Business

FANCL Regains Control of Their IT Roadmap by Switching to Rimini Street Support for its SAP Application

Leading manufacturer of additive-free cosmetics and health food products in Japan accelerates digital transformation and obtains premium-level support.

Las Vegas | Business Wire via ITWeb, 18 Mar 2019
Read time 4min 50sec
FANCL Regains Control of Their IT Roadmap by Switching to Rimini Street Support for its SAP Application (Photo: Business Wire)
FANCL Regains Control of Their IT Roadmap by Switching to Rimini Street Support for its SAP Application (Photo: Business Wire)

Rimini Street, Inc. (Nasdaq: RMNI), a global provider of enterprise software products and services, the leading third-party support provider for Oracle and SAP software products and a Salesforce partner, today announced that FANCL, a leading additive-free cosmetics and health food products company in Japan, has switched to Rimini Street support for its SAP ECC 6.0 system. Rimini Street has enabled FANCL to take full control of their ERP roadmap and chart its direction based on the company's business needs -- like advancing their digital transformation initiatives -- versus continuing to follow a vendor-dictated roadmap. Additionally, FANCL now receives premium-level, ultra responsive support for its current, stable SAP system for a minimum of 15 years from the time the company transitioned to Rimini Street. The company also immediately realized savings of 50 percent in annual support fees. FANCL is able to reinvest this significant cost saving into updating and modernizing the company's customer management and sales systems - which had become a bottleneck for innovation - as well as updating their mail ordering, store purchases and online systems. FANCL will also be able to introduce new technologies for increased data protection.

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Moving to a Business-Driven IT Roadmap

FANCL introduced their SAP R/3 in 2006 for their accounting, sales, logistics, quality control, inventory control, human resources, and production control. Their SAP system was the foundation for connecting and sharing internal data from the production line to other departments like sales, which improved communications throughout the organization.

FANCL upgraded to SAP ECC 6.0 in 2011, and found the most challenging obstacle with their upgrade was the significant cost and time involved. The company discovered that the vendor was not providing support for the customizations they made to their system, which covers major portions of their business from production to retail service, and needed more support. FANCL began to grow dissatisfied with the support they were receiving from the vendor especially when they considered the high cost and support response time. The company made multiple attempts to reduce costs with SAP by eliminating unnecessary licenses, but the only option suggested by the vendor was to install different licenses, which in turn prompted them to begin researching alternative options. FANCL was not only looking for better maintenance support and lower costs, but also to regain control of their system and to proactively work with the company on a more business-driven IT roadmap.

"When we originally implemented our ERP, we achieved significant results including being able to properly account for inventory, but as the company grew, our ERP system began to have too many licenses which our system no longer required. We were in a vendor lock-in, losing money and needed to reassess each license," said Masaki Ikemori, the corporate system group section manager, FANCL Corporation. "After we switched to Rimini Street, we were able to leverage the expertise of our support team and regain control of our system by reanalyzing the cost structure and licenses and free up internal resources to contribute to our digital innovation projects. Also, we can now plan for the future without being bound by the vendor's expiration date of 2025 for our current SAP release."

Breaking Free of Vendor Lock-in and Obtaining Improved Service for Future Innovation

"Through partnering with Rimini Street, we now recognize we can make changes within our organization such as breaking away from the vendor's lock-in strategy - which we once thought of as unavoidable - by questioning the status quo and researching alternative solutions to support our ERP system," said Nobuyuki Uematsu, executive officer, head of Group IT center, FANCL Corporation. "Previously the IT department was perceived as a part of the cost center under the administration division, with the appointment of our new president in 2017, the department was recognized as the Group IT Center and became the independent division responsible for the company's IT strategy for better corporate management. We switched to Rimini Street during this change, and this helped accelerate a long-awaited process of rebuilding our system's foundation, which was completed in nearly one year, against our estimation of several years. We are now able to move through our IT challenges with a true partner; Rimini Street helps enable our innovation today and in the future, including a new security system and creating our path to digital transformation."

As with all Rimini Street clients, FANCL was assigned a senior level Rimini Street Primary Support Engineer (PSE), who, across the team, average 15 years' experience. FANCL also receives Rimini Street's industry-leading service level agreement (SLA) guaranteeing access to a team of local engineers 24/7/365 to address support issues and a 15-minute response time for Priority 1 critical cases.

