The future of intralogistics: IoT-Button & Co. in application

Today, it’s all about IoT use cases in digital intralogistics and production logistics. For this, I’ve invited Philipp Smolke, Head of Sales at ORGATEX. ORGATEX is a medium-sized company operating in the transport, logistics, supply chain, and warehousing sector. Also joining us is their IoT partner IOX, represented by Daniel Radermacher, the Managing Director.

Today, you’ll learn about the exciting use cases ORGATEX is implementing together with their customers – including IoT solutions like small load carrier labels and an IoT button for material requests and fault reporting. We’ll also discuss the cost savings these solutions enable and explore additional use cases that can be realized.

You can find all the details in the show notes or at www.iotusecase.com. And with that, I wish you lots of fun – let’s head into the podcast studio!

Hello Daniel, hello Philipp! How are you today? And where are you joining us from? Philipp, I’ll start with you. Where are you currently located?

Philipp

Today, I’m actually in the office in Langenfeld, between Cologne and Düsseldorf. Mondays are usually office days for me, so that’s where you’ll find me.

Is Langenfeld in the Rhineland?

Philipp

Exactly, the Rhineland – right between Cologne and Düsseldorf. I personally live in the southern part of Cologne, so it’s not the most convenient location for me, but it’s ideal for my colleagues as we cover a large catchment area.

How many people work at your location? I quickly checked on Google – your building is huge! A gray building with a new yellow ORGATEX logo on it, right?

Philipp

That’s correct! We have not only office space but also logistics facilities here. At this location, we’re about 75 people, and across the entire group, we’re currently around 120. We also have a second site in eastern Germany.

Very exciting! Great to have you here today, and thanks for making the time! And Daniel, hello to you as well. Where are you today?

Daniel

Usually, I’m in our office in Düsseldorf – we have a lovely spot in the Media Harbor. But today, this Monday, I’m working from my home office.

Very nice! You’re not too far from each other, right? Düsseldorf is basically around the corner.

Daniel

Yes, exactly. I drive past ORGATEX when I’m heading to the office.

Great! I’m really glad to have both of you here today. I’m curious how this collaboration came about. Can you tell us the story behind it? Is there a personal connection, or how did your companies get to know each other?

Daniel

IOX is an IoT specialist. We help companies implement their IoT products and solutions. Additionally, we’ve developed some of our own products, like our service button for material orders. That’s how we started talking with ORGATEX, which operates in the intralogistics space.

I have a follow-up question: you don’t just offer hardware but also connectivity solutions. That’s definitely something we’ll dive deeper into today. And I suspect the word “button” will come up frequently in our conversation. It’s very exciting that you’ve set up your own service that allows people to actively drive forward their own development of IoT solutions with you. But I believe we’ll soon learn more about what exactly you have implemented together.

Philipp, would you like to add anything to that?

Philipp

Yes, very much so. We are a medium-sized SME based in Langenfeld, primarily focusing on the topic of “Simplify Your Workflow” in the field of intralogistics, particularly for industrial and logistics customers. Our diverse product portfolio includes around 3,500 analog items.

We’ve also been heavily involved in exploring digitalization: What challenges exist? What’s currently happening in this space?
We’ll get into more detail about that shortly. We’ve identified IoT, automation, sensors, and visualization as key areas of importance. Customers are increasingly recognizing us in these areas, even though we originally come from the analog side.

From this realization, the idea emerged to collaborate more closely with IOX to develop solution-oriented approaches for our customers. That’s perhaps an additional point worth mentioning.

Since you brought up your customers: who are your typical customers?

Philipp

In Germany, we supply around 16,000 direct customers on-site. Our typical customers are heavily rooted in the automotive industry, but we also serve the broader industrial sector and its value chain, especially the logistics processes – from raw material suppliers to the last mile.

That’s our primary customer base, which we serve not only in Germany but also globally. Internationally, we work indirectly through a strong network of distribution partners. For instance, ORGATEX products are also found in industrial facilities in South America.

Very cool!
You just mentioned the phrase “Simplify Your Workflow”. What specific workflows are we talking about here? You’re well-known for topics like container labeling, boards, shelf labeling, and material flow expertise. Does “Simplify Your Workflow” typically refer to logistics, production, or both? Can you clarify where you position yourselves with your customers?

