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As the air conditioner industry in India gears up for strong pent-up demand in the upcoming summer season, Johnson Controls-Hitachi Air Conditioning, the manufacturer of India's aspirational premium air-conditioner brand 'Hitachi Cooling and Heating' 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. 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.
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, Hitachi 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.
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 weightbased algorithm that identifies lower-weight spare parts. These spare parts are now delivered faster to
dealers through Delhivery's e-commerce network.
Hitachi Cooling and Heating India's digital transformation continues to yield benefits. Now, Hitachi provides end-to-end supply chain visibility to its teams and customers. 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.
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