Source: ECCO – original photograph used with permission of the company.

That’s why the Electronic Delivery System (EDS) was created — an in-house solution designed to bring accuracy, transparency, and real-time responsiveness to production. Although it began as a project developed directly within the factory, by 2022 it became clear that the system needed to evolve and adapt to the growing demands of production. That’s when we stepped in — expanding the missing parts, introducing continuous improvements, and providing technical support to ensure the system was ready not only for current challenges but also for future innovations.

ECCO Slovakia – 25 Years of Craftsmanship and Modern Technology

For more than a quarter of a century, ECCO Slovakia, a.s. has combined traditional shoemaking craftsmanship with cutting-edge technology, following the legacy of its Danish parent company, ECCO. Every day in Martin, thousands of pairs of men’s, women’s, and children’s shoes are produced — each designed to unite comfort, design, and functionality into a single high-quality product. Over the past 25 years, the factory has produced more than 50 million pairs of shoes, each one passing through the hands of skilled professionals and sophisticated manufacturing processes.

Reality of Production Before Digitalization

In 2018, as production volumes grew, so did the demands on process coordination. To maintain product quality and production speed, several key challenges needed to be addressed — issues that slowed operations and increased the risk of errors.

❌ Cumbersome Manual Record-Keeping

Before the introduction of the Electronic Delivery System (EDS), the process of material preparation and assembly at ECCO Slovakia relied on traditional manual methods. Materials were prepared based on paper plans that had to be marked and recalculated by hand. To check the current picking status, employees had to physically visit the respective department, manually count order balances, and update the weekly production plan accordingly.

❌ Lack of Clear, Real-Time Information

Although the plant used the SAP system, its outputs were not user-friendly for operators and didn’t provide an easy overview of data. There was no visualization that would offer a quick summary of production preparation status. As a result, SAP was supplemented by Excel spreadsheets (for example, weekly matrices) and handwritten notes on paper or whiteboards.

❌ Inefficient Communication Between Departments

Information had to be shared physically between departments. These movements took time — time when operators were not at their workstations. Relying on verbal or phone communication often led to misinterpretation, duplicated efforts, and an increase in errors.

❌ Errors in Material Preparation and Delivery

Quality control of picked components was also limited. Many materials entered production without the possibility of immediate verification. This inevitably led to recurring errors — the most frequent issue being incorrectly picked materials (uppers, insoles, soles, or other components), often discovered too late in the process. A single picking error could result in up to 12 defective articles, requiring rework and delaying order processing.

Delayed component deliveries also caused problems. When errors occurred, production plans had to be adjusted, and missing materials led to factory downtime or unplanned mold changes — resulting in wasted material and production interruptions.

These inefficient processes consumed significant time resources — dozens of minutes per operator daily, and in extreme cases, tens of hours per month per department, spent on searching for information, unnecessary movement, error correction, and complex communication.

From Challenges to Clear Goals

To ensure smooth production, minimize errors, and shorten the time from planning to shipment, these challenges had to be addressed systematically. The ECCO Slovakia factory therefore set several clear priorities:

• 🎯 Unified source of real-time information – implement a digital system that provides up-to-date production data to all departments from a single source.
• 🎯 Accurate and efficient material flow – establish visual management and clear coordination between warehouse and production to minimize errors during component picking.
• 🎯 Error control and prevention – introduce barcode scanning to immediately detect incorrect materials and stop errors before they reach the production line.
• 🎯 Automation and reporting – leverage existing data for automatic processing, clear reporting, and continuous process improvement.
• 🎯 Improved work efficiency – reduce unnecessary movement and phone communication, freeing up operators’ time for value-added tasks.
• 🎯 Long-term vision – develop the EDS solution into a global standard for the entire ECCO Group.

Solution – Internal Electronic Delivery System (EDS)

The Electronic Delivery System (EDS) is a digital platform that manages the flow of materials from the warehouse to the factory — in real time, with minimal errors, and without unnecessary downtime.

The EDS project was created as more than just another piece of software. It became a comprehensive platform that unified planning, material flow management, error control, and reporting into a single functional system.

At its core lies a proprietary algorithm integrated with SAP ERP, capable of automatically recalculating production plans and determining the optimal sequence of materials and mold changes. What once required an experienced operator and a set of complex rules could now be executed consistently and without the risk of subjective decisions.

The biggest transformation came when production gained its own visual language. Data from SAP began to appear in a clear graphical interface displayed on touch screens installed at key points along the material flow — from the warehouse to the factory floor. Instead of working with table-based printouts, operators could now follow intuitive icons, highlighted information, and step-by-step navigation throughout the process.

