EXPERIMENT OVERVIEW
The experiment titled TiConAI (AI-Powered Conversational Assistant with RAG Integration for Timber Operations) is designed to digitize and optimize knowledge management and operational workflows within the timber trade industry. The project is executed by SWMS Consulting (serving as the technology provider). To validate the solution in a real-world industrial setting, Holzhandel Vogt provides the operational test environment and serves strictly as the use-case provider (representing the manufacturing/trade SME sector), without acting as an officially funded partner of the experiment.
The primary objective of TiConAI is to deploy a Digital Intelligent Assistant (DIA) that acts as a central interface for employees to access complex technical information and real-time operational data. By integrating advanced Artificial Intelligence technologies into the daily workflow, the experiment aims to reduce the dependency on senior experts, accelerate the onboarding of new employees, and significantly reduce the time spent answering regularly recurring internal and operational inquiries.
Technical Solution and Functionality
The core of the solution is a voice-based assistant built upon the Open Voice OS (OVOS) framework. This ensures a modular, privacy-preserving, and customizable architecture. The intelligence of the system relies on a hybrid approach combining two distinct technologies:
- Retrieval-Augmented Generation (RAG): The system processes unstructured data sources, such as technical datasheets, supplier catalogs, and internal guidelines (mostly in PDF format). When a user asks a complex technical question (e.g., regarding wood properties or installation guidelines), the system retrieves the relevant document segments and uses a Large Language Model (LLM) to generate a precise, natural language answer based solely on the retrieved context.
- Agent-Based API Integration: For real-time data, the DIA is equipped with an “Agent” capability. This allows the system to recognize when a query requires live data from the SME’s internal systems, such as the Enterprise Resource Planning (ERP) or Warehouse Management System (WMS). The assistant can autonomously query these databases via Application Programming Interfaces (APIs) to fetch structured data like stock levels or order statuses.
Demonstration Scenarios and Use Cases
The experiment will demonstrate the DIA’s capability to handle specific, high-value tasks that were previously time-consuming or required manual lookup. Among the key functionalities to be demonstrated are real-time stock availability checks, where employees can verbally ask the DIA via a radio if a specific article is in stock. The system then queries the ERP system and provides an immediate verbal response, eliminating the need to return to a desktop terminal. Furthermore, the assistant handles order status and tracking by retrieving current order statuses and identifying the specific employee who packed a commission, which facilitates faster internal communication and accountability. To further reduce search times in the warehouse, the DIA guides employees directly to the exact location of ready-to-ship packed commissions. Finally, the system enables technical knowledge retrieval by answering specific product questions, such as whether a certain timber is treated for outdoor use, by synthesizing information directly from uploaded manufacturer documents.
Involved Parties and Roles
Regarding the involved parties and their respective roles, SWMS Consulting acts as the sole project executor and technology provider. SWMS is exclusively responsible for the execution of the experiment, which includes the complete software architecture, the development of the OVOS skills and the integration of the RAG pipeline. Holzhandel Vogt serves strictly as the use-case provider and testbed. They act solely to provide the operational test environment needed to validate the solution in a real-world industrial setting. To this end, they supply access to internal data, including ERP access and documents, as well as end-users like warehouse staff and internal advisors for testing and validation purposes only. Holzhandel Vogt does not act as an officially funded partner within this experiment.
Relevance of the Experiment
The timber trade is characterized by a high variance of complex products and a reliance on “tribal knowledge” held by long-term employees. TiConAI addresses the critical industry challenge of knowledge loss due to demographic changes and the skilled labor shortage. By making expert knowledge accessible via a simple conversational interface, the experiment demonstrates how traditional SMEs can leverage Generative AI to increase productivity, reduce error rates in logistics, and improve customer satisfaction through faster, data-driven service. The solution is designed to be compliant with data privacy standards (GDPR), ensuring that sensitive internal data is handled securely, potentially utilizing on-premise hosting for the LLMs.
Information Fragmentation and Accessibility
Operationally, the warehouse workforce faces a practical “information disconnect” that creates noticeable inefficiencies in daily logistics. Frontline workers handling physical goods usually lack direct access to digital systems while moving through the facility. To answer routine logistical or technical questions, such as “Is article X currently in stock?”, “Is this timber batch treated for outdoor use?”, or “Where is commission Y stored?” they frequently need to interrupt their workflow to walk to a central desktop terminal. Alternatively, they must locate and ask a more experienced colleague. This manual information retrieval causes recurring disruptions and unnecessarily ties up the resources of senior staff. Ultimately, the lack of immediate, hands-free data access at the point of action slows down the picking process and leads to avoidable delays in overall warehouse operations.
Operational Inefficiencies in Logistics
From a logistical perspective, the lack of real-time, hands-free information access creates bottlenecks. Warehouse staff often struggle to locate packed commissions or verify stock levels instantly while operating machinery or handling goods. The current environment lacks a digital interface that supports the mobile, hands-busy nature of timber logistics, leading to avoidable search times, picking errors, and delayed order processing.
