Case Study: Yamada America
Solution: Sage 100 ERP
Industry: Manufacturing & Distribution of Industrial Pumps
Location: Tokyo, Japan. West Chicago, Illinois
About The Company
Yamada America, the U.S. subsidiary of a Japanese heavy industrial pump manufacturer, was founded in 1986, when the parent company, Yamada Corporation, sent 23-year-old Steve Kameyama to Chicago. Kameyama had never been outside of Japan and didn’t speak any English. “Those first few years were challenging,” he recalls. But Kameyama persevered and soon began selling pumps manufactured by the parent firm in Japan to distributors and end users, such as Motorola, Intel, and DuPont.
The Situation & Solution
Kameyama spent two more years managing every aspect of the new Yamada America solo. In 1989, with five employees on board, Yamada America replaced its manual system with an Epson 286. “We tried to computerize accounting, but the 286 couldn’t handle five users,” explains Kameyama. “So we acquired a Novell network with five workstations. That met our needs until 1993 when we brought some of our light manufacturing to Chicago. Then we purchased Sage 100 ERP* for DOS.”
Sage 100 ERP for DOS was working well for Yamada America, but in 1998 it decided to switch to a Windows®-based system to handle its 25-30 percent growth each year for the previous three years. A software salesman convinced them that he had a product that would work even better than Sage 100 ERP. “He assured us that their accounting software could do everything we required and more, so we went for it,” laments Kameyama. “It turned out to be an absolute nightmare. Installation went on for over four months and messed up everything—accounts payable, advanced consolidation, general ledger, and inventory.” During the installation period, Yamada America continued to run Sage 100 ERP alongside the new software. The team hired technicians to resolve the problems with the new software, but soon discovered that it wasn’t what the salesman had promised. The system problems only multiplied after the conversion. Now hardware was breaking down, and computer screens were freezing several times a day. Things got so bad that two employees quit because they were fed up with working so many extra hours due to computer problems.
Results & Benefits
“That did it. I gave up on the new software,” says Kameyama. “I called our Sage 100 ERP reseller, and he came over immediately and showed me the latest version. We had it installed in two days. A couple of weeks later, all our data was transferred to Sage 100 ERP. We dumped the other accounting software. Sage 100 ERP does exactly what we need—and our computers haven’t frozen since.”
Yamada America sells 4,000 different products and 16,000 parts for those products. The Sage 100 ERP Inventory Management module has been invaluable in managing the product flow. Inventory control is simplified with the Purchase Order module. It calculates how many parts must be ordered to keep each product in stock and provides a useful product turnover and reorder report. Data is never entered twice. When Sales Orders are entered, Sage 100 ERP automatically removes the parts from inventory, prints the order in the warehouse, and feeds the results into purchase orders, invoicing, and shipping.
As president of Yamada America, Kameyama appreciates being able to view reports on sales, profits, aging, and inventory—all on one screen. Information from every module is compact and quickly accessed using the report functions. In addition, the company did not have to customize any of the reports. All it needed came standard with Sage 100 ERP.
Sage 100 ERP not only automates every aspect of Yamada America’s business, but the company is also finding it to be extremely user friendly and easy to learn. New employees are able to understand it right away. In fact, it fully accommodates the company’s growth, which now averages 40 percent per year. With Sage 100 ERP installed and its computer problems in the past, Yamada America was able to make its fourth move in March 1999, to a 40,000-square-foot office and warehouse. “Yamada America couldn’t have made this expansion without Sage 100 ERP in place,” Kameyama raves. “I’m very happy with Sage 100 ERP. All my headaches are gone.”
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