"With the support of Rimini Street, FANCL has been able to maintain the value of their current, robust system while leveraging new found savings and internal resources for rebuilding their ERP foundation and accelerate planning for a cloud migration," said Yorio Wakisaka, general manager, Japan, Rimini Street. "FANCL has succeeded in reforming their IT department, taking control back from the vendor, driving digital innovation and amplifying technical advantage in an increasingly competitive retail market."

Rimini Street, Inc.

Rimini Street, Inc. (Nasdaq: RMNI) is a global provider of enterprise software products and services, the leading third-party support provider for Oracle and SAP software products and a Salesforce partner. The Company has redefined enterprise software support services since 2005 with an innovative, award-winning program that enables licensees of IBM, Microsoft, Oracle, Salesforce, SAP and other enterprise software vendors to save up to 90 percent on total maintenance costs. Clients can remain on their current software release without any required upgrades for a minimum of 15 years. Over 1,800 global Fortune 500, midmarket, public sector and other organizations from a broad range of industries currently rely on Rimini Street as their trusted, third-party support provider. To learn more, please visit http://www.riministreet.com/, follow @riministreet on Twitter and find Rimini Street on Facebook and LinkedIn. (C-RMNI)

Forward-Looking Statements

Certain statements included in this communication are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "may," "should," "would," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," "seem," "seek," "continue," "future," "will," "expect," "outlook" or other similar words, phrases or expressions. These forward-looking statements include, but are not limited to, statements regarding our expectations of future events, future opportunities, global expansion and other growth initiatives and our investments in such initiatives. These statements are based on various assumptions and on the current expectations of management and are not predictions of actual performance, nor are these statements of historical facts. These statements are subject to a number of risks and uncertainties regarding Rimini Street's business, and actual results may differ materially. These risks and uncertainties include, but are not limited to, changes in the business environment in which Rimini Street operates, including inflation and interest rates, and general financial, economic, regulatory and political conditions affecting the industry in which Rimini Street operates; adverse developments in pending litigation or in the government inquiry or any new litigation; the final amount and timing of any refunds from Oracle related to our litigation; our need and ability to raise additional equity or debt financing on favorable terms and our ability to generate cash flows from operations to help fund increased investment in our growth initiatives; the sufficiency of our cash and cash equivalents to meet our liquidity requirements; the terms and impact of our outstanding 13.00% Series A Preferred Stock; changes in taxes, laws and regulations; competitive product and pricing activity; difficulties of managing growth profitably; the success of our recently introduced products and services, including Rimini Street Mobility, Rimini Street Analytics, Rimini Street Advanced Database Security, and services for Salesforce Sales Cloud and Service Cloud products, in addition to products and services we expect to introduce in the near future; the loss of one or more members of Rimini Street's management team; uncertainty as to the long-term value of Rimini Street's equity securities; and those discussed under the heading "Risk Factors" in Rimini Street's Annual Report on Form 10-K filed on March 14, 2019, and as updated from time to time by Rimini Street's future Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings by Rimini Street with the Securities and Exchange Commission. In addition, forward-looking statements provide Rimini Street's expectations, plans or forecasts of future events and views as of the date of this communication. Rimini Street anticipates that subsequent events and developments will cause Rimini Street's assessments to change. However, while Rimini Street may elect to update these forward-looking statements at some point in the future, Rimini Street specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Rimini Street's assessments as of any date subsequent to the date of this communication.

(c) 2018 - 2019 Rimini Street, Inc. All rights reserved. "Rimini Street" is a registered trademark of Rimini Street, Inc. in the United States and other countries, and Rimini Street, the Rimini Street logo, and combinations thereof, and other marks marked by TM are trademarks of Rimini Street, Inc. All other trademarks remain the property of their respective owners, and unless otherwise specified, Rimini Street claims no affiliation, endorsement, or association with any such trademark holder or other companies referenced herein.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190318005793/en/

Contacts

Michelle McGlocklin
Rimini Street, Inc.
+1 925 523-8414
mmcglocklin@riministreet.com

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