Quality control also moved to the very start of the process. Each component entered the system through barcode or QR code scanning. If an incorrect component was detected, the system immediately stopped it and required correction before it entered production. And if a component was missing, the alert appeared right away — allowing the issue to be resolved before it could slow down production.

Production coordination also changed fundamentally. Tasks that once required phone calls or walking to another department could now be solved with a single glance at the screen. All departments shared the same real-time data. Every scan and every operation was automatically stored in the database and processed into Power BI dashboards. As a result, managers no longer had to wait for monthly reports — comparing planned vs. actual results, analyzing errors, and implementing corrective actions could now happen almost instantly.

Implementation Process of the Internal EDS

The implementation of the Electronic Delivery System (EDS) was not a one-time project but a gradual transformation of production processes.

1. Needs Analysis and System Architecture Design

The first step was a detailed analysis of production needs. The goal was to map all bottlenecks, define the required input data, and design a system architecture capable of responding to changing production conditions. It became clear early on that a custom internal algorithm for automatic recalculation of production plans would be essential.

2. Algorithm Development and Testing

Following the design phase, the algorithm was developed and tested in parallel within the production planning department. Manual production plans were compared with automated algorithm outputs. The tests revealed the need for manual adjustments, which led to the creation of the MAT (Manual Adjustment Tool) — enabling planners to flexibly modify schedules based on real-time requirements.

3. Development of the Production Preparation Application

After finalizing the algorithm, work began on an electronic application for production preparation. This app made SAP data accessible in a clear and user-friendly format for production operators. It provided intuitive navigation and instructions for material preparation and picking, eliminating the confusion caused by paper-based plans and Excel spreadsheets.

4. Pilot Deployment and Training

The first version of the system was deployed in a pilot run on one factory segment — specifically, the production preparation department handling key components such as uppers and insoles. This department served as the “Service Area” for picking and plan confirmation, and insights from the pilot became the foundation for further system refinements.

Comprehensive employee training was conducted across all production shifts. New work instructions, training videos, and operational standards were established to ensure consistency — from incoming inspection and order picking to line supervision and factory management.

5. Expansion and Improvements

During real-world use, continuous feedback led to new enhancements — including material scanning features and interface improvements. These updates were gradually rolled out to other departments and factory segments. Over time, EDS was implemented across three factories, becoming the central tool for managing material flow

6. Sustainability and Continuous Improvement

After full deployment, the focus shifted to sustainability and ongoing system optimization. Regular on-site audits were introduced at each factory to detect deviations early, respond promptly to issues, and maintain operational standards as the foundation for further growth. These reviews took place weekly and at least once a month per factory.

A key milestone was the integration of EDS with Power BI reporting. This enabled management to monitor material flow and component consumption almost in real time. Instead of waiting for monthly reports, supervisors could access up-to-date overviews after each shift, allowing corrective actions within 24 hours.

Since EDS became an integral part of daily operations, reliability was critical. Therefore, continuous maintenance and improvement were built into the long-term system strategy, ensuring that EDS evolved alongside production needs and technologies.

Expansion and Enhancement of EDS in Cooperation with IoT Industries

A MES (Manufacturing Execution System) connects production planning with actual operations on the factory floor. It monitors manufacturing processes in real time, manages individual tasks, and provides accurate data for management and decision-making.

Since July 2022, our company IoT Industries has been responsible for further development and integration of the system. Our mission was clear — to expand the existing platform so that it could not only meet the current needs of ECCO Slovakia, but also be ready for a future global rollout across the entire ECCO Group.

In the later phase, we introduced a monthly service model, which allowed us to continuously track new requirements from production and implement them directly into the system. In this way, the original project evolved into a living, adaptive system that grows together with production and delivers added value every day.

Phase 1 – Rapid Improvements and Stabilization

• Reduction of errors through enhanced intelligent input validation
• Automatic detection and reporting of missing components during production
• Improved reporting with clear visualization of deviations between planned and actual production
• Ability to manually add components based on real-time needs
• Faster synchronization and improved material data loading from the ERP system
• Redesigned user interface to minimize operator errors and allow quantity adjustments before confirmation

Phase 2 – Expansion and Digitalization

• Integration of the final factory segment into EDS – complete transition from paper-based plans to a fully digital system
• Expansion of existing applications with a new production unit, including an offline mode as a backup for potential SAP ERP outages
• Extended configuration options – added support for multi-component products and expanded overviews for all production units within the plant
• Enabled manual quantity edits, zero-quantity confirmations, and extended reason codes
• Introduction of new metrics and order prioritization based on urgency for improved workflow management
• Automatic material requests – a new user interface module enabling fast processing of missing component requests, including automatic QR code printing and database recording

