"Only Mr. Ohl knew where everything was kept here"
They still exist—those warehouses whose organizational structure remains a complete mystery to outsiders. They appear to be cluttered and arranged haphazardly, and their incoming and outgoing goods resemble a secret doctrine. And which therefore require specially trained professionals who, in some mysterious way, can see through and keep track of the inventory and logistics. “We had one of those, too,” reported Michael Hoppe, Head of IT at KÖNIG + NEURATH, during the io // Theme Day this fall. “It was our purchasing parts warehouse. Better known as ‘Warehouse Ohl.’ Named after Mr. Ohl, who was the very warehouse manager who had everything under control here. Only Mr. Ohl knew where everything was stored. And if it wasn’t there, he knew where else it might be.”
Such warehouses are also referred to as “historically evolved.” And at KÖNIG + NEURATH, a great deal has indeed evolved over the course of its 99-year history: Founded in 1925 in the small Hessian town of Karben, the family-owned company is one of the top-grossing providers of office furniture and space solutions in the German-speaking world. In addition to branches in Paris, London, Vienna, St. Gallen, and Amsterdam, it operates five showrooms in Germany. Manufacturing takes place exclusively at the Karben headquarters, on a production site spanning approximately 90,000 m². The plant is divided into the following areas: metal prefabrication, wood prefabrication, warehousing and logistics for externally sourced goods, preliminary and final assembly, as well as order fulfillment and shipping.
The ERP inventory warehouse was upgraded to SAP EWM with MFS
KÖNIG + NEURATH is a full-range supplier. Its product lineup features a high degree of vertical integration and a wide variety of options. Customers can individually configure and customize all orders. About 30 percent of the items sold are custom-made. The result: high storage capacity due to the large number of specific parts. This is the case at the “Ohl Warehouse,” as well as in the other facilities—which is increasingly affecting operational efficiency. Fire safety is also becoming an urgent issue there. That’s why KÖNIG + NEURATH brought io on board as a partner. “We set out to find a partner that’s based in the region and is a good fit for us in terms of scale,” explains Hoppe. “We came across io through recommendations and have established a consistent and trusting partnership.” “It all started in 2020,” recalls Christian Kaufmann, a member of the executive board at io. KÖNIG + NEURATH’s requirements were quickly discussed: “A well-organized, clear warehouse structure and a storage-location-based management system implemented in a modern SAP S/4HANA system,” Kaufmann continues.
“As part of this, the decision was also made to build another fully automated high-bay warehouse.” The system-managed ERP inventory warehouse was upgraded to SAP EWM with MFS as part of this process, which fully automated all processes—from goods receipt to picking. “This also makes it easy to control the automated guided vehicles,” Kaufmann explains. “We subsequently implemented SAP EWM successfully in a manual warehouse as well.” The biggest challenge during implementation was ensuring that production processes were not interrupted. “We worked while operations were ongoing. That means you have to plan every step meticulously,” Kaufmann cautions. “Transparent communication is essential here. It’s also important to test and document as many options as possible.” Even after the successful expansion and automation of the storage locations, io remains the digitalization partner of the space solutions specialist. “The next step is to optimize transport management,” Kaufmann concludes. And Mr. Ohl? He’s still keeping an eye on all the storage locations. Naturally.
Three Questions for Michael Hoppe, Head of IT at König + Neurath
How do your company’s sustainability efforts impact the ongoing development of your IT infrastructure?
We rely on energy-efficient systems, which reduce our resource consumption. They also shorten work and transport distances. In addition, based on expanded SAP material data derived from accurate inventory data, we can improve the life cycle assessment of our products.
Have IT decisions been made based on sustainability considerations?
Yes, in many ways. For example, we ensured that our client systems have a long service life and opted for a climate-controlled cabinet instead of an air-conditioned data center.
Does the further development of your warehouse management system have an impact on your company’s sustainability goals?
There are direct benefits from inventory optimization. For instance, there is no waste of resources due to outdated equipment. Additionally, the routing in the manual warehouse and the high-bay warehouse has been optimized, which should by no means be underestimated in terms of sustainability. The use of automated guided vehicles also supports sustainability goals. They can be operated in cool, unlit warehouses, which has a positive impact on the carbon footprint.
