Overview of Yamazaki Baking Co., Ltd.
Everyone knows Yamazaki Baking Co., Ltd. (hereinafter “Yamazaki Baking”). It has the number one market share in the Japanese domestic bread industry (in 2015). As business, Yamazaki Baking manufactures and sells bread, Japanese and Western-style confectioneries, and bread-based and rice-based prepared foods, management of bakeries, operation of convenience stores, etc. Recently, Fujiya has joined the group, and sales revenue has been increasing consecutively for the past 10 years.
《Point of the Project》
●Background of system consideration in 2001:
- Urgent need to implement a consolidated HCM system suite from HR division as the entire group was shifting into consolidated group management
- Necessity to reduce system costs and shift to packaged system solution from customized systems due to excessive costs associated with meeting requirements from corporate system changes, tax and law revisions, etc.
Capacity to handle wide range of HR operations (HR, Payroll, Time & Attendance management, etc.) of Yamazaki Baking group on a single system
●Why Works Applications (hereinafter WAP)
No additional costs required and easy cost management
●Results after implementation
- Usage of a single system and single database to perform human resources management and payroll calculation work for 18 companies (comprising approximately 80% of the group) with varying human resources operations.
- Efficient payroll operation with only 29 people (16 regular employees and 13 part-time employees) handling payroll calculations for more than 62,000 employees.
- Handle payroll calculation of over 70,000 employees in 2016 by incorporating operations of unintegrated group companies upon the initial implementation
- Add approximately 30,000 employees into the time & attendance management system as part of effort of consolidated management
- Improve efficiency in employee service by transitioning operations such as employee information change, relocation application, etc. onto the web
Urgent need for system reform due to company restructure
Consideration for system reform started around the time when Yamazaki Baking had spun off Vie de France as independent entity, which runs bakery and café business. Two years later, Yamazaki Baking had integrated the Cool Delica Division into the Sun Delica subsidiary. Cool Delica Division was the backbone for manufacturing and sales of bread-based and rice-based prepared product. This move was to improve manufacturing productivity of the company in order to adapt to market needs flexibility to stay ahead of the competition by strengthening the operation of material procurement to manufacturing, distribution, and sales.
In addition, Yamazaki Baking’s Human Resources Department needed to consolidate the existing systems to manage the group companies that have spun off. However, the number of employees to be managed in the group companies varied widely from several employees to tens of thousands of people, and there were major differences in capital and corporate size. In order to unify all of the systems which included customizations, major costs would incur during implementation to each company. As the current systems were no longer able to meet the requirement to manage the entire group HR information, Yamazaki Baking reached the conclusion to let go of the existing systems and do a complete makeover.
Key requirement is to manage multi-company operation
A single management infrastructure was essential for the new system to be able to manage as many as over 20 companies in varying industries and business categories. This was due to concerns that unconsolidated systems will cause redundancy and unnecessary costs in the future. In addition, capacity to handle varying payroll calculation logic, benefits, etc. of multiple companies was another important requirement. WAP’s HCM system suite was the only solution that satisfied these requirement.
Commitment to no additional cost with a single page quotation
The final decision factor for Yamazaki Baking to select WAP's HCM system suite was because of its clarity in cost structure. Other customization-based system vendors require additional costs such as function development cost in addition to basic system package. On the contrary, WAP’s quotation consisted of a simple estimate in which costs of all future upgrades were included. Yamazaki Baking’s project manager looks back and commented: "I remember feeling pleasantly surprised when I saw the quotation only consisted of single line. Simply amazing.
HR management and payroll operations of more than 62,000 employees from 18 group companies handled by only 29 people
Over several years since implementation, the operational range of WAP's HCM system suite has been continuously expanding. Currently the system handles payroll calculations of more than 62,000 employees in 18 companies, approximately 80% of the entire group.
The Human Resources Information Management Office which is in charge of shared services operation performs human resources management and payroll processing for Yamazaki Baking with only 16 regular employees and 13 part-time employees.
The secret behind such compact operation is Yamazaki Baking's "horizontal division" business operation method. "Horizontal division" is a method in which all work is classified into "point of contact", "processing", and "management". Similar work within these classifications is then assigned to a specific person. The method simplifies the work for each assigned person. For example, Human Resources Information Management Office is single-handedly responsible for processing of payroll calculations of multiple companies. Because of such operation, the work can be performed without major increase in the number of employees even if the number of companies increases. This is possible also because WAP's HCM system suite offers the capacity to manage multiple companies in a single database.
By transferring all work other than "point of contact " from factories to Human Resources Information Management Office, efficiency of HR operations at factories has improved.
Aiming to further improve productivity for the entire group by expanding coverage of shared services
In 2016, 3 group companies which have not yet been integrated into the system will migrate to WAP's system. The number of employees covered will reach 70,000. Yamazaki Baking’s project manager mentioned, "Even if there are mergers of more group companies in the future, I think WAP's HCM system suite will be able to handle it." In addition in 2016, WAP’s HCM system suite will increase its coverage to labor management of 45,000 employees. Attendance management at the factories scattered throughout the country will be collectively performed as a shared service by the Human Resources Information Management Office to eliminate operations of inputting, aggregating data, etc. at factories. The goal is to increase efficiency of operations of the entire group company. At the same time, online reporting such as employee information and relocation report has been activated, therefore further increasing operational efficiency.
WAP will continue to support Yamazaki Baking’s large-scale shared services center for human resources, payroll, and labor management as it continues to grow and help improving its HR operation efficiency.