Leden Estonia acquired a vertical lift module with an ERP interface, which works so well that they have already started planning the next system.
Leden Estonia, a leading metal industry company in Estonia, commissioned an innovative vertical lift module (VLM) last year based on an idea from their employees. The installation and implementation were so successful that the company immediately began planning for a second VLM after completing the project.
OIXIO Digital’s role in this project was to integrate the automated storage system with AX2012 ERP software. We started work in August 2023, and the project was successfully completed in November 2023.
“What made this project unique was our approach to integration. Typically, VLM integration happens in two stages – first, data flows from the ERP to the VLM, and then in the opposite direction. Here, at the client’s request, we took a bidirectional approach from the start, integrating both data flows simultaneously,”
explains OIXIO consultant Kildu Kask.
“We’re very satisfied with the solution – well done!” says Kim Vasserman, IT Manager at Leden Estonia.
“We’ve been actively using the VLM for over six months now, and the integration works flawlessly. We feel that the decision to integrate it bidirectionally with AX2012 from the beginning has been fully justified. We’ve already ordered a second VLM because the first one is essentially full.”
Adopting New Solutions Depends on People’s Readiness
“These days, digitalization and automation aren’t held back by a lack of solutions, but rather by people’s readiness,” notes OIXIO consultant Kildu Kask.
“Sometimes management wants to implement changes, but employees don’t get on board. At Leden Estonia, however, both employees and managers were highly motivated. The employees had a significant say in the project, starting with the fact that the VLM idea came from them,” Kask adds.
Employee input was also valuable on the integration side. “Sometimes clients expect us to do all the work for them, but this project was characterized by good and quick cooperation, open discussion, and since there was urgency with the integration, we followed an MVP logic, which allowed for rapid deployment of the VLM,” Kask explains.
VLM: Space-Efficient, Convenient, and Offers Real-Time Inventory Visibility
Compared to traditional warehouse shelving, the new VLM takes up significantly less space, freeing up warehouse area for production. Moreover, the ERP-compatible VLM is much more convenient.
“With a classic warehouse system, you first need to print a picking list, then scan the products, and finally perform certain actions in AX2012. Thanks to the VLM and AX2012 integration, the average warehouse worker can now complete their work much faster, as data flows automatically between the VLM and ERP,” Kask elaborates.
“Implementing the VLM supports our goal of moving towards assembling increasingly complex end products,”
says Marko Mänd, Development Manager at Leden Estonia.
“Thanks to the new solution, the workload for picking is lower, and we don’t need to hire additional warehouse staff as volume grows. The VLM also helps manage inventory levels more accurately, as we always have an overview of the warehouse. This results in fewer production stoppages and improved picking accuracy. We’re currently waiting for our next VLM, which should arrive this summer.”
“The project was exciting, and we’re glad we could successfully solve an important issue for the client,” says OIXIO consultant Kildu Kask. “A 3-member team from OIXIO participated. What we liked about Leden Estonia was that they didn’t want to spend time developing a rocket, but instead went the MVP building route. This allowed us to quickly implement the entire system right after the physical installation of the VLM, and as we can see, it works.”
Project Description
The project involved 4 parties: Laadur OÜ, Kasten OY, OIXIO Digital, and Leden Estonia AS.
What Was Done
OIXIO’s task was to describe the client’s needs and automate data flows between Leden Estonia’s new VLM and AX2012.
Data flows integrated from the VLM to AX included:
- Picking transfer orders from the VLM – picked quantities are entered on the transfer order and the transfer order is automatically entered.
- Picking production orders from the VLM – picked quantities are entered on the production picking list and it is entered.
- VLM inventory – an inventory worksheet is created, which remains in an “Open” status.
Data flowing from AX to the VLM included:
- List of goods – VLM items.
- Receipt of purchase orders – XML is created when entering product receipt.
- List of transfer orders with “Created” status.
- List of production orders – XML is created when production starts.
About Leden Estonia
Leden Estonia AS, founded in 1990, is a thin metal processing company and the largest steel sales center with modern technology in Estonia. As a leading metal industry in the region, they offer versatile assembly services, from product design and material procurement to stamping, laser cutting, bending, and final finishing. They also produce metal frames and accessories for lightweight partition walls and ceiling construction. They export nearly half of their production to Scandinavia and Central Europe.
Leden Estonia AS is part of the international Leden Group, which employs about 450 professionals, with approximately 180 in Estonia.
OIXIO Group