Hitachi choses Consafe Logistics WMS for their new European spare parts warehouse

New location - more than only one size larger

Presently, the spare parts inventory is spread out over four different locations in Oosterhout (Noord-Brabant). Even then there is not enough room for the 10-thousands of spare parts that Hitachi has on stock. Furthermore, the 7600 m2 floor space that they have at this moment is not enough to place shipments efficiently until the time of actual delivery. In the search for a new warehouse, Hitachi found the perfect building . This warehouse, also located in Oosterhout, was formally in use by Citroën and is ready to use. The new location has a floor area of 22.000 m2. One area of the building has a height of 14 meters large, which makes it possible to place also the large components inside. There is also a special area for chemical storage of lubricants. In total there is a capacity for 90,000 items. Such a DC requires an innovative WMS, so that all space can be used efficiently and the daily work can be organized and streamlined.

Excellent opportunity for further optimization

Hitachi seized the opportunity to review their internal processes. Together with an external consultant they analyzed what areas are working and what areas can be improved. This resulted in some new concepts. In close cooperation Hitachi and Consafe Logistics determined which improvements could be implemented. Therefore the system will provide even more speed and logic in the warehouse. Besides the software, Consafe is the supplier of all necessary hardware like access points, Trafficom terminals, Motorola handhelds, scanners and printers.

Hitachi spare parts warehouse will remain operational during relocation

The goal is that Hitachi has moved completely by April 2011. This means that before then around 65.000 items (= 1.5 million pieces) have to be moved. The spare parts range from a simple o-ring less than 1 gram to an engine of over 10 tons (of a Hitachi EH3500ACII a dump truck). This is a logistical exercise in itself, especially since during the move delivery to the customers continues normally. Consafe will add additional software to the WMS in order to make this possible. All stock will be real-time traceable during the move and available for shipment. The relocation is a joint project between Hitachi and Consafe. Ronald Schepers, Account Manager at Consafe, says: "We see this move as a second phase in our cooperation with Hitachi in which Consafe helps Hitachi to further optimize their distribution."

Hitachi customers will benefit from the new warehouse

Ruurd Visser, Parts Logistics Manager at Hitachi Construction Machinery Europe, states that his clients also will experience the benefits of this new warehouse. The range of spare parts can be extended and larger stock can be held. Ruurd says: "By increasing the capacity and potential for further growth in this new distribution center, Hitachi Parts organization shows their commitment to her customers, and it proofs that Hitachi feels responsible for the constant availability of all sold equipment."