Agilon streamlines Demag’s CTO assembly with 90% availability and 95% faster picking

Agilon improves Demag’s CTO assembly: 90% availability & 95% faster picking

Demag Cranes & Components GmbH, a global leader in industrial cranes and drive solutions, faced a common challenge at its Wetter, Germany site: managing complex material flows in a configure-to-order (CTO) environment.

While Demag also produces stock hoists, most are custom-configured, adding significant complexity to parts management, storage, and material flow.

Each hoist is assembled from 75 to 130 unique components. Konecranes’ advanced, field-proven warehouse automation system now efficiently picks 20-50 of these small parts per hoist, boosting both speed and accuracy.

The challenge: overcoming picking inefficiencies and storage limits

Before implementing warehouse automation, Demag faced storage constraints, slow picking processes, and frequent errors that delayed production. On-site material availability met only 60% of production orders, resulting in delays, manual picking errors, and bottlenecks during the final assembly process.

We lacked storage capacity, and picking was slow and error-prone, says Tim Lüchtemeier, Lean Manager at Demag. We needed an automated solution to increase capacity, improve accuracy, and speed up our process.

The solution: warehouse automation and high-bay supermarket

Agilon was selected following a thorough evaluation of Demag’s specific needs. Konecranes supported this with detailed calculations for informed decision-making. After an objective procurement process, Agilon stood out for its most effective and future-ready features.

Demag combined a high-bay supermarket for palletised goods with Agilon to manage high-volume small parts, resulting in significantly improved warehouse efficiency and faster production responsiveness.

Results: dramatic improvements in speed, accuracy, and availability

90% on-site availability of small parts

Automated storage and retrieval capabilities, working in conjunction with the high-bay supermarket, have reduced reliance on the central warehouse. Now, 90% of the required materials are available directly on-site, streamlining production.

95% faster small-part picking

Thanks to Agilon’s batch picking, pick-to-light, and flow rack support, along with SAP ERP integration, picking time dropped from 12 minutes to 30 seconds per order. Operators now prepare 7–10 production orders per batch, significantly increasing throughput.

These improvements have directly shortened delivery times and boosted production responsiveness, adds Lüchtemeier.

Higher accuracy, quality, and ergonomics

By automating the picking process and integrating quick-order parts into a unified workflow, Agilon reduces errors, enhances CTO quality, and improves operator ergonomics at access points.

Quick Results at a Glance

Small-part availability
Before Agilon: 60%
After Agilon: 90%

Small-part picking time per order
Before Agilon: 12 minutes
After Agilon: 30 seconds

Flexibility and scalability for the future

Agilon’s modular design and scalability allow Demag to adapt the system as production needs grow.

If our order intake increases, we can scale the system further, says Lars Beckonert, Lean Operator at Demag. In the future, we plan to adjust box sizes and integrate additional conveyors to further enhance flow, efficiency, and ergonomics, he adds.

Conclusion: Agilon enables agile, scalable, and efficient production

Agilon has effectively resolved Demag’s storage and picking challenges, delivering a scalable solution that supports growth, enhances product quality and efficiency, and boosts customer satisfaction.

Improved material availability and picking speed have directly contributed to shorter delivery times and more agile production, concludes Tim Lüchtemeier.

Agilon in action: efficiency, accuracy, and capacity

At the heart of Demag’s production strategy, the 40-meter-long Agilon system features five user access points and a total capacity of up to 1,638 boxes. The system delivers measurable improvements in efficiency, accuracy, speed, and workplace safety:

• Up to 2,500 pick lines per shift
• 570 different materials in stock
• 75–130 components per hoist per production order
• 20–50 small parts per unit picked via Agilon
• Over 1,100 active storage boxes in daily use
• On-site small-parts availability increased from 60% to 90%
• Small-part picking time reduced from 12 minutes to 30 seconds per order
• Shorter lead times and improved delivery reliability
• Enhanced ergonomics and reduced internal logistics traffic

Looking ahead: scalability and continuous improvement

Agilon’s role at Demag continues to evolve. As production needs evolve, the system supports ongoing development through the introduction of new features and targeted enhancements. If the number of pick lines continues to grow, and once the warehouse reaches full ramp-up, both picking speed and volume are expected to double, further enhancing efficiency, responsiveness, and competitive advantage.

Integration of new functions, such as inbound and outbound conveyors, conveyor belts, the Agilon Autoload Trolley, and AGV and AMR solutions, can be easily implemented as production needs evolve.

Interested in discovering how Agilon can benefit your business?