Pioneers in the construction industry: IoT-controlled fleet management

Today I’m talking to Sascha Wolf. He is the project manager and IT manager at SCHIELICKE BAU Hoch-, Tief- und Ingenieurbau GmbH. We will also be joined by Martin Craul from DeDeNet GmbH, the IoT expert chosen by SCHIELICKE. Both will report today on their joint project, including the data connection of more than 100 vehicles – including cars, containers, trucks and construction machinery – that SCHIELICKE has in operation. Which IoT use cases already exist in the construction industry, and which of them are SCHIELICKE implementing? How exactly does the implementation of these use cases work? You will now find out about this and much more.

Hello Martin and hello Sascha, welcome to the IoT Use Case Podcast. Let’s start with you, Martin. How are you today and where are you?

Martin

Yes, excellent, thank you very much, Madeleine. Thank you also for the invitation.

With pleasure. Where are you right now?

Martin

I’m currently working from home and enjoying the Advent season.

Very nice. Sascha, how are you and where are you right now?

Sascha

Hello to you both. I’m still in the office, as usual. I’m doing quite well. A pre-Christmas atmosphere, lots to do, as always at the end of the year.

Yes, very nice. Where exactly are you located in the Brandenburg region?

Sascha

South of Potsdam, Beelitz to be precise.

Best regards to Potsdam at this point. Martin, you are mainly active in the IT and services sector, especially in the area of fleet management. There you offer various software applications and also an entire software solution. Can you tell us what exactly you do there and which customers and industries you work with here?

Martin

You already mentioned my name, Martin Craul. I’m head of sales at DeDeNet and I’m delighted to be here today with Sascha Wolf and you to talk about classic IoT topics in a hands-on way. In other words, as mobile digitalizers, as we describe ourselves, we support companies with mobile employees when it comes to how to get information from the field to the head office or how to transfer information from the head office to the mobile field. This is what we deal with and help our customers with every day.

Very nice. I think we’ll find out a bit more about this today. What interests me is how your two companies actually got to know each other, or how you got to know each other personally. Is there a personal story there? How did that go?

Sascha

I am Sascha Wolf, Head of IT here for almost 20 years. We’ve always been involved with technology, let’s put it that way, and even before my time there were GPS systems for vehicles. Very complex, you got lists of pages showing where the vehicle was, and we just need simpler systems. We had been working with a partner, but I was looking for something simpler and better because we also develop ourselves, at the end of the day. Most systems don’t suit us because we are a construction company and most of them only do fleet management and logistics. Then I somehow came across Mr. Craul, or rather DeDeNet, and invited him to our office. It was a busy day. We have 100 devices, you can have the order, you can take it with you today or you won’t get it. As simple as that.

In other words, you scouted the market to see what kind of system was available that would suit you and then you came across DeDeNet GmbH, invited them directly and then it all started?

Sascha

Exactly. We were looking for an open system and it was open. We sorted everything out within a few hours that day. He was simply told that day that he would either do it or leave it.

Martin, another question for you in advance. I always talk about different use cases here in the podcast to make the whole thing a bit more concrete. Can you tell us what use cases you address in your projects and what you have implemented together with SCHIELICKE?

Martin

Many companies have the challenge of having, shall I say, mobile units. These can be employees who are out and about somewhere in the area. However, the example of construction can also be used here now. We are basically dealing with the issue of the “last mile”, i.e. knowing where my construction equipment is, where my construction container is, where my vehicle is, where the component for my business purpose is. But just to pick up on that again, I was also happy to be pinned down. I think SCHIELICKE BAU is very innovative, and that’s exactly what sets us apart with our open system and our flexibility to follow a common path all the way to a podcast. Not necessarily every customer participates in something like that. We are moving into the future as partners. As DeDeNet, we are a strategic partner of Telekom and SCHIELICKE BAU also has very close ties with Telekom. That was another key to our joint success, because of course underlying platform technology, the providing, has to work accordingly. Otherwise, both Sascha can make his request and we can do things there technologically, but if the data is not transmitted, then of course it won’t work either.