Acoustic and Hardware Constraints for Speech-to-Text
Beyond operational hurdles, establishing a reliable voice interface in this specific setting presents a massive technical challenge. The timber yard is inherently loud, characterized by the continuous noise of heavy forklifts, machinery, and the physical handling of massive wooden goods. Furthermore, the workforce relies on standard two-way radios for mobile communication. These devices transmit highly compressed, narrowband audio that frequently suffers from static, frequency interference, and clipped sentences (push-to-talk delays). Achieving accurate Speech-to-Text (STT) recognition and extracting exact data points, such as alphanumeric article numbers or matchcodes, from such noise-polluted, low-quality audio streams is highly complex. Standard STT models struggle under these harsh conditions, requiring the underlying AI system to be exceptionally robust in processing garbled input to ensure the assistant remains a helpful tool rather than a source of frustration.
Objective 1: Enable Real-Time, Hands-Free ERP Interaction
The first and main objective is to bridge the gap between the physical workforce and digital record-keeping systems. The experiment aims to develop and deploy “Agent” capabilities within the Open Voice OS (OVOS) framework that allow the DIA to autonomously query the ERP and WMS via APIs. This will enable logistics staff to perform stock checks, track order statuses, and locate packed commissions using voice commands via radios, targeting a 40% reduction in average information retrieval times.
Objective 2: Validate User Acceptance in a Non-Desk Environment
The second objective is to successfully integrate the conversational AI into the daily routine of the logistics workforce. The experiment seeks to demonstrate that a voice-first interface via radios is a highly viable and preferred tool for a rough, hands-busy industrial setting. A key success metric is achieving an 80% user adoption rate among the warehouse staff within the first two months, proving that the solution effectively reduces their cognitive load without disrupting physical workflows.
Objective 3: Democratize Technical Knowledge via RAG
The third objective is to make complex, unstructured technical knowledge instantly accessible to all operational employees, regardless of their tenure. By implementing a Retrieval-Augmented Generation (RAG) pipeline, the experiment aims to ingest and index vast libraries of supplier documents and internal guidelines. The goal is to enable the Digital Intelligent Assistant (DIA) to answer specific technical queries with high accuracy (target: 90%), thereby reducing the dependency on senior experts and accelerating the autonomy of junior warehouse staff.
Sector and Operational Environment
The experiment takes place in the Timber Trade and Logistics sector. To validate the solution in a real-world scenario, the pilot is carried out in an operational test environment provided by Holzhandel Vogt in Germany, which acts strictly as the use-case provider. The setting focuses specifically on the active warehouse and logistics yard, where goods are actively picked, packed, and loaded. This rough industrial environment is characterized by high noise levels, heavy machinery such as forklifts, and a vast inventory of varied physical products, necessitating robust and hands-free communication methods.
Target Users and Stakeholders
The primary target users are warehouse employees and logistics staff who require immediate, hands-free information access to maintain safety and efficiency during their daily physical operations. By utilizing two-way radios, these workers can retrieve essential operational data without interrupting their physical tasks. Secondary stakeholders include the IT department of the use-case provider, which manages the underlying ERP and Warehouse Management Systems (WMS), as well as the management team, which is highly interested in workforce resilience, knowledge preservation, and process optimization.
Constraints and Requirements
The experiment must adhere to strict data privacy and security standards, including GDPR, particularly regarding any employee data or internal operational metrics processed by the LLM. From a technical perspective, the solution must seamlessly integrate with the existing ERP and other system infrastructure via REST APIs and MQTT, and function reliably through the audio interface of two-way radios operating within the warehouse’s existing communication network. Safety is paramount in this setting; the voice interface must provide clear, concise information without distracting operators while they are maneuvering heavy machinery or handling materials.
EXPECTED IMPACT
EXPECTED IMPACT
Operational Efficiency and KPI Targets
The immediate impact of TiConAI will be a measurable increase in operational speed and accuracy. By automating routine inquiries, the project targets a 40% reduction in response times (lowering the average from 10-20 minutes to 6-12 minutes). Furthermore, the experiment aims to automate 50% of routine internal and logistical inquiries by month 12, freeing up warehouse staff for complex value-added tasks. We expect the DIA to process queries within 5 seconds, drastically cutting down the time currently spent walking to terminals or searching through files.
Strategic Benefits for the SME
Beyond efficiency, the strategic impact lies in workforce resilience. The solution will capture and preserve critical company knowledge, mitigating the risks associated with employee turnover. For new employees, the DIA acts as an on-the-job tutor, significantly shortening the learning curve. This leads to higher employee satisfaction (less frustration finding information) and improved customer satisfaction due to faster, more accurate service.
Sustainability and Error Reduction
From a sustainability perspective, optimizing logistics reduces unnecessary movement within the warehouse (energy saving on forklifts) and minimizes shipping errors (reducing reverse logistics and waste). We plan to track the Accuracy of Data Retrieval with a target of 90%, ensuring that the digital instructions match the physical inventory, thereby reducing resource wastage due to picking errors.
