Cube System Inc.

BP-LINKS makes purchasing processes visible
Establishes governance and also improves operational efficiency

Interviewee

Background of Introduction

Lack of consistency in ordering is problematic in terms of governance. Consider a system that can visualize the process.

The company does not have an in-house purchasing department and orders are placed on a project-by-project basis. Toru Tanno, Deputy General Manager of the Corporate Strategy Division, commented on this point: “In the past, there were cases where orders were placed without requesting quotations, which could be viewed by outsiders as a form of bid-rigging, and we felt that this was an issue. We therefore proposed a review of the purchasing system to management and stressed the need for a system that visualizes the process from request for quotation to acceptance inspection, and enables consistent management and tracking. He continues,” We were very pleased with the results of the project and were very pleased with the results.

In response, the company decided to consider implementing a purchasing system prior to revamping its internal system, which was underway at the time.

Background of Introduction

Selected BP-LINKS as a specialized purchasing management system for the software and service industry, and customized it to suit its own unique operations.

While Cube System was considering a purchasing system, it first learned about BP-LINKS when it was introduced at a business matching event hosted by a certain bank in December 2014. Toshiaki Tahara, IT Promotion Manager of the Corporate IT Promotion Team, Technology Strategy Office, Corporate Strategy Division, commented on his impression, “There are various EDI products, but most of them are for purchasing management of goods. On the other hand, BP-LINKS was very attractive to us because it is a purchasing management system specialized for the software and service industry. We were very attracted by the fact that BP-LINKS is a purchasing management system specialized for the software and service industry.

Therefore, the company began considering the introduction of BP-LINKS. Initially, the company considered implementing BP-LINKS with as little customization as possible, but when it came time to narrow down the requirements, it ran into a wall.

As mentioned above, we have an independent budgeting system for each project, and the number of members with ordering authority is an order of magnitude larger than the number of members in our company. For example, since even SEs who have been with the company for three years and are in the position of sub-leader are authorized to place orders, the number of members authorized to place orders is in the three-digit range. On the other hand, there were unique circumstances at our company, such as the need to set up five levels of order approval. Therefore, the implementation required a great deal of customization, and we had a very difficult time checking and examining each function and deciding whether or not modifications were necessary. (Mr. Tanno)

Effects of Introduction

Established governance in purchasing operations, contributing significantly to operational efficiency

The start of use in the cube system was in October 2017. Prior to the start of operations, a briefing was held for the company’s employees and business partners (BPs) to prepare for smooth operations.

According to the company, the most significant effect of the BP-LINKS implementation was the achievement of the initial goal of establishing governance in purchasing. The process from request for quotation to acceptance inspection is now visualized and rules are strictly adhered to.” (Mr. Tanno)

In addition, while operations have been completed only along the vertical line of project units, now that purchasing for each project is visualized along the horizontal axis, we expect to see more cases where BP’s engineers will be able to work across projects.

The electronic purchasing system has simplified the process, and we have received comments from our BPs that the process of invoicing has become faster than in the past. In the past, stamping and mailing purchase orders was a major monthly event for our company, and these tasks alone were time-consuming. （Mr. Tahara)

Future Outlook

Aiming to strategically utilize accumulated data as well as further strengthen governance

This is the third year that Cube System has started using BP-LINKS. The company plans to further strengthen its governance in the future, but since it is not yet 100% proficient in using BP-LINKS, it would like to consider using the system in the bigger picture in the future.

Currently, we are in the process of accumulating daily transactions, but we are also considering how to analyze and utilize them. For example, we would like to analyze the correlation between roles and order unit prices on the horizontal axis of projects. By doing so, we believe we can make strategic use of the data, such as strengthening partnerships with better BPs.” (Mr. Tanno)

Company Information

Cube System Co.

Founded as an independent software company in the early days of the software industry. Since then, the company has been providing system solution services to a wide range of industries, including distribution, telecommunications, finance, public services, and manufacturing, as an independent system integrator to meet the increasingly diverse and sophisticated informatization needs of its customers.

Establishment

October 20, 1969

Location

12-1 Gobancho, Chiyoda-ku, Tokyo

Home page

https://www.cubesystem.co.jp/

• All company and service names mentioned herein are trademarks or registered trademarks of their respective companies.