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 cloud based demand and inventory planning software for our fast growing aftermarket parts business. The planning capabilities and visibility provided by ketteQ, along with their hypercare offering, allows 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 parts planning approach that struggled to accurately predict and manage inventory shortages, especially for slow-moving parts crucial to HVAC systems. This outdated method made it difficult for Carrier to respond efficiently to market demands, leading to potential stockouts and operational disruptions. Additionally, the lack of advanced forecasting tools affected their operations in China and Singapore, causing inefficiencies and delayed part availability.
Carrier required an adaptive service parts planning solution capable of enhancing demand forecasting and optimizing inventory management for their HVAC products in key APAC markets. This upgrade was essential to 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™-powered Service Parts Planning solution. This dynamic, AI-driven system supports adaptive 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 that prioritizes real-time alerts for potential stockouts. This planning-by exception approach boosted productivity, reducing time spent on routine tasks and enhancing response times.
Additionally, PolymatiQ™ introduced a strategy for managing slow moving parts using advanced statistical techniques to optimize stock levels. This data-driven approach minimizes inventory costs while maintaining desired service levels, ensuring efficient resource allocation without compromising availability.
Results
With the deployment of ketteQ’s PolymatiQ™-powered solution, Carrier experienced significant improvements:
- Reduced inventory by 10%, optimizing stock levels without compromising availability
- Achieved double-digit revenue growth through better demand planning and execution.
- Streamlined part transitions with automated supersession planning,minimizing disruptions.
- Enabled proactive issue management with customized alerts and workflows.
- Integrated demand, inventory, and supply planning for a more holistic approach to supply chain management.
- Enhanced efficiency in managing slow moving inventory, ensuring resource allocation aligns with service goals.
The successful implementation laid the foundation for a growing partnership between Carrier and ketteQ. Due to these impressive results, Carrier has expanded the use of ketteQ's solutions to 20 of their brands and planning teams around the world, solidifying ketteQ’s role as a trusted partner in their global operations.
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