When Silvio Jakob joined the Karl Group in 2017, the management gave him an interesting and appealing task: the business administration graduate was to set up a central purchasing department for the widely ramified company. An important building block for this was the introduction of a digitalized warehouse management system. The existing ERP system Nevaris Finance served as the basis. The ERP system developed for the construction industry is based on the Microsoft Dynamics 365 platform.

The first step was 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 73 excavators, 31 wheel loaders, 21 trucks and 10 tractors. There are also telescopic handlers, dumpers, graders and crushing and screening plants. In order to guarantee short repair times, around 4,000 spare parts are kept in stock.

End-to-end digitalization of warehouse processes

"Back then, the processes in goods receipt, goods issue, ordering and stocktaking were still paper-based and inefficient," recalls Jakob, who heads the Procurement and Materials Management department at the Karl Group. Stock movements were first noted in analog form and later recorded in Nevaris. This double effort was not only time-consuming, but also prone to errors. With this in mind, Jakob was looking for a solution that was compatible with Nevaris and would allow the warehouse processes to be digitalized end-to-end.

Following a recommendation, the Karl Group became aware of Integer Solutions and its IsConstruct solution. 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 met 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 opted for Integer Solutions in 2019.

Pilot phase in the spare parts warehouse

Just nine months later, the pilot phase began in 2020 in a section of the spare parts warehouse at the former site in Innernzell. "The introduction went completely smoothly and the competent employees from Integer Solutions were always on hand to answer any questions we had," confirms Jakob, who can track every movement of goods thanks to the seamless documentation of the processes. Since the relocation of the company headquarters 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 stock - be it storage or retrieval.

Three mobile computers were purchased for this process, on which the various IsConstruct software modules are installed. For the hardware, the Karl Group opted for Zebra MC33 data collection devices, which are among the most robust PDAs on the market. They are certified to IP54 and are therefore dust and water resistant. The keyboard and touchscreen display are made of scratch-resistant Gorilla Glass.

At the start of the activity, the display shows the IsConstruct start screen with all installed modules clearly labeled. For example, the module for storing new items 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 on the mobile terminal and stored in the suggested shelf compartment. The storage process is completed by scanning the barcode there. The new stock can then be called up immediately in the ERP system.

When an item is stored for the first time, IsConstruct automatically generates the required barcode label, which is immediately output on the Zebra ZT 410 printer. With a print 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 or goods issuing counter and ensures short distances.

Software solution: Acknowledgement by scan also possible

A large proportion of the scans concern the removal of spare parts from the warehouse, which are requested by the fitters in the course of repairs. This is where the "workshop report" software module comes into play. The warehouse clerk enters the materials that need to be picked for the respective order on the handheld. He then removes the items from the shelves and confirms each process by scanning the barcode attached to the shelf. The "outgoing delivery bill" software module works in the same way: it is used, for example, when a site manager needs filter masks for his employees.

The "order proposal" module, on the other hand, starts a procurement process. It is always activated when the warehouse staff "discover" an empty or almost empty shelf compartment. In this case, the barcode on the shelf compartment 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 person then decides whether the order is actually triggered.

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," emphasizes Jakob.

The "Inventory" module is already included as standard in IsConstruct and will be used by the Karl Group for the first time in 2023 following the relocation of the company headquarters. The count lists generated in the ERP system are transferred to the handhelds and processed item by item by the employees. Before the actual counting process can start, the barcode on the corresponding storage compartment is scanned. If the storage compartment and counting order match, work can begin.

Further automation steps planned

The counted quantities are then transferred back to Nevaris and reconciled with the book inventories. Jakob is relaxed about this process, because "by consistently booking all goods movements with IsConstruct, the differences should be minimal," says the Head of Purchasing, who already has the next project steps in mind: "We are planning further automation steps over the next few years. For example, we also want to manage our machine and tool output with IsConstruct." To date, we have been working with output lists that are subsequently recorded in Nevaris.

Based on the current booking, the current or planned location of the equipment could then be tracked in real time at a glance. Another aim is to equip the foremen with handhelds. This would allow them to generate their own purchase requisitions for their construction sites in a ready-made article catalog directly via an interface to the ERP system and send them to the central purchasing department.

With IsConstruct, the Karl Group has digitalized its spare parts warehouse processes from end to end, speeding up ordering and inventory processes while increasing inventory quality and transparency. The solution also offers great potential for further improvements in other areas.