Restructuring of Indirect Materials Purchasing Systems Delivers $10 Million in Savings

Reductions in production costs is an emergent issue with many companies trying to reduce the cost of purchasing; a dominant component of total cost. As one of those companies, Fujitsu, in 2000, established a Purchasing Business Unit to start looking at ways to reduce purchasing costs. In addition to its direct materials purchasing of parts and materials ordering for its manufacturing operations, Fujitsu had "Indirect materials Purchasing" systems for the purchase of office supplies and facilities maintenance. To master these needs Fujitsu consolidated three different indirect materials purchasing systems onto PRIMEQUEST and commenced new operations. Fujitsu expects cost reductions of approximately $10 million (¥1.1 billion) annually by the introducing of the new system on PRIMEQUEST mission critical IA servers.