Introduction of an intelligent delivery note started the reform of material management

The new standard built on a joint building material database, DTLS (Digital Terrain Logistics Standard) has been established.

The managers of the largest construction companies supporting the DTLS (Digital Terrain Logistics Standard) discussed the advantages of Intelligent Delivery Note at a roundtable discussion. The DTLS roundtable discussion was attended by:

• Balázs Báthory, the Deputy CEO of Market Építő Zrt. responsible for innovation and strategic development,
• Attila Peterka, the strategic director of WEST HUNGÁRIA BAU Kft.,
• Gábor Vincze, the integrated management and operation manager of Magyar Építő Zrt.,
• László Szalados, the Deputy CTO of KÉSZ Holding Zrt.,
• Gábor Kiss, the managing director of Metrodom Kivitelező Kft.,
• Zoltán Gál, the managing director of GroundUp Kft.,
• Gábor Szulyovszki, the international technical audit director of Futureal Group,
• and Ádám Dálnoki and András Papp on behalf of BauApp.

Each of the speakers is testing the BauApp's Intelligent Delivery Note live, so they are directly concerned in its application and utilization of its advantages.

Digitalization is one of the most urgent challenges concerning the construction industry. The companies supporting the standard managed by BauApp recognized nearly a year ago that one of the most generous problems arises in the field of material management. In the multi-actor, dynamic construction industry sector, material management can be digitalized only if a standard built on joint building material database is created. Last year BauApp made a huge progress in development of the solution and, working together with their partners, they developed and by now they have achieved that they are going to start use of the DTLS-based Intelligent Delivery Note in 15 projects in a total value of nearly 500 billion in these days. The Intelligent Delivery Note is issued by the supplier (i.e. the building material manufacturer or trader) and enables rapid receipt and entry on stock of the goods by a mobile device or on the site.

The delivery note bearing a QR code assists the contractor in digital construction and building material management, which each participant benefits from, since the supplier is immediately advised of receipt of the goods. Owing to this:

• invoicing becomes faster,
• administration
• and the loss from misunderstandings are reduced.

It serves development of the industry

The participants in the discussion unanimously agreed that the construction industry lags behind other industries to a large extent in respect of digitalization. Balázs Báthory phrased it so that "in the 21st century we have to tear from pigeon-post. The time of hand-written and sealed letter has expired."

In connection with the digital use of material management he told that BauApp's services represent an innovative step on the Hungarian market and with their help operation of Market can be more transparent and its quality can be more guaranteed, promoting so development of the whole industry.

Attila Peterka also trusts in use of BauApp. "It is a good innovative solution and we trust that it is able to provide for transparency of material transport and so we will be able to accelerate logistic processes and shorten the time of confirmation of invoices and financing times towards suppliers."

Both the manufacturers and traders will benefit from this innovative solution, and the strategic director of WHB expressed his opinion as stated below.

"There will be less complaints and management and processing of complaints will become faster and so payments will also be faster. Besides, we can react faster on invoice confirmations, so suppliers will receive payments sooner."

It works if everybody uses it

In the opinion of Gábor Kiss, BauApp's terrain logistic solution will bring great changes in the construction industry. "Today the corporate management software of manufacturers, traders and contractors are not interoperable, so there is a need for such a joint platform and such a joint standard with which we can communicate with each other and carry on entirely digital processes without having to work with manual or separate methods of importing from one system to another." The managing director of Metrodom understands application of BauAPP's software to implementation of a construction project as circulation, i.e. he would like to demonstrate in respect of all participants that this software supports everybody's work.

László Szalados shared also this opinion and told that digitalization cannot be implemented in an individual, insulated mode. He thinks that networking is missing from the construction industry very much but BauApp creates an opportunity for it.

At KÉSZ warehouse management modules were developed two years ago by which it was achieved that they can manage warehouses in various projects. "By the solution of BauApp we can make our systems more complete and so we will be able to manage our documents on a uniform platform, so we will have real-time information of our materials supplied to our projects.

Participation of suppliers is also reckoned on

Digital integration is in progress also at Futureal that is one of the basic pillars of future according to Gábor Sulyovszki. "With us installation of a warehousing program is in progress and now we modernize our accounting system as well."

"Futureal will prefer those supplying partners which also apply digital systems because it will be easier to work with them and, consequently, during tendering, which we will establish also now in a weighted system, we will listen to those who also use such digital delivery notes. This new type of document management will bring significant scores to them."

Gábor Vincze brought cost-efficiency as a highly important field of material management to the fore when using BauApp. "Planning, observing and controlling of the costs of purchase are dominant parts of a construction project. We wish to achieve with BauApp that we could plan everything by software as efficient as possible. In comparison, in addition to identifying materials, we could implement the logistics of purchasing as efficient as possible."

"Information is power and it is true to construction projects as well" - closed the idea of conversation Zoltán Gál.

"We had the bitter experience of how important is to have up-to-date and accurate information about what material is received and when, in what quantity and from which supplier in the construction site and what material is delivered to a subcontractor. We expect BauApp will allow more cost-efficient and more predictable operation."

Live testing is started at the following sites:

• Market uses the application to MOL Campus construction works where Hungary's first skyscraper is built and to the BudaPart development project.
• WHB starts testing in three provincial projects; in construction of two new shopping centers and in the reconstruction of a hotel.
• Metrodom selected the 200-apartment condominium in Teve street, District 13 under construction and its project in Bosnyák square as the initial projects of the application. As construction is in the initial phase, all work processes can be tested simultaneously, during the life cycle of the project.
• KÉSZ' three pilot projects, in particular the Danube Terrace including the 800-apartment condominium in Marina shore, the Duna Pearl residential building and hotel in District 13, and the block off infectious diseases of the University of Szeged are also suitable for testing the Intelligent Delivery Note.
• Futureal Group turned the sequence as they search partners who already work with digital delivery notes for Cordia's residential construction projects rather than projects. Furthermore, they use the BauApp delivery note also for their own internal transports.
• Magyar Építő tries operation of digital delivery notes in two large construction projects: the House of Music in Városliget and reconstruction of the Nyugati railway station. Later they intend to introduce it at the development project of the National Athletics Stadium.
• GroundUp selected the 668-apartment building to be constructed as a project of WaterFrontCity in District 3 and the West Side Residence project.

The participants of the roundtable discussion agreed that application of BauApp may bring great changes in the construction industry if each market operator recognizes its necessity and its use is integrated in everyday life.