REFERENCE REPORT
Warehouse management:
Karl goes digital!
The Lower Bavarian Karl Group has digitized the material flow in its own workshop between goods receipt and inventory using the mobile software solution isConstruct from Integer Solutions. Order proposals can now also be created using mobile terminals.
Project planning for digital warehouse management
When Silvio Jakob came to the Karl Group in 2017, the management gave him an interesting and exciting task: the business economist was supposed to set up a central purchasing department for the widespread company. An important building block for this was the introduction of digitalized warehouse management. The existing Nevaris Finance merchandise management system served as the basis.
The ERP system developed for the construction industry is based on the Microsoft Dynamics 365 platform. It started with the central spare parts warehouse for the company's own workshop, where the Karl Group's entire fleet of machines and vehicles is maintained and repaired. The fleet includes, among other things, 73 excavators, 31 wheel loaders, 21 trucks and 10 tractors. There are also telehandlers, dumpers, graders as well as crushing and screening systems. In order to guarantee short repair times, around 4.000 spare parts are kept in stock.
Completely digitalized
“Back then, the processes in incoming goods, outgoing goods, ordering and inventory were still paper-based and inefficient,” remembers Jakob, who heads the procurement and materials management department at the Karl Group. Stock movements were first recorded analogue and later recorded in Nevaris. This double effort was not only time-consuming but also error-prone. Against this background, Jakob was looking for a solution that was compatible with Nevaris and could be used to digitize the warehouse processes end-to-end. Based on a recommendation, the Karl Group became aware of Integer Solutions and its solution isConstruct.
The software is widely used in the construction industry, so a visit to a comparable reference customer could be organized. “We were convinced that isConstruct fully meets our requirements. Above all, we liked the user-friendliness of the system, which ensures a high level of acceptance among our employees,” says Jakob, who decided on Integer Solutions in 2019.
Completely documented
Just nine months later, the pilot phase started in 2020 in a section of the spare parts warehouse at the previous location in Innernzell. “The introduction went completely smoothly and the competent employees from Integer Solutions were always available to help us with any questions,” confirms Jakob, who can trace every movement of goods thanks to the complete documentation of the processes. Since the company headquarters moved to Hengersberg in 2022, the entire warehouse has been managed with isConstruct. For this purpose, each of the approximately 4.000 storage locations was provided with a barcode. This barcode is scanned by the employee every time there is a change in inventory – be it during storage or removal. For this process, three mobile computers were purchased on which the various software modules from isConstruct are installed. For the hardware, the Karl Group chose Zebra MC33 data acquisition devices, which are among the most robust PDAs on the market. They are certified according to IP54 and are therefore dust and water protected. The keyboard and touchscreen display are made of scratch-resistant Gorilla Glass.
Clearly marked
At the start of the activity, the display shows the isConstruct start screen with all installed modules, which are clearly marked. The module for storing new items, for example, is called “Material Receipt” and is activated with a gentle press on the display. This takes the employee directly to the orders stored in the ERP system, from which they can now select the appropriate order based on the order number. The items actually delivered are then recorded at the mobile terminal and stored at the suggested shelf. The storage process is completed by scanning the barcode there. The new inventory can then be accessed immediately in the ERP system. When an item is put into storage for the first time, isConstruct automatically generates the required barcode label, which is immediately printed out on the Zebra ZT 410 printer. With a printing speed of up to 356 millimeters per second, the ZT 410 is one of the fastest devices in its class. At the Karl Group it is installed directly on the goods receiving and issuing counter and ensures short distances.
Acknowledge via scan
A large part of the scans concerns the removal of spare parts from the warehouse, which are requested by the fitters in the course of repairs. The “Workshop Report” software module is used here. The warehouse clerk enters the materials that need to be picked for the respective order on his handheld. He then removes the items from the shelves and acknowledges each process with a scan of the barcode attached to the shelf. The “outgoing delivery note” software module works in the same way: it is used if, for example, a construction manager needs filter masks for his employees.
The “Order proposal” module, on the other hand, starts a procurement process. It is activated whenever the warehouse staff “discovers” an empty or almost empty shelf compartment. In this case, the barcode on the shelf is scanned and an order quantity is entered. The order proposal is immediately transferred to the ERP system and displayed to a purchasing clerk. This then decides whether the order is actually placed.
Respond flexibly to requests
The order proposal module was reprogrammed specifically for the Karl Group as part of the project. “It is a great advantage for us that Integer Solutions responded so flexibly to our wishes and did not present us with an unchangeable standard solution,” confirms Jakob. The isConstruct standard already includes the “Inventory” module, which will be used by the Karl Group for the first time in 2023 after the company headquarters moves. The counting lists generated in the ERP system are transferred to the handhelds and processed by the employees item by item. Before the actual counting process can start, the barcode at the corresponding storage compartment is scanned. If the storage compartment and the counting order match, the work can begin.
The next steps in mind
The count quantities are then transferred back to Nevaris and compared with the book stocks. Jakob looks forward to this process calmly, because “through the consistent booking of all goods movements with isConstruct, the differences should be minimal,” says the purchasing manager, who already has the next project steps in mind: “We are planning further automation steps in the next few years . For example, we also want to manage our machine and tool output with isConstruct.” To date, we have worked with output lists, which are subsequently recorded in Nevaris. Based on the current booking, the current or planned location of use of the devices could then be seen at a glance in real time. Another goal is for foremen to also be equipped with handheld devices. This means they can then generate their own order requirements for their construction sites in a prefabricated item catalog directly via an interface to the ERP system and transmit them to central purchasing.
Conclusion: With isConstruct, the Karl Group has completely digitalized the processes in the spare parts warehouse, thereby accelerating ordering and inventory processes, while increasing inventory quality and transparency. The solution also offers great potential for further improvements in other areas.
Background: Karl Group
The Karl Group, based in Hengersberg, Lower Bavaria, consists of around 40 companies and is active in the four business areas of construction, energy, industry and real estate. The company, founded in 1966 by Günther Karl, employs around 400 people. In the construction sector, the Karl Group offers the entire range of services from earthworks and sewer work to demolition work and remediation of contaminated sites. In the industrial business area, Karl either takes over brownfield sites and develops them for the future or restructures companies in need of renovation.
The real estate business area is closely linked to the industrial area and, in addition to the purchase and sale of properties, includes the development and management of new and existing properties.
The acquisition of the first hydroelectric power plant in 1982 founded the Energy division. Today the group of companies owns six hydroelectric power plants.
Company founder Günther Karl manages the group of companies together with his sons and co-partners Günter Karl jun. and Andre Karl. Further information at www.karl-gruppe.de.