SAP Scanner Software in Subscription at Arvos

Plant engineering company Schmidtsche Schack relies on the Ontego MDE solution for its internal SAP transport logistics. The scanner software was implemented efficiently in terms of both time and cost using the Ontego subscription model. The success is measurable: The backlog of open SAP bookings dropped from 100 person-days in 2020 to zero just one year later.

Large-format cooling boilers and reactors are the specialty of plant engineering company Schmidtsche Schack (www.schmidtsche-schack.com). The company employs 400 people at its headquarters in Kassel and its Lohfelden site, operating as part of the global ARVOS Group. Its quench coolers, oil preheaters, and waste heat boilers are used worldwide in refineries, the chemical industry, and waste recycling.

"At Arvos, all manufacturing and logistics processes are managed in SAP," explains Andreas Hanak. As Head of Warehouse Management, Hanak organizes the continuous improvement of logistics processes. In this context, interdepartmental workshops took place at the end of 2019. In addition to warehouse management, production management and, above all, IT were involved. Hanak recalls: "We scrutinized our internal material flows—especially regarding goods receipt and production supply."

Previously, many processes at Arvos Schmidtsche Schack—such as material withdrawals for production—relied on paper documents. Therefore, replacing paper-based workflows was a key goal for all departments involved. They wanted deliveries to be posted immediately upon physical arrival, and transfers to blocked stock, material movements within the warehouse and production, or goods issue bookings to be carried out directly in SAP without delay.

"It quickly became clear," says Hanak, "that mobile data capture and barcode scanners were essential." The search for suitable providers began. They looked for partners with experience in mobile SAP processes who could realize a suitable MDE solution for Arvos. The IT department took the lead in this process. Axel Kindgen, Head of IT & Digitalization, explains that in addition to technical qualifications, project costs were a focus, as a pilot project needed to prove the value of the initiative first.

The budget for the pilot phase with 7 users was tight. This made the subscription model for the Ontego MDE solution even more attractive. The scanner software was introduced within just 4 months. The foundation was mobile SAP dialogs configured specifically for Arvos' process requirements. This resulted in a very lean and resource-efficient implementation project. Running costs in this subscription model are limited to device-dependent billing, which is calculated monthly in arrears based on actual device usage by Arvos employees.

"The project kicked off in July 2020 with a workshop to define the detailed concept," says Kindgen. Employees from the specialist departments participated actively during the specification and later in the test phase. "They were motivated because the scanner software brings a significant improvement to their daily operations." The scanners went live in November of the same year. They are used for SAP-managed goods receipt and goods issue bookings, material transfer postings, and mobile inspection lot processing.

Overall, the management team at Arvos in Kassel rates the project as a success. "We are much more effective in almost all material movements," reports Warehouse Manager Hanak. Inventory levels are visible almost in real-time today. He illustrates the concrete impact with an example: The backlog of unprocessed manual bookings in SAP was reduced to zero in 2021. For comparison, in 2020, the backlog of open bookings amounted to approximately 100 person-days.

Just like the software, Arvos rents the hardware. This allowed capital expenditure for the project to be kept low. Arvos chose devices from the manufacturer Zebra. "Good ergonomics and simple handling of the scanners were important to us," Kindgen says, describing the criteria for hardware selection. By now, the touch-only devices from Zebra have proven themselves in practical use, even under rough, dusty conditions.

Hanak and Kindgen look back on the project with satisfaction. The MDE solution has noticeably improved SAP processes in warehouse and production logistics. They view the low-risk, easy entry into the scanner project as a major advantage. At the same time, the mobile solution can be flexibly expanded whenever needed.