Reducing contactor inventories by 60%

2013-10-23 - Two Russian HVAC distributors have reduced their contactor inventories by 60 percent and administrative costs by 40 percent by switching to ABB’s range of AF contactors.
By ABB Communications

Original equipment manufacturers (OEMs) in Russia’s heating, ventilation and air conditioning (HVAC) market have been enjoying rapid industry growth in recent years.

While attempting to keep pace with this growth, OEMs have also been battling with its consequences – swollen inventories and increasing administration costs. This was the challenge facing ADL and Free Tech, two Moscow-based suppliers to the HVAC sector.

As the Russian HVAC market grew, ADL and Free Tech had to boost their inventories to satisfy demand. And as their customer base expanded, so too did the diversity of customer requirements.

Multiple contactor variants mean increased administration, more complex logistics and an expanded inventory. In turn, these multiple variants need additional accessories, further expanding the same inventory. Delivery efficiency can be threatened as stock items proliferate.

This is precisely what happened to ADL and Free Tech. Both companies had to stock more products on their shelves, which made it increasingly difficult for them to meet their 48-hour delivery deadlines.

The solution to the problem lay in ABB’s AF contactors.

The AF contactor has an electronically controlled coil that enables it to function across a much broader voltage range than other contactors. It works in both 50 Hz and 60 Hz networks, is AC and DC compatible, and does not require a surge suppressor.

Combining so many features in a single contactor makes the AF range technically superior and radically reduces the number of contactor variants required by up to 90 percent.

What previously required 45 coils to cover the complete voltage range is achieved with just four coils by the AF contactor. This benefits distributors as well as end-users by lowering adminis-trative and logistic costs. Distributors no longer need to stock products for non-standard voltages: AF technology handles them all – with only four coils.

ADL and Free Tech switched to AF Contactors in 2011 and were able to slash their contactor inventories by 60 percent and their administrative costs by 40 percent.

Meeting tight delivery schedules is no longer a problem, ensuring both companies stay at the forefront of Russia’s fast-growing HVAC market.

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