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Hitachi

Hitachi Transport System

[Global] Operational optimization of domestic maintenance parts facility

This is a case example where we reviewed the logistics operations in Japan for a customer, who provides service parts around the world, and helped them increase the efficiency, optimize inventory, and improve client services. By rationalizing the service parts supply chain management with Japan's facility in its center, we resolved many of their problems.

Customer's Challenges

CHALLENGE 1

Reduction of delivery lead times

In order strengthen overseas sales competiveness and the service level, they were hoping to reduce delivery lead times

CHALLENGE 2

Occurrence of duplicate work due to decentralization of inventory bases

Because the inventory bases were decentralized in each area, there was duplication in their work, resulting in wasteful operations and inventory surplus.

CHALLENGE 3

Shipping capacity limits

Their existing automated warehouse was 10 years old and aging. Old machines specifications were limiting the shipping capacity, and the construction of a better shipping system was essential.

How Hitachi Transport System Solved Them

SOLUTION 1

Consolidation of decentralized inventory bases

Centralization of inventory management functions from different places around the country into one location. We were able to compress the inventory space and streamline the staffing, leading to better cost efficiency.

SOLUTION 2

Changing client systems to EDI

Through EDI coordination with the customer's host system, shipment information for customs documents is now automatically received. Shipping within the day of order became possible, even for exports. Through accurate and speedy delivery response, we provide support for maintaining and improving customer satisfaction. Of course we have also realized EDI with the customs.

SOLUTION 3

Highly efficient warehouse management

Productivity improvement of conveyance, storage, and picking by adopting conveyer transport and relay pick methods. We are also eliminating idle time and waste procedures, by calculating the size and number of packing boxes concurrently with the packing work, prior to preparation of package labels and packing lists.

Some More Facts about the Value We Deliver

With our extensive network in and out of Japan, we can provide solutions for you to cope with your global SCM challenges, building on our operational expertise as well as cutting-edge information technology (IT) and logistics technology (LT).

Footprint, methods, and systems with an eye on global expansion

Striving for optimization of base management and logistics reform from a global viewpoint, we have conducted SCM operation reengineering first on operations in Japan. We provided our customer with rationalization proposals with a placement of a strategically integrated logistics center in Japan at the core of the renewed supply chain.

Footprint, methods, and systems with an eye on global expansion

Our new model of global logistics system is achieving overall optimization, with better inventory management efficiency and cost performance.