Building a Scalable Logistics Network
Flexibly responding to demand fluctuations in rapidly growing markets to ensure stable supply.
Customer：Air Conditioning Equipment Manufacturer
Challenge (Before)
In an emerging market experiencing rapid economic growth, demand for finished air conditioning units and maintenance parts surged dramatically. While the customer expanded its production bases in line with government policies promoting local manufacturing, establishing a logistics network capable of covering the country’s vast territory became an urgent priority.
At the same time, the customer needed to build a reliable nationwide distribution system from factories to destinations across the country while responding to sharp fluctuations in production and sales volumes. In addition, establishing an after-sales service structure capable of rapidly supplying maintenance parts was essential.
Solutions
NX Solution
- Established a central Distribution Center (DC) to centrally manage finished products and maintenance parts, and ship to regional DCs and service centers nationwide.
- Integrated management of in-plant logistics operations within the factory premises, including receiving, sorting, kitting, and line-side delivery.
- Implemented a maintenance parts center function to enable prompt inventory management and shipment of spare parts, supporting stable after-sales service.
- Continuously optimized logistics operations through ongoing improvement activities, maintaining the most efficient operational structure in response to changing demand and business conditions.
Benefits
Benefits (Results)
By building a scalable logistics network, the customer established a logistics framework capable of flexibly responding to fluctuations in production and sales, ensuring reliable support for rapidly growing market demand.
With NX assuming responsibility for in-plant logistics operations, the customer was able to focus on core manufacturing activities, contributing to improved production efficiency.
Products are now supplied swiftly from the central DC to regional DCs and delivered efficiently to geographically dispersed dealers and end users. Furthermore, continuous improvement initiatives have optimized operating costs, strengthening the supply chain in a high-growth market environment.
