Challenge

Taking control of a large and variable inventory

Maximillian Lang, Managing Director Lang Recycling: "Our company currently employs around 200 people and recycles around 700,000 tons of metal scrap per year. In addition to the technical equipment, IT performance plays an important role in the design of our processes and thus in the added value for our customers."

"We are of the opinion that we then create additional value for our customers when we go a step further into detail. In the past few years, we have recycled over 400 different types of scrap metal. This poses an enormous challenge to our employees in terms of inventory assessment and management. In the past, our recordings were recorded manually on slips of paper and later added to AMCS."

Solution

Real-time business insights

Maximillian Lang: "As a result, our inventories were not up-to-date on a daily basis and were, therefore, subject to additional expense. Since our inventories are one of the most important control variables for us in terms of quantity and factor, we asked ourselves the question - how can we record them in real-time? We were also aware of the fact that there was a lot of capital in our inventories and we wanted to manage it more actively. It's important to work with specialized software as any new development idea or trend can be immediately adopted by everyone else and further integrated."

"A very significant factor in our industry is transparency in the business insights. This means that the material inputs must be assessed as quickly as possible. You also have to be able to understand where the materials are going to go, just as you have to be able to bring the value-adding material flows back into the exit. AMCS has provided us with this transparency. The transparency has been massively increased by having the stocks live in the system now."

"Now we can follow the complete journey for every material that comes into the sorting process. This means that mistakes made during this process are detected immediately before the final booking is made and we also recognize a need for training somewhere, e. g. in case of operator errors. The mobile reporting and the AMCS RSBI were the first step on the way to digitalization and provide a solution for our problem." according to Lang

Results

Real savings in the cost of capital

Eduard Panaset, IT manager Lang Recycling: "AMCS has developed a mobile reporting app, which enables us to record and document inventory flows directly on the move. Additionally, to the mobile recording, we have also introduced the AMCS Business Intelligence solution, which allows us to better forecast and better align our sellers with quantity inflows. This allows us to react more flexibly and quickly to market shifts."

"Overall, the improved data quality of the latter product helps us to speed up processing and make every decision based on sound information. By using mobile reporting and AMCS RSBI, we were able to reduce our warehouse inventory by around 25%. As a result, we were able to save capital costs of around 40,000 euros. At the same time, we held regular position management meetings to raise employees' awareness of the amount of capital tied up and to improve the overall transparency of the inventories."