Case Study: Mitsubishi Electric achieves 30% spare-parts inventory reduction and 97% service level with ToolsGroup

Getting inventory levels back under control, but not at the expense of service levels

Mitsubishi Electric Europe’s Living Environmental Systems division faced rapidly growing obsolete spare-parts inventory (doubling nearly every two years) while trying to maintain an 87% service level in a hyper-seasonal, urgent-repair business. To reduce inventory without sacrificing service, Mitsubishi Electric turned to ToolsGroup and its SO99+ demand planning and inventory optimization solution to replace legacy SAP-led manual processes.

ToolsGroup deployed SO99+ (integrated with SAP) in five months, building a detailed data model, SKU-level “corridor” planning, seasonality detection, alerts and inter-depot transfer recommendations to improve forecast accuracy and visibility. The solution delivered measurable impact: spare parts stock fell by 30% and service levels rose from 87% to 97% even during seasonal peaks, with ToolsGroup’s self-learning engine continuing to refine outcomes.

Mitsubishi Electric

Thomas Schuhmann

General Manager Business Development and Sales Direct Markets