Case Study: Electrical Installation Company

Initial Approach and Exploratory Discussion

A small electrical installation company, with approximately thirty employees, including administrative staff, technicians, and installation operators, contacts the consultant for an exploratory meeting. The request is roughly as follows:

Other, larger companies in our consortium are implementing AI solutions in their daily operations. However, we lack the knowledge, personnel, and time to dedicate to this. Moreover, we operate uniquely, and we are sceptical that solutions suitable for others can apply to us without issues. Nevertheless, we are aware that the industry is evolving, and we want to invest in an exploratory analysis of our business.

During the initial exploratory meeting, the consultant identifies that, while the company is open to exploration and potential change if it brings benefits, the management is unsure where to start. They are reluctant to undertake a lengthy evaluation process across every area of the business, as they believe things are generally working well and adhere to the maxim:

If it ain't broke, don't fix it.

Despite this, the consultant offers to prepare an agenda for an internal discussion, providing a platform to validate the perception that things are working well, but could improve:

Given all the innovation and technological progress out there.

The consultant identifies general industry topics and proposes a questionnaire for all employees to collect ideas and opinions. Since this is still a pre-contractual phase, the consultant does not have access to confidential company data, such as the employee list or detailed business model information. Thus, the questionnaire is designed to be generic and open-ended, distributed by the client or their delegates. Responses are returned anonymously. The topics include:

• Work management: types of tasks, scheduling, human resources allocation, tools, consumables, feasibility analysis, planning, task follow-up, and interactions with clients and on-site operators.
• Inventory management: low-value consumables (transport materials, cleaning supplies), high-value consumables (tapes, cables, panels), electrical and electronic equipment (processors, control units, signalers, actuators), personal protective equipment, vehicle fleet, supply chain, and contingency alternatives.
• Operator management: training, health and safety, turnover, substitution processes, motivation, incentives, goal-setting, performance measurement, and remuneration.
• Knowledge management: task logs, client lists, future intervention schedules, archives of manuals and data sheets, standard and non-standard procedures, and price list updates.
• Research and development: updates on new technologies, industry conferences, industrial consortia, new clients, and new regions.
• Client management: invoicing, payments, client database, advertising campaigns, market analysis, and satisfaction.

The consultant aggregates the responses within the agreed timeline and presents a proposed agenda for discussion within the company’s management team.

Note

This is a common pre-contractual phase in consultancy relationships. However, the approach can vary significantly based on the parties involved and their specific requirements. Each consultancy balances the amount of unpaid work with the need for exploratory analysis to clarify otherwise vague, unfocused, or even unfounded requests, ensuring value for both the client and the consultant.

Identifying Needs

After discussions among administrators and installation staff, a key issue emerges regarding inventory management, which is organised visually. Components are stored on shelves for easy visibility, allowing operators to walk through, pick what they need for the day, and access manuals and data sheets stored beneath the shelves for field consultation. Administrators check the shelves daily and visually track components running low.

Detailed issues identified by the company include:

• The system worked well when the inventory contained only a few hundred items. Today, with over 1,500 different items, double shelving is sometimes necessary, hiding parts of the inventory.
• Operators often report missing manuals after previous teams have taken them. Recently, photocopies and online searches have become common workarounds.
• The time required for daily inventory checks and reordering has increased, leading to delays or cancellations of checks on certain days, causing cascading delays due to unavailable components.

A key question for the workshop might be:

How can we digitalise and/or apply AI to improve inventory management?

Primary objectives identified include:

• Administrative optimisation: Reduce administrative time and reallocate the savings to research and development (R&D) activities:

  • Update existing components with better-performing alternatives.
  • Explore new technologies and industry publications.
  • Negotiate better supplier terms through more consistent and regular ordering.

• Operational optimisation: Reduce operator time spent searching for manuals, improving productivity and satisfaction for both operators and clients.

• Eliminating delays: Ensure all necessary components are always available in inventory.

