Studies of material consumption in the construction industry show that far more resources are spent on purchasing and storage than are needed. This is expressed among other things in the size of the stock of the companies that rent out equipment, e.g. machines, to the contractors. NetHire A/S, which is behind Denmark's largest platform for equipment management and rental, has in collaboration with DTU performed analyzes across several tool types and hundreds of locations, and these show that inventory can be reduced by an average of 60% and in more cases 80%.
NetHire A/S wants to run a sustainable business, and therefore strives for the UN's Sustainable Development Goals (nos. 7, 8, 9, 12 and 13). A massive reduction in consumption in the construction industry will lead to a significant reduction in the CO2 footprint that the industry leaves behind, and to a large extent complies with the development goals of responsible consumption and combating climate change.
To achieve this, we want to develop an algorithm that agile and automatically calculates the required number of all item types that product-owners keep in their assortment. The algorithm, which is based on NetHire’s platform, will calculate the minimum inventory level that meets exactly the service that the individual product-owners want to provide their customers.