Optimizing Supply Chain Performance for a Global HVAC Manufacturer

• Complex distribution: 6 domestic production sites + overseas factories supplying 100+ HVAC models.
• Manual planning inefficiencies: Stockouts due to delayed replenishment decisions.
• Transport bottlenecks: Unbalanced capacity across warehouses.

Implemented Hitachi’s Supply Chain Optimization (SCO) to:

• Modelled the entire supply chain:
  Digital twin covering factories, warehouses, and delivery centers.
  Simulated demand scenarios for domestic/imported products.

• Automate supply planning:
  Dynamic inventory allocation based on sales plans and backlog.
  Transportation optimization (lot sizes, lead times, capacity rules).

• Higher fulfillment rates potential uncovered through 20% fewer stockouts in simulations.
• Reduced excess stock: Safety stock aligned with demand patterns.
• Validated scalability: Tested across 109 models and 5 logistics scenarios.