The Contract

The consultancy agreement will include:

• Scope: Conduct an operational analysis of how digital and AI technologies can optimise inventory management, identifying high-potential intervention areas.

• Deliverables:

  1. Audit of current processes, value chain, timing, and resource usage.
  2. Report on available technologies, with a cost-benefit analysis for identified processes.
  3. Questionnaire to gather employee opinions on proposed ideas.
  4. Distribution of the questionnaire and collection of responses.
  5. Analysis of results and preparation of a workshop agenda.
  6. Workshop moderation and result collection.
  7. Final recommendations, including cost-benefit analyses, informed by the workshop and questionnaire findings.

Exploratory Analysis

To create a structured audit of the existing and relevant business processes, the focus will be on:

• Identification of necessary data: Determine which data is required to measure progress towards each objective. For example:

  • Administrative optimisation: Time spent managing inventory within a set time frame.
  • Operational optimisation: Efficiency in accessing necessary information in the field; the number of instances where this information was not readily available.
  • Delay elimination: The number of cases where a required component was unavailable in inventory, necessitating a reschedule.

• Identification of available data: Metrics mentioned above are not currently collected systematically by the client company but are based on informed subjective evaluations. It is deemed necessary to collect more robust evidence to evaluate the effectiveness of implementing the identified solutions. The consultant will coordinate the audit throughout the collaboration.

  Data collection will occur through online forms; participants will receive an email on Friday morning, and responses are expected by the end of the day. Questions will consist of multiple-choice answers or value scales, and completing the form should take no more than three minutes from opening the email to submission.

• Analysis of existing processes related to each objective: The consultant will interview key stakeholders in these processes via video calls or, if feasible, on-site shadowing. Subsequently, value chain analyses, resource utilisation, and timing will be prepared based on collected information. Intermediate results will be shared with stakeholders to ensure mutual understanding of the exchanged information.

Note

If a process or piece of information is not relevant to achieving the objectives, it will not be analysed. The consultancy's goal is not to produce unnecessary documents or tick boxes but to create mutual value for both the client and the consultant. Stakeholders have the right and duty to raise concerns if they notice discussions diverging from this goal.

An example of this analysis, focused on "Administrative Optimisation," is as follows:

Warehouse Administrator Activity	Positive Notes	Negative Notes	Adds Value?
Goes to the warehouse	Provides a break from desk work and an opportunity to organise thoughts. Often perceived as generally productive.	The warehouse contains “heavy” equipment requiring protective gear different from office attire. The administrator must wear suitable footwear and a helmet per standard safety procedures.	Minimal. Productivity gains from leaving the desk are not attributable to this process specifically but could result from any physical activity.
Walks through shelves and examines all containers	—	Some containers of similar items are double-stacked due to space constraints, requiring manual rearrangement for inspection.	Negative. The perceived “disorder” often causes stress and unplanned reorganisation work.
Notes “at-risk” (nearly empty) containers	Developed a simple and effective notation system: shelf number, container number, empty/at-risk/needs monitoring. This method notes both orders to place and items to monitor in future checks, minimising the risk of overlooking them.	—	Minimal. Although items to monitor are noted, they still require regular checks as they are not few enough to justify immediate orders.
Returns to the office	—	Unlike the trip to the warehouse, returning is often stressful due to awareness of accumulated urgent tasks. The perceived productive effect of the initial break is almost nullified.	Minimal.
Places orders for low-stock items	Many platforms suggest similar or more modern products during the order process. On quieter days, the administrator explores alternatives, contributing to R&D. However, this activity is ad hoc rather than structured.	Multiple supplier platforms require different credentials. For simplicity, the same password is used across platforms, contrary to recommended online account management practices.	Moderate. The administrator explores new technologies, contributing to personal curiosity and company growth. However, the unstructured process makes it heavily reliant on platform marketing algorithms, which may not always align with business goals.
Final notes	—	Some days are more challenging than others in the office, with higher-priority tasks requiring cancellation of this activity or delegation to less experienced staff, often doubling the time needed. This activity is also required for planning high-value interventions to ensure commitments to end clients are made with adequate component coverage.	—

An initial version of the analysis was shared with the warehouse administrator, who provided valuable feedback that was incorporated into the final report.

