Kroger`s distribution centers

Transcription

Kroger`s distribution centers
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING
mmh.com
®
May 2009
Kroger’s
LIGHTS
OUT
distribution centers
page 16
INFORMATION MANAGEMENT
Get more from your WMS 23
BEST PRACTICES
Tips for system upgrades 26
EQUIPMENT BUYING GUIDE
Mezzanine basics 32
(
)
Flexibility
Adaptability
Scalability
Sustainability
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CONVEYABLES
BREAKING NEWS YOU SHOULD KNOW
Business is blooming at LAX
A NEW REFRIGERATION facility at
Los Angeles International Airport
(LAX) is expected to expand the
flower trade and reduce the cost of
flowers, while making LAX the new
hub for the U.S. flower supply chain.
The $1.1 million, 12,700-squarefoot refrigeration unit is the largest
at any West Coast airport and was
designed to accommodate a projected 8,500 tons of new perishable
product annually. Prior to expansion,
the perishable traffic flown to LAX
was one-quarter to one-half of the
projected quantity because of lack
of refrigeration at LAX to provide a
continuing “cold chain.” The additional volume of flowers will come
Dimensioning and
tolerancing standard
THE AMERICAN SOCIETY OF
MECHANICAL ENGINEERS
(ASME, www.asme.org), the
world’s leading professional
association for mechanical engineers, has revised the geometric
dimensioning and tolerancing
(GD&T) standard, ASME Y14.52009. The first update in more
than 15 years, ASME Y14.5-2009
has been updated to meet the
needs of 21st century engineering applications.
ASME Y14.5-2009 is available on the ASME
Web site along with related GD&T standards,
personnel certification and handbooks. Training
courses are available, ranging from basics of
GD&T to drawing interpretation. In addition, discounts on all related GD&T offerings are available
through August 31, 2009.
The release of this revised standard coincides
with ASME’s celebrating the 125th-year anniversary of its codes and standards development.
from Colombia and Ecuador, and will
now be shipped to LAX instead of
entering the U.S. in Miami.
Reduce supply chain carbon
emissions
“SUPPLY CHAIN DECARBONIZATION,” a report
recently released by the World Economic Forum (www.
weforum.org), an independent international organization committed to improving the state of the world
by engaging leaders in partnerships to shape global,
regional and industry agendas, and Accenture (www.
accenture.com), a global management consulting, technology services and outsourcing company, examines
the role that the logistics and transport sector plays in
reducing emissions.
The report, which quantifies and ranks opportunities
to reduce supply chain carbon intensity, is a review
of the scale of the logistics and
transport sector’s carbon footprint
and key opportunities for near-term
reduction of the sector’s emissions.
It assesses the legal and commercial
drivers for supply chain decarbonization and establishes a framework
for meaningful cuts in emissions
across end-to-end supply chain and,
through a series of scorecards, analyzes the relative importance of the
main opportunities for change.
Police raid disrupts Houston plastic
pallet theft network
ALL-PLASTIC PALLETS with embedded RFID tags played a
major role in disrupting an illegal pallet operation in Houston,
Texas. Intelligent Global Pooling Systems (iGPS, www.igps.
net), reported that with its close and ongoing collaboration with Houston law enforcement officials and retailers in the region,
the Houston Police Department’s Major
Offenders Task Force conducted a raid on
PA Pallets of Houston on March 26, 2009.
During the raid, the owner of PA Pallets was
arrested for grand theft and receiving selling
and possession of stolen property.
mmh.com
MODERN MAT ERIA L S HA NDL ING / M
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2009
3
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VOL. 64, NO. 5
®
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION,
WAREHOUSING AND MANUFACTURING
Kroger’s lights out distribution centers, page 16
COVER STORY
SYSTEM REPORT
Steve Banker, ARC Advisory Group, page 54
DEPARTMENTS & COLUMNS
3/ Conveyables
16 Kroger changes the game
7/ This month in Modern
Eight years ago, Kroger created a new design for grocery distribution.
Today, the grocer is building store-ready mixed pallets in an automated
environment.
15/ Lift Truck Tips: Fleet management
21 Automation in command
Kroger’s new grocery facility uses very few workers to build store-ready
mixed pallets.
FEATURES
INFORMATION MANAGEMENT
23 Getting more from your WMS
Even if you’re not ready to invest in a new warehouse management
system, you can leverage your existing investment by adding new
functionality. Here’s how.
BEST PRACTICES
26 7 sanity-preserving tips for successful
system upgrades
Modern assembled this checklist of seven best practices to keep your
modernization project on track and your sanity intact.
PRODUCTIVITY SOLUTION
31 Reduced picker time
A Swedish retailer uses a mobile system solution to double
order-picking productivity at its main distribution center.
EQUIPMENT BUYING GUIDE
32 Mezzanine basics
When workspace is tight, a mezzanine can raise your facility’s capacity
and productivity to a new level.
mmh.com
36/ Product Focus: Overhead handling
41/ Special Supplement: Warehousing
and distribution centers
54/ 60 seconds with...
NEWS
9/ WERC talks RFID and green
11/ Education round-up
12/ Researcher predicts rise of RFID
12/ ISM annual awards
12/ Don Frazier materials handling
program dedicated
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2009
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Breaking tradition is good
for business
T
AKE ANOTHER LOOK at this
month’s cover. Anything missing?
While there’s nothing that resonates
more with Modern readers than seeing a
peer highlighted on the cover, this month
we decided to put the focus squarely on
Kroger’s new automated system design—
and the system design alone.
I guess you can say that we’ve broken with tradition to accentuate a point.
Kroger—like several of its rivals in the
highly-competitive grocery industry—was
an early adopter of warehouse management and labor systems, and was certainly
in the forefront of applying wireless bar
code scanning and voice technology.
Now realizing that a pioneering spirit
actually pays off in terms of productivity,
Kroger has firmly embraced the benefits of
automated handling and shows no sign of
turning back. Starting on page 16, Executive Editor Bob Trebilcock explains the
thought process behind the grocery giant’s
new automated design philosophy and
how it’s weaved into Kroger’s long-term
supply chain strategy.
In short, the system can receive and
putaway full pallets, break them down and
rebuild them into story-ready mixed pallets
according to how they will be placed on
store shelves—and do all of this with nearly
no human intervention. In fact, operators
only touch product once at the receiving
dock and once on the shipping dock.
“When we began working with our
system integrator to create this design,
we were looking for a paradigm change in
grocery warehousing,” says Kroger’s John
Winkels, the company’s MICHAEL A. LEVANS
GROUP EDITORIAL
senior director of logis- DIRECTOR
tics engineering and
network strategy—a
title that indicates where Kroger is heading. Once you comb through the details of
how they’ve already rolled this design into
two facilities—with more on the way—you
can say with some confidence that Winkels and his team are well on their way to
achieving that paradigm change.
Another piece of required reading this
month is “Getting more from your WMS,”
which begins on page 23. Over the first
quarter of this year Modern, along with
sister publication Logistics Management,
have been consistently reminding readers
that yes, software and technology investment is down, and in many cases being
completely shelved at least through 2009.
But while software investment money
may not be flowing from your fingertips,
plans for optimizing what you already have
should be on your drawing board. With the
help of ARC’s Steve Banker and a number
of other WMS heavyweights, this month
we offer some suggestions for how to tap
deeper into the existing functionality you
may already have.
And if our suggestions leave you wanting more, tune into the 2009 Warehouse/
DC Best Practices virtual conference at
mmh.com/warehousevc where AMR’s
Greg Aimi presents even more insight into
the benefits of WMS optimization in tough
times.
By the way, over 1,800 of your peers
have already dropped by.
ENEWSLETTER
Member
mmh.com
Member of
Official Publication of
Winner
Jesse H. Neal
Certificates of Merit
for Journalistic
Excellence
MODERN MAT ERIA L S HA NDL ING / M
AY
2009
7
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best of Modern’s blogs
Company Briefings | Bob Trebilcock
RFID: ODIN introduces smart container
www.mmh.com/blog/odin
Takeaways | Tom Andel
Lift trucks and tweeting attachments
www.mmh.com/blog/tweeting
EVENTS
WERC talks RFID and green
FOUR-DAY CONFERENCE PROVIDED AN OPPORTUNITY FOR LEARNING AND DISCUSSIONS OF
PRESSING TOPICS FOR WAREHOUSE AND DISTRIBUTION PROFESSIONALS.
BY LORIE KING ROGERS, ASSOCIATE EDITOR
ATLANTA—WAREHOUSING PROFESSIONALS returned
to work after the Warehousing Education and Research
Council (WERC, www.werc.org) annual conference in
Atlanta, Ga., last month with the benefit of seven local
facility tours, more than 45 presentations, 27 roundtable
discussions, several mega-roundtables and special mealtime presentations.
The 32nd annual WERC conference remained true to
its mission of providing valuable educational opportunities for professionals in warehousing and distribution
management. This year’s four-day conference also included a two-day WIRE (WERC’s Industry Resource Event)
reception during which 62 exhibitors showcased products
and services.
WERC meeting topics covered issues ranging from
choosing the right site for your business to managing
relationships, from RFID asset tracking to effectively
implementing software systems, as well as lean and green
strategies. The challenging economy and the heightened
demands placed on businesses to do more with less
impacted the discussions.
mmh.com
The WERC conference included four days of
education, networking and entertainment. From
left: Patti Satterfield, Fortna’s vice president of
marketing and business development; incoming
WERC president Tim Feemster, senior vice president
and director of global logistics for Grubb & Ellis;
motivational speaker and musician Mike Rayburn;
one of several mega-roundtable sessions; guest
speaker David Abney, CEO for UPS.
Distribution center tours in Atlanta
A tour of the NCR customer fulfillment center in nearby
Suwanee, Ga., exemplified the importance of lean thinking and employee involvement. Employees are invited to
kaizen events, which are forums for workers at all levels of
the organization to share ideas. Productivity and efficiency
have been impressive and measurable. Over the past few
months, the NCR facility and 3PL partner Menlo have
implemented a color-coded cone system that enables
workers to literally see where materials are in the handling
process. The floor has been marked to create a place for
everything, which cuts down on time-wasting actions and
MODERN MAT ERIA L S HA NDL ING / M
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2009
9
function as independent businesses.
Avon Atlanta supports 23 sales divisions, 423 sales districts that support
250,000 representatives in 13 U.S.
states and 14 Caribbean Islands.
“Using Metrics in the DC” was a wellattended presentation at the WERC
conference.
speeds productivity. As a result, ontime deliveries went from a 65% low
point in 2006 to a consistently high
99% since the beginning of 2008.
The Avon Atlanta distribution
center, a 350,000-square-foot facility,
is the company’s third-largest DC in
Avon’s global network, processing
5 million orders, shipping 9 million
packages, and picking 300 million
pieces annually. Order processing areas include mechanical assembly for
high volume items (55%); cart picking
for low-volume items (7%); station
lighting for high volume non-dispensable products (38%); and off-line bulk
for high cube (large container) units.
While this is a highly automated facility using A-frame technology, manual
quality control is still important for
order accuracy and customer satisfaction. Customer satisfaction is key,
considering Avon representatives
“
Rountables
Roundtable sessions provided an opportunity for attendees to compare
notes on a number of topics. Patti
Satterfield, vice president of marketing and business development for
Fortna (www.fortna.com), lead a lively discussion comparing warehouse
management systems, the pros and
cons of best of breed vs. enterprise
resource planning (ERP) systems vs.
on-demand options.
James Stock, professor of marketing and logistics at the University of
South Florida (www.usf.edu), focused
on reverse logistics. He highlighted the
importance of optimizing the returns
process and the potential for future
legislation regarding supply chain recycling and waste disposal regulations.
Many of the discussions centered
around green. Participants seemed to
agree that the easiest, most common and cost-effective greening of a
facility comes with simple changes like
replacing lighting fixtures, installing
motion controls on lights and timers
on thermostats. But the real challenges come with bigger ticket items like
solar panels and green roofs. While
these solutions are environmentally
friendly, they are expensive.
QUOTABLES
”
“I’ve gotten a lot out of this
organization over the years; the
long-term relationships have been
invaluable. Now it’s time for me
to give back.”
—Tim Feemster,
commenting on his involvement with
WERC and his role as incoming president
10
M
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2 0 0 9 / MO D E RN MATE R IALS HANDL I NG
WERC’s
33rd annual
conference is
scheduled for
May 16-19, 2010
in Anaheim, Calif.