Sascha, you’ve just mentioned certain vehicles. You operate in a very specific market segment and are also a family business, now in its fifth generation. Your focus is on development. Everything to do with road construction, outdoor facilities, halls, markets, engineering structures and so on. Also in the field of demolition, excavations, earthworks. That’s where you are active. I would like to know more about you as a company and what exactly your products are. What exactly do you do?

Sascha

We are a multi-generational family business. The company has existed since 1905, i.e. for 118 years. That’s quite a lot. Thanks to Mr. Schiliecke, the company is now very IT-heavy and is looking for innovations to put the company ahead of other construction companies. You have to grow with the technology, be it AI, robotics, drone technology, etc. We are interested in everything that is technology in order to make work easier.

Your teams are out and about on various construction sites, where do you use your fleet of vehicles? What does a typical working day look like for you?

Sascha

We have many civil engineering construction sites, now also a new one in Neumünster, in Schleswig-Holstein. It’s not exactly just around the corner. But you just go where the work is. We have everything from large 36-ton excavators to the PC09, a 900-kilo mini-excavator. All are GPS-monitored. We try to find out where which machines are located and how they are used. That is important for us. We need to know whether the machine is being used and whether it is being used efficiently, whether it is being fully utilized. For example, if a 36-ton excavator only runs for one hour a day, then it is not necessary. It should operate 8 hours, like an employee. These machines are expensive, and if they just idle around, it’s not profitable. You have to recoup the costs of the machine and the operator, and that involves technology.

Approximately how big is your fleet? Can you give us an estimate?

Sascha

I think there are now around 100 machines. I used to co-manage it and now I’m a bit out of it, so I don’t know exactly. But it’s quite a lot, because we now have wheel loaders, excavators, our own low-loaders, rollers, tippers, all sorts of things.

You mentioned the GPS keyword or technology. You have now said that it is interesting for you to know where which machines are and whether they are being used to capacity. What is your vision for digitalization? What exactly are you planning here? What is your goal?

Sascha

We already have that. There are tracking systems for parcel service providers. You know exactly when the parcel will arrive and so on. It’s actually the same with us, we have a kind of geofence around every construction site. We know exactly when the employees enter the geofence, i.e. when they are on the construction site. Which machines are on the construction site? We have a map so we can look it up. How does it perform? Does it operate under load? We can do all this through DeDeNet, through data transmission, and that is extremely important. An example for the employees, especially in winter: they can of course also sit at the machine and just let it idle. A diesel is nice and warm, but it doesn’t operate at all. The environment and electric vehicles are also becoming more important. We now have a huge fleet of vehicles, including electric wheel loaders. The topic of ecology must be adhered to, now also with the construction machinery.

[11:12] Challenges, potentials and status quo – This is what the use case looks like in practice

Sustainability is of course a huge issue. I would like to talk a bit about the business case for these projects. At the end of the day, you are investing in the future and in the topic. What would you lose in time and money today if you didn’t do this? How much time is lost when the team has to be on site somewhere or the site manager? What would you save or are you already saving?

Sascha

It depends, we have a kind of planning board. When you realize that you drive to a construction site with a van and 9 men and always arrive 15 minutes late and leave 15 minutes early, you can calculate how much money the company loses as a result. The same applies to a construction machine: you always have to check whether it is fully utilized for a construction job, too small or always at full load. Then you know it’s the wrong device and it needs to be changed. Not every machine is suitable for every application, hence the wide range of machines. We also use 3D GPS. We used to need two people for a construction pit, one of whom would stand in it and measure the heights with a laser. We now use 3D terrain models and the excavator digs according to this model so that only one person is needed. This makes you more efficient and faster. You can offer different prices because you only need one person and one machine.