Consultant's overall assessment:

• The process is not only ineffective but also ill-suited for handovers in the absence of the primary operator, making it a critical and vulnerable link in the supply chain with associated risks.
• The administrator is confirmed to be qualified and willing to continue R&D activities, as endorsed by management. However, the current approach is inadequate and would benefit from revision or restructuring. Although this is outside the scope of the current consultancy, the immediate focus should be on freeing up the necessary time to explore its feasibility.
• The negative impressions noted during the initial interview (inefficiency and ineffectiveness of the process, associated risks) are confirmed. The following solutions are suggested to address identified needs:
  • Ensure access to inventory information for consultation: This supports intervention planning.
  • Provide real-time alerts when an item falls below a predefined threshold: This reduces the risk of falling below critical operational levels.
  • Enable quick access to the order placement page: Improves efficiency.
  • Create monthly and quarterly schedules for ordering consumable components: This would allow negotiations for more favourable terms with suppliers.
  • Generate semi-annual schedules for ordering high-value components: Some of these components have long lead times; ordering only when stock is depleted is insufficient.
  • Address the habit of using the same password across multiple portals: Enhances cybersecurity.
  • Ensure alignment with other consultancy objectives: Supports overall strategic coherence.

Analysis of Processes or AI Solutions Available in the Market

At this stage, the consultant works independently to research solutions to propose to the client for mitigating or solving the identified issues. Each proposal is integrated with the experience gained during the analysis and annotated with potential costs and benefits as evaluated by the consultant, to be discussed with the company.

Note

While this phase formally involves independent work by the consultant, efforts are made to avoid wasting time analysing solutions that are clearly unsuitable for the context (e.g., requiring unjustifiably high financial investments or demanding knowledge beyond the operators' realistic capacity within a reasonable timeframe). To ensure focus, the consultant shares research progress with relevant stakeholders, as agreed during the contract discussion, respecting agreed-upon time and resource constraints. For instance, implementing warehouse management using robotic arms and mobile robots could eliminate the need for operators and installers to enter the warehouse, with real-time inventory tracking. However, such a solution would require a complete spatial restructuring and an unjustifiable financial investment. While this may look appealing in a report, the consultant would not analyse it further due to its impracticality.

Continuing with the example of the objective "administrative optimisation," two key needs emerge from the identified requirements:

1. The need for software-based warehouse management.
2. The need for computerised inventory tracking.

Additionally, two further solutions are considered:

• Augmented reality.
• Predictive AI for inventory trends.

Warehouse Management Software

Given the company's growth and projections for steady expansion, a software solution is necessary to ensure scalability in managing inventory.

Several warehouse management software options are available on the market, differing by technology, application, and integration. As the team lacks advanced IT skills, a Software as a Service (SaaS) solution with remote support is considered, while on-premise solutions are excluded.

Three options are identified:

1. Generic warehouse management software

   • Covers common warehouse management needs (inventory tracking, orders, reporting). Easy to use, versatile, and applicable across various industries. Relatively low cost.
   • Typically lacks support for sector-specific needs (e.g., integration with order management platforms). Generally does not include AI-driven demand forecasting.

2. Specialist warehouse management software

   • Offers more features tailored to the sector, such as advanced search by industry parameters and higher customisation.
   • Higher cost, reduced flexibility, and increased dependency on a specific vendor.

3. Warehouse management software integrated into ERP systems

   • Fully integrated into overall business processes.
   • Requires an ERP system, which is costly and complex to implement.

Additional selection criteria include the ability to store supplier portal credentials securely using a password manager, enabling the use of robust and unique passwords.

