Case Study: Mitsubishi Electric Europe cuts spare parts stock 30% and raises service levels with ToolsGroup

Mitsubishi Electric Europe B.V reduces spare parts stock 30% with ToolsGroup while lifting service levels to 97%

Mitsubishi Electric Europe B.V. faced a challenge in its hyper-seasonal spare parts business, where obsolete stock was doubling nearly every two years. The company needed to reduce these high inventory levels without sacrificing its 87% service level, a difficult task given the urgent nature of repairs requiring rapid part delivery. To address this, they turned to ToolsGroup and implemented its supply chain planning solution for demand forecasting and inventory optimization.

ToolsGroup's solution was integrated with Mitsubishi's SAP system to handle complex planning, automatically detect seasonality, and establish optimum stock levels for each SKU. This provided unprecedented visibility and generated alerts for better decision-making. As a result, ToolsGroup helped Mitsubishi Electric reduce its spare parts inventory by 30% and increase its service level from 87% to 97%, even during peak seasonal demand.

Mitsubishi Electric Europe B.V