Martin, what do you think? You have various projects with other customers. Is that also the trend that is emerging? To save such times, but also to enable data-driven decisions? Or what are the business cases that you often see with customers?

Martin

What Sascha Wolf is saying right now in the specific case of SCHIELICKE BAU is absolutely right. It’s inefficient if I, and I’m being somewhat provocative here, as a typical “hunter and gatherer”, take all kinds of things to the construction site that I might need. However, it is not efficient for the company if I have all this equipment that a colleague on another construction site might need. We enable the customer to know exactly where what is located, how the utilization is, and whether the device is too large or too small, in order to make management decisions based on this or to purchase an additional device if the utilization is too high or to cancel an unused device. IoT helps to counteract the shortage of skilled workers and operate more efficiently. Sustainability is important to us, which fits in well with SCHIELICKE BAU’s philosophy, as both are family businesses with a focus on e-mobility and green IoT – topics that, as they say in northern Germany, go well together.

Sascha has already mentioned this. What would interest me again would be the data. Availability plays a role. What kind of data is actually relevant for you that is then processed in IT? Do you have some examples?

Sascha

Of particular interest are aspects such as the utilization of the machines: whether they are running faultlessly, whether there are defects or whether they are leaking oil, for example. We use numerous Komatsu machines with their KOMTRAX system, which provides us with detailed information, even about the condition of each individual bolt. However, these systems are closed and access to the data is restricted. It is crucial for us to be able to use and process the data. DeDeNet has an open system with full data access. Even if this means that we have to develop it ourselves – in fact, our in-house developers are currently working on a dynamic schedule that will also be launched on the market; a company has been set up specifically for this purpose. It’s about planning the future and calculating what a machine can do. You can estimate the capacity of a machine with a certain size and a specific bucket. This is where big data plays a role: we collect a large amount of data, which must then be evaluated in such a way that the management or project manager can immediately see what has been achieved up to a certain point in time at the click of a mouse – preferably in a graphical representation. For example, the use of 5G networks, which are becoming increasingly widespread and enable the transmission of large amounts of data, could make such information available in real time. But the challenge lies in effectively evaluating these volumes of data. Typically, you get endless lists or data collections. The task now is to prepare this data in such a way that a project manager can see the progress at a glance: how much progress has been made and how long it will take to complete the project. This makes it possible to start planning for the next projects at an early stage, as our planning is not limited to the next few days, but goes weeks and months in advance, with orders already set for the next year. This concerns resources such as personnel and machines. Everything is highly synchronized; there are fixed completion dates, and by collecting this data you can check daily whether the schedules are being met or whether you need additional machines to meet the deadlines. Digitalization is an often-mentioned buzzword, but in reality it hardly takes place in the government. The will is there, but the implementation is not. For example, building applications in Germany are still submitted on paper, which is really bad.

You somehow said, okay, DeDeNet GmbH, that’s our partner, they have what we need for our project. Can you briefly explain what the technological requirements were for the DeDeNet GmbH solution? Where you said that this must definitely be the case for the project to be successful?

Sascha

Well, on the one hand, price always plays a role, that’s always one of the most important things these days. After all, it’s no use if I pay a lot of money, as I did with the previous partner, and then only get part of the data, or if it’s very inflexible. But it is also important to adapt to the construction curve or other things like the construction machine, every machine is very different. I have a vibrating plate that wobbles, you can’t put some electronic device on it, it will fall apart afterwards. A container is not driven back and forth that often, so you might need data twice a day to know where it is. You can also use it as theft protection, although no machines are stolen here. That’s more of an addition to all the things. It’s more about knowing what the device does. Then you have wheel loaders, transporters have different requirements again. It is also possible to simultaneously transmit the drivers via RFID chip and see who has entered the car. The GPS device has a different requirement each time.

This means that there are various use cases that DeDeNet can also address with its solution, which was important to you.

Sascha

Exactly, they don’t just have one solution and there are always new ones being added. That’s what matters, I don’t need a partner who offers you three products,either take it or leave it. I don’t feel like doing that.

