Many industrial companies, including a mechanical engineering company, see potential for optimization in returnable management. Limited transparency can lead to bottlenecks, empty runs, and avoidable costs. ORGATEX’s IoT solution addresses this by providing real-time information, supporting demand-based replenishment control, and ensuring reliable communication between sensors and the cloud. In this way, returnable management becomes an integrated component of digital intralogistics and forms the foundation for data-driven material flow control.
The challenge: transparency and demand alignment in returnable management
In many manufacturing plants, the status of returnables is not consistently visible, because empty containers often have no inventory value in the ERP system. Yet they remain essential for stable operations. If returnables are missing, parts cannot be transported or stored as planned.
In the mechanical engineering company’s milk runs, typical effects become apparent—effects that also occur in other plants: routes and intervals are planned on a fixed schedule, but actual demand can vary depending on the situation. A milk run takes around 45 minutes on average. Without precise demand data, additional trips for returnables occasionally arise, while short-term bottlenecks can occur elsewhere.
As in many companies, this is partly offset by buffer stocks that tie up space and capital. Storage space is often limited, and dedicated zones for returnables are not available everywhere. This increases search effort and makes efficient use of floor space more difficult. Digital returnable management creates transparency here and supports demand-driven supply.
The challenges at a glance
- Missing inventory data makes planning difficult
- Unnecessary trips and bottlenecks in material flow
- Buffer stocks tie up space and capital
- Lack of space and time-consuming searching in the warehouse
The solution: digital returnable management as the key to efficiency
ORGATEX, a specialist in lean production systems, has developed a digital returnable management solution based on IoT devices and the ORGATEX Cloud. The mechanical engineering company is among the first users of the solution.
Sensors for precise inventory data
At the core are the OX parking space sensor and the OX Kanban sensor, which continuously capture the status of storage locations and shelf compartments. Both devices use optical time-of-flight technology, which works by measuring the light travel time from the sensor to an object and back. This enables precise, contactless measurement of object positions and fill levels.
- The OX parking space sensor records the position of a container on the shopfloor and detects whether it is present, empty, or full. When required, a replenishment order is triggered automatically. Conversely, a transport order can be generated when a defined number of empty containers is detected.
- The OX Kanban sensor acts as a digital Kanban system. It captures inventory levels in the shelf compartment and transmits the data wirelessly to the cloud. This ensures replenishment processes are initiated in good time as soon as a threshold is reached.
Information system for returnable management
Data is transmitted to the ORGATEX Cloud in real time. There, it is analyzed, visualized, and used for automated process control. Automation replaces manual inspection rounds and ensures a consistent supply to the production lines. Together with OX Label, this creates a comprehensive information system for returnable management. The label displays current status information, can confirm transport orders, and is connected to ERP and MES systems.
The ORGATEX Cloud features an intuitive user interface in which employees can configure processes, define alarms, and create visualizations. All data is transmitted in encrypted form and hosted in German data centers in compliance with the GDPR. Communication takes place via the local Thread wireless network or, optionally, via industrial cellular (NB-IoT/LTE-M).
Stable and secure communication
Thread is a wireless mesh networking protocol with encryption. It is particularly suitable for local communication between small, energy-efficient devices. The devices act as peer participants and relay information from one to the next. This increases the stability and reliability of the network.
ORGATEX’s Thread-compatible devices can be operated both within a local network and, without any local infrastructure, via cellular connectivity. Installation effort is low, and updates are deployed automatically over the air without IT intervention or production downtime. An included gateway is used to connect to the cloud via cellular communications.
Device management and data analytics in ORGATEX Cloud
ORGATEX Cloud manages all devices, provides interfaces to ERP, MES, and logistics systems, and enables processes to be configured without any programming skills. Users can create their own dashboards, analyse data, and adapt workflows. The cloud is hosted in a GDPR-compliant manner on AWS servers in Frankfurt and ensures encrypted data transmission as well as regular updates.
This shifts control of the solution from IT to the specialist departments. Even smaller companies with limited IT resources can leverage digital intralogistics. Another advantage is the openness of the system. The solution integrates easily into existing infrastructures. Data is exchanged bidirectionally with ERP and MES systems via standardized APIs.
The result: transparent processes and low costs
ORGATEX’s IoT solution increases transparency, efficiency, and predictability in returnable management for the mechanical engineering company. Real-time capture of parking space and fill-level data provides a clear picture of the current material status. Employees can identify bottlenecks early and initiate replenishment processes in time. Manual interventions become unnecessary, and inspection rounds are eliminated.
This optimizes material flow at the mechanical engineering company: returnables are moved according to actual demand, milk runs are more targeted, and cycle times are shorter. In pilot projects, users were able to reduce travel times by up to 30 percent. This saves energy and reduces wear. Manufacturing operations gain planning reliability and lower operating costs. The combination of modern sensor technology and cloud-based control provides a foundation for digital intralogistics.
Summary of results
- Real-time data provides planning reliability
- Travel times reduced by up to 30 percent
- Energy consumption and wear are reduced
- Manual inspection rounds are eliminated completely
