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Sage > Case Studies > Sage 100 ERP—the Only Answer for Yamada America
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Sage 100 ERP—the Only Answer for Yamada America

Technology Category
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
  • Functional Applications - Inventory Management Systems
Applicable Functions
  • Discrete Manufacturing
  • Logistics & Transportation
Use Cases
  • Inventory Management
  • Manufacturing System Automation
Services
  • System Integration
  • Software Design & Engineering Services
The Challenge
Yamada America, a U.S. subsidiary of a Japanese heavy industrial pump manufacturer, was experiencing rapid growth, with an annual increase of 25-30 percent for three consecutive years. To manage this growth, the company decided to switch from Sage 100 ERP for DOS to a Windows-based system in 1998. However, the new software promised by a salesman turned out to be a disaster. The installation process took over four months and disrupted all aspects of the company's operations, including accounts payable, advanced consolidation, general ledger, and inventory. Even after the installation, the system problems persisted, with hardware breaking down and computer screens freezing multiple times a day. The situation was so bad that two employees quit due to the excessive overtime caused by the computer problems.
About The Customer
Yamada America is the U.S. subsidiary of Yamada Corporation, a Japanese heavy industrial pump manufacturer. The company was founded in 1986 and sells 4,000 different products and 16,000 parts for those products. Its customers include major corporations such as Motorola, Intel, and DuPont. The company has been experiencing rapid growth, with an annual increase of 25-30 percent for three consecutive years. Despite the challenges, the company has managed to expand and now operates from a 40,000-square-foot office and warehouse. The company has three locations and employs 25 people in the U.S.
The Solution
After the disastrous experience with the new software, Yamada America decided to return to Sage 100 ERP. The Sage 100 ERP Inventory Management module proved invaluable in managing the company's product flow. The Purchase Order module simplified inventory control by calculating how many parts needed to be ordered to keep each product in stock and providing a useful product turnover and reorder report. Data was never entered twice. When Sales Orders were entered, Sage 100 ERP automatically removed the parts from inventory, printed the order in the warehouse, and fed the results into purchase orders, invoicing, and shipping. The system also provided comprehensive reports on sales, profits, aging, and inventory, all viewable on one screen. The company did not have to customize any of the reports as all it needed came standard with Sage 100 ERP.
Operational Impact
  • Resolved software and hardware problems.
  • Streamlined automation of most business processes.
  • Exceptional inventory control and strategic management.
Quantitative Benefit
  • Accommodated annual growth of 40 percent.
  • Streamlined automation of most business processes.

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