Philipp

Of course! We operate directly on the shop floor. We do not strictly separate industry, logistics, and production, as ultimately raw materials and components need to reach production, be processed in a value-adding manner, and leave the warehouse again. It is precisely in these processes that touchpoints with ORGATEX can be found.

Our classic bread-and-butter product is actually floor marking, which we continuously develop further. However, we not only offer digital solutions for intralogistics, but also a broad analog portfolio to provide our customers with use-case-specific solutions.
A typical customer or persona might be a logistics supervisor, production planner, or OPEX manager. Our entire portfolio is guided by the lean philosophy: we aim to minimize waste in logistics and industry through the targeted use of our solutions.

You’ve already mentioned that digitalization is a big focus for you. What’s currently changing in your market? You originally came from floor marking, which at first glance doesn’t seem particularly digital. What’s happening in your market, and what are your customers especially focused on right now?

Philipp

Sure, at the end of the day, it’s no secret that both industry and logistics are highly efficiency- and cost-driven. Every euro spent in this area, especially on so-called C-parts, is carefully evaluated. If you ask a purchaser, ORGATEX is often categorized as a C-parts supplier.

That’s one of the reasons we’ve been asking ourselves how we can further develop our products. For instance, floor markings in high-traffic areas wear down over time, even if they are designed to withstand long-life or heavy-duty use. Similarly, our painting solutions eventually show signs of wear.
This led to the idea of digitalizing floor markings by projecting them – completely wear-free. That was our first step into digital intralogistics. We constantly consider how we can improve something digitally compared to the current state. Our goal is not just to digitalize products but also to simplify and enhance processes – staying true to our motto, Simplify Your Workflow.

Maybe you could elaborate a bit on the topic of C-parts. These are masses of small components that have relatively low costs but play a central role – like screws, seals, or nuts stored in containers. Is that correct?

Philipp

Exactly. We focus less on production materials and more on visualization materials.
This can include classic container labeling, such as a display pocket used to label containers. We typically categorize this under C-parts or equipment, depending on the procurement structures our customers have.

At the end of the day, we see ourselves as suppliers with a broad product portfolio. In addition to visualization materials, we also cover material flow. For example, we are resellers for K. Hartwall products in the area of floor rollers and support our customers with solutions in this field.

Alright, let’s talk about specific use cases. What projects do you typically implement together? You mentioned digital marking earlier, and we’ve discussed the button. What IoT applications are you implementing specifically?

Philipp

For us, the lean philosophy is always the priority: with our solutions, we aim to reduce waste. Take the button as an example: imagine you’re in production assembling components. You’re using consumables like screws or seals that may not be recorded in the ERP system and, therefore, can’t be automatically reordered.

We often see the same pattern when we discuss with customers and analyze processes on-site in their production halls – a core part of our service offering. While we don’t consider ourselves traditional consultants, we bring a lot of experience in this area. Here’s a recurring issue: when materials run low or run out, someone takes the empty KLT and runs to logistics. But when they arrive, no one is available – colleagues might be on a break or busy elsewhere. On top of that, the required material isn’t immediately found because the person is not an expert in that area. This leads to unnecessary downtime in production.

We’ve looked at such situations and thought: there must be a better way. Why should someone have to run to the warehouse? Why not have the material delivered directly to where value creation happens?

Makes sense, avoiding downtime aligns perfectly with the lean philosophy. So, the use case for the IoT button is that it can trigger orders – for example, to bring supplies to production. What else can the button do? Are there other use cases, like reporting disruptions? Or is it primarily about reordering missing materials?

Philipp

Exactly. With some customers, we’ve also implemented pickup requests between departments using the button. A typical example is the interface between production and logistics, such as when goods need to be transported along a cold chain from point A to point B – often under tight time constraints. While there might already be an email in the system for such cases, pressing the button additionally triggers a direct call to the mobile phones of the logistics staff, which are mounted on forklifts. This ensures that the goods are picked up on time and the cold chain is maintained.

These are typical use cases, especially in industrial and logistics processes. Of course, Daniel from IOX has additional examples, but these are the areas where we’re currently using the button.

Thank you for the segue! I wanted to ask Daniel because the more technical aspects are likely your area. You are, among other things, experts in Narrowband IoT.

your role is probably to handle data integration and connectivity, connecting the IoT button to a system or a cloud. Is that correct?