2009-2010 WERC board of directors
• President: Timothy Feemster,
senior vice president, director
of global logistics, Grubb & Ellis
Company
• Vice President/President Elect:
Catherine Cooper, executive
vice president and chief
information officer, OHL
• Secretary/Treasurer: Lawrence
Dean Shemesh, president and
chief executive officer,
OPSdesign Consulting
• Director, 2010 Annual
Conference: Connie Anderson,
owner and president, Aspen
Distribution, Inc.
• Director, 2011 Conference:
Michael Wohlwend, senior
director, Manhattan Associates
• Director At-Large: Chip
Edgington, executive vice president of operations, Redcats USA
• Director At-Large: Paul
Avampato, vice president
process design, Kraft Foods
• Director of Web Services:
Gerald Perritt, chief operations
officer, UTi Integrated Logistics
• Director of Membership
Marketing: Andrea Velasquez,
vice president of business
development, Epstein
• Director of Education: John
Mascaritolo, MBA, assistant
professor, supply chain, Clayton
State University
• Executive Director: Michael
Mikitka, CAE, CMP, executive
director, WERC
mmh.com
education round-up
Best business schools of 2009
According to U.S. News & World Report, the path toward an
M.B.A degree starts with finding the school that fits the student best. The magazine recently released its 2009 ranking
of the best graduate programs in the country (grad-schools.
usnews.rankingsandreviews.com). Here’s the list of the best
business schools offering supply chain/logistics specialties:
1) Massachusetts Institute of Technology (Sloan)
2) Michigan State University (Broad)
3) Carnegie Melon University (Tepper)
4) Stanford University
5) Arizona State University (Carey)
6) Pennsylvania State University – University Park (Smeal)
7) Ohio State University (Fisher)
8) University of Pennsylvania (Wharton)
9) University of Tennessee – Knoxville
10) Northwestern University (Kellogg)
In-class simulation prevents real-world risk
The Lean Six Sigma Master Black Belt program at North
Carolina State University (www.tx.ncsu.edu/sixsigma) now
includes classes using its new Simio (www.simio.biz) simulation software. The class is designed for those making
decisions or conducting process improvement projects,
without being burdened with low-level programming.
The software makes it easy for non-experienced users
to build process simulation models. It helps minimize
the risk of capital investments and clarify lean operation
initiatives for operations managers in the supply chain,
manufacturing and shipping businesses.
The course is designed in three parts.
• Part I - introduction to simulation, statistics and distributions
• Part II - introduction to process simulation with Simio
• Part III - advanced simulation topics with Simio
Gatton team wins supply chain competition
Two students from the University of Kentucky Gatton College of Business and Economics (www.gatton.kyu.edu)
became the first winners of the National Powers in Supply
Chain Competition hosted by Michigan State University’s
Eli Broad College of Business (www.bus.msu.edu).
Taking on students from 12 top universities across the
country, Gatton’s team of Matthew Choyce and Ryan Hayes
captured first place in the challenge, which involved managing a complex global supply chain through 13 simulated
weeks of decisions. Teams were measured on total revenue,
order fulfillment, inventory turns, and a profit figure the
Broad School calls supply chain contribution. The scoring
employed an objective, points-based system, using SCODE
(Supply Chain Operations Decision Environment), which
eliminated subjectivity from the judging process.
TECHNOLOGY
Researcher
predicts rise
of RFID
THE VALUE OF THE RFID market
in 2009 will rise to $5.56 billion, up
from $5.25 billion in 2008, according
to a new report by IDTechEx (www.
idtechex.com), a research and consulting firm.
Although many commercial RFID
initiatives have been stalled because
of the absence of a clear return on
investment, the overall market for
RFID products and services continues
to grow because of governmentled RFID schemes such as those for
transportation, national ID (contactless cards and passports), and animal
tagging. The RFID market comprises
tags, readers and software/services
for RFID cards, labels and all other
form factors.
Overall, 2.35 billion tags will be
SUPPLY CHAIN
ISM annual awards
THE INSTITUTE FOR Supply Management (ISM, www.ism.ws) announced the winners of its fourth
annual ISM R. Gene Richter Awards
for Leadership and Innovation in
Supply Management. The 2009
Richter Corporate Award recipients
are:
• Alltel Communications Inc.
• KPN Energy Management
• United States Postal Service
Organization/Structure Category:
Alltel Communications Inc. (www.
alltell.com)
In the wireless industry, handsets
flow out into the consumer market,
followed by used handsets returning
to the company. Members of Alltel’s
supply management group consolidated reverse logistics and process
improvements to yield millions in
expense reductions.
12
M
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sold in 2009 compared with 1.97
billion in 2008, 1.74 billion in 2006
and 1.02 billion in 2005. According to IDTechEx, $2.23 billion was
spent on tags alone in 2008, at an
average price of $1.13 per tag. With
the launch of printed RFID later this
year for transit ticketing and other
applications and the increased use
of RFID labels rather than cards, the
average price of a tag will fall to 22
cents in 2014.
A few major retailers, such as
Marks & Spencer and American
Apparel, will continue to roll out
Process Category: KPN Energy
Management (www.kpn.com)
Amid growing pressures and strict
goals to reduce energy in Europe,
Royal KPN Telecom in the Netherlands formed a cross-functional
energy management group that
allowed the company to get a better
grip on cost and consumption and
realize energy efficiency within the
supply chain.
Technology Category: United States
Postal Service (www.usps.com)
Sourcing events at the United
States Postal Service can be very
complex, with the average event
involving 715 line items, 23 suppliers
and $128 million in spend. Its entry
detailed how it implemented optimization-enabled sourcing technology
to allow suppliers the flexibility to
choose items from the total solicitation package on which to bid, create
their own bundles and offer conditional discounts.
2 0 0 9 / MO D E RN MATE R IALS HANDL I NG
RFID initiatives this year. Some 200
million RFID labels will be used for
apparel globally in 2009. RFID tagging of animals (such as pigs, cattle
and sheep) will also grow because
of legal mandates in many countries,
including China and Australia. Some
105 million tags will be used for this
sector in 2009.
About 350 million RFID tickets will
be sold in 2009 for transit applications in cities around the world. Only
225 million passive UHF tags will be
used for this application in 2009, far
fewer than the 35 billion tags that one
consumer goods company alone predicted in 2003 that it would be buying
by 2009, the report said. The main
factors behind the disappointing numbers include technical failures (poor
read rates with high moisture content
and metal products), a lack of RFID infrastructure, and the inability of retailers and their supply chain partners to
work together to meet their common
needs by using RFID.
INDUSTRY NEWS
Don Frazier
materials handling
program dedicated
THE MATERIAL HANDLING Education Foundation Inc. (MHEFI) recently
announced the dedication of a new
pilot program, the Don Frazier Material Handling Technical Training Program, with the opening of the Don
Frazier Supply Chain Training Center
as part of the Rock Hill Schools Applied Technology Center on April 30.
Named for Don Frazier, founder of
Frazier Industrial Company, the new
program consists of an entry-level
educational program for high school,
technical and community college students who will gain work-related skills
and experiences in state-of-the-art,
fully equipped working warehouse
and distribution training centers that
serves as a laboratory setting for the
mmh.com
program. Rock Hill is home to four
of the top 10 DCs in South Carolina.
With about 60 notables in attendance at the dedication, Don
Frazier described the center as “a
seed program to give high school
students a future they might not
have otherwise received.” In fact,
Don saw a bit of himself in that
statement.
In 1946, he went to work for the
Materials Handling Laboratories
that published a magazine called
The Palletizer, which is now known
as Modern Materials Handling. In his
four years with Modern, Don worked
as the “office boy” (his words) and
received industry training that stood
him in good stead. When Don left
Modern in 1950, he went on to found
Frazier Industrial (www.frazier.com), a
major supplier of rack and other materials handling equipment to this day.
As Rock Hill finishes out its first
year with the program, 93 students
have completed the course. The
top student is Brandon Langston,
a junior. After Brandon received a
recognition certificate and notebook
computer from his new materials
handling mentor, it sounded like it
might as well have been the 1940s all
over again.
After just one year of exposure to
how DCs operate, Brandon is ready
for another year of study and to
launch his career. “I just want to get
out there and do the best job I can.
This is all really exciting,” he said.
To get the program off the
ground, 14 companies donated
roughly $500,000 of equipment to
the center, thanks to MHEFI and its
executive director Victoria Wheeler.
As a result, students know not only
about the equipment—from conveyors and racks to inventory manage-
Going
Up?
Top student Brandon Langston (left)
receives a recognition certificate
from his mentor Don Frazier.
ment software and powered storage—but how to operate it.
“Out of respect for Mr. Frazier,
and his long and generous leadership
of the Material Handling Industry of
America (MHIA) and MHEFI, member
companies of MHIA have offered
needed equipment and expertise to
the program,” said Wheeler. These
companies include: Atlas Material
Handling, Bluff Manufacturing, Bushman Equipment, Demag Cranes &
Components, Diamond Phoenix, Frazier Industrial, Hamilton Caster, Hanel
Storage Systems, Hytrol Conveyor,
NACCO Material Handling — YALE,
Southworth International, Spanco,
Steel King Industries and Unarco
Material Handling.
“Additionally, several local companies—including West Marine, Ross
Industries, State Farm Insurance,
Black & Decker and US Foods—contributed to the program’s start up
costs,” Wheeler says.
“We expect this to be not only a
model for the state but a model for
the nation,” said Bob Couch, state
director of South Carolina Career and
Technical Education.
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TOM ANDEL,
COLUMNIST
Maximizing fleet
management
Fleet managers in this economy have
two options. Plan A: Sit on your capital
until things get better; or Plan B: Get
the most from your spend. With lift
trucks, Plan B is the only viable one.
S
mart lift truck fleet management helps you get the
most out of your investment. This can entail a combination of maintenance and analysis tools applied
in-house or outsourced through the equipment supplier
or another service provider. I asked several leading lift
truck suppliers how their clients are making use of fleet
management services during these tough times. Their
responses might help you ace your own Plan B.
Control costs
Companies whose business is down dramatically might
have idle lift trucks. Joseph LaFergola, manager of business and information solutions at The Raymond Corporation (www.raymondcorp.com), notes that while lift trucks
not in use do not accrue maintenance costs, their total
cost of operation (TCO) will continue to increase due to
continued lease payments. There is a way around this.
“By deferring the lease payment, facilities can maintain
a static TCO until equipment is put back into service,”
LaFergola says. For example, Raymond’s Assurance Program allows companies to make lower payments for up
to 12 months while the units are parked. For each month
the unit is parked, the lease term will be extended for one
month. Once the equipment is put back into service, the
user makes up the deferred payments.
Simplify maintenance
John Russian, manager of fleet marketing for the Hyster
Company (www.hyster.com), says sometimes it makes
sense to pay a fixed maintenance cost per run time hour
versus paying for a standard full maintenance plan. “A
maintenance-by-the-hour plan can reduce the possibility of
overpaying for maintenance if the truck does not meet its
estimated annual usage,” he adds.
Understand usage
While maintenance by the hour can help managers make
costs more predictable, making lift truck activity more understandable is also important. “Fleet management needs
mmh.com
Fleet management can entail a combination of maintenance and
analysis tools applied in-house or outsourced through a supplier.
to point out the peaks and valleys of use in a reporting
format so retaining, replacing and retiring lift trucks isn’t all
about the cost per hour, but equally when, or how much,
the lift truck is being used,” says Michael McKean, manager of fleet management sales and marketing for Toyota
Material Handling (www.toyotaforklift.com).
Cut paperwork
Raymond’s LaFergola says consolidated invoicing can
reduce overhead costs. “A company processing 1,000
invoices in a year can create $50,000 in administrative
overhead,” he says. “By reducing the number of invoices
for lift truck expenses to one per month, the company can
save up to $49,400 per year.”
Share information
Lift truck fleet management is evolutionary. Scot Aitcheson,
director of fleet management for Yale Materials Handling
(www.yale.com), says it often starts with a simple fleet inventory and a baseline cost analysis. From there, a manager can
look at cost savings. “Specifics include throughput, the path
the forklifts take throughout the day, and improved operator efficiency,” Aitcheson says. “We are isolating information
at a much deeper level, so CFOs can understand why truck
number 1234 is being used less but costing more.”
Contact Tom Andel at [email protected].
MOD ER N MATER IALS HAND LING / M
AY
2009
15
Kroger changes
Eight years ago, Kroger created a new design for grocery distribution.
Today, the grocer is building store-ready mixed pallets in an automated
environment.
By Bob Trebilcock, Executive Editor
modern SYSTEM REPORT
the game
I
N THE NOT SO DISTANT PAST, most grocery distribution centers made due with
labor intensive, traditional materials handling technologies and processes. Pallets
were moved by lift trucks and stored in racks. Mixed pallets were built the old fashioned way, with manual labor.
