Skip to main content

Hitachi

Hitachi Transport System

[Japan] Streamlining of in-house and external production logistics for an equipment manufacturer

This case study illustrates how we succeeded in efficiently integrating procurement logistics, which was previously managed respectively by two companies prior to their merger. We took full responsibility for the rationalization project to completely redesign their logistics scheme, and achieved cost efficiency improvement and optimization in their inventory management and in-house factory logistics.

Customer's Challenges

CHALLENGE 1

When the two business units were integrated, the customer needed to review the SCM schemes for overall optimization because each unit had constructed them individually.

CHALLENGE 2

In terms of inventory and logistics cost, it was regarded inefficient to maintain the external warehouses that each unit had been operating respectively. There was also an opportunity for better efficiency, by standardizing their in-house factory logistics operations.

CHALLENGE 3

The information system that the customer had been using on SAP R/3 for their warehouse management was not necessarily fitting for their operational conditions.

How Hitachi Transport System Solved Them

SOLUTION 1

We combined the external warehouses that the two business units had been using for procured goods management into one location. We were able to reduce duplicated inventory and cut management costs.

SOLUTION 2

As of logistics operations within the parts center and the customer's factory, we upgraded operational design, floor layout, and operational procedures. By reducing standard work time (ST), we are contributing to minimizing operation costs.

SOLUTION 3

We developed a new information management system that covers warehousing and shipping, at the very beginning of this project. We built EDI connection with the host system and smoothly started up the operation on the customer's side.

Some More Facts about the Value We Deliver

We provide optimal logistics systems to you, making full use of our abundant system logistics experience, cutting-edge information technology (IT), and logistics technology (LT).

Complete remodeling from two separately-run logistics schemes

Based on the results of an analysis into the two logistics schemes that were individually constructed in the past, we proposed comprehensive integration including information system development, to rationally unify everything, from procured goods management, to reception/delivery in the factory and shipping of finished products. It has led to inventory visualization and reduction as well as slimming of various logistics costs.

Points to know about the establishment of a new parts center

Points to know about the establishment of a new parts center