Daniel

Exactly, we support our customers from the initial concept to the final product, helping to develop and bring such solutions to market. We follow a very lean approach using rapid prototyping: testing concepts first before investing in complex series development, while always keeping the eventual series production in mind.

Technologically, we’ve specialized in Low Power Wide Area Networks, particularly NB-IoT and LTE Cat-M1, which offer high flexibility. An exciting approach – not just for ORGATEX but for B2B customers in general – is to develop products with a highly positive total cost of ownership. For example, mobile buttons or labels need to be energy-efficient to avoid frequent battery replacements.
We also rely on multi-communication stacks to flexibly adapt to different customer groups and requirements. Another critical point is integration. Many customers invest significant sums in this area. We’ve taken steps to reduce this effort through automation platforms and no-code tools. The goal is to simplify processes as much as possible, not only offering hardware but also ensuring a lean and efficient integration process.

[13:24] Challenges, potentials and status quo – This is what the use case looks like in practice

Philipp, do you already have some kind of return-on-investment analysis on your side? The figures probably depend on the individual use cases, but can you share any insights into the business challenges your customers face to highlight why they should invest in such solutions?

Philipp

Sure, that’s a great point. It’s a big topic, especially as a project moves from a pure user or operational level to a higher maturity level, where procurement and other departments get involved to conduct a total cost of ownership, or TCO, analysis.
Interestingly, cost isn’t always the main driver for us. Particularly in areas like Tier 1, 2, 3, and OEMs, customer-specific requirements often push projects forward. Examples include goals like achieving CO2 neutrality by a specific date or transitioning to paperless processes. In practice, this means no more paper shipping labels or production orders. These requirements are often the key motivators for discussions with customers.
Of course, costs do play a role – that’s undeniable. But comparing the current state with a future state is always challenging. It requires a certain willingness to invest in innovation and future-readiness. The companies we talk to understand this. They keep an eye on costs but typically have an innovation-driven mindset, aiming to improve processes and prepare for the future.

Process improvements, like increased process reliability, are hard to quantify in euros. You can calculate a lot, but there’s often an intangible element that’s hard to pin down. Nevertheless, innovation, process security, and future viability are the critical factors driving our customers.

Still, I’d be curious to hear if you have a concrete example. You’ve mentioned several use cases already, like digital documentation. The goal of paperless processes is a valid case, and there are also quantifiable topics like reducing search or ordering times. Let’s stick with digital documentation – how much paper are we talking about in such processes? Do you have a specific example from a workflow?

Philipp

Yes, exactly. Yes, exactly. What we often see is that many components are transported in so-called KLTs – small load carriers, typically black boxes that move through production from one manufacturing step to the next.

KLT stands for Kleinladungsträger (small load carrier), right?

Philipp

Correct. Simply put, these boxes are used to transport goods in intralogistics from point A to point B.
To give you a practical example: we’re currently working on a project where the customer has to print up to 90 pages of paper to transfer goods from raw material to a finished product. That’s obviously a massive effort, and the customer is fully aware of it – they described it to us with both a laugh and a sigh.
The potential for errors is correspondingly high. Currently, these paper sheets are taped to the KLTs using adhesive tape. You can imagine how long that lasts and how reliable it is. The central question here is: how can we improve the process and make it secure? How can we reduce search times and ensure the relevant information is readily available?

In such cases, the goal is to make the information for a production order immediately accessible, rather than having an employee flip through 60, 70, or even 80 pages – although that’s an extreme example. But it highlights the importance of optimizing such processes.

Absolutely! It’s often a legacy issue that so much paper is used. That’s precisely why we’re discussing how you optimize these processes today. A question on this: you mentioned the need for information availability. Do these data typically come from an ERP system or other sources?

Philipp

Usually via an interface. The devices need to connect directly to the ERP system and can also run autonomously via a dedicated cloud solution we offer to our customers. However, we can connect to ERP systems via traditional REST API interfaces, essentially functioning like a printer. Simply put: instead of printing out the documents, we process the information so it’s displayed directly on an e-ink display on the KLT.
This eliminates the need to go to the printer, print, sort, attach, file the paper documents, and search for the correct sheet during the process. This optimization significantly reduces process times and is a key argument for our solution.

I see. So the typical data you use comes from the ERP system but also from other sources. You mentioned technologies like Narrowband or LTE Cat-M1. Are we talking about real-time data here? What data frequencies are you working with?

