Hitachi Vantara Uses AI to Navigate Storage Supply Shortages

Hitachi Vantara is turning to AI to manage a severe storage supply crunch that is expected to last at least another year. Executives at the company warn that component shortages, particularly for memory like DRAM and NAND as well as solid-state drives (SSDs), are extending lead times and forcing tough decisions on which customer orders to prioritize.

The company’s AI-driven tools, including a deal prediction system and an Inventory Control Tower, are helping it navigate these challenges. The deal prediction tool scans Salesforce data daily to forecast which deals will close, with around 80% accuracy. Meanwhile, the Inventory Control Tower unifies inventory visibility and uses AI to plan resource allocation, which has helped Hitachi Vantara reduce its inventory by 50% over two years.

According to Yuichi Fukuda, Hitachi Vantara’s chief operations and global supply chain officer, lead times for SSDs have doubled from three months to six months over the past year. The company is using AI to prioritize higher-value deals and manage customer expectations regarding delivery times. Tena Coppedge, VP of Global Supply Chain Manufacturing, emphasized the importance of providing realistic due dates to customers.

The supply constraints are not expected to ease soon. Coppedge noted that shortages could persist for another 12 months, while Fukuda warned that DRAM constraints might last even longer. Despite rising prices, large enterprises are buying now to lock in costs, while smaller customers are pulling back due to affordability issues. Simon Ninan, SVP of business strategy, noted that hyperscalers are driving demand, but manufacturing capacity won’t catch up for another 18 to 24 months.