Phase 3 – Long-Term Sustainability

• Technical support in 5×8 mode to ensure smooth production operations
  • Option to report requests via email or phone at any time during the workweek
  • Ticket-based request registration with instant notifications to the technical team and centralized communication with the customer throughout issue resolution
• Continuous improvement of applications based on current production needs
  • Display of all articles, including those not yet planned in SAP ERP
  • Stable data handling even for unplanned segments
  • Enhanced production visualization, including weekend mode and extended mold-change indicators for production monitoring
  • Unified visualization of article and mold changes across all applications for consistent operator experience
  • Optimized data sorting for more logical and intuitive overviews

EDS in the Context of MESA Standards

Solution in Practice

The EDS has become the heart of the production flow at ECCO Slovakia. From a tool for managing material movement, it evolved into a strategic pillar of the entire manufacturing process.

In practice, the system operates as follows: the production plan is prepared in SAP as the so-called Round Plan, recalculated by an internal algorithm, and displayed on touch screens placed throughout the entire material flow — from the warehouse to the factory floor. Each operator can see in real time what needs to be done, in what order, and at which workstation.

1. Material Preparation (Picking)

Large warehouse monitors display the list of materials to be dispatched. The requests are time-coordinated to prevent overfilling of buffer zones and to ensure materials are available exactly when needed.

2. Picking Uppers and Insoles

Operators work with desktop computers and barcode scanners. The application provides a detailed list of requests (model, size, image, exact rack position, required quantity, material number). Once the operator scans the material, the system instantly verifies its accuracy. If an item is missing, an automatic material request is sent to the warehouse to ensure timely replenishment and avoid disruptions in production. When complete, the materials are automatically transported to production using AGV (Automated Guided Vehicles).

3. Picking Soles and Components

This process takes place in a different warehouse zone where material positions are spread across a larger area. Operators therefore use mobile tablets that display the list of required components and their locations. The principle remains the same — the application checks the correctness of picked items and enables a quick response to production needs, including additional “extra components.”

4. Picking In-House Components (Cutting)

Some parts are produced directly on site by cutting. A specialized application plans which components, in which sizes and quantities, need to be prepared and ensures they are ready in time for AGV transport to production.

5. Warehouse – Replenishment of Missing Components

If missing material is detected during picking, the system automatically sends a notification directly to the warehouse. The message contains all necessary data (material number, size, quantity, storage position) and is sent not only to warehouse staff but also to responsible personnel — such as logistics coordinators, if re-ordering is required. This allows issues to be resolved immediately, ensuring that missing materials are replenished before they cause production downtime. All discrepancies are identified in the early stages of the process, significantly improving production reliability.

6. Assembly

Once materials are delivered by AGVs, components are assembled at the workstation. The upper is placed on the last, inserted into the mold together with other parts, and the DIP (Direct Injection Process) connects the upper and the sole. Each model and size requires a different mold, so the Assembly Board application enables advance planning and preparation of mold changes, reducing downtime.

7. Preparation of Molds and Lasts

Producing thousands of pairs of shoes daily requires efficient management of molds and lasts, whose quantity is limited. Any delay in preparation or lack of maintenance can cause issues in the assembly process. Therefore, a dedicated workplace manages their registration, preparation, and timely delivery. The Mould and Last application supports this process by tracking mold and last availability, scheduling replacements according to production needs, and recording condition and maintenance to ensure they are always ready for use — minimizing downtime and improving resource efficiency.

8. Final Process (Finish)

After assembly, the insoles are inserted, and 100% of the produced pairs undergo visual and quality inspection before being packaged. An automated conveyor system transfers the boxes to the warehouse, from where they are shipped to stores worldwide. At the same time, all data is stored in a database and visualized in Power BI, providing management with a detailed real-time overview of production — from plan-vs-actual comparisons to workstation performance analytics.

Main Challenges During Implementation

The implementation of EDS was demanding not only from a technical but also from an organizational standpoint. The biggest challenges included changing employees’ mindset (transitioning from paper-based workflows to digital touch interfaces), maintaining high data accuracy in SAP, including proper material categorization, and managing exceptional situations such as SAP system downtimes. The entire project spanned five years, and since 2023, the EDS has been deployed across all factories, continuously expanding and improving.

Results and Achievements

The deployment of the Electronic Delivery System (EDS) brought measurable improvements to the ECCO plant — visible within just a few months of operation.

Error Reduction and Direct Financial Savings

The error rate in material preparation dropped by 20%, directly reducing losses from missing components by €25,000 annually.

Time Savings and Increased Efficiency

Eliminating unnecessary movement across the factory saved approximately 20 minutes per employee per shift, equivalent to 5% of total working time. An even greater improvement came from communication efficiency — operators no longer needed to manually check and relay information to colleagues. Communication time during a shift dropped from 55 minutes to just 15, representing a 70% reduction, or nearly 10% of total daily working time saved.