Philipp

That really depends on the specific use case and is heavily influenced by production conditions. For example: how frequently does the content of a KLT change? That’s not something you can generalize with a fixed number.
The reason we chose Narrowband as our primary technology stack is primarily because it doesn’t depend on existing infrastructure. Wi-Fi in industrial halls is often overloaded, as these facilities are usually vast and filled with metal, which would require additional infrastructure. Additionally, many sites have multiple halls on a single campus but still want to maintain consistent container labeling across all of them.

This was one of the main reasons we opted for LTE Cat-M1 and Narrowband. These technologies significantly lower the barrier to trying out such solutions and transitioning to e-visualization.

Daniel, a question for you: what role does the mentioned infrastructure play? Is it a common challenge that it first needs to be built? How would you assess the importance of infrastructure for implementing such use cases?

Daniel

It really depends on the customer group. For industrial companies, as in Philipp’s example, the situation is naturally different from that of a gas station operator or a municipal utility. The first step is to clarify where the devices will be used and whether an IoT infrastructure is already in place.

Some customers, for instance, have an IT infrastructure that could theoretically support such applications. However, the effort required for the customer to use this infrastructure is often too high. These foundational questions must be addressed first before deciding on the radio technology to use.

You certainly have an incredibly diverse customer base with a wide variety of use cases. The example we’re discussing today is just one of many – but every customer, of course, has individual requirements. That makes sense.

Maybe this is a good segue into the question of why you decided to collaborate here. Philipp, a provocative question: why not develop this yourself? You could say, “We’ll handle this internally.” What convinced you to bring IOX on board?

Philipp

That’s a valid and excellent question. We follow a hybrid approach, meaning we have our own in-house developers but also work closely with IOX. The primary reason for this is the expertise we gain from IOX. They have specialists in radio technology who bring valuable know-how from their experience across various projects and industries.

As an SME, we can’t simply hire 200 or 300 people for a project like a large corporation might. Scalability is therefore a significant topic. How quickly can I bring the right experts on board? That was one of the main reasons we decided that partnering with experts like IOX made absolute sense. It allows us to be more scalable and flexible during the development phase for our customers.
At the same time, we don’t hand everything off. We stay close to the customer: our developers accompany projects on-site, analyze the conditions, and understand the use cases down to the smallest detail. They can then translate these insights technically and share them with the IOX team. This hybrid model is the right approach for us.

Very cool! Daniel, a follow-up question: what exactly did you bring to this project? You have your own products and the ability to work closely with your customers in a hybrid model. What specifically was your contribution in this case?

Daniel

We call this Product-Team-as-a-Service. It means we help our customers build a product team and provide the necessary resources as needed.

In the case of ORGATEX, we provided hardware, software, and cloud developers, as well as an Agile Coach who supports and unites the team. The big advantage of this hybrid model is that companies like ORGATEX can fully focus on their core competency: developing an excellent product that perfectly meets their customers’ needs. At the same time, they avoid getting bogged down in technological details.
We work in a classic Scrum sprint system with two-week sprints. Our developers collaborate closely with the ORGATEX team. There are regular reviews and planning sessions where we align with each other, provide feedback, and discuss what can be improved, how to accelerate processes, and how to avoid future errors.

[24:06] Solutions, offerings and services – A look at the technologies used

You bring a range of expertise to the table, particularly in the area of Narrowband IoT and LTE Cat-M1, as you mentioned earlier, together with your Product-Team-as-a-Service. Why did you choose these specific technologies, and which were used for the IoT button? Could you explain this in more detail— what technology was used and why?

Daniel

IOX was founded in 2015, at a time when Low Power Wide Area Networks (LPWAN) were just emerging. Mobile network operators had announced Narrowband IoT networks and introduced them shortly thereafter. IOX was one of the first companies to recognize the potential of this technology. We adopted it early on, leveraging its benefits—particularly the lack of infrastructure dependency, which allows devices to be deployed across various locations without requiring complex installations.
This served as the foundation for our collaboration on this project. Additionally, we always ask ourselves: what other technologies are necessary to fully implement a use case? Typically, the choice isn’t limited to a single technology. Often, a second technology is integrated, either as a backup or to support additional use cases. For example, Bluetooth, Wi-Fi, or Matter can be added to provide more options. Depending on the requirements of the use case, the appropriate technologies are either integrated or activated.

