Sparrow Networks (Sparrow) consists of a spare parts pool of interconnected cement sector players. Customers can quickly access the inventory on Sparrow's digital marketplace. Based in Berlin, Beam is a start-up company builder, supported by Beumer Group, that focuses on logistics and technical challenges.
With its digital marketplace, Sparrow ensures companies are supplied with the appropriate spare part as quickly as possible in the event a component in their systems fails. This prevents long downtimes and expensive storage costs.
Beumer Group supports Sparrow's founder Lars Meir Veisberg, bringing digital projects into the company's corporate group.
One logistics service provider, now benefiting from Sparrow’s digital marketplace, said that a missing sensor that would have cost €500 to replace could not be replaced quickly enough, leading to a failure costing the firm several hundred thousand euors.
"This is a common problem," says Veisberg. "Time and again it happens that in the event of a failure, the right components are not in stock." And it takes time for the suppliers to deliver them – too much time which can be very expensive. Veisberg worked out an efficient solution together with his start-up Sparrow that provides a digital marketplace where the participants can offer components from their own inventory and buy components from other members. "We created a huge virtual warehouse," says Veisberg. "We enable members to share components." The members receive the required spare part quickly so that long downtimes are a thing of the past.
Veisberg and his team receive extensive support from autonomous company builder from Beumer Group spin-off firm Beam.
"We try to solve unique problems in logistics together with the start-up teams," explains Beam managing director Robert Bach. "My task is to find young entrepreneurs with business ideas that are relevant to us. For this we are planning on founding three start-ups per year and transfer them, consolidated under Beam, into a separate company. This now includes Sparrow Networks." Beumer Group is currently looking at opening up new business areas in logistics with these companies.
Spare parts for all
"In discussions with Beumer experts, suppliers, and customers, I found out that small- and medium-sized companies often aren't big enough to maintain a huge parts stock. And when they do, they do not always have the components they need," says Veisberg.
If an employee accidentally hits the sortation system with a forklift, damaging a motor that is not stocked as a spare part, this can result in a long downtime. The question for companies is: Which spare parts should they store and in what quantity? Depending on the components required, the associated costs can be very high. But if they are not needed, they are dead capital. Delivery times can be quite long. Moreover, suppliers are usually unaware of their customers' stocks. Planning production is, therefore often not easy for them.
Members of the Sparrow platform benefit from an almost unlimited pool of spare parts. Thanks to the high availability, their systems experience significantly less downtime, they can reduce their own stock and keep fewer parts in stock in the future. These are significant cost savings. And due to the constant exchange, older parts are always replaced by new ones.
Motivation and at least two years of experience
"Not everyone is suitable to be a founder," says Beam MD Robert Bach. "We require at least two years of start-up experience or very good knowledge of the logistics sector. Veisberg (Sparrow Networks' founder) has been living in Berlin for some time now."
Veisberg said: "Before I worked as a product manager for a long time – until I got to know Beam and Robert Bach. Since September, you can access our digital marketplace under www.sparrow.parts." Veisberg manages the data exchange and ensures the quality of the inventory. Every registered potential buyer can offer their own stock on the online marketplace. "Sparrow lives on this. The participants provide as many spare parts as possible," adds Veisberg."But the participants only upload the quantity they want." After all, no company should find itself in the unpleasant situation of no longer being able to access a spare part that is needed in an emergency. "Data security plays a very important role for us," stress Veisberg. Customer data is always protected. Once the deal is closed, Sparrow takes care of the delivery.
Optimise the supply chain
"By participating, the customer benefits from a very large pool of spare parts," promises Bach. This pool is also the first step in improving supply chains: System operators who need the spare parts can network with each other to cover their parts requirements. Bach continues: "Now if suppliers and system integrators are provided with the necessary data and kept constantly informed about requirements, they are able to optimally plan their production and avoid long delivery times. There is a great deal of optimisation potential here."
Via the Sparrow start-up, Beumer Group says it is successfully pursuing its goal of bringing digital solutions into the corporate group. For example, in urgent cases, the system provider can now provide its customers with even better support, strengthening its position on the market.
And the key gain for Sparrow? "I benefit from the cooperation with Beumer Group in the form of generous start-up financing, an extensive network of experts and customers, and a great deal of know-how," company founder Veisberg says happily. "My company is now part of the Beumer family."
