Hitachi Group to Begin Sales of "Transformation Support Services," Supporting Companies' Fundamental Structural Reforms

 Hitachi, Ltd. (TSE: 6501, "Hitachi") and Hitachi Consulting Co., Ltd. ("Hitachi Consulting") announced today that as of December 1, they will begin sales of "Transformation Support Services," which support fundamental structural reforms for Japanese companies rolling out business on a global scale. Transformation Support Services utilize the expertise through the Hitachi Smart Transformation Project, which targets structural reforms throughout the Hitachi Group.
Transformation Support Services offer from upstream consulting regarding overall project planning for structural reforms to a variety of solutions/ services in value chain including supply chain management system ("SCM"), global procurement logistics services, etc., to help manufacturing companies execute structural reforms.

In recent years, amid dramatic changes in the corporate business environment, companies are striving to implement growth strategies and succeed in global competition. To achieve these goals, those companies need to reform cost structures and cash flow, and to reestablish the business platforms that support growth strategies. This requires not only conventional measures such as "improvements in individual divisions" and "re-examining operations at the frontline level," but also fundamental reforms in business, organizations, operations, and cost structures throughout the companies as a whole.

The Hitachi Group has been executing drastic cost structure reforms under the title of the "Hitachi Smart Transformation Project." The goal of these activities is to reduce the total cost of sales in FY2015 by 420 billion yen compared to FY2010. From FY2011 to FY2014, on a cumulative basis, indirect costs were reduced by 150 billion yen while production costs and direct material costs were reduced by 170 billion yen, for total cost reductions of 320 billion yen (compared to FY2010). Additional cost reductions of 100 billion yen are expected to be achieved in FY2015.
The Hitachi Group is currently strengthening these activities, for example by reforming end-to-end work processes in the supply chain from business inquiry to receiving orders, production, and service, and implementing reforms aimed at generating cash, in order to reduce costs even further.

Transformation Support Services, which are provided by Hitachi and Hitachi Consulting, utilize the practical expertise that the Hitachi Group has cultivated through trial and error during the Hitachi Smart Transformation Project. Transformation Support Services promptly help companies executing corporate structural reforms by offering upstream consulting, cost analysis methods, extensive reforms menus, solutions/services covering accounting, SCM, logistics, etc., and project management support services.

Through Transformation Support Services, Hitachi and Hitachi Consulting will further enhance high added value services and contents that support cost reductions and improvements to cash flow, thereby contributing to structural reforms for companies rolling out business on a global scale.

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