For some leading grocers, those days are history.
The same industry that led the way in the adoption
of warehouse management and labor management
systems, wireless bar code scanning and voice
technology is now adopting automated materials
handling in a big way.
The Kroger Company is one of those industry leaders. About eight years ago, it began working with a systems integrator (Witron Integrated
Logistics Corp., 847-385-6113, www.witron.com)
to create a new design to automate its grocery distribution centers. The end result was a system that
can receive and putaway full pallets, then break
them down and rebuild them into store-ready
mixed pallets according to how they will be put
away on the shelves in a store aisle. It all happens
with almost no human intervention: Operators typically touch a product once when lift truck operators unload pallets at the receiving dock and once
again when they are loaded at the shipping dock
for delivery to Kroger’s stores.
The system uses:
• Automatic pallet exchange and depalletizing
machines,
• A 10-crane unit load automated storage and
retrieval system (AS/RS) with approximately
21,000 pallet positions for reserve storage,
• A 32-aisle mini-load AS/RS with nearly 400,000
modern SYSTEM REPORT
tray positions for temporary storage
of cartons prior to order fulfillment,
• Transfer vehicles that deliver pallets
from the system induction area in
receiving to a pallet exchange station
and from the conveyor system to the
AS/RS crane selected for putaway, and
• A unique system that automatically
builds mixed pallets in the sequence
they will be stocked on shelves in a
specific store aisle; the system uses a
separate mini-load system for buffer
storage, a custom-designed palletizer to place the cartons on the right
spot on the pallet, and an automatic
stretch wrapper.
In all, Kroger processes about
110,000 cases per day with a peak
capacity of 160,000 cases in the first
facility built with the new design in
Arizona.
“When we began working with
our system integrator to create this
design, we were looking for a paradigm
A depalletizer removes cartons one
layer at a time.
After depalletizing, cartons travel to
a mini-load.
change in grocery warehousing,” says
John Winkels, Kroger’s senior director
of logistics engineering and network
strategy. As Winkels’ title suggests, the
design was part of a long-term supply
chain strategy. After going live with the
Arizona facility, Kroger built a second
facility in Colorado and is in the process of building a third using the same
design in southern California. “We’re
looking at our network, and rethinking
how we serve the characteristics of different geographic areas,” he says.
Addressing 21st century problems
Founded 126 years ago, Kroger is one
of the best-known names in American
business. Like most of its competitors,
for many years it had been a traditional
grocery logistics and distribution company. “Fundamentally, I don’t think that
we had done much different from what
other companies were doing for 50
years,” says Winkels.
The grocery industry, however, is
incredibly competitive, operating on
razor-thin margins. Any reductions
Photos by Patricia Barry Levy/Getty Images
18
M
AY
2 0 0 9 / MO D E RN MATE R IALS HANDL I NG
mmh.com
modern SYSTEM REPORT
The mini-load dispenses cartons in the
order they will be palletized.
in operating costs in warehousing,
order fulfillment and transportation
go right to the bottom line. For that
reason, Kroger set out to re-engineer
the way it distributes product to its
stores, creating a distribution system
for the 21st century.
“The philosophy that most of our
industry has taken is that you need
to be close to your store base with
your facilities,” says Winkels. “We
wanted to look at our network and
rethink that. In the East, we have
a complex network that consists of
facilities distributing fast-moving
products to local markets and facilities for slow-moving items that serve
a broader geographic area. And, in
the West, where the new facilities
are located, you are more isolated
geographically.”
Surprisingly, cycle times and
throughput were not major issues
A special palletizer builds a pallet
in sequence for putaway.
mmh.com
for the new design. Kroger was able to
meet its throughput requirements in its
traditional warehouses by adding labor.
Instead, Kroger wanted a solution that
would address some of the major longterm challenges of operating a grocery
distribution center.
The first was to efficiently deal with
SKU proliferation. “As the number of
SKUs continues to grow, you have to
continually add space for more pick
faces,” says Winkels. “We wanted to
be able to manage the amount of real
estate we need to handle a large number of SKUs.”
A second was to efficiently build a
mixed case pallet for individual stores.
“The Holy Grail for our industry is to
create a system that will automatically build a pallet of mixed SKUs that
doesn’t damage the product, maximizes the cube of a truck, and gets to
the store in an aisle-aligned manner
based on the planogram for that store,”
Winkels explains.
Aisle-aligned means that cartons
are loaded on a pallet in the sequence
Completed pallets are
automatically stretch-wrapped.
they’ll be put away on the shelves
in a specific aisle, with the top layers at one end, the middle layers
in the middle of the aisle, and the
bottom layer at the other end. But,
the system would also understand
constraints like crushability so that
it doesn’t stack cans of soup on top
of Japanese noodles on the pallet.
Being able to build an aisle-aligned
mixed pallet would not only make
the warehouse and store operations
more efficient, it would also create
a safer workplace. “When you look
at where you have injuries in a warehouse, the majority are repetitive
motion injuries to backs and shoulders,” says Winkels. “Most of those
are the result of lifting. Developing
an automatic mixed case palletizing
system would eliminate those.”
Finally, Kroger wanted a system that would address the changing warehouse industry workforce.
“As our volume has grown, it has
become more difficult to attract a
MODERN MAT ERIA L S HA NDL ING / M
AY
2009
19
modern SYSTEM REPORT
stable workforce for this kind of work,”
Winkels says. “Like many distributors,
we’ve had significant turnover in our
warehouses and that’s very inefficient.”
Turnover is less of a problem today,
given the current economic climate,
“but long-term, we see it as a continuing problem,” says Winkels.
An automated solution
After Kroger identified its high-level
supply chain priorities as well as the
operational challenges it wanted to
address, Winkels says it became clear
that materials handling automation was
the way to go. “We knew that there are
pluses and minuses with automation,”
says Winkels. “The minus is that a
machine can only do what a machine
can do, so you have to approach your
processes in a very disciplined manner.
If your volume of orders increases, you
can’t add more labor to get the orders
out the door.”
At the same time, he adds, a highly
automated storage and pallet building
Wrapped pallets are delivered by
conveyor to a pick-up station.
20
M
AY
Pallets are loaded onto a trailer for
delivery to a store.
system would take much of the human
element out of the equation: That would
eliminate repetitive motion injuries,
reduce the turnover rate of unskilled
labor, and free up personnel for more
productive activities, like value-added
services. Through dense storage, Kroger
can also accommodate a high number
of SKUs in a reduced footprint.
“Once we decided that automation was the way to go, we challenged
our system integrator to think differently about grocery warehousing,”
says Winkels. “We wanted an efficient
automation system that could build
mixed SKU pallets in a store-friendly
manner.”
The solution incorporates a number
of familiar automated materials handling technologies: A unit load automated storage and retrieval system (AS/
RS) for full pallet storage; an automated
depalletizer that removes a layer of cartons and orients them for putaway in
a mini-load AS/RS; and an automated
palletizer and stretch wrapper.
What’s unique is how those familiar
technologies come together to build
aisle-aligned pallets. The case order
machine, for instance, takes cases from
the mini-load and places them in a buffer storage system that then delivers
2 0 0 9 / MO D E RN MATE R IALS HANDL I NG
them in sequence to the palletizer; that
machine uses a unique series of arms to
maneuver a carton into the right position on a pallet before delivering the
finished pallet to an automatic stretch
wrapper. “The trick isn’t to build an
AS/RS or a mini-load,” says Winkels.
“The trick is to seamlessly connect the
pieces. What’s special about this solution is the way the software coordinates
pulling the pallets out of the AS/RS,
dictates how much product needs
to be placed in a mini-load tray, and
sequences the delivery of the cartons to
the palletizer.”
The Arizona facility has been fully
operational since 2005, with the
Colorado facility going live a year later.
The third facility using this design is
currently under construction.
With two facilities with the new
design operational, Kroger measures
its success in several ways. “Our
orders are more accurate and we have
reduced product damage, which means
we’re getting more of the product our
customers want to the store in a sellable condition,” says Winkels. “What’s
more, it has provided us with significant logistics efficiency. We’re not just
more efficient in the warehouse, we’re
making better utilization of the cube of
the trailer and making our stores more
efficient. The impact can be felt across
our supply chain.”
mmh.com
modern SYSTEM REPORT
automation
in command
Kroger’s new grocery facility uses
very few workers to build
store-ready mixed pallets.
Kroger Company, Arizona
SIZE: Dry goods: 650,000 square feet
Perishable goods: 350,000 square feet
9 Transfer car
By Bob Trebilcock, Executive Editor
4 Unit-load
AS/RS
8 Pick up
and drop off
11 Buffer
storage
4
Unit-load
AS/RS
5
Palletizers 12
3
Mini-load
AS/RS
3
Mini-load
AS/RS
Stretch
wrappers 13
Depalletizer
Conveyor
6
5
7 Pallet exchanger
2 Induction
conveyor
10 Conveyor
1
Receiving
Outbound station 14
F
SHIFTS: 7 days/24 hours
EMPLOYMENT: 500
PRODUCTS: Grocery distribution
AS/RS: 21,000 pallet positions/10 cranes
MINI-LOAD AS/RS: Up to 400,000 tray positions/32 cranes
VOLUME: 110,000 cases per day/160,000 cases per day peak capacity
rom the supplier to the store, pallets are only
touched twice in the Kroger facility: Once
when a pallet is unloaded from an inbound
trailer by a lift truck operator at the receiving dock
and once again when it’s loaded by a lift truck opera- ping pallet onto a permanent storage pallet.
Putaway: Pallets going into reserve storage in the AS/RS 4
tor onto an outbound trailer at the shipping dock. In
are sent by conveyor 5 to a mezzanine level where another
between, automation is in control.
conveyor 5 delivers them to a pick up and drop off area 6 .
mmh.com
After the warehouse control system (WCS) determines the
best storage location to maximize the cube of the AS/RS, a
transfer car 9 delivers the pallets to one of the 10 cranes that
will pick up the load and put it away 8 . It’s now available to
promise. Pallets with product needed now to fill an order are
conveyed to a depalletizing area 6 . There, an elevator raises
the pallet to a mezzanine level where a depalletizing head
removes and places a layer of cartons onto a descrambling conveyor. The conveyor orients the cartons into a single file and
loads them on a tray appropriate for that SKU. The tray then
MODERN MAT ERIA L S HA NDL ING / M
AY
2009
21
DANIEL GUIDERA
Receiving: In the receiving area 1 , a lift truck driver
unloads a trailer and drops the pallets onto an induction conveyor 2 where a fixed bar code scanner reads a label on the
load. The warehouse management system determines whether
that product is needed now in the mini-load automated storage and retrieval system (AS/RS) 3 to fill an order or whether
it can go into reserve storage in the unit-load AS/RS 4 . Product
that is needed now is delivered by conveyor 5 to a depalletizer
6 . Product that is going into reserve storage is sent to a pallet
exchange machine 7 where it will be transferred from a ship-
modern SYSTEM REPORT
travels through a matrix—or super highway—of conveyors 10 that routes the
tray to the right mini-load crane 3 for
that product. Depending on the size of
the tray, the crane puts away either two
or four trays at a time. The trays will
remain in the system for no more than
three days before they’re retrieved for an
order.
Replenishment: As product is
pulled from the mini-load 3 for orders,
it will be replenished from the AS/RS 4
using the same putaway process
described above: Pallets are pulled from
the AS/RS 4 and sent by conveyor 5 to
the depalletizing area 6 ; from there cartons are placed on trays and putaway in
the mini-load system 3 .
Picking and packing: The facility
is engaged in order fulfillment for as
many as 22 hours a day. In general,
orders are pulled from the mini-load system, palletized and loaded on a truck
within five to seven hours after being
received into the order management system. When an order drops into the facility, the WCS calculates which trays are
going to be needed to build every pallet
in that order and begins to pull the trays
from the mini-load 3 . They are deliv-
System suppliers
SYSTEM DESIGN, INTEGRATION AND
IMPLEMENTATION, PALLETIZER AND
WAREHOUSE CONTROL SYSTEM:
Witron Integrated Logistics Corp.,
847-385-6113, www.witron.com
CONVEYOR SYSTEM, TRANSFER CARS
AND AS/RS CRANES: TGW-Ermanco,
231-798-4547, www.tgw-ermanco.com
RACKING: Nedcon, 513-367-2656,
www.nedcon.com
DEPALLETIZERS: Univeyor, 651-229-3401,
www.univeyor-us.com
STRETCH WRAPPER: Strema Packaging
Machinery (Italy), 39-045-6661376, www.
strema-machines.com
ered to a smaller mini-load unit that
serves as buffer storage 11 . The trays are
loaded into the smaller mini-load, which
then delivers them in the sequence they
will be loaded onto the pallet to a short
conveyor loop. The trays are then delivered to one of several palletizers 12 .