You mentioned the topic of infrastructure and data transmission. Do you have anything else that was important to you in the use cases?

Sascha

Data transmission is extremely important. Telekom has been trying to become our partner for a very long time. Since this year, they have managed to do so because they now have the best network in Germany. They have a huge infrastructure, the network is very good. . So there’s nothing there yet. But you need a network, otherwise you can’t transfer the data. It’s no use having 1000 GPS devices that don’t send the data afterwards. I have to be able to process the data or receive it so that I can process it. I can do that as a partner of Telekom. Things work there that don’t work so well for others.

The applicability depends on the specific use case and what kind of data point needs to be transmitted, even in areas with little infrastructure – something that may well happen in your area, I imagine.

Sascha

Exactly, the data always has to be transmitted. Large machines generate a lot of data. For small ones, just once or twice a day. Or have I left the country? For example, we have a geofence system that gives us an automatic warning if a machine leaves a certain area and we are informed about theft.

[19:20] Solutions, offerings and services – A look at the technologies used

Martin, what does this solution or the solutions generally look like for you and what exactly did you implement in the joint project?

Martin

I would like to add something else – namely performance, platform and security, which is of course also extremely important. Sascha already mentioned the best network, which of course plays a relevant role for data transmission. As a partner of Deutsche Telekom, we are also represented in German data centers, which means that where the data is processed, corresponding availability must also be guaranteed. Data protection and data security are essential aspects to ensure that information flows reliably to the customer and that decisions can be made on this basis. It is important for us to do this together with Telekom. Due to the different customer requirements, we have established an open system. We only handle our customers’ data, because it is their data – no more and no less. It is therefore crucial to know what data the customer needs. In the construction sector, for example, we use devices that have a certain degree of robustness, such as IP protection classes. For cars, we collect telemetry data such as mileage and fuel information, which can prevent misuse and is also relevant for leasing contracts. Based on this, automatic reports or alerts can be created, for example to indicate that a device needs to be replaced or serviced because it has reached its operating hours. We have a wide range of technologies for cars and trucks, connection to DigiTacho, watertight units for construction equipment and self-sufficient components such as containers and attachments that use other technologies. Our specialist listeners know that, in addition to GPS, we also use technologies such as BLE (Bluetooth Low Energy), RFID and sonar radio. It is a combination of all these elements. If the customer tells us what data they need or what is important to them, it is our job to make this data technically possible and deliver it.

You bring a complete package with you, you supply the hardware in the form of tracking boxes, where you have a kind of hardware ready to go. But you are also responsible for connecting and analyzing this data. You provide an overall solution with your team, where you can then connect and implement a wide variety of use cases.

Martin

Correct. We have an open API that we make available to the customer, where we simply say, this is the data we get. The customer defines which data is relevant to them. We are a pure software company, a pure software provider. This means that the hardware that we implement with us comes from partners, where we then put customers specifically in the right hardware drawer and take the right solution from there, because of course a car has different needs than a container. This also corresponds to what Sascha mentioned: We offer variety instead of restriction. This is a particular advantage when working with Telekom, as we meet a wide range of customer needs. Standardization allows us to keep costs low without having to reinvent the wheel every time, enabling us to map a wide variety of telematics and tracking use cases, as discussed in this podcast.

You just mentioned the API interfaces. This means you can also transfer data from A to B and integrate it from different IT systems, for example. Why is it important? Is this linked to the ERP? Are there any use cases?

Martin

Yes, absolutely. To quote another customer: “I only want to touch the data once”. This means that there are corresponding data containers and Sascha naturally also has a lot of information in his ERP or in-house infrastructure where we receive data. On the one hand, because the API operates in both directions. In other words, we record the data and then return the information: it was in there for so long, it was on and it was off and it had the temperature and so on. This is what is exchanged via the API, coming and going. We have a super innovative customer here who has the know-how to say, I would like that and the management will decide. Sascha and his team then work with us to ensure that what is requested is delivered in the end.

