Industry giant, Konami Gaming, is evolving its supply chain strategy with new technologies
The gaming and casino industry is booming, not just in Las Vegas, but across the globe. As a leading designer and manufacturer of slot machines and casino management systems, Konami Gaming, Inc. (Konami) is a key player and innovator in the global gaming industry. The tagline, ‘born from fun,’ is more than an advertising slogan, but also a mantra that demonstrates the company’s exceptional and innovative ways of thinking.
Konami Gaming and its sister company, Konami Australia Pty Ltd, occupy a position at the forefront of industry innovation. Built on a rich heritage, the two companies are subsidiaries of the world-renowned entertainment developer, Konami Group Corporation, which was founded in Osaka, Japan, in 1973. The original founder remains Chairman, ensuring that all elements of the business remain true to his original vision of creating engaging games that capture attention, push the limits of innovation, and provide quality in every detail.
Priding itself on user experience, Konami’s hardware, software, and systems start with not only an idea, but with an experience in mind. While cutting-edge technology is crucial, it must be paired with a game that evokes emotions of escape, joy, delight, invigoration, and satisfaction. This is what makes Konami so unique; its games capture these unique qualities with an ability to make inorganic objects spring to life and spark a connection with the user.
The company’s impressive, state-of-the-art facility next to Harry Reid International Airport in Las Vegas, Nevada, stands at over 300,000 square feet and demonstrates the company’s commitment to serving the gaming industry across North America, Europe, Latin America, and Australiasia. From this site, Konami designs, produces, and sells its imaginative gaming entertainment, as well as its award-winning SYNKROS® casino management system.
Gaming growth
To learn more about Konami and its supply chain specifically, we sit down with Noah VanWetten, Director of Supply Chain and Purchasing. As a procurement professional, Noah joined Konami in July 2022, with proven experience in demand planning, retail management, procurement, vendor management, data analysis, inventory control, and warehouse management at some of the industry’s largest casino operators. In his current role, Noah is responsible for leading and managing all procurement, supply, inventory, planning, and quality control of production materials.
“Konami was founded in 1969, and a series of expansions followed,” Noah opens. “Having received its first license from the state of Nevada in 2000, the company began manufacturing and selling gaming machines. From there, the business expanded this model to 20 other jurisdictions across the US and North America. Today, we boast 325 licenses across the region, but we have different revenue streams and various products, many of which fall under three categories: online gaming, casino gaming (both lease and sales), and casino management systems.”
On more of a personal note, he continues: “After working as a cost analyst for a health and wellness manufacturer, working closely with the supply chain and buyers, I realized that I enjoyed the cost saving aspect of the role, but not the accounting side. Through network connections, I moved to Nevada and worked at Pinnacle Entertainment, a casino gaming operator, driving efficiencies to save bottom line dollars. Pinnacle then divested some of their portfolio to Boyd Gaming, where I transitioned into a purchasing and strategic sourcing role.
“I then heard that Konami was recruiting for a supply chain professional to solve some inefficiencies and modernize the ways in which they deal with suppliers. With a skill set that aligned, I decided to apply and was lucky enough to be offered the role. When I first joined, the business was recovering from the Covid-19 pandemic. Through investment within the team and the necessary infrastructure, there was an emphasis from leadership to continuously drive innovation. There was also a general aim to strengthen our operations to be more resilient and able to mitigate negative impacts of any future crises.
“My first objectives were to bring in additional suppliers, create more of a competitive environment for the material we sourced to build our gaming systems, and assist with the implementation of a new warehouse management system (WMS). This system will enable us to drive efficiency like never before, not only in our labor force, but in our KPIs that will help to shape policy and ensure continuous efficiency in our day-to-day operations. 
“However, our Warehouse & Logistics Director, Jacob Houston, and IT Director, Brian Alu, are the central figures ensuring the successful implementation of the new WMS. Together, they have done a wonderful job planning and executing their roles in what I believe is critical technology implementation. We are currently in the final phase of integrating this solution, which is crucial to ensuring Konami continues to thrive from a supply chain perspective. Once established, there are several applications we can integrate into the WMS to strengthen our data visibility.”
Successful diversification
In the wake of the pandemic, many organizations came to realize the importance of the supply chain function and the significant impact of sourcing strategy. “Covid-19 damaged almost all supply chains, but it became common knowledge that the most successful supply chains were the ones that were most diversified across the globe,” Noah explains. “Although my primary focus was to drive standard costs, I recognized that cost standardization usually occurs naturally as a secondary factor of diverse supply chains.
“We buy components as opposed to sourcing raw materials, so we heavily rely on our supply chain to complete the final stage in machine assembly. With a goal to ensure that Konami wouldn’t run into the same type of supply chain shortages experienced in the pandemic no matter what happened in the world on any continent, we pivoted from a sole source strategy established prior to the pandemic to a multi-source and multi-geographical strategy. In my first six months or so, I onboarded hundreds of new suppliers from around the globe, building a deep bench we could successfully pull from for years to come.
“As with most things in business, relationships are key. Zones and Konami, for instance, have maintained a great partnership throughout the years. My initial supplier evaluation showed Zones as not only competitive from a pricing perspective, but as an outstanding example of a trusted, ethical, and incredibly customer focused organization that added value to our supply chain. They are wonderful partners; if I had one complaint it would be that I can’t clone them and apply their way of engaging with Konami to every other supplier we work with!
“I cannot talk about our supply chain without mentioning Vimonh Phichith, Director of Manufacturing and Production Control. Our entire organization is held together by great leaders like Vimonh, and I am fortunate to be surrounded by talented individuals whom I can learn from as we strive to support overall company goals.
“This focused approach extends to our executive leaders too,” he adds. “After working closely with the team for the last couple of years, I have noticed that our leaders are not only great salespeople but are also extremely dedicated to driving value to the community we serve in the form of high-quality products. Specifically, both Steve Sutherland, President and CEO, and Thomas Jingoli, EVP and COO, have surrounded themselves with individuals that share their vision of helping others. Their approach is one I strive to emulate in our supply chain, enhancing the lives of those I manage by helping people reach their goals.”
As our conversation draws to a close, Noah turns to Konami’s future plans and his role in ensuring supply chain success. “Our future is bright, and I believe we are on the brink of winning big in our industry,” he states. “We are excited and eager to roll out new technologies, as well as next generation systems and gaming products, but we recognize that our unique strength in the market is our leadership.
“We truly have a great team, which is honestly the best I’ve ever worked with,” Noah concludes. “Many of our senior leaders are recruiting and developing individuals that will facilitate explosive growth for generations to come. Personally, I am looking forward to playing my part in ensuring our supply chain is primed and ready to support our games and systems business as they continue to win sales in coming years.”