There, a case is lifted off the tray and
placed on a staging area. A series of
pusher arms position the carton on the
right spot on the pallet. Once a pallet is
built, it travels by conveyor to one of two
automatic stretch wrappers 13 .
Shipping: Once the pallet is
wrapped, it’s placed on a takeaway pallet conveyor and sent to an automatic
labeling station where a bar code label
is applied. The label includes the aisle
location in the shipping area as well as
the store label information. The pallet
is then conveyed to the right outbound
station 14 where a lift truck operator
scans it and loads it directly on a
trailer.
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mmh.com
modern INFORMATION MANAGEMENT
Getting more
from your
WMS
Even if you’re not ready to invest in a new warehouse
management system, you can leverage your existing investment
by adding new functionality. Here’s how.
By Bob Trebilcock, Executive Editor
A
fter years of consistent growth, the warehouse management system (WMS) market contracted in 2008. That comes as
little surprise to Steve Banker, service director for
supply chain management at ARC Advisory Group
(781-471-1000, www.arcweb.com). “You’re looking at a five-year payback for a complex materials handling solution and a 2-½ year payback for a
traditional WMS,” says Banker. “In normal times
that’s acceptable, but in a down economy, people
want a one-year payback or less.”
End users may not be willing to invest in a system upgrade or a new system in this environment,
but they may be willing to invest in new modules
that will leverage the investment they’ve already
made in technology while extending the functionality of their existing system.
Some WMS vendors say that message is resonating with the market.
“We’re seeing customers and prospects who
mmh.com
are interested in making incremental investments
for incremental gains, whether you’re talking
about warehousing, transportation management
or supply chain planning,” says David Landau,
vice president of solutions strategy for Manhattan
Associates (770-955-7070, www.manh.com).
“They’re looking for ways to squeeze more juice
from an orange.”
What’s more, says Landau, if end users look
closely at their existing systems, they may find
they have functionality already on the shelf that
they haven’t yet turned on.
We asked five suppliers for ideas on how end
users can get more from their WMS systems.
Task interleaving or task management:
According to Landau, task interleaving is one of
the most commonly underutilized applications
in a Tier 1 WMS. What is task interleaving? It’s
an application that directs an associate who has
just completed a task to the next closest available
task. A lift truck driver delivering a pallet to the
MODERN MAT ERIA L S HA NDL ING / M
AY
2009
23
modern INFORMATION MANAGEMENT
Labor management uses labor
standards to plan the right amount of
labor for a group of orders.
dock, for instance, might be directed
to pickup a pallet at the dock for putaway rather than to return empty to
a picking area. But to really do task
interleaving properly, you have to map
out the various paths in your warehouse at a detailed level. “Often times,
that level of configuration requires
a fair amount of time that customers
don’t have when they’re implementing
their WMS, so they put it off,” says
Landau. “But task interleaving offers a
fair amount of savings.”
Cubing: There are two levels of
cubing. The first is known as volumetric cubing, where the system calculates
which product should go in which carton
based on the cubic size of the product.
Most users are doing that. The next level
is 3D or geometric cubing. “Geometric
cubing allows you to look for opportuni-
ties to save space by doing things like
nesting bowls in a carton,” says Landau.
“If you have a sophisticated WMS, there
are opportunities to save on your shipping costs through better cartonization.”
Rating and routing: Transportation
management can deliver real savings
to large shippers. But, what if you’re a
Voice technology enables efficient
hands-free picking.
24
M
AY
2 0 0 9 / MO D E RN MATE R IALS HANDL I NG
small shipper spending in the $5 to $10
million range? For you, adding rating
and routing functionality to a WMS can
deliver real savings, says John Pulling,
senior director of product management
for Infor (800-260-2640, www.infor.
com). “Rating and routing is an extension to the WMS that will allow you
to manage the transportation rules you
already have in place and to do a better
job of carrier selection, load consolidation and carrier rating,” says Pulling.
“It’s a very tactical application, but the
savings are real.”
Labor management: Anyone using
a best-of-breed WMS probably thinks
they’re already using a labor management system (LMS). After all, a WMS
directs the activities of associates on
the warehouse floor in a disciplined
way, often leading to a 30% improvement in productivity. A full-blown labor
management system builds on those
improvements by creating engineered
standards for the best way to perform
a task.
“The management that goes along
with a labor management program can
take another 20% out of your labor
costs,” says Pulling. Conventional wisdom used to be that labor standards
were only appropriate for the largest
facilities. But Pulling says a warehouse
with as few as 30 or 40 associates can
pay for a LMS in as little as six months.
“We urge customers to start with their
highest labor areas like picking,” says
Pulling. “Why worry about the speed
of your lift truck drivers if 80% of your
labor costs are associated with case
picking?”
Slotting: Like task interleaving,
slotting is functionality that is often
included in a Tier 1 WMS system that
hasn’t yet been turned on. The solution
examines the demand for each SKU and
then determines the best way to store
it in the warehouse. “You get your ROI
from minimizing the walking time of the
picker,” says Tom Kozenski, vice president of product strategy for RedPrairie
(877-733-7724, www.redprairie.com).
While gains will vary, average end users
mmh.com
modern INFORMATION MANAGEMENT
Priority picking allows you to fill
special orders without slowing down.
can get an 8% improvement in picking
after reslotting.
Parcel manifesting and rate
shopping: Like rating and routing,
parcel manifesting and rate shopping can be added to a WMS, or even
operate as a standalone application,
by shippers who aren’t big enough to
implement a full-blown transportation
management system (TMS) but want
to reduce their shipping costs. “Often,
a customer dictates the carrier and service level they want you to use,” says
Kozenski. “But, sometimes an order
comes down just with a service level.
With a parcel manifesting application,
you can look for your best rate to meet
that service level. And, if you have a
longer lead time, you can shop for the
best way to get it there by the due date,
regardless of mode.”
Voice recognition: Labor management isn’t the only way to improve
productivity in your facility, says Chris
Goldsmith, director of product strategy
mmh.com
for HighJump Software (800-328-3271,
www.highjump.com). Adding voice
recognition technology to your WMS,
especially in case and each picking
areas, is another way to optimize labor
in the warehouse. “The productivity
gains come from having your hands
free,” says Goldsmith. “There may not
be much advantage if you’re just scanning pallets, but if you’re picking a lot
of cases or widgets, you’ll improve your
productivity.”
Supplier enablement: One way
to improve your operations, and your
cash flow, is to work more closely with
your suppliers. “You can improve the
use of your working capital, as well as
your operations, by collaborating with
your suppliers,” says Goldsmith. Many
systems allow you to extend your WMS
functionality to your trading partners,
especially to those who may not be
able to afford an investment in technology on their own. Trading partners,
for instance, can scan or manually
enter order shipment information that
acts as an advanced ship notification
(ASN); or, you can provide compliant labeling data that they can down-
load, print and apply from a desktop
PC. Both will streamline receiving
when the order reaches your facility.
Supplier enablement also allows you
to provide your vendors with visibility into your inventory levels so that
they can do vendor managed inventory
(VMI).
Incident tracking: This application allows a warehouse manager
to identify those incidents that cost
money and increase operating costs,
and then automatically track them,
says Eric Allais, president and CEO of
PathGuide (888-627-9797, www.pathguide.com). The system can send an
alert when such an incident occurs to
key decision makers who can address
the issue in real time and create an
audit trail. “Let’s say there is an inbound
receiving discrepancy,” says Allais. “An
associate can report the issue on an
RF terminal and alert everyone from
a supervisor to the purchasing department. If you’ve just sent an incorrect
shipment outbound, you can send an
alert to a customer before they even
receive the order.”
Priority picking: WMS systems
often operate on the 80/20 rule. They
automate the 80% of what you do every
day in the normal course of business.
But some facilities, especially distributors, are faced with customers who
show up at a will-call counter and need
immediate attention. Too often, those
orders are filled manually by pulling an
associate off the job they’re working on
and sending them out to fill the special
order. Priority picking automates that
process, says Allais, by identifying the
associate who can best fill the order,
directing the fulfillment of the will-call
order, and then working the associate
back into the order flow when the priority order is picked.
“The ROI for priority picking is not
as easy to quantify,” Allais says. “But if
you’re in a very competitive area, where
customers can choose from several
distributors, maintaining a high level
of customer service can help you keep
your customers.”
MODERN MAT ERIA L S HA NDL ING / M
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25
modern BEST PRACTICES
g
n
i
v
r
e
s
e
s a ni ty-p r
V
7
tips for successful
system upgrades
Modern assembled this checklist of seven best practices to keep
your modernization project on track and your sanity intact.
By Sara Pearson Specter, Editor at Large
26
M
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Faber, principal at Tompkins Associates (800-789-1257,
www.tompkinsinc.com). “There’s nothing quite so skittish as
an operations manager right before a cut-in.”
Modern talked to experts from five different companies—
from systems integrators to OEMs—and assembled this
checklist of seven best practices to keep your modernization
project on track and your sanity intact.
mmh.com
ILLUSTRATION BY DANIEL GUIDERA
T
hinking of upgrading your facility’s equipment
or software system while continuing to operate?
Nervous about potential disruptions that could
jeopardize your current productivity? It’s enough to drive
a warehouse manager crazy, but don’t get fitted for that
straightjacket quite yet.
Such anxieties are completely understandable, says Paul
1
Plan every detail
While it may seem obvious, planning a system upgrade should
include a multitude of components—
not all of which immediately jump to
mind.
First, consider seasonality. “If a company regularly schedules a holiday—like
the week between Christmas and New
Year’s—then do the upgrade then,” suggests Steve Brandt, director of business
development and customer service for
Dematic (877-725-7500, www.dematic.
us). “Also pick a holiday far in advance
of your busy time. For example, retailers are very busy October through
December, so to do a major upgrade the
last week of September is probably not
a good idea.”
Once you’ve determined when, then
plan each day of the upgrade from a task
perspective and a facility perspective.
“Eventually you get down to a block
diagram that shows day by day what
the building is going to look like as you
make this transition,” says Ron Grove,
vice president of TZA Consulting (800229-3450, www.tzaconsulting.com).
“Often people don’t take into
account how much staging space they
need for new equipment before it gets
installed,” Grove adds. “Work with the
suppliers to coordinate the inbound
equipment shipments and be sure you
have enough space to put it while you
continue operating your building.”
2
Select an experienced vendor
Whether you intend to project
manage the upgrade process
internally or not, you’ll likely bring in
an outside resource to help plan and
execute the project. When evaluating a
potential consultant, systems integrator, or supplier, several key questions
are important to ask prior to signing
any contracts, says Burke McCarthy,
director of marketing and system sales
for Retrotech (585-924-6333, www.
retrotech.com).
“Does the company have a track
record of sustained success or a specialization in upgrades? How many
mmh.com
projects have they done? Do they use
certified project managers? Do they
finish projects on-time and under budget? And do they have high customer
retention? These are all important
considerations when selecting a company for a modernization project,” says
McCarthy.
Also, make sure the potential vendor offers expertise that matches your
unique operating circumstances, adds
Andrew Gill, manager of modernizations, enhancements, and project operations for Dematic.
“If I’m running a freezer operation
and the vendor in front of me has never
worked in a freezer before, they may
not understand the implications, such
as things take a lot longer than working
in a regular temperate environment,”
says Gill.
3
Communicate internally and
externally
Of course, operations and maintenance will be heavily involved in
any facility upgrade. But don’t neglect
to advise the rest of the organization
before jumping into the project, cautions TZA’s Grove.
“For example, customer service
should be aware that it’s happening so
if they start getting a lot of calls about
Before diving headfirst into a system
upgrade, be sure to plan every
move, considering timeframe, tasks,
seasonality and facility constraints.
late orders or picking errors they can
share that feedback so the issue can
be addressed quickly,” he says. “Also
purchasing should be instructed not to
take advantage of opportunistic buys
for truckloads of products you may not
have room for while conducting the
upgrades.”
Additionally, Grove recommends
that managers examine both inventory
and activity levels within the building
where the retrofit is to take place.
“If you have a multiple DC network,
in the weeks prior to the upgrade you
may be able to draw down the inventory
from that building by diverting some
receipts to other nearby facilities,” he
says. “Also, look at servicing some customers out of different DCs to reduce
the volume in this building during the
transition.”
While in the thick of the retrofit,
keep communicating with the vendor.
It’s important to be informed, whether
the news is good or bad. “This ensures
that everyone is focused on what is
required. Nothing should be a surprise,”
says Dematic’s Gill.