I would be particularly interested in the data analysis. In the end, there probably has to be some kind of evaluation unit where the team looks at it and says, okay, this machine is working under full load, for example. I would call the customer and let them know that the device needs to be replaced, or perhaps the device is being used elsewhere or is not being used to capacity. Such information must first be recorded and analyzed somewhere. How does this data analysis work? How do you handle this?

Martin

I can only speak from my side for now, but Sascha will go into more detail in a moment. Fundamentally, this point is also somewhat of an old shoe. I look in to see what’s happening. Ultimately, I define what I want to know. If this case happens that I want to know about, the software informs me proactively. Nobody has time to see where anyone is driving around these days. Let’s take this event, which Sascha had in an example. Something moves where it shouldn’t or at a certain time or speed, temperature, etc. The solution then proactively informs me that I should react, because ultimately a third party takes over the monitoring for me. As a human being, I have to decide what I want to know. We then provide the information based on all this data that we receive, process and pass on accordingly.

This keyword “something I want to know” is something, Sascha, that you probably define in the team. You have a very high level of expertise about the individual customers and the devices. I guess that’s your expertise, where you know the cases and analyze them based on the software, so to speak, right?

Sascha

Yes, it usually comes through Mr. Schielicke or through me. You always think about optimizing. You look at it, maybe you go to a construction site, although we do that less and less because we now have video walls everywhere and are trying to digitize everything. We try to bring the construction sites into the office. We have construction sites and project managers in Neumünster, Berlin, all over Brandenburg – if you have ten building blocks, you can’t be everywhere. Now it’s muddy too, so you have a mud with ten men, great. You’re happy and so maybe you sit down in the office with a mulled wine or coffee at that time and take a look at it. We also have drones, we also digitalize a lot through aerial photography, through drones. Our next step, for example, is also live streaming with drones.

Okay, so you really do have a video wall where you can show these individual construction sites? Or how does that work?

Sascha

Right. We have a 3×5 meter video display, now even two – one with LED technology. As a reference partner of Sharp, we have realized some cool projects, and there is an impressive reference video on the Internet – definitely worth a look. You can take a look at what we do and bring this technology into the office. Then you have to think about what you want: do you want to work more efficiently or achieve more in less time? These are considerations that also belong to the area of management or controlling. Are you efficient? Does the system work efficiently? And this can only be determined by collecting data. The more data I have, the more I know. We are currently developing our own planning board again because we want to measure efficiency. Do the machines work? Do we need others? More staff? Or less? The only way to find out is with data and information. The more data you have, the more efficiently you can work and the faster you can create invoices in the construction industry, where pre-financing is often necessary. You could show the progress to the client with a photo. That is what I have achieved. This is then visible, perhaps through a camera on the construction site. Okay, that’s done? Good, then the invoice will be released. Otherwise it must first be checked. An invoice with 100 items, for example. This makes things simpler and more transparent for everyone involved.

You really are pioneers in this respect, it has to be said, especially in the construction sector, where, as you have already indicated, many people are not yet as far along in the political debate. It’s impressive how far you’ve already come, that you’ve been active for years and are now expanding further in collaboration with DeDeNet. I think there is still a lot of potential for the future. This leads me to my last question: Which way do you think? Perhaps first to you, Sascha: what potential do you still see? You’ve already mentioned it a bit. But what can we expect from you in the future? What potential do you still see?

Sascha

So, I see 5G technology as having the potential to transfer enormous amounts of data. Imagine a live image of a wheel loader or excavator – that’s possible with 5G, but not with LTE or similar. I can’t transmit a live image with LTE, it just doesn’t work. Processing the data, i.e. transmitting it in real time from every machine, and not just because a drone is flying. We’ve also thought about using the Spot robot, which walks around, and we also use 3D scanners, all these things. But here we come up against the political situation again. In terms of fiber optic expansion, we are at, I think, 5-8%, while South Korea is at over 90%. But I must be able to transfer the data. And if I have a 3D scan that is perhaps 100 GB in size, I can’t easily transfer it. You can’t do that without the Internet. But that is the direction we want to take. We want to produce more and more data and analyze it. But we have to get them into the house from many locations. That is the challenge.