That sounds like a lot of exciting possibilities! I see potential for another episode to explore different use cases and technologies. But one final question on the technology side: you mentioned ERP integration earlier. Could you explain how you’ve solved or plan to solve data integration, particularly in relation to ERP systems?

Philipp

We rely on state-of-the-art tools and are heavily focused on no-code solutions. Our goal is to develop our products and the entire eOX ecosystem, Electronic ORGATEX, to a point where customer projects can be implemented with minimal involvement from their IT departments.
The vision is for users to be able to independently connect sensors, actuators and e-visualizations and interlink the systems. Of course, this is a long-term goal, as many industrial customers use various ERP systems that are often highly customized. Particularly in the SAP world, we see that companies with over 1,000 employees frequently have unique interfaces and configurations. This presents challenges, but we’re optimistic because there has been significant progress in the no-code space over the last two to three years.

Currently, we use classic REST API interfaces. While this requires effort on the customer’s side, it’s our preferred approach for the time being.

Absolutely! This opens up fantastic opportunities to implement additional use cases. One major topic that often comes up is traceability – the ability to track and trace products. In regulated industries, having access to such data is crucial for demonstrating compliance. Your customers must benefit greatly from having this data digitally accessible.

But traceability is surely just one example. Are there other use cases your customers could implement with these technologies in the future?

Philipp

Absolutely, that’s precisely the idea. We start with a few use cases, and our approach is very sales- and customer-driven. This means we analyze what’s currently the most relevant topic in the market – the hot topic – and implement it together with IOX.

We’re open to third-party providers if they fit with us and meet our quality standards. Here, we take the classic “make-or-buy” approach: is there a solution on the market, or do we develop it ourselves? If we don’t see potential in a third-party solution, we proceed with in-house development. I can tell you that our development colleagues already have a well-filled pipeline for next year – we’re definitely not lacking exciting topics and use cases right now.

That sounds like a lot of exciting possibilities! Thank you for the engaging and concise presentation today.

It was great to hear about real-world use cases from your customers and how you’re implementing them with these technologies.

For all listeners, I’ll include the details in the show notes – both about the IoT button and how to contact Daniel and Philipp.
I’m sure you’re open to discussions, as even though the use cases vary, there are certainly logics that can be applied across them. Thanks to both of you!

Maybe one last question: do you have any best practices or tips you’d like to share? Something to keep in mind when implementing such projects?

Philipp

One key point we’ve consistently observed in practice is this: it’s super important to bring the entire workforce on board. When we start projects on-site, we often see that some customers are very innovation-driven and bring a lot of enthusiasm. However, automation projects frequently encounter initial skepticism or resistance from others.

The key is to communicate how these solutions make daily work easier and highlight the benefits they offer. Gaining this acceptance is crucial for a project to be successful in the long term.

Daniel

I think what you just mentioned – the topic of APIs and integration into business processes – is absolutely crucial. Today, no one can afford to create isolated solutions that don’t fit into existing structures. Solutions must be integrable into a company’s infrastructure and designed to be open, following the API-first principle.

At the same time, it’s important not to lose focus. You need to clearly define the core of the solution. That’s something we bring to the table at IOX: keeping focus while embedding solutions into larger frameworks.

Absolutely, bringing all stakeholders to the table and ensuring alignment is key. It’s ultimately a change process. At the same time, the technology must be open, enable API-first integration, and ensure seamless connectivity. Daniel, I think this is an area where IOX truly brings expertise.

Thank you both! It’s been great to understand the possible use cases and how they’re implemented in practice. Thanks for that! I’ll leave the final word to you to wrap up the session.

Daniel

I think this example clearly shows how global competitive pressure, labor shortages, and sustainability are massive drivers of change – particularly in the industrial sector. Digital technologies like IoT are just beginning to push this transformation forward. I’m excited to take the next steps with our customers and support them in mastering these challenges successfully.

Philipp

Absolutely! To add to your point, Madeleine: the change process has just begun, and I think we have many exciting but also challenging topics ahead. That’s just part of it, and I’m confident we can support both our customers and ourselves effectively.

I’m really looking forward to all the projects coming our way and see us as a sparring partner as well. Every discussion brings new insights for everyone involved and leads to thinking about new solutions. That’s always exciting.

Thanks for that! Wishing you both a great rest of the week. Take care, goodbye!

Philipp

Thank you, goodbye!

Daniel

Thank you, bye!