the building industry with thousands of customers. With over 1400 branches and stores, its sales generate hundreds of thousands of invoices every day.

Before working with Hitachi, our client was running a complex custom legacy platform. Many of its processes were manual and time-consuming – for example, teams had to format and prepare finance datasets before they were suitable for use.

Hitachi delivered a leading-edge finance system with Oracle Fusion Cloud Enterprise Resource Planning that would help straighten their finance processes, tighten financial controls and improve business insights.

The scope of the transformation covered:

  • 100+ Integrations to legacy monolithic core platform
  • 35 million invoices annually
  • 2 billion journal posts
  • Data migration of over 1 billion master product items

The highly complex legacy system integration with Oracle SaaS gives our client a complete view of its business – and data is available in a click, instead of it taking hours to collect manually.

With more agile and accurate information, our client has better insights across the business and can spend more time on forecasting and strategic decision-making.

And with an up-to-date cloud-based ERP, our client can stay at the forefront of technology evolution, able to take advantage of the latest developments.

Cutting through complexity
These are just two examples of how Hitachi has transformed supply chains.

In other engagements, we have replaced over 200 legacy systems with integrative and scalable, Oracle-compatible solutions, released millions of pounds of working capital, and enabled a 360º degree view of customers, measuring interactions across the customer journey, to raise Net Promoter Scores to market-leading level.

Whatever your starting point, whatever the state of your legacy systems and processes, and whatever your strategic objectives, Hitachi can deploy the right Oracle cloud solution to cut through complexity and transform your supply chain.