I can already see that there is definitely a lot to talk about on this very topic. Martin, what do you think? What about the technology-side? What are you working on right now? What else is coming from your side in the future?

Martin

Basically, and this fits in exactly with what Sascha said, the topic is multidevice. In the past, a tracking box was simply a tracking box. Today, especially for us as a software provider, it’s about extracting even more data from the devices or vehicles or using the tracking box itself as a data collector. I have already mentioned technologies such as BLE and RFID, i.e. short-range technologies. Because not everything can be equipped with a mobile phone card due to the high power consumption – an important issue for self-sufficient components that should not only run for two weeks before they have to be recharged or replaced. The balance between energy requirements, the frequency with which information is needed and the way in which this information is obtained is therefore crucial. For this reason, we now use tracking boxes as middleware to save the machine hours or telemetry data for construction equipment via a CAN bus. We are collecting more and more data, just like Sascha said, and initially making it available centrally in our portal. But of course, we also pass on the data because, as I said, it’s the customer’s data, not ours. We visualize them, make them available and are naturally interested in ensuring that customers can process them optimally. I would like to emphasize this key aspect once again. On the subject of invoicing: The time between service provision and invoicing is being massively shortened by digitalization and IoT. This means that you no longer have to pay so much in advance, be it for personnel costs, machine costs or other things. You can create reports much more quickly or have the information yourself about what has happened outside and what has been achieved. And this can then be verifiably invoiced to the customer. A further advantage in addition to the aforementioned aspects such as sustainability and the shortage of skilled workers, where IoT or our solutions naturally have an enormous supporting effect.

Yes, absolutely. And this is actually the greatest leverage you can have: working in a data-driven way and having the opportunity to realize business cases that ultimately save time and money. Now I would like to slowly summarize the episode. I still have a few questions, but I’m also keeping an eye on the clock. It was really exciting to get an insight into your project today. I think this is extremely interesting for listeners from the construction sector, but the case is of course also transferable to other, similar companies. So on the one hand, it’s very exciting from a technological point of view, but also a big thank you to you, Sascha, for joining us today and telling us about your use cases, such as the full load work of the machines, their locations, capacity utilization and availability – topics that represent a major lever for your company. Not only now, but also in the future. It’s great to see how you work together and that you have found a suitable partner, not only for the present but also for the future. So I would also like to thank you, Martin, for being here today, and of course both of you. Finally, I hand the floor back to you. From my side, thank you very much for joining us today, it was very informative. I will link your contacts in the show notes. Have a look there if you would like to get in touch.

Martin

I often have this question with customers: What are the benefits of IoT? What are the benefits of digitalization? The important thing here, and I can simply say this again as a core message, is that we need innovative customers like SCHIELICKE BAU, who have a certain willingness and entrepreneurial spirit, from the management to Sascha, because of course he has to do the whole thing. That is simply very important so that the benefit is created in the end. That’s just really, really important because digitalization, I keep saying it, is the way forward, not just pressing a button and being digitalized. That is simply crucial. So I can only encourage everyone to take the steps, to address the issues and then to find a reliable partner. This then leads to talking to each other, developing an understanding of each other, and of course that’s what makes it work in business.

Sascha

I believe that we should, can and must invest in future technologies, especially in construction, so that we can always be at the forefront, even in difficult times. This is extremely important, otherwise you will be left behind at some point. Time is moving ever faster and technologies are constantly evolving and never stand still.

That’s a nice way to end today. Thank you very much for joining us today and I wish you a great rest of the week. Many thanks from my side. Take care. Ciao.

Martin

Thank you very much.

Sascha

Ciao!