Computerised Inventory Tracking

Two options are considered for inventory tracking:

• Barcode-based tracking

  • More affordable, standardised, and simpler technology, with the possibility of use via smartphones.
  • Labels must be visible and clean for scanning.

• RFID-based tracking

  • Enables automated scanning without the need for line-of-sight, can read container contents, and tags are reusable and reprogrammable.
  • More expensive and complex to implement, with potential interference from specific materials.

This technology would be used by administration for incoming goods and by operators for outgoing items, using portable barcode scanners. Additionally, management software could allow uploading of manuals and data sheets, making them available in the field by scanning a barcode with a smartphone.

Augmented Reality

Using headsets or smartphone apps, operators could receive directions on where to move within the warehouse to locate specific items, speeding up access operations. This would simplify inventory handling for less experienced staff.

Predictive Artificial Intelligence

Numerous predictive AI applications analyse historical data to forecast future trends. Applied to warehouse inventory, AI can help predict future component flows and support procurement decisions.

It is important to note that the more historical data available, the better the predictive model, particularly for materials unaffected by technological changes (e.g., fasteners and consumables). It is worth investigating whether to train the AI with historical data or start from scratch, accepting an initial period where predictions may not be possible.

Generative Artificial Intelligence

Modern large language models (LLM) can power chatbots that allow operators to interact using natural language. These tools can assist field operators who need installation or setup information without manually searching an index. Instead, they pose a voice query, leaving the AI to locate the information within data sheets.

Questionnaire Preparation and Distribution

The consultant will prepare a questionnaire to share the analysis and ideas with all relevant stakeholders within the company. The goals of this data collection are:

• Ensure the ideas are not perceived as imposed but shared with all relevant stakeholders.
• Provide as many opportunities as possible to uncover overlooked details that could inform future decisions.
• Enable feedback and comments on proposed ideas.

Like the quantitative monitoring questionnaire, this will be available online with adequate time for completion. Most questions will be multiple-choice, but text comments will also be encouraged. Additionally, a secure anonymous feedback box will be provided to encourage candid or critical input without fear of exposure.

Results Analysis and Workshop Agenda Preparation

The consultant will collect questionnaire results and prepare an agenda for the in-person workshop. This can take various forms:

• A discussion of pre-defined ideas to identify weaknesses, potential conflicts, or hidden opportunities.
• An evaluation of multiple options where management seeks an open discussion before making a decision.
• A brainstorming session to outline ideas, possibilities, opportunities, and conflicts under the consultant’s guidance.

For this case, the consultant will propose a discussion workshop to review the advanced proposals and feedback from the questionnaire, allowing for open dialogue.

Note

During the workshop, there will be no presentations of specific ideas or products. If needed, these will be circulated in advance for participants to review. The aim is to minimise using valuable meeting time for presentations that can be handled asynchronously, focusing only on relevant discussion points.

The agenda will be shared with the client and participants well in advance, allowing time to respond to preliminary questions asynchronously.

Workshop Moderation and Results Collection

The workshop will be moderated by the consultant per prior agreements with the client and based on feedback received to date. The consultant will document key notes and unanswered questions for follow-up.

Further Prioritisation and Final Report

The consultant will synthesise the results of all activities into implementation recommendations, including cost-benefit analyses and resource and timeline estimates to inform management decisions.

If the workshop evaluates multiple options without a clear preference, the consultant will prepare a prioritisation questionnaire, allowing stakeholders to reflect and provide input on ranking the initiatives.

The final report will also include an analysis of collected data to measure the effectiveness of proposed initiatives, with recommendations for updates post-implementation. This concludes the consultancy under the current contract, with the potential for further collaboration on implementation, monitoring, or additional steps.

Illustrative Example Only

While the analysis and recommendations employ well-established practices with proven success, every company is a unique and complex entity requiring a tailored approach to meet its specific needs.