ANA Trading Constructs New Sales System, ATLAS, in Just 5.5 Months

Enables high-precision management of revenue for each contract and transaction

TokyoBusiness consulting firm BearingPoint Co., Ltd. and SAP Japan Co., Ltd. announced today that they have constructed ATLAS, a new sales system for the paper and pulp and direct sales businesses of All Nippon Airways Trading Co., Ltd., using SAP Global Trade Management (SAP GTM), a domestic and international transaction management solution for trading companies, and that the system started operation in April 2006.

By installing ATLAS, ANA Trading has reinforced its revenue management system. The company can now ascertain its revenue situation accurately in timely fashion for each buyer, supplier, and contract, and take prompt measures to improve revenue. In addition, by using ATLAS to improve business processes, ANA Trading has substantially reduced the manpower required for monthly accounting.
As its consulting partner in the construction of ATLAS, ANA Trading selected BearingPoint, which has an extensive track record in SAP installation. The partners succeeded in bringing ATLAS into full operation just 5.5 months after the start of installation.

At ANA Trading, an increasing number of in-house systems had become legacy systems, necessitating multiple data entry and manual processing. The consequent decline in the quality and efficiency of business processes became an issue. ANA Trading therefore reviewed its backbone systems, and started to reconstruct them. In 2003, the company finished overhauling its accounting system, and in 2004, it renewed its procurement system for aircraft components using SAP R/3.
By April 2006, ANA Trading also planned to construct a system, based on the current SAP R/3, enabling unified management from receipt to sale in its direct sales and paper and pulp businesses, for which system integration had not yet begun. However, the company concluded that with SAP R/3, it would be difficult to achieve the functions, specific to trading companies, of managing business processes at the contract level and handling a diverse range of transaction types. In August 2005, ANA Trading once again received proposals from several consulting firms. Ultimately, based on the proposal from BearingPoint, the company decided to construct a new system centered on SAP GTM, which can support the processes of book-keeping and direct shipping that are unique to trading companies.

■ Reasons why BearingPoint was selected
The main reasons why ANA Trading chose BearingPoint were: 1) BearingPoint is thoroughly familiar with trading companies and trading processes, and 2) the proposed system was not simply a replacement system, but would improve the precision of revenue management, heighten the corporate value of ANA Trading as a trading company, and 3) help ANA Trading to overhaul its business. This achieved the following results:

  • By defining conditions based on BearingPoint’s knowledge of trading companies and trading processes, the work involved in tailoring and checking SAP GTM and trading company templates was minimized, enabling the process of defining conditions to progress efficiently.
  • Because virtually no add-on development was required, any future upgrades of SAP products can be handled smoothly. Consequently, the system enables an up-to-date IT environment to be continually maintained, while minimizing the burden of operation costs.

In addition, a method of project management unique to BearingPoint was utilized: By forming a steering committee that included managers, and holding regular meetings called “Quality Gate” to check quality, problems were discovered and solved at an early stage. Through this means, SAP GTM installation was completed in the shorttest time of 5.5 months.
Another major factor in the success of this project was the adoption of trading company templates developed by SI vendors affiliated with trading companies. The use of SAP GTM and trading company templates, primarily for the sale and purchase transaction process, which is a typical business model among trading companies, enables integrated management of the entire supply chain, as well as efficient processing of book-keeping and exchange control tasks that are unique to trading companies. In addition, the information needed for revenue analysis can now be obtained by entering data once only.

■ Future prospects
By bringing the new sales system into operation, ANA Trading has reinforced its arrangements for revenue management at the level of each contract, transaction condition, contract party, customer, and commodity. Revenue data that was formerly available only on a monthly or per-commodity basis can now be ascertained accurately and promptly for each customer, supplier, and contract; moreover, the time required to obtain such data has been substantially reduced. Based on such high-precision revenue management, ANA Trading can now formulate more effective business strategies and take action to improve profits. In addition, the manpower required for clerical work regarding external revenue management, such as compiling and checking invoice and payment data, has also been reduced, enabling the company to shift to business with high added value and increase employee productivity. Moreover, by overhauling its business processes based on SAP GTM, ANA Trading has improved the clarity and transparency of such processes, and made approval processes more rigorous by specifying authority levels, thereby strengthening its internal control.
As installation of the new sales system has been successful in this way, ANA Trading plans to extend the system to other business units.

■Configuration of new sales system
As the new sales system for the paper and pulp and direct sales businesses (ATLAS), a solution that enables both entry of logistics receipts and sales expenses, and sales forecast and performance management, was designed using three components: SAP Global Trade Management (GTM), Financial Accounting (FI), and Management Accounting (CO-PA). By integrating the current company-wide accounting system (ARMS), as the system interface, with the customer/supplier master data and credit/liability journal data in ATLAS, data compatibility between the ATLAS and ARMS systems was ensured. In addition, order processing has been made more efficient by enabling order data to be faxed automatically to suppliers and customers.

About ANA Trading Co., Ltd.
ANA Trading was established in 1970 for the purpose of procuring goods related to the operation of ANA aircraft. Since then, as a general trading company at the core of the ANA Group, ANA Trading has maintained its business mainstays of operations incidental to the airline business, including procurement of aircraft components; export, import, leasing, and sale of aircraft; planning and procurement of goods for in-flight service and sales; and operation of ANA FESTA retail outlets at airports nationwide. Meanwhile, the company has also expanded its business in a range of other areas, including import and sale of paper and pulp and foods and wines, import and export of semiconductor and electronic components, hotel supply, mail order business, advertising agency business, and Internet shopping.

About BearingPoint Co., Ltd.
BearingPoint, as one of the world’s largest business consulting companies, supports the operations of global companies and government institutions by fusing business with technology. BearingPoint’s 17,500 professional staff worldwide provide a full range of services for its customers, including business strategy formulation, financial restructuring, business model reconfiguration, business process reform, IT solution installation, system integration, organizational reform, system maintenance, and process operation. In Japan, BearingPoint has about 1,000 employees, providing support that guides customers’ business to success. In 2002, following a merger with the business consulting division of Andersen Consulting, the company’s name was changed from KPMG Consulting to BearingPoint. In a survey by Fortune, a business magazine with worldwide circulation of one million, BearingPoint was chosen as one of “America’s Most Admired Companies in the Computer and Data Services Field.”