Thanks to early detection of missing components, production no longer had to wait for additional material deliveries. Materials were delivered before final assembly, eliminating downtime and urgent rework. The introduction of the automated scheduling algorithm reduced mold changes by an average of two per shift. Now, changes are evenly distributed among work shifts, and for major product transitions, preparation can be done in advance thanks to improved visibility in the system.

Together, these optimizations freed up significant capacity that could be redirected to value-adding tasks.

Faster Onboarding of New Employees

Clear navigation and an intuitive user interface shortened the training period for new employees from five to three days.

Synergistic Effects and Long-Term Savings

After implementing EDS across all factories, one non-value-adding process in material flow was completely eliminated. This change enabled the reduction of two positions, resulting in annual savings of approximately €44,000.

Fast Return on Investment

Considering all savings and efficiency gains, the return on investment for the EDS implementation was achieved within a few months — at most one year.

Project EDS Successfully Achieved All Original Goals:

• Real-time access to information for all departments
• Faster and simpler material flow between warehouse and production
• Reduced error rate in component preparation and issuing
• Introduction of visual tools for easier work by operators and supervisors
• Foundation for data-driven decision-making through Power BI analytics
• Validation of the system’s potential to become a benchmark for other ECCO plants

• Annual savings: €69,000
• Error reduction: −20%
• Time savings: +15% per employee per shift
• Faster onboarding: −2 days per new employee
• ROI: within 1 year

A Word with the Client

Why did you choose IoT Industries?

The foundations of the EDS system, including the development of its core algorithm, were created internally in close cooperation with our parent company. When it came time to connect system data and transform it into a format suitable for daily use directly on the production floor, we faced an important decision. We chose IoT Industries because of their ability to implement modern technologies that grow alongside the company and evolve continuously based on current production needs. Thanks to this partnership, we were able to enhance the system with features that significantly improved our processes — from full visualization and electronic material requests to automated reports, notifications, and clear Power BI dashboards. IoT Industries also introduced remote monitoring and real-time data collection, which are crucial for fast and accurate decision-making based on verified information. Together, these elements have made EDS an indispensable tool for effective management and data-driven decision-making.

How would you describe your collaboration with the supplier?

IoT Industries is a partner we can always rely on. Although our cooperation is formally covered by a contract, their approach has always gone far beyond what is written on paper. They are willing to address issues promptly, directly, and constructively. Over the course of our three-year collaboration, we’ve built a relationship based on trust and mutual support — something that no contract can guarantee, but only the right personal approach built on genuine human values. Their technical expertise and flexibility have been a major asset, and we highly value our cooperation with them.

How satisfied were you with the overall communication and project execution?

We were very satisfied with the cooperation as a whole — from communication to project execution. In addition to system development, IoT Industries provides software support for key EDS applications, including fast incident resolution, technical consultations, and the development of new features based on evolving production requirements. Their flexible approach allows us to respond effectively to changes in production while keeping the system stable and operational. We also appreciate that their solutions are not static — they don’t focus only on technical details but also understand the broader business context. Our joint goal was to think ahead and implement solutions that make sense not only today but also for the future.

What surprised or pleased you most during implementation?

What pleased us the most was how quickly and naturally employees adopted the new digital solution. Although we expected some resistance to change and concerns about using touch screens or scanners, in practice, EDS proved to be intuitive, visual, and easy to understand, even for operators without an IT background. However, it’s essential that these processes continue to be supported internally and that immediate on-site assistance is available, especially during non-standard situations. Such moments can be stressful for operators, so quick and flexible reactions are necessary to restore production flow as soon as possible. A pleasant surprise was also the increase in work accuracy thanks to simple visual cues. For instance, color indicators on screens — green (ready) and red (missing material) — greatly improved coordination and eliminated the need for extra communication or walking across the production hall. Overall, we were positively surprised that even a locally developed solution can have a significant impact when it is well-designed, deeply integrated into daily workflows, and supported by strong teamwork.

Would you recommend these services to other companies? Why?

Yes, we would definitely recommend these services. Our project has shown that digitalization doesn’t have to be complicated or impersonal. With a locally tailored system, companies can achieve significant improvements in efficiency, accuracy, and transparency of production processes.

We would especially recommend IoT Industries’ solution to companies that:

• struggle with unclear material and information flow,
• want to eliminate manual errors,
• need real-time visual insights into production,
• and are looking for a customized solution tailored to their specific environment and processes.

The greatest advantage of the solution lies in its practicality. The system was born out of real production needs — not as a generic IT product. That’s why we believe it can be both highly applicable and inspirational for other industrial sectors as well.