Samyang Improves Global Competitiveness by Increasing Visibility into Revenue, Profit, and Loss across Four Business Divisions
 
 

Samyang Improves Global Competitiveness by Increasing Visibility into Revenue, Profit, and Loss across Four Business Divisions

  • Oracle Customer:  Samyang
    Location:  Seoul, Republic of Korea
    Industry:  Consumer Goods
    Employees:  N/A

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Samyang is one of South Korea’s largest conglomerates. The company initially produced day-to-day consumer products and services but soon expanded into the chemical, foodstuff, pharmaceutical, and industrial manufacturing fields. Today, Samyang comprises four divisions: chemicals, foodstuff, pharmaceuticals, and new businesses. It has offices in China, Hungary, Japan, and the U.S. and continues to build its business globally.

Samyang is a long-term user of Oracle’s JD Edwards applications. In 2001, the company implemented JD Edwards OneWorld to build an integrated enterprise resource planning (ERP) system. In 2005, Samyang upgraded to JD Edwards EnterpriseOne 8.1 to take advantage of new features, improve business processes, reduce costs, enhance user convenience, and respond faster to global changes in the industry.

In 2010, the company upgraded to JD Edwards EnterpriseOne 9.0. Based on the JD Edwards EnterpriseOne solution, by December 2012, each subsidiary will be managing its own sales and production business functions. Processes like human resources, accounting, and financial services will be managed through a shared-services organization, which provides centralized support to all divisions within the company. This has enabled Samyang to simplify its business processes throughout the organization.

 
 

 
 

Challenges

A word from Samyang

  • “Oracle’s JD Edwards EnterpriseOne system provided greater visibility of sales, manufacturing, and financial processes across our chemicals, foodstuffs, pharmaceuticals, and new business subsidiaries. We can now monitor the performance of different divisions with ease.” – Sang-hun Park, Team Leader, Process Innovation Team, Samyang

  • Standardize data formats to provide managers with a clear view of sales, manufacturing, financial, and other business information, such as sales revenue for different food types and chemicals
  • Make it easier to analyze and report on division performance and risk management
  • Strengthen business agility and support expansion into new markets by standardizing and simplifying sales and manufacturing processes for food products, chemicals, and pharmaceuticals
  • Provide a system to improve sales processes and capabilities for each division
  • Link and automate purchasing, distribution, manufacturing, and electronic authorization processes to improve efficiency
  • Integrate sales and other business data from overseas operations to provide a global view of corporate performance
  • Upgrade to JD Edwards EnterpriseOne 9.0 to integrate business processes and improve system performance, risk management, and financial management across divisions

Solutions

Oracle Product and Services

  • Improved enterprisewide access to business information by standardizing all data formats, including financial and sales data, manufacturing documents, and multimedia files
  • Enabled reporting on and analyzing the revenue, profit, and loss for each of division by integrating the JD Edwards EnterpriseOne system with a business intelligence system
  • Responded faster to changes in new International Financial Reporting Standards regulations and in those industries where the company operates, for examples, fluctuating demands for certain types of food, chemicals, and pharmaceuticals
  • Gained a flexible, scalable ERP system that can be easily modified to support new business initiatives, such as for product launches and market expansions
  • Enhanced sales capabilities and user convenience across multiple divisions by implementing Oracle’s Siebel Sales to build an integrated customer relationship management system
  • Created a mobile work environment to give sales and other staff access to integrated customer data—such as wholesale food prices—so they can quickly respond to queries and sales opportunities while on the road
  • Improved workflow visibility and efficiency by using Oracle SOA Suite to integrate and automate processes for handling customer complaints, purchasing, distribution, manufacturing, cost setting, and electronic authorization
  • Completed the upgrade in 10 months—compared to 14 months for the last upgrade—by applying lessons learned from earlier upgrades and taking advantage of improved installation features in JD Edwards EnterpriseOne 9.0
  • Laid the foundation for integrating data from overseas operations by moving from the previous English/Korean single code structure to a Unicode structure

Why Oracle

Samyang chose Oracle to help the company respond to business management and industry changes and expand its businesses globally. The company was impressed by the convenience of Oracle applications and the high visibility of Oracle applications’ data. It also felt that Oracle had many advantages over alternative vendors, including lower operational and maintenance costs, and fewer additional costs incurred for extending the system.

Samyang is currently consolidating the ERP systems of eight domestic and three overseas subsidiaries into a single global instance of JD Edwards EnterpriseOne 9.0. This project is expected to be completed by December 2012. The company is also planning to extend a mobile support service to the ERP system.

Implementation Process

Samyang completed the upgrade to JD Edwards EnterpriseOne 9.0 in 10 months—compared to 14 months for the last upgrade—by applying best practice implementation methodologies based on lessons learned in earlier upgrades. The company also took advantage of improved installation features in JD Edwards EnterpriseOne 9.0.

Samyang went live with JD Edwards EnterpriseOne 9.0 on October 18, 2010 and stabilized the ERP system within two weeks. Subsidiary company Samyang Milmax successfully completed an in-house upgrade of the JD Edwards EnterpriseOne ERP system between January and June 2011.

Partner

Samyang engaged Oracle Partner Samyang Data Systems to manage the upgrade to JD Edwards EnterpriseOne 9.0.

As an affiliate of Samyang, Samyang Data Systems has provided consulting, developing, operational, and maintenance services for the company’s information systems since Samyang was established in April 1995. During the ERP system upgrade, Samyang Data Systems handled the entire implementation, including carrying out process innovation tasks, deploying modules, and developing add-ons.

Samyang Data Systems continues to help Samyang operate and stabilize the JD Edwards system. It is also participating in the group ERP-consolidation project.
“Samyang Data Systems provides comprehensive, client-focused IT services, including consulting, development, operation, maintenance, and repair in various industries,” said
Sang-hun Park, team leader, process innovation team, Samyang. “With its state-of-the-art system capabilities and experience in ERP technologies, Samyang Data Systems is a first-rate, IT service provider and was instrumental in helping us implement the JD Edwards system.”

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