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Fuji Xerox Consolidates Procurement-related Information Exchanged With Suppliers on a Global Scale

Enhancing EDI Functions and Linking Them to Procurement BCP System

TOKYO, May 7, 2015 — Fuji Xerox Co., Ltd. began operation of a new system, which enables unified management of procurement-related information on a global scale. The new system consists of the enhanced Electronic Data Interchange (EDInotes1) functions for e-commerce with approximately 900 major suppliers, which have been linked to the Procurement Business Continuity Plan (BCP) system developed by the Company. It enables the Company to visualize information exchanged with its suppliers in a timely manner, and helps in analyzing the information by linking it to various in-house databases, thereby contributing to quick business judgment in the case of disasters.

With the aim of enhancing the EDI functions, the range of documents handled in the system will be gradually expanded from the current five types of documents, such as design change requests and parts order sheets, to 43 covering the whole process from production preparation and procurement for mass production to management improvement, which have previously been exchanged via e-mail or fax. A new function will also be added to manage the progress of various inquiries and responses, which are exchanged between Fuji Xerox's procurement departments and its suppliers.

Moreover, these inquiries and responses between persons in charge can be accessed by managers and people in related departments in both companies under the appropriate access right control. This realizes systematic management of procurement operations, thereby contributing to strengthening management and streamlining the operations in the procurement departments in Fuji Xerox as well as in suppliers.

In the light of such disasters as the Great East Japan Earthquake and the flood disaster in Thailand in 2011, Fuji Xerox launched the Procurement BCP system in 2012. This system aims to support the development and implementation of BCPs by linking various databases for production planning, configuration management, part attributes, and core production systems. By using this system, the time required in coping with risks has been reduced between 2011 and 2014; the ratio of incidents that were resolved within one week increased 1.5 times, and the ratio of serious incidents that affect production has been reduced to one third.

The linkage of the EDI to the Procurement BCP system enables unified management of all information related to procurement operations in Fuji Xerox's production bases in China, Vietnam and other countries in a timely manner. In addition, this streamlines procurement operations and reinforces BCP-based response capacity, through linkage to information in the various databases mentioned above.

For instance, in the case of a major disaster, the overall impact of the disaster on production can be assessed in a timely manner, without depending on manual tabulation, by exchanging inquiries and responses concerning the impact on parts supply with suppliers through the new system. Moreover, such information can be linked to other information, such as current parts inventory and other databases for production planning. This contributes to allowing appropriate changes in ordering of replacement parts and production planning, thereby minimizing negative impact, including the halting of production lines.

Fuji Xerox introduced the EDI using encryption technologies in 2001, and established the Procurement Division in 2008. Thus, the Company has been implementing a series of reforms in procurement, including restructuring procurement functions and enhancing governance across its manufacturing companies in Japan and abroad, rebuilding relationships with its suppliers, as well as introducing ethical procurement and a major buyer system in which all the transactions with each supplier are managed by a representative buyer.

As the final touch of these reforms, the linkage of the EDI to the Procurement BCP system will further facilitate the streamlining of procurement operations, contribute to cost reduction, and improve response capacity in case of emergency.