Introducing
Ryutsu BMS inSeiyu GK

1. Seiyu’s Transition of its Communication
ProtocolSeiyu GK, a subsidiary of the U.S.-based Walmart Stores,Inc., has 345 stores in Japan (*as of January 1, 2016). Seiyu
has been working to update its EDI system since 2011, andhas proceeded with a transition from the JCA Protocol (see2.5) to the new domestic industry standard EDI, “Ryutsu
Business Message Standards (Ryutsu BMS)”. By the 2014
fiscal year, Seiyu had established connections with 593
vendors through Ryutsu BMS, and in June 2015 it
abandoned its JCA Protocol environment, finishing thetransition of its communication protocol.

2. Reasons for Introducing Ryutsu BMS
Ms Hiromi Hirabayashi, Executive Officer and SVP of Seiyu,
said, “It was important for Seiyu to make the ordering
process for our products more efficient. Considering theefficiency of the transaction process, as well as thelimitations of the JCA Protocol’s format due to the fixed
length and communication methods, the transition toRyutsu BMS was necessary.”

3. Transition Process of the System
Seiyu held briefing sessions on the introduction of Ryutsu
BMS from February 2010 onward at its headquarter andvendors’ offices. The transition proceeded according toproduct categories, starting with non-fresh products suchas processed foods and household goods. The company
began by introducing the system as a pilot program to afew companies, including some small vendors. After that,the system was expanded to all vendors in the Kanto area,
and was ultimately extended nationwide.

4. Handling of Fresh Products
Orders for fresh products used to be placed mostly byphone or by fax. Seiyu’s core system sent faxes
automatically, but this was not an efficient way ofcommunicating because the information sharing in thissystem was cut off at that point. The adoption of a Web-EDI
for ordering these products has significantly enhanced thecompany’s operational efficiency.

5. Support for the Transitioning Vendors
To ensure a smooth transition to Ryutsu BMS, Seiyu did not
set or enforce a timeframe on its vendors, but insteadcustomized the schedule for each vendor individually, whileconsidering their specific needs (such as their budget).
Even if only one vendor sticks to the old system, Seiyu will
also have to keep the old process in place. Therefore, inorder to improve efficiency both in the operations and theprocessing, a full transition to the new system wasnecessary. In particular, when the Great East Japanearthquake occurred unexpectedly, it was expected thatsome vendors might face difficulties with the transition, but
the process went more smoothly than had been anticipated.

6. Effects of Introducing Ryutsu BMS
For Seiyu, the biggest effect of introducing Ryutsu BMS was
the speeding up in the ordering process. Under the JCA

Fig. 1 Ms Hiromi Hirabayashi, Executive Officer and SVP of Seiyu

Fig. 2 Number of Seiyu Vendors that have Transitioned to Ryutsu
BMS

Fiscal Year

Non-fresh

FreshTotal

FY 20121955200

FY 2013

253

34287

FY 20148422106

Total

53261593

Note: Number of companies excluding the Web-EDI fresh
product vendors

Fig. 3 Seiyu’s Data Exchange Communication Protocol

1. Server-type (Via ASP)

ebXML
Seiyu

ASP

core system

In-housedevelopment

JX

2. Client-type (Via ASP)
Operations
Package(Computer)

JX

Communications/Simple
Conversion Package(Server Version)

Fig. 4 Seiyu Niiza StoreBMS. Furthermore, since the vendors no longer need tocustomise the system for each retailer, maintenancebecame easier for them. This is because unlike the JCA
Protocol, the format for Ryutsu BMS is standardized.

7. Outlook for the Future

Protocol, data communications would take around twohours when the number of items was large; but the time
was shortened considerably after the transition to Ryutsu

Ms Hirabayashi, said “The transaction process has become
more efficient with the introduction of Ryutsu BMS. Since
the old system is still operating in some distribution centers,
our goal going forward will be to consolidate the systemthat is used by Walmart globally,” .
“We would also like to improve the quality of ourdistribution management. For example, we are thinking
about raising the level of our cold chain management. To
achieve this, we need to improve not only our information
systems but also the related business processes.”

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