How Johnson Controls-Hitachi is betting big on SCM for better customer experience

As the air conditioner industry in India gears up for strong pent-up demand in the upcoming summer season, Johnson Controls-Hitachi Air Conditioning is betting big on volume sales and market share in the RAC category. The company is targeting record growth during the peak season, driven by a superior customer experience in partnership with Delhivery, India's largest fully-integrated logistics services provider. In the last 5 years, the partnership has enabled Hitachi Cooling and Heating’s service and channel partners to address customer demand for the company’s fast-selling product range of Air conditioners and refrigerators in the timeliest manner, says the company statement. 

In 2019, JCI-Hitachi started spare part shipping to service centers with Delhivery, using the logistics company's part-truck load (PTL) services. In 2020, it expanded its relationship with Delhivery, smoothly transitioning to a fully-integrated supply chain solution, wherein Delhivery operates all warehouses and transportation for Hitachi's spare parts business. 

Highlighting the impact of technology in supply chain management, Sandeep Barasia, Executive Director and Chief Business Officer, Delhivery Ltd., said, "We value our longstanding relationship with Johnson Controls-Hitachi Air Conditioning India Ltd. and are excited to be their logistics partner of choice. Our E2E solutions have empowered Hitachi and many other businesses to make smarter supply chain decisions and drive operational efficiencies."

Gurmeet Singh, Chairman, and Managing Director, Johnson Controls-Hitachi Air Conditioning India Ltd., said, "Care, innovation, and tech integration have become the key pillars of a seamless and superior customer experience in the new informed world. Right from our production line to end users in work or living spaces, customer satisfaction is in the DNA of everything that we do. Our globally designed and launched air home series, power-packed with award-winning models and pathbreaking features, is all set to take the air conditioning expectations of India’s rising feature-seeking consumer population to the next level”.

“As we targeted growth along with seamless consumer and channel partner experiences, we were looking for a supply chain partner to take our set-up to the next level and give us the necessary edge in the spare parts industry. We are delighted to have a long and fruitful partnership with Delhivery as they bring in new-age solutions to the table that provide greater visibility at every stage of the funnel to increase speed, efficiency, and reliability for our customers," Gurmeet added.

Delhivery manages transportation from Hitachi's mother warehouse to 21 local warehouses and final deliveries to 1,100 service centers across India. The brand leveraged Delhivery's technology, analytics, and integrated logistics capabilities to reduce delivery times by 30%. Delhivery has developed a weight-based algorithm that identifies lower-weight spare parts. These spare parts are now delivered faster to dealers through Delhivery's e-commerce network. 

The company is also utilizing Delhivery's supply chain platform to better manage its inventory - reducing days of inventory by 25%. This is expected to improve further over time.