Breezing to peak inventory performance
Climate control leader cools down inventory chaos to reduce inventory 10%, while driving double-digit revenue growth.
Overview
Carrier, a global leader in climate control solutions, operates on a massive scale with 51 factories, 39 research and design centers, and over 53,000 employees serving customers in more than 180 countries. In the Asia-Pacific (APAC) region, where the company generates over $5.3 billion in annual revenue, Carrier's operations are complex, requiring precise inventory management to maintain customer satisfaction and operational efficiency.
Headquartered in Shanghai and Singapore, Carrier’s APAC operations are critical to its global success. The fast-paced HVAC industry presents unique challenges, especially in managing the supply of spare parts. Efficient inventory management is essential to ensure timely part availability, avoid stockouts, and support seamless operations. Recognizing the need for a more sophisticated, adaptive approach, Carrier turned to ketteQ to optimize its supply chain planning and transform its inventory management.
At a glance
- $22.1B in net sales (2023), with 75+brands
- Leveraged ketteQ's demand, inventory, and supply planning solutions
- Implemented automated supersession planning for streamlined operations
- Developed a specialized strategy to manage slow-moving inventory
- Delivered a 10% inventory reduction through optimized planning
- Contributed to double-digit revenue growth
We are excited to team up with ketteQ to deploy their cloudbased demand and inventory planning software for our fastgrowing aftermarket parts business. The planning capabilities and visibility provided by ketteQ, along with their hypercare offering, allow us to better meet customer needs by having the right parts at the right time.
Challenge
Carrier initially relied on a manual, spreadsheet-based service partsplanning approach that struggled to accurately predict and manageinventory shortages, especially for slow-moving parts crucial to HVACsystems. This outdated method made it difficult for Carrier to respondefficiently to market demands, leading to potential stockouts andoperational disruptions. Additionally, the lack of advanced forecastingtools affected their operations in China and Singapore, causinginefficiencies and delayed part availability.
Carrier required an adaptive service parts planning solution capable ofenhancing demand forecasting and optimizing inventory managementfor their HVAC products in key APAC markets. This upgrade was essentialto ensure timely part availability, boost customer satisfaction, andsupport Carrier's global operations.
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Solution
Carrier partnered with ketteQ to implement its PolymatiQ™-poweredService Parts Planning solution. This dynamic, AI-driven system supportsadaptive supply chain planning by evolving with market changes.PolymatiQ™ provided Carrier with real-time, automated scenario analysis,allowing proactive responses to demand fluctuations.
ketteQ transitioned Carrier from manual, spreadsheet-based planning toa fully automated system, featuring a predictive alert engine thatprioritizes real-time alerts for potential stockouts. This planning-byexception approach boosted productivity, reducing time spent onroutine tasks and enhancing response times.
Additionally, PolymatiQ™ introduced a strategy for managing slowmoving parts using advanced statistical techniques to optimize stocklevels. This data-driven approach minimizes inventory costs whilemaintaining desired service levels, ensuring efficient resource allocationwithout compromising availability.
Results
With the deployment of ketteQ’sPolymatiQ™-powered solution, Carrierexperienced significant improvements:
- Reduced inventory by 10%, optimizingstock levels without compromisingavailability
- Achieved double-digit revenue growththrough better demand planning andexecution.
- Streamlined part transitions withautomated supersession planning,minimizing disruptions.
- Enabled proactive issue managementwith customized alerts and workflows.
- Integrated demand, inventory, andsupply planning for a more holisticapproach to supply chain management.
- Enhanced efficiency in managing slowmoving inventory, ensuring resourceallocation aligns with service goals.
The successful implementation laid thefoundation for a growing partnershipbetween Carrier and ketteQ. Due tothese impressive results, Carrier hasexpanded the use of ketteQ's solutionsto 20 of their brands and planningteams around the world, solidifyingketteQ’s role as a trusted partner in theirglobal operations.