MODERN MAT ERIA L S HA NDL ING / M
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2009
27
modern BEST PRACTICES
4
Allot time for testing before
installation
Not building in time to troubleshoot and test before tackling a project
can be a big mistake, says Ken Johnson,
vice president of modernization sales
for HK Systems (800-424-7365, www.
hksystems.com).
“Emulation reduces the risks—especially with electrical controls for conveyor systems, or upgrades for storage
and retrieval machines,” Johnson says.
“Emulation is similar to simulation, but
uses the actual PLC code and makes it
look like loads are moving, photoeyes are
seeing the loads, and limit switches are
popping up and down for transfers.”
While Johnson concedes that testing
can add additional upfront time to the
process, he maintains that it saves time
in the long run, particularly with software upgrades. “We encourage a company to bring both the floor operators
who use the software and the computer
people to participate in a factory accep-
9:07:01
The BST interface on the cart
is engaged with the catch-pin
located on top of the BST AGV.
An experienced vendor is a must
when approaching a retrofit project,
whether you intend to manage the
project internally or delegate the
entire undertaking.
“It’s easy to do before you go into
the field, otherwise you pay additional
expenses on site and you may not get
adequate testing time on the floor,”
adds Johnson. “If your first opportunity to test the system is with the real
equipment and if it doesn’t work, then
you have to shut down everything. The
more testing you can do before you go
into the field the better.”
tance demo test running the emulators
before we even go to a site.”
The test shows how the system operates, and offers a chance for both customer and vendor to redefine functions
to better meet operational needs.
A Creform BST
AGV Tugger
delivers a fully
loaded Creform
line-side gravity
flow rack. Returns
an empty for
replenishment.
The BST tugger
follows magnetic
tape guidepath,
glides under
and engages a
stationary cart.
www.creform.com • 800-839-8823
28
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5
Have a backup strategy
You’ve planned. You’ve tested.
And something didn’t turn out as
expected. That’s why you need a contingency plan, whether the upgrade is
hardware or software.
“For equipment, leave the old system
sitting there while installing the new so
9:10:03
A BST AGV can also pick up
and deliver non-Creform carts
equipped with a BST interface.
The same AGV
delivers a
kitting cart with
inventory to the
body shop. Also
returns an empty.
BST AGVs are
available off the
shelf in standard
packages with a
full complement of
safety equipment.
www.creform.com • 800-839-8823
mmh.com
modern BEST PRACTICES
that if the new doesn’t
and assess readiness to
work you can switch right
continue on to the next
back,” says HK Systems’
step, says Tompkins’
Johnson.
Faber.
Ditto
for
control
“It could be a funcsoftware, according to
tional test, a schedule
Tompkins’ Faber, “Know
milestone, or product
what your backout plan is
available for shipment,”
for any changes if things
he says. “If you thought
aren’t going well, and have
you would get the system
operational workarounds
turned over at 6:00 p.m.
planned. For example,
and it’s now midnight
how are you going to
and you still aren’t ready,
continue to ship orders
ask yourself if there’s still
if the new system doesn’t
enough time to get it
Building in time to troubleshoot and test your new system
work?”
done? That should be an
A typical set of con- through emulation software will reduce the potential for
integrator-vendor-client
tingency scenarios might problems during the upgrade, particularly with software
joint discussion.”
include planning for tem- upgrades.
Further, adds TZA
porary labor, manual scanConsulting’s Grove, know
ning or a return to the previous software.
Establish a point of no return what you’re going to do if you get to
“You hope you never have to use one of
As you’re preparing to do an the point of no return and things aren’t
those contingency plans, but you’ll be
upgrade, build into your schedule going as planned.
glad to have them in case disaster strikes,” some go/no-go decision points where
“Have to have the courage to stand
says Faber.
the team members convene to review up and say that something’s not right,”
6
9:12:33
Two minutes
later it services
an entire fleet
of sequenced
parts carts.
Creform AGVs free up your team
for value-added productivity.
On-board batteries provide
power for a full shift of
operation. Opportunity
chargers can extend the
duty cycle.
www.creform.com • 800-839-8823
mmh.com
9:12:39
One BST can easily
double or triple
the capability of
an AGV system.
Imagine what it
can do 24/7.
And it never stops
for coffee.
Creform BST AGVs can put
lean” in your
some “serious
”
material handling program.
www.creform.com • 800-839-8823
MODERN MAT ERIA L S HA NDL ING / M
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2009
29
modern BEST PRACTICES
Whether it’s an equipment or
software upgrade, leave the
old system in place as long
as possible while adding in
the new—in case it becomes
necessary to switch back.
Grove says. “Sometimes the right
thing to do is to delay the transition for a week to get something
fixed or resolve an issue that’s
not functioning the exact way
you want.”
7
Train before, during and
after installation
To ensure a swift conversion
from the old software or equipment to the new, take every opportunity to train your people along
the way.
Training is a huge component with all the technologies,
says Dematic’s Brandt. “Some of
the real successes involve maintenance staff joining the installation team so they can learn from
commissioning it with them and see
exactly what they’re doing,” he says.
“That time investment produces longterm ownership for the company, and
enables maintenance to troubleshoot
more quickly and effectively.”
Applicable to equipment and software, it’s important for both the operations and maintenance staff to under-
stand how everything connects
together as well as any issues
that may arise in their operations,
Brandt adds.
While on-site, consider downloading the new software onto a
separate computer, so those who
work in the warehouse and interface with the system can become
familiar with it while your integrator executes the upgrade project, says Retrotech’s McCartney. “If
training time and cost are an issue,
then ease of use should rank high
among system requirements, because
it reduces the need for training.”
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30
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mmh.com
modern PRODUCTIVITY SOLUTION
REDUCED PICKER TIME
A Swedish retailer uses a mobile
system solution to double order-picking
productivity at its main distribution
center outside Stockholm.
By Lorie King Rogers, Associate Editor
T
raditional vehicle-based order-picking processes can include many unproductive, time
and energy wasting steps like picking up empty
pallets or roller containers, delivering filled pallets, stepping up and down from the vehicle—not
to mention actually driving the vehicle from point
to point. All of these processes can be unwanted
time wasters. And in the materials handling business, time is money.
Managers at the second largest retailer in
Sweden, Coop Inkop och Logistik AB (Cilab),
needed to reduce operating costs and address
capacity issues at their terminal in Bro, the largest
grocery distribution center in northern Europe.
With 700 retail outlets to service, Coop’s order
picking function is a critical process that requires
24/7 uptime. Coop’s Bro terminal handles 3,500
pallets every day, 65 million packages a year, and
the company cannot afford to waste time in the
process.
After a careful evaluation process that included
observation and analysis of Coop’s process and
workflow, a mobile vehicle solution (Danaher
Motion, 540-633-3400, www.danahermotion.
com) was implemented to drive several picking process improvements. An automated guided
vehicle (AGV) makes order-picking more efficient
while improving ergonomics for the picker, resulting in reduced operator stress and improved picking productivity.
Wherever the worker goes to pick an item, the
truck automatically follows. The vehicle escorts
the picker and is always optimally positioned to
minimize the distance and effort needed to pick
and place products on the waiting pallet.
The system makes sure the trucks are always in
the right place with the forks at the right height.
So far, the implementation has reduced picker
mmh.com
time spent on unproductive tasks and time-consuming interruptions by 50%, thereby improving picker productivity by 100%, and leading to
a significant reduction in operating costs and an
increase in capacity.
Coop’s first installation phase included 12
vehicles, with a second, larger phase underway.
This mobile solution provides flexibilty and has
enabled Coop to gain immediate and measurable
productivity improvements.
MOD ER N MATER IALS HAND LING / M
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31
modern EQUIPMENT BUYING GUIDE
Mezzanine basics
When workspace is tight, a mezzanine can raise your
facility’s capacity and productivity to a new level.
By Lorie King Rogers, Associate Editor
A
re you squeezed for space? Is your dis- • Avoid or minimize additional property taxes,
tribution center cramped? A mezzanine • Make optimum use of existing heating, ventilating
might be a cost effective answer to increas- and cooling systems,
ing capacity and functionality by using the vertical • Provide demounting and relocating options (in
space within your building.
most cases),
In the theatre, a mezzanine is an intermediate • Provide expandability for future growth, and
level or floor. In the world of materials handling, a • Provide possible tax advantages through accelermezzanine is a pre-engineered or custom-designed ated depreciation.
structure that can be incorporated into a warehouse, distribution center or manufacturing facility to increase storage capacity or create additional
production areas and workspaces. It can be made
of structural steel, roll-formed steel, aluminum or
fiberglass and built to fit exact specifications for
the area, height and load requirements. The right
mezzanine in the right place can have a significant
impact on capacity, productivity and efficiency.
“Given the increase in the cost of construction,
mezzanines are a less expensive way to add space,”
says Don Derewecki, assistant vice president at
TranSystems (732-636-2666, www.transystems.
com). “They can also provide physical proximity
for functions that need to be close together.”
Mezzanines can offer a number of benefits and
advantages, according to the Storage Equipment
Manufacturers Association (SMA, 704-676-1190,
www.mhia.org/sma). For example, you can:
• Virtually double available floor space through
efficient use of existing cube in the facility,
• Increase productivity,
• Avoid or minimize moving expenses,
Freestanding mezzanines allow for the full use of
• Minimize disruptions during installation,
• Avoid the need to rent, build or purchase addi- the top mezzanine level and maximum use of the
floor level below.
tional space,
Freestanding
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mmh.com
Illustrations by Steve Hussey
32
MEZZANINE TYPES
Freestanding
A freestanding mezzanine is considered a fixture in
the building and can include a variety of customizable designs. These structures allow for the full
use of the top mezzanine level and maximum use
of the floor level below. Freestanding mezzanines
are typically standardized, pre-fabricated modules
that are available in a variety of sizes and can be
assembled into many different configurations depending on the specific needs.
Steel support beams are bolted to the
floor and take up very little space. When
there are aren’t any unusual configurations or loading requirements, modular
freestanding mezzanines are often a good
solution.
Shelving and rack supported
As the name suggests, shelf and rack supported
mezzanines are supported by conventional pallet
rack uprights or bin shelving systems and do not
require structural columns (I-beams or box columns)
to support the mezzanine. The advantage: They are
generally more affordable. The disadvantage: Since
the storage medium (rack uprights or shelving units)
are supporting the upper floor, the reconfiguration
capabilities are limited if not non-existent.
Catwalk
A catwalk mezzanine typically refers to a maintenance mezzanine adjacent to elevated conveyor or
similar materials handling or manufacturing equipment, which gives maintenance personnel access to
otherwise not easily accessible equipment. The catwalk is usually 24 inches to 30 inches wide. Pallet
drop zones, gates and stairways can be added to this
system.
Full mat
Combining features of both freestanding and catwalk
styles, full mat mezzanines have an open second level
and can be installed over existing shelving or rack
uprights.
Integrated or structural
These mezzanines are built into the building as part
of the original design and considered part of the
structure. They are usually installed by the builder. A
permanent mezzanine, typically with a concrete floor,
mmh.com
Shelving and rack
supported
Shelf and rack supported mezzanines are
supported by conventional pallet rack uprights or
bin shelving systems and do not require structural
columns.
is often used when heavier loads need to be supported and when powered materials handling equipment
is needed.
Customized
True to the name, customized mezzanines can incorporate virtually any design, components, column
spacing, unusual loading characteristics, and can be
configured to the end user’s exact specifications.
TECHNICAL CONSIDERATIONS
Regardless of the type of mezzanine that works best
for the purposes within your facility, it’s important to
consider a number of key technical issues. “The first
question is whether or not your building floor has the
capacity to bear the load of a mezzanine and what
steps might need to be taken to make it compliant,”
says Bryan Jensen, vice president of business development at St. Onge (717-840-8181, www.stonge.com).
Other technical considerations that go into the
all-important planning and development stage are
loading requirements, column spacing, flexibility of
design, supporting sub-structure (footings or floor
MODERN MAT ERIA L S HA NDL ING / M
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2009
33
modern EQUIPMENT BUYING GUIDE
Full mat
Full mat mezzanines have an open second level and can
be installed over existing shelving or rack uprights.
slab), and seismic requirements and considerations at the
project’s geographic location.
MEZZANINE APPLICATIONS
“The installation of a mezzanine increases the utilization of
available overhead space, which in turn increases processing, storage or office space,” says Dave Becker, director at
Tompkins Associates (800-789-1257, www.tompkinsinc.
com). “Mezzanines facilitate increases in overall square footage for the installation of storage and picking systems, conveyor and sortation systems, operation space and in-plant
offices.”
In production operations, mezzanines can position processing equipment above other processing equipment and
they can house bulk materials that are gravity fed or “dropped”
to floor-level processing equipment.
In distribution centers, mezzanines can be used in a variety of ways including: multi-level pick modules, multi-level
value-added service (VAS) processing workstations, workstations above storage, returns processing, and detailed checking workstations for small items.
In any facility, mezzanines can increase storage space, create new spaces for employee services and offices, and provide flexibility and functionality.
MEZZANINE IMPLEMENTATION
To determine whether or not a mezzanine is the right answer,
do your homework.
34
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2 0 0 9 / MO D E RN MATE R IALS HANDL I NG
“Start by determining the needs and flow of the operation and then look for underutilized areas within the cube,”
says Lou Cerny, vice president of Sedlak (216-206-4700,
www.jasedlak.com). “Mezzanines maximize space and allow
growth within the four walls of the facility. They help an
operation do more with less.”
“A potential mezzanine user must also review existing
building specifications and operational requirements to
determine whether a mezzanine is a suitable investment,”
says Becker. He identifies three areas of concern:
• Existing floor-to-ceiling clearance. Clearances, and
the location and elevations of any obstructions, must be
calculated to determine whether there’s sufficient headroom for a successful installation.
• Floor load capacity. Buildings with insufficient floor
construction or soil density will be incapable of supporting
a mezzanine system without structural modifications.
• Clear span limitations. Mezzanine designs that have
relatively short clear spans typically create limited
functional open floor space under the mezzanine. This
significantly reduces flexibility and potential use of
the area below.
When considering the installation of a mezzanine,
Jensen reminds potential customers to consider lighting
and sprinkler systems underneath the mezzanine, as those
required components directly impact the cost. In many
cases, mezzanines can use existing lighting, power, HVAC
and fire protection systems. But if that’s not the case in
your facility, make sure to factor the costs of incorporating
those systems into the overall price tag of your mezzanine
structure.
One-third rule and compliance
“A mezzanine structure should not cover more than one-third
of the total footprint of the building, or it will likely be treated as a multiple-floor structure and require compliance with
much more extensive and expensive code requirements,”
Cerny says.
Mezzanines are subject to their own set of standards.
“Potential users should consult with a mezzanine design
engineer for compliance with relevant IBC, OSHA, BOCA,
egress, seismograph and local regulatory requirements prior
to the installation of a mezzanine structure,” says Becker.
“ADA certification is not necessary for storage mezzanines.
However, ADA compliance should be evaluated based on the
type and amount of work personnel are performing on the
mezzanine.”
Accessories and features
A number of customizable accessories are available to outfit your mezzanine, all of which are designed to ensure the
safety and usability of the structure. Required accessories or
mmh.com
Mezzanine manufacturers
Company
Web address
Phone
Abtech, Inc.
www.abtech.net
800-394-7699
Ace Industrial Equipment, Inc.
www.aceshelf.com
800-300-6034
American Warehouse Systems
www.aw-systems.com
877-677-9066
Aztec Corporation
www.aztecblaze.com
800-836-3210
BASE Manufacturing
www.basemfg.com
800-367-0572
Cisco-Eagle
www.cisco-eagle.com
888-877-3861
Cogan Wire & Metal Products Ltd.
www.ecogan.com
800-567-2642
Cubic Designs, Inc.
www.cubicdesigns.com
800-826-7061
FCP, Inc.
www.fcpmezzanine.com
805-684-1117
Felix Loeb
www.felixloeb.com
630-226-8998
fs Industries
www.fsindustries.com
800-421-0314
Grace Material Handling Company
www.mezzanine.com
888-222-1217
IKG Industries
www.ikgindustries.com
713-378-3034
Industrial Shelving Systems
www.industrialshelvingsystems.com
800-875-6201
Material Flow & Conveyor Systems, Inc.
www.materialflow.com
800-338-1382
Panel Built, Inc.
www.panelbuilt.com
800-636-3873
Penco Products, Inc.
www.pencoproducts.com
800-562-1000
Port-a-King Building Systems
www.portaking.com
800-284-5346
Schaefer Systems International
www.ssi.schaefer-us.com
704-944-4500
Steel King Industries
www.steelking.com
800-826-0203
Stoltz Metals
www.stoltzmetals.com
510-215-7000
Storage Solutions (Ind.)
www.storage-solutions.com
866-474-2001
Storage Solutions, Inc. (Tenn.)
www.storagesolutionsinc.com
865-540-4004
U.S. Door & Building Components
www.usdoor.com
877-877-8875
VertiSpace
www.vertispace.com
800-742-4830
Warehouse Equipment Store
www.warehouseequipmentstore.com
866-620-6140
Wildeck
www.wildeck.com
800-325-6939
special features include access staircases and ladders (they
may have open or closed risers and treads); landings; two-rail,
three-rail or welded mesh safety railings; swing gates, sliding
gates or lift gates for pallet access; safety guarding to prevent
materials from accidentally falling to the lower level; support
columns and/or uprights to support the building floor loading
restrictions; oversized base plates to accommodate the building floor loading restrictions and to prevent digging footers.
Decking is a key component. Since the use of pallet
jacks and the installation of storage and processing equipment on a mezzanine deck can significantly reduce the life
expectancy of the mezzanine deck surface, it’s important to
choose the right deck material. Decking options include bdecking (corrugated metal) and wood or composite overlayment, diamond plate, lightweight concrete, expanded steel
and bar grating.
mmh.com
Business benefits
“Because mezzanines can depreciate like equipment, unlike capital-intensive build-outs, the installation of a mezzanine can be
the most economical way to increase the use of available building
cube. This is especially critical when operations occupy leased
space and permanent alterations or expansion of the property
is disallowed by the lease agreement,” says Becker. “In rapidly
expanding operations, mezzanines offer a potential short-term
alternative to capital investment, especially for those who may be
planning to relocate to a larger site within five years or less.”
Mezzanines can be tailored for almost any end user, and
that’s exactly why the up front thinking and analysis of the
design are so critical. “Always start with the fundamentals
and strategy. Even though mezzanines are modular, like big
erector sets, they’re still tough to move, so be careful with
design and placement,” says Derewecki.
MODERN MAT ERIA L S HA NDL ING / M
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2009
35
Overhead handling equipment
Wire rope hoist in standard,
custom configurations
Offering configurations ranging
from standard contactor control to
individually customized electronic
control, the DR20 wire rope hoist
lifts up to 50 tons. The hoist may be
used for crane or plant-engineered
installations. It also comes in a
double-rail crab model for doublegirder crane applications. Safety
features include standard overload
protection, upper and lower geared
limit switches, brake wear monitoring, and load spectrum recording.
The hoist also includes a fast-acting
brake, protective rope guide, and
lubricated-for-life gearbox. Hard
wired push button or radio controls
may be specified. Demag Cranes
and Components, 440-248-2400,
www.demag-us.com.
Attachment lifts drums
The Parrot-Beak drum handling
attachment safely lifts steel, fiber
and plastic drums weighing up to
2,000 pounds. The model HCB-BC
attaches to any overhead hoist,
crane or boom and engages drums
automatically. To ensure safe, reliable pick ups, a mechanical clamping system engages the top lip of
the container, while an adjustable
36
M
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counter-balance on the main frame
of the unit permits safe handling of
all drums measuring 15 to 27 inches
in diameter. A padded belt cradle
protects the drum sidewall during
transport. The attachment is offered
in one- or two-drum configurations,
and may be specified in stainless
steel for food grade and pharmaceutical applications. Liftomatic
Material Handling, 800-837-6540,
www.liftomatic.com.
or at a 30-degree angle to suit different festoon stacking requirements
without twisting. Gorbel, 800-8210086, www.gorbel.com.
Crane lifts, moves 42-foot
long blanks
Suspended tool management
The Tool Solutions line includes jib
cranes, trolleys and a festoon saddle
for applications that involve suspended tools. The enclosed-track
workstation jib can work in small
spaces and comes in two capacities:
50 and 150 pounds. Both versions
may be wall-mounted or freestanding. For applications that require festooning of cables, wires and hoses,
the smooth gliding trolley combines
with the arched saddle for safe, efficient management. The trolley has
multiple bolt holes to accommodate
different applications, and the rubberized saddle holds multiple hoses.
The saddle can be mounted straight
2 0 0 9 / MO D E RN MATE R IALS HANDL I NG
Capable of moving blank stacks up
to 42 feet long, the M5600 sheet
lifter and crane system handles steel
and aluminum sheets. The heavy
duty motorized unit picks up stacks
from a conveyor with 14 lifting forks
on each side, spaced to clear the
conveyor rollers. Able to lift up to
30,000 pounds, the lifter handles
sheets up to 110 inches wide and
stacks up to 20 inches high. Springloaded flapper plates at the center
fork of both lifting arms prevent
damage to loads by shutting off
leg motion when the flappers make
contact with the sheet stack, tripping
limit switches. Bushman Equipment,
800-338-7810, www.bushman.com.
Portable hoists for lift
and place use
Easily attached to existing I-beams
using adjustable trolleys, the Leo
series of portable hoists can also be
equipped with motorized trolleys to
provide horizontal and vertical movement. Ideal for lift and place hoisting
of fragile materials—including glass,
granite and stone—the hoists feature
mmh.com
Vacuum tube lifter supports
heavy boxes
variable frequency drive controllers.
Soft start and stop capabilities permit raising and lowering of materials in finite increments. To ensure
safety, a push-button pendant, upper
limit switch and fail-safe brakes are
included. The electrical controller’s
overload sensing device protects the
motor from damage caused by
overwork or poor power supply.
Beta Max, 800-233-5112, www.
betamaxhoist.com.
Wireless crane control
For demanding industrial applications, the M1 wireless control system
for electric overhead traveling (EOT)
cranes provides safety and reliability.
The system can control up to four
motions with two ergonomic, multiaxis joystick controllers. The trolley/
hoist selector, two aux push buttons
and toggles are mounted on an
impact-resistant Lexan housing. EOT
cranes currently using remote controls can be standardized to the M1
system, saving time and money. To
minimize spares and transfer keys to
other controllers, the wireless system
uses the supplier’s external TransKey
RFID configuration to increase safety
and streamline workflow. Cattron
Group, 724-962-3571, www.
cattrongroup.com.
With top and
side grips for
loading, unloading and palletizing boxes that
are too heavy
to lift from the
top alone, the
compact VT140 vacuum tube lifter
includes an adjustable frame assembly. Vacuum pad attachments lift from
the top and side to prevent excessive
stress to the top. Providing a 100%
continuous duty cycle and instant
attach and release, the ergonomic
lifter includes an extended handle for
optimum load control, 360° swivel
on top for unrestricted rotation, and
quick-connect pad attachments in
sizes up to 12 x 16 inches. Anver,
800-654-3500, www.anver.com.
Transfer Arm
SAM
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LodeArm
Shown with Optional Trolley Mount
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Shown with Optional Pedestal Mount
Taurus
Shown with Optional Pedestal Mount
Visit www.positech.com
mmh.com
MODERN MAT ERIA L S HA NDL ING / M
AY
2009
37
Overhead handling
One-handed, ergonomic
chain hoist control
The addition
of an ergonomic cylinder
control to the
(N)ER line of
three-phase
electric chain
hoists allows
control of the
hoist direction
by moving the
cylinder’s inline handgrip
with one hand
while positioning the
load with the
other hand. Offered pre-installed or
as a retrofit kit, the cylinder control
is available on capacities of 1/8 and
1/4 ton in single-speed models and
on the under-the-cover variable frequency drive dual-speed models. To
reduce energy draw while maintaining horsepower, the hoist draws less
current, while enhanced motor, brake
and inverter components lower noise
levels. Harrington Hoists, 800-2333010, www.harringtonhoists.com.
Low horsepower crane control
The low horsepower Impulse G+
mini adjustable frequency crane control offers user-friendly standard programming for basic applications and
advanced programming capability
for high-performance environments.
The system includes an expanded
horsepower range. Its dimensional
footprint is identical to the supplier’s
P3 Series 2 drive up to 5HP, and
comes in an even smaller footprint
beyond 5HP. Magnetek, 800-2888178, www.magnetek.com.
Longer Lasting Belts
Multi-tasking crane
The convertible Jib-Master JB-4R
forklift crane works in three ways: as
a forklift crane, on a pedestal mount
or on a truck. When used with a lift
truck, the unit lifts large parts, bundles of long material or people in an
optional personnel basket. Attached
to a pedestal mount, it may be used
as a workstation crane. Mounting
the system to a truck allows field
use. Features include push-button
remote control, powered articulating mast rotation, hydraulic boom
lift, and powered hydraulic telescopic boom. The crane offers 3,000
pounds capacity when retracted
and 2,000 pounds capacity when
extended. A self-contained 12V or
24V DC battery powers load lifts
up to 144 inches. Air Technical
Industries, 440-951-5191, www.
airtechnical.com.
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AY
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Compact wire rope hoists lift up to 80 tons
Stainless steel hand winch
For crane, monorail and
replacement applications, the CXT wire
rope hoist offers lifting capacities up to
80 tons. The compact
hoist allows for reduced
hook approaches and
maximum hook coverage to lift loads higher. Capable of handling a variety of
lifting capacities, speeds, trolley types, duty classes and
options, the hoist features hook-activated upper limit
switches, secondary hoist and drum brakes, true vertical
lift, and true lift reeving. The hoist may be specified with a
low headroom trolley for single-girder cranes and monorails, double girder trolley for double-girder cranes lifting
heavier loads, and normal headroom trolley for monorails,
restricted side clearances or curved runways. Konecranes
Americas, 800-934-6976, www.konecranesamericas.com.
Offered in three models with lifting load capacities of 600,
900 and 1,300 pounds, the Silver Line TSSBW series hand
winch is fabricated of 304 grade stainless steel. Features
include solid steel machine cut gears, gear covers and
automatic brakes. Ideal for applications requiring corrosion resistance, the winches lift and pull small to medium
sized loads. Thern, 800-843-7648, www.thern.com.
Articulated jib lifter
The Conco articulated jib lifter
combines rugged construction
with affordable pricing. The
versatile unit includes reach-in
coupled load ranges from 165
to 665 pounds. With a lift range
up to 120 inches and standard
reach from 8 to 16 feet, the lifter
works in light and heavy applications. Standard features include
a threaded interface at the end
of the cable and a safety latch hook at the end of the
chain. In low-headroom clearance applications, the secondary arm can be mounted above the primary arm. Both
primary and secondary joints incorporate 360° continuous
rotation. Positech, 800-831-6026, www.positech.com.
Low maintenance electric chain hoist
The easy to maintain ZIP-V electronic chain hoist includes
a corrosion-resistant epoxy paint finish that is 80 microns
thick and an electro-zinc plated load chain. With lifting
capacities from 1/8 to 5 tons, the five-pocket load wheel
provides smooth lifting, accurate load positioning and
long chain life. Features include a plug-in pendant station,
chain container, and a slip clutch that protects the operator and equipment from overloads. A standard upper and
lower travel limit switch incorporates automatic shut off to
prevent misuse. For quiet, smooth operation and extended life, AGMA 10 precision ground gearing and variable
frequency speed drive are included. Morris Material
Handling, 800-933-3001, www.morriscranes.com.
mmh.com
Modular, pre-engineered crane package
The QX modular, pre-engineered
crane package expedites simple
assembly, ease of operation and
reduced maintenance. The package includes a Spacemaster SX
electric wire rope hoist with lifting
capacities from 0.5 to 80 tons
and lifting speeds from 10/1.5
to 62/10 feet per minute. The hoist’s large diameter
rope drum offers low headroom, easy positioning, close
approaches and reduced component wear. Plug-in electrical cabling facilitates installation and controls movements
from a push-button station. R&M Materials Handling,
800-955-9967, www.rmhoist.com.
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AY
2009
39
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A SPECIAL WAREHOUSING AND DISTRIBUTION CENTER SUPPLEMENT
THIS MONTH INCLUDES:
▪ The crossdock evolves ........ page 41
▪ 5 ways to find hidden
warehouse space.................. page 48
Crossdocking
evolves
BY MAIDA NAPOLITANO, CONTRIBUTING EDITOR
It’s not just about increasing speed to market anymore. Today, crossdocking is
helping shippers make the most out of every mile—while cutting costs along the way.
t is not a pretty picture. Consumers are buying less,
many retail stores are closing and manufacturers are
putting the brakes on production. The good news
is that with less demand, fuel prices are spiraling
downward…for now. So, how should this confluence of events affect your approach to crossdocking,
that age-old strategy of moving product directly from
receiving to shipping with little or no inventory and
minimal handling?
According to Mike DelBovo, senior vice president of 3PL
provider Saddle Creek Transportation Inc., crossdocking
should be, and will be, all the rage. “Now, more than ever,
management is looking to find any way to save a dollar. This
old concept has been made new again because it has been
proven to cut costs.”
Today’s crossdock, however, is undergoing some twists
I
mmh.com
and turns. Some traditional, “pure” crossdocking facilities
are evolving by repositioning and becoming more flexible
as they cope with changing global sourcing and destination
points. And despite lower fuel costs, others are integrating
with transportation strategies like consolidation and deconsolidation to maximize savings.
Crossdocking goals have changed. It’s not just about
increasing speed to market anymore. In these tough times
it’s more about cutting costs, creating flexibility in your supply chain, and making the most out of every transportation
mile. In the next few pages we’ll take a look at what strategies and techniques crossdock operators and experts around
the country have deployed so that they can better respond
to challenging economic trends.
These strategies have transformed today’s crossdock
operations and forced its evolution.
MODERN MAT ERIA L S HA NDL ING / M
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2009
41S
A SPECIAL WAREHOUSING AND DISTRIBUTION CENTER SUPPLEMENT
Some traditional crossdocking facilities are evolving by repositioning and becoming more flexible
as they cope with changing global sourcing and destination points. Above is a Saddle Creek crossdock
facility employee working on consolidating a load.
STRATEGY NO. 1:
STRATEGY NO. 2:
DON’T JUST CROSSDOCK, CONSOLIDATE.
You crossdock when you move a pallet from receiving directly
into shipping; but in order to achieve even more savings,
schedule receipts and shipments so that full truckloads
of outbound shipments are consistently created. DelBovo
describes it simply. “If I bring 10 trucks in and immediately
send 10 trucks out, I know I’m going to save on my warehouse crossdock by not going into storage. The real value is
in bringing 10 trucks in and shipping out only nine, consolidated. Now I save a whole truck and we’re talking big money.”
Consolidation is the practice of maximizing cube on a
trailer by collaborating with suppliers so that shipments can
be combined into full truckloads.
It’s a simple matter of economies of scale. The more you
transport per mile, the lower your cost per unit. Cutting
down one trailer a day may not seem like much, but if it can
save you $1,000 per day, that’s a lot of savings, especially in
today’s cash-strapped environment.
IT MAY BE TIME TO RELOCATE AND DECONSOLIDATE.
As more products are being manufactured across
the Pacific, more East Coast-based companies have
been relocating or adding West Coast crossdocks and
deconsolidating.
Deconsolidation is the process of breaking down a single
shipment, which may consist of multiple ocean containers,
into several smaller shipments and processing those shipments for immediate delivery. Combining that with a West
Coast facility, you eliminate the costly and redundant transit
of crisscrossing the country—twice—to ship from a West
Coast port to an East Coast crossdock, then back across the
country to West Coast stores.
For example, 40-foot ocean containers from Asia would
arrive at your West Coast crossdock/deconsolidation facility
where product would get sorted and shipped to a retailer’s
distribution centers in higher capacity, less expensive, 53foot inland transportation trailers.
42S
M A Y 2 0 0 9 / MO D E RN MATE R IALS HAN DL I NG
mmh.com
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Visit www.intelligrated.com to learn more about the Intelligrated 360° customer centric
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A SPECIAL WAREHOUSING AND DISTRIBUTION CENTER SUPPLEMENT
Deconsolidating close to ports also enables the strategy
of postponement. With ocean transit sometimes taking
weeks, customers can postpone allocation of products to
their stores until the product actually reaches port. By
doing so, they take advantage of the latest demand trends,
weather-related forecasts or transportation costs variability.
STRATEGY NO. 3:
YOU CROSSDOCK SOME; YOU STORE SOME.
In an economy that has taken a downturn, where you may
be stuck with long distribution lines and rapidly declining demand, exists a basic imbalance between supply
and demand. Jack Kuchta, assistant vice president of the
warehouse and distribution center
engineering firm TranSystems|Gross &
Associates, explains that inventory’s got
to go someplace; product will need to
go into storage.
“A likely result for retail chains will
be a hub-and-spoke pattern with the
spokes being crossdock facilities that
balance day-to-day fluctuations, while
larger hubs are forced to carry greater
inventory or storage,” he explains. And
although storage putaway runs counter
to crossdock principles, it may provide
the flexibility needed to weather these
tough times.
Instead of Saddle Creek’s pure
crossdock facilities with many doors,
DelBovo sees a trend toward a multiuse facility, using crossdocking as a
partial strategy and working in tandem
with traditional warehousing.
STRATEGY NO. 4:
Cubing was new to us, too. Once.
While others play around with
cubing technology, Quantronix has
mastered the development of conveyorized and static dimensioning
systems. Whether you need to find
more space in your warehouse
or are looking to eliminate “charge-backs” and
manifest
more
accurately,
CubiScans set the standard for
accuracy, durability and functionality. Truth is, we invented
automated cubing more than
two decades ago. For us, solving your cubing problems is not child’s play.
1-800-488-CUBE · www.cubiscan.com · Quantronix, Inc. · 380 South 200 West · P.O. Box 929
Farmington, Utah 84025 USA · (801) 451-7000 · Fax: (801) 451-0502
44S
M A Y 2 0 0 9 / MO D E RN MATE R IALS HAN DL I NG
INVESTIGATE MORE CREATIVE
AND COST-EFFECTIVE ROUTES.
Today’s crossdock operators are rerouting and combining shipments to
include multiple stops when picking
up product from suppliers or when
shipping them to customers.
“With this economy, what used to be
truckloads shipping out to a crossdock
facility might change into half-truckloads,” says DelBovo. “You may be costing yourself more per unit, because you
can’t get the full utilization of a truck.”
For example, because of declining
demand, supplier A in Nebraska and
supplier B in Ohio may each be shipping only half-truckloads directly to a
crossdock facility in Florida, resulting
in higher transportation costs per unit.
Consider first picking up the halftruckload from Nebraska, then the
other half-truckload from Ohio to create a more cost-effective truckload for
the long-haul travel to Florida.
mmh.com
A SPECIAL WAREHOUSING AND DISTRIBUTION CENTER SUPPLEMENT
STRATEGY NO. 5:
USE THE LATEST TECHNOLOGICAL FORECASTING TOOLS THAT INCORPORATE CURRENT MARKET
TRENDS FOR PLANNING YOUR CROSSDOCK.
The most ideal items to crossdock are those with consistent,
continuous sales such as “staple” items like milk and toilet
paper. “The prime requisite for successful crossdocking,” says
TranSystems’ Kuchta, “is predictable demand.”
Unfortunately, today’s supply chain is characterized by a
dwindling product stream with unpredictable demand causing
today’s crossdock to become more of a challenge to execute.
Kuchta suggests using demand modeling technology
to help with predicting demand. “These are mathematical
models that incorporate not only internal data but also current market data to predict how a business will react,” he
adds. “The better the tools you have for predicting demand,
the easier it is to crossdock.”
SUNBELT FURNITURE XPRESS TRANSFORMS ITS
CROSSDOCK
Now that we’ve covered the strategies currently being used
by crossdock operators, let’s take a look at a recent crossdock
transformation story.
Sunbelt Furniture Xpress, a specialized carrier of new furniture, has been crossdocking for 42 years. Over the past few
months, the company has re-invented its crossdock operation
to combat a challenging housing and furniture market. Stan
Froneberger, vice president of sales and marketing, explains:
“As business has declined, we’ve had to work smarter to
reduce handling, to reduce miles and to consolidate our loads
to make them tighter and more defined.”
The company picks up furniture from multiple manufacturers and furniture importers, transports items to Sunbelt
facilities where they are crossdocked to furniture retailers in
the 17-state “sunbelt” area that they service. They crossdock
about 5,000 pieces of furniture daily. The main bulk of their
delivery—about 90%—goes to small chain retailers in the
southern U.S. with six stores or less.
While some crossdock proponents may cringe at crossdocking large, heavy, bulky furniture, it’s been the key to
Sunbelt’s success. “Furniture can be an expensive commodity, so we’re very conscious about not damaging the product,” he adds. “With crossdocking, there is less handling of
an item, so you are less susceptible to damaging that item.”
All of Sunbelt’s freight is typically handled by hand with
a two-man team. “Less than 10%is palletized, so we don’t
use any forklifts. Manual loading also allows for better
stacking and packing of the product in the trailers creating
tighter, consolidated loads while reducing shipping costs,”
says Froneberger.
Sunbelt picks up furniture from multiple manufacturers and furniture importers, transports items to Sunbelt facilities
where they are crossdocked to furniture retailers in the 17-state “sunbelt” area that they service. The company
crossdocks about 5,000 pieces of furniture daily.
46S
M A Y 2 0 0 9 / MO D E RN MATE R IALS HAN DL I NG
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And while the actual physical crossdock may be largely
manual, the planning and execution behind the operation is
where the company concentrates a large part of its technology. Using e-mails and fax, the carrier is in constant communication with its customers to set up pick-up and delivery
stops. These are entered into a computer system where district fleet managers are planning routes, tracking every pickup and delivery, consolidating loads, reducing excess miles
and eliminating deadhead miles.
Froneberger believes in the notion that “if a trailer is
loaded correctly, then it delivers correctly.” The company
also keeps track of the hours and associated dock costs used
to move the freight across each facility.
Originally, the company operated two large crossdock
facilities within North Carolina. “By keeping track of costs,
we realized that we were spending a lot of time and money
shuttling between these two facilities,” recalls Froneberger.
North Carolina’s furniture market was also changing significantly; major manufacturers were shifting production
to low-wage countries in Asia. “We didn’t see a need for
180,000 square feet of combined crossdocking space on
the East Coast when we were seeing more products coming in on the West Coast,” says Froneberger.
To top it all off, as home sales declined, the company saw
its business decline. All of these major economic developments have paved the way for major restructuring changes
in the way Sunbelt crossdocks.
“We opened a 15,000-square-foot facility in Fontana,
Calif., and are consolidating into one larger 114,000-squarefoot facility in Hickory, N.C.,” explains Froneberger. The
Hickory crossdock expansion was completed in early 2009.
In the short term, there are also plans to open another facility in Dallas, close to more ship points.
“When it’s all said and done,” he adds, “there’s going to
be the same amount of crossdock square footage in the Sunbelt system, but it will just be more efficiently spread over
three locations closer to ports and markets.”
By not shuttling between facilities, there will be less
handling and consequently less damage with fewer claims
from damage. Froneberger sums up the overall benefits
of his company’s crossdock restructure. “It shrinks our
customers’ time to market and significantly reduces our
transportation and handling costs. It becomes a win-win
for everyone.”
—Maida Napolitano is a Contributing Editor
to Modern Materials Handling
5 ways to find hidden warehouse space
So, you’re struggling with
higher inventories and
upper management is not
about to invest in new warehouse space. Fear not: Our
team of experts will help you
find space where you think
there isn’t any.
In this current economic
decline, many warehouse
and DC managers are struggling with higher inventories
as they lag behind in adjusting supply chain operations
to lower-than-expected demand trends. This inventory
has to go somewhere, and
many times your space-challenged warehouse or DC
may be the only option.
With upper management
reluctant to spend money on anything
these days—and most certainly not on
a new warehouse—you’re stuck, but
you need to find space. If this situation
has become all too familiar to you, we
48S
may be able to help. We’ve recruited
three “warehouse space” experts who
bring more than 60 years of combined experience on the subject. Jack
Kuchta is president of the warehouse-
M A Y 2 0 0 9 / MO D E RN MATE R IALS HAN DL I NG
consulting firm, Jack Kuchta
LLC, and author of the book
“How to save warehouse
space;” Larry Shemesh is
president-CEO of OPSdesign Consulting, a N.J.based firm specializing in
the design of warehousing,
distribution, and fulfillment
operations; and Carlos Bastos is director of proposal
development for Frazier Industrial Company, a leading
manufacturer of structural
steel storage systems.
Many of the suggestions they’re about to share
require no capital costs,
while a few call for minor
layout reconfigurations and
the purchase of low-cost
storage and handling equipment.
However, all are geared to help
warehouse/DC managers increase
storage capacity in existing space.
Continued on page 50S
mmh.com
Still Waiting for Your
Green Investment to Pay Back?
In today’s eco-conscious environment, solutions that are both financially
and environmentally responsible shouldn’t be the stuff of mythology.
One system has delivered capital and operating
savings to the largest companies in North America.
And by improving the efficiency of batteries and
eliminating battery changing rooms, that same
system also saves1 its customers:
]
32 million kilowatt-hours per year
]
50 million pounds of CO2 per year
]
Over 2.5 million pounds of lead
]
500,000 pounds of steel
]
30,000 gallons of sulfuric acid
To find out how North America’s #1 fast
charge manufacturer has helped its highprofile customers reduce energy consumption
and operating expenses, please visit
www.posicharge.com. For a custom financial
analysis, please contact 1-866-POSICHA
(1-866-767-4242) or email us at
[email protected].
That system is PosiCharge. The stuff of
legend…not mythology.
1
Materials and energy consumption savings are estimates based
on total number of installed systems. Total lead, steel, and
sulfuric acid savings are cumulative estimates since 1999.
www.posicharge.com | [email protected] | 1-866-POSICHA (866-767-4242)
© 2009 AeroVironment, Inc.
A SPECIAL WAREHOUSING AND DISTRIBUTION CENTER SUPPLEMENT
TAKE CONTROL OF YOUR
INVENTORY. Compare each
SKU’s cubic velocity versus its
cubic inventory to find which
products have little or no movement.
“Every time your warehouse employees move past these slow and nomove SKUs, that unnecessary travel
time results in increased labor costs,”
says Shemesh.
He suggests liquidating this inventory and freeing the space it now
holds. “It is the least expensive way
of optimizing warehouse space and
may actually generate some revenue
by discounting and selling the goods
or by donating them to a charitable
organization.”
Shemesh also suggests profiling
inventory to see if items are stored
in appropriate modules. Are decked
pallet racks holding piece quantities
better suited for shelf storage?
Some warehouses have become a
dumping ground for old files and old
office equipment. Notify department
managers of this equipment and initiate steps for removal.
1
ADOPT DISTRIBUTION
STRATEGIES FOR SPECIFIC PRODUCTS THAT
CAN LOWER INVENTORY
AND INCREASE TURNS. After
receipt, move product “across the
dock” and load directly onto the tractor trailer. In other words: crossdock.
Shemesh suggests pushing some
inventory back to your vendors,
where possible, in a vendor-managed
inventory (VMI) strategy.
“Ask your purchasing department
to work with key vendors to honor the
quantity pricing, but hold back some
of the quantities in your vendors’
warehouses for them to deliver upon
demand,” he explains.
Kuchta agrees, adding that you
should consider “receiving smaller
quantities more often, thus increasing
turns and reducing inventory.”
2
50S
MAKE SURE YOU’RE LEVERAGING YOUR WAREHOUSE MANAGEMENT
SYSTEM (WMS). The
standard functionality that a WMS
offers can do wonders with space. A
WMS streamlines receiving, picking
and shipping procedures to reduce
dock space requirements and free up
valuable space for storage.
Combined with a good location
system, it also permits directed
random storage based on the availability of space instead of dedicated
storage that can block the use of an
available storage position.
It allows directed putaway of a
product to the most appropriate locations based on size, movement and
storage conditions. A good WMS
can also identify partial pallets and
generate tasks to consolidate them to
reduce space.
After gaining control of your inventory in Step 1, a good WMS will help
you maintain control of it.
3
FIND ACTUAL PHYSICAL
SPACE AT LITTLE OR NO
COST. Kuchta advises you
to review docks, staging
and value-added service areas with
an eye to minimizing them to current
activity levels.
“The need is likely to be short term
and the extra space will not always
be designated for storage,” he says.
Move battery chargers for lift
trucks between truck doors and
use the existing charging space for
storage. Is there space below the
overhead sprinkler system? Kuchta
suggests creating higher pallets on
the top level of racked space.
Where possible, double stack
pallets, but remember to treat each
pallet as a separate location so that
it can be tracked properly. If you floor
stack, Kuchta also proposes pyramid stacking, where the top pallet
straddles two lower pallets.
4
M A Y 2 0 0 9 / MO D E RN MATE R IALS HAN DL I NG
“This may allow you to stack
pallets to higher storage heights
because the top pallet is stabilized
by the two lower pallets. However, it
may also mean less labor efficiency,”
says Kutcha.
When palletizing, invest in lowcost pallet calculator programs to
determine the optimal pallet pattern
that maximizes the number of cartons that can be stored on a pallet,
thus reducing the overall number of
pallets.
And if you own outside trailers on
your property, use them for temporary
storage. Many managers use them
to store their supply of corrugated.
However, if you don’t own any, consider renting trailer storage during
peak periods when space becomes a
major issue.
PURCHASE LOW-COST
STORAGE AND HANDLING EQUIPMENT.
“Spend money on equipment
such as rack systems, mezzanines
and other vertical storage devices
only after exhausting all no- or lowcost options,” suggests Shemesh.
Are there partial pallets occupying
full pallet positions? If yes, purchase
beams to create more levels. Bastos
recommends adding racks over cross
aisles and over the dock doors.
Use the space above the conveyors to install shelving for dunnage,
empty cartons or additional pick
faces. You can even add racking for
reserved storage that can facilitate
the replenishment of pick faces.
If using 9 feet or more wide aisles,
consider dragging racks and creating
6-feet very narrow aisles (VNA) and
purchasing VNA trucks to increase
storage density.
As VNA trucks can cost up to
$100,000, make sure you evaluate
the ROI for these storage systems.
In the long run, it may still be cheaper
than getting outside storage.
5
mmh.com
classified/recruitment
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52
m ay
2 0 0 9 / Modern Materials Handling
www.mmh.com
advertiser index
Page #
Advance Lifts, Inc.
www.advancelifts.com
Page #
Executive Offices
225 Wyman Street
Waltham, MA 02451
781-734-8000 Fax 781-734-8076
C-3
800-843-3625
Numina Group
www.numinagroup.com
30
630-343-2609
AeroVironment/PosiCharge 49*
www.posicharge.com
866-767-4242
Pflow Industries, Inc.
www.pflow.com
13
414-352-9000
8
BuyerZone
www.buyerzoneindustrial.com
866-623-5565
Positech Corp.
www.positech.com
37
800-831-6026
Chep USA
www.chep.com
407-370-2437
PowerPusher
Div. of NuStar, Inc.
www.powerpusher.com
39
800-800-9274
Sales Offices
Ridg-U-Rak, Inc.
www.ridgurak.com
4
866-479-7225
SenDEC Corporation
www.sendec.com
37
AL, CT, DC, DE, FL, GA, KY, MA, MD, ME, MI,
NC, NH, NJ, NY, OH, PA, RI, SC, TN, VA, VT, WV,
Eastern CAN
Steve McCoy, National Sales Director
508-261-1120 Fax: 508-261-1121
[email protected]
IA, IL, IN, KS, MN, MO, ND, NE, SD, WI,
Central CAN
Bob Casey, District Sales Director
847-223-5225 Fax: 847-223-5281
[email protected]
6
Conveyor Systems &
38
Engineering, Inc.
www.pvcconveyorrollers.com
Creform
www.creform.com
866-976-5537
28-29 800-839-8823
CubiScan
www.cubiscan.com
44*
801-451-7000
Simpson Strong-Tie Co., Inc. 22
www.simpsonanchors.com
800-999-5099
Dehnco Equipment Co.
www.mmh.dehnco.com
51*
847-382-1579
Toyota Industrial Equipment 40*
www.toyotaforklift.com
800-226-0009
Dematic
www.dematic.us
C-2
877-725-7500
Vertex Standard
C-4
www.vertexstandard.com
Dura-Belt, Inc.
www.durabelt.com
38
800-770-2358
Witron Integrated Logistics 45*
www.witron.com
Flexcon Container Div.
www.flexcontainer.com
11
908-871-7000
ID Label
www.idlabelinc.com
47*
800-541-8506
Intelligrated
www.intelligrated.com
43*
866-936-7300
Mark Finkelstein, Division President
Brian Ceraolo, Group Publisher
Dorothy Buchholz, Group Production Director
Geri Patti, Production Manager
AR, AZ, CA, CO, ID, LA, MS, MT, NV, OK, OR, TX,
UT, VA, WA, WY, Western CAN
Jay Gerson, District Sales Director
972-393-5462 Fax: 972-393-5492
[email protected]
EUROPE
Mike Hancock, VP International Sales
Reed Business Information
Quadrant House
The Quadrant, Sutton
Surrey SM2 5AS UK
Tel: 44-181-652-8248 Fax: 44-181-652-8249
*indicates that the ad appears in the
Warehousing and Distribution Supplement
This index is an additional service. The publisher does not assume any liability for errors or omissions.
Web Operations
Clive Purchase
Director, Web Operations
781-734-8273
[email protected]
Director of Online Sales
Paul Zampitella
781-734-8541
[email protected]
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mmh.com
MODERN MAT ERIA L S HA NDL ING / M
AY
2009
53
MODERN 60 SECONDS WITH…
Steve Banker
ARC