IFOY Start-up of the Year Award

BOX ID ProcessGuard

BOX ID Systems

By means of an innovative realtime IoT approach, the BOX ID ProcessGuard enables error-proof picking operations for the first time and also optimizes transport container cycles. It combines IoT-based container tracking with a real-time scanning solution for error-free picking. The solution can be flexibly connected to ERP/EWM systems and ensures de facto error-free execution of picking and shipping processes. Massive savings and improved customer satisfaction are key benefits In addition, the solution reduces the environmental footprint by optimizing container rotation and minimizing misdirected shipments and returns.

Product name and company

BOX ID ProcessGuard – BOX ID Systems

Description

BOX ID ProcessGuard is an innovative scanning solution for the shipment of goods in distribution logistics. On the one hand, it uses active IoT technology to monitor the circulation of returnable transport containers across the distribution network and ensure their optimal rotation. On the other, the solution combines ergonomic scanning technology with a real-time feedback loop to the customer’s ERP system to mishandle picking and monitor the entire transport process in terms of conformity to the system view.
Automated reconciliation, taking into account defined process logics, can ensure correct allocation and avoid any errors in shipping. The system is able to match the scanned information with the target assignments in real time and provide feedback to the employees in real time (approx. 200ms).
The scanning solution monitors the entire process of loading goods and packages onto various means of transport such as rollcages, system pallets, pallets and other load carriers used in the shipping process. This is done by scanning barcodes on the packages and goods as well as QR codes on the means of transport. The IDs contained in these codes are used to query the planned destinations for goods and containers from the customer ERP.

Innovations

The most important innovations and new features in the BOX ID ProcessGuard compared to previous products on the market are:

  • Proactive avoidance of human errors: Human errors in the supply chain cause significant costs due to wrongly delivered goods, wrong deliveries and resulting returns. Here, the system provides real-time reconciliation between the virtual Target process according to ERP/EWM and the actual actual actions of the workers (via scan data) and the ACTUAL container movements (via IoT tracking), thereby proactively eliminating loading and transportation errors through a real-time feedback loop.
  • Real-time feedback to workers and mishandling safety: The BOX ID cloud system is designed to check and transmit feedback on individual work steps in real time (here: 200 ms maximum). The worker is given immediate audio-visual feedback on each work step during loading and route assignment of the containers via the mobile device used for scanning. In case of errors, the continuation of the process is prevented and corrections are requested, so that actual safety in handling errors is achieved.
  • Flexible integration with ERP/EWM system and existing scanning infrastructure: The present system is cloud-based and has a flexible interface to both ERP/EWM systems (including for SAP-EWM, S&P SHC) and existing scanning infrastructure (including for ProGlove, Zebra, Standard EPCIS) and can thus be integrated and put into operation quickly and with low effort. End-to-end tracking of the processes is thus ensured.

Market relevance

The target group of the BOX ID ProcessGuard includes all companies with shipping logistics that want to improve the robustness and efficiency of their processes. Here, the solution enables to reduce operational costs, increase customer satisfaction and improve competitiveness.

  • Retailers: Retail companies that ship goods on a large scale can benefit greatly from this solution. They need to ensure that the correct products arrive to customers on time to ensure customer satisfaction.
  • Manufacturers: Manufacturing companies that ship their products to customers or distributors need a reliable shipping solution to ensure robust supply chains and avoid production downtime.
  • Wholesalers: Wholesalers who ship large quantities of goods to retailers or other customers are equally targeted. They depend on smooth logistics to provide the best possible service to their customers.
  • Logistics service providers (3PL): Companies that offer warehousing and delivery of goods as a service are another important target group. Efficient supply chain processes are crucial to their success.

Due to the flexible system architecture of the BOX ID solution, it can be integrated with low effort and effectively into the quite different ERP/EWM landscapes of the aforementioned industries.

Customer benefits

The main advantages of the BOX ID ProcessGuard mainly concern the efficiency and robustness of the shipment of goods:

  • Error minimization in shipping to zero errors: The system reduces human errors to virtually zero. Automated matching of scan data with target assignments from the ERP system ensures that packages, goods and means of transport are correctly assigned. This minimizes errors that can lead to costly returns, delays and dissatisfied customers.
  • Positive involvement of workers: The system provides real-time feedback to shipping workers via handhelds or wearables. This allows them to correct errors immediately, which increases process efficiency and ensures worker acceptance through ergonomic integration into the process.
  • Flexible integration into the ERP/EWM systems: Integration with the customer’s ERP system offers the advantage of seamless communication and data consistency throughout the supply chain. Information collected on the store floor is directly synchronized with enterprise-wide data.
  • End-to-end view: The system provides a comprehensive end-to-end view of goods tracking on load carriers. This eliminates gaps and uncertainties in the supply chain by monitoring the entire process from picking to delivery to return of the transport containers.
  • High cost savings and extremely fast break-even of investment costs: Every shipping error avoided reduces returns and rework. This results in significant cost savings in operations. Previous customers (including several Würth Group companies) have seen a payback within the first 12 months.
  • Environmental benefit: Fewer missing shipments and returns mean a reduction in packaging material and energy used for reshipment. Similarly, maximum rotation of shipping containers is ensured and waste due to their downtime is avoided. The solution thus contributes significantly to reducing the carbon footprint of the shipping process.

Test report

KPIs are the be-all and end-all in container management: How (optimally) is the container pool being used? Why do some containers “turn” faster than others? How high is the error rate? How often do containers leave the preferred route? All these questions and their negative answers result in high costs. ProcessGuard from BOX ID monitors the container flow, maintenance intervals and turnaround times, thus ensuring that the company does not face more costs than necessary.

BOX ID Systems GmbH was founded in 2018 in the field of supply chain management and currently has 20 employees. The company focuses on returnable transport packaging, such as roll containers, large load carriers, flat glass racks and kegs (reusable drums).

The first unique selling point (USP #1) is the reduction of capital tied up in containers or, in other words, the visibility of these often expensive load carriers through software. The second USP is the critical contents of the load carriers: time-critical or temperature-sensitive goods (seeds, pharmaceuticals), for which shock and temperature sensors are provided.

The Würth subsidiary Fega & Schmitt − an electronics wholesaler with 58 locations in central and southern Germany − was the pilot client for BOX ID ProcessGuard. However, BOX ID ProcessGuard is now also in use at specialist wholesaler Uni Elektro and Lichtzentrale, a wholesale company for lighting products and also part of the Würth Group. The following applies to all three companies, as well as to companies in the industry in general: The post-delivery processes, and in some cases the preceding processes, are error-prone. The ProcessGuard process monitoring software can immediately detect deviations and provide real-time feedback in order to correct or even prevent an error at the moment it occurs or as soon as possible. With BOX ID ProcessGuard, mail order companies should be able to reduce human errors to zero by automatically comparing the data from the scanner with the target assignments from the ERP system. The shipping employees receive feedback via handheld (or other wearables) in (near) real time so that errors can be corrected immediately. This has an immediate cost-cutting effect, as every shipping error avoided reduces returns and rework.

BOX ID ProcessGuard can be flexibly connected to ERP/EWM systems for IoT-based container tracking with a real-time scanning solution for error-free picking and, according to the provider, guarantees virtually error-free execution of picking and shipping processes. A positive side effect: ProcessGuard reduces the ecological footprint of shipments through optimized container rotation and the minimization of incorrect shipments and returns. An automated comparison, in which the trolley itself and every container/package on it are scanned and “married” to the load carrier, ensures correct allocation and avoids any errors in shipping. The time it takes for the system to provide the employee with information about the comparison of their scanned information with the target assignments is just 200 milliseconds.

IFOY Verdict

Empties are one of the most underestimated cost drivers. If, for example, flat glass racks or special load carriers for doors or axles are missing in the automotive sector, considerable costs accrue. The benefits of real-time process monitoring of returnable containers are correspondingly high.

IFOY Innovation Check

Functionality / Type of implementation

The aim of the cloud-based product is to monitor any process whose sequence can be tracked by scanning barcodes/matrix codes or using localization technologies. To do this, the user must model the processes using finite state machines in a web interface. Furthermore, master data such as geographically delimited areas and assignments of codes to load carriers or articles must be added.

The system then automatically checks whether events that occur when scanning articles or moving load carriers with a localization system match the modelled process steps. Deviations from the standard processes are detected and reported.

Novelty / Innovation

The novelty of the product is limited to the independence of process control from the technical characteristics of the events that occur. There is talk of broad and simple compatibility with a wide range of scanning techniques and localization solutions.

Beyond this, no innovation can be identified, as process modeling and monitoring is already possible in many ERP systems.
Customer benefit

The customer benefit lies in the simple implementation and the effective avoidance of errors. The effort required for commissioning is limited to linking the cloud with the scanning/tracking solutions and entering the processes and master data. For the most part, this can be done intuitively by users via the web interface. According to BOX ID, routing errors of parcels, for example, can be avoided almost 100 percent during operation, which is significant in terms of efficiency gains and potential savings. The promised ROI of 3 to 9 months seems plausible.

Market relevance

Due to the low implementation effort and the low-threshold “as-a-Service” price model, the group of potential users is very large. The product is mainly of interest to small companies with little IT expertise that do not use an ERP system.

IFOY verdict

The problem, objective and implementation of the product are very clear. The simple implementation speaks for it, but the level of invention is very low – the functionality can be easily integrated into existing ERP systems.

Functionality / type of implementationØ
Novelty / Innovation
Customer benefits++
Market relevance+
++ very good / + good / Ø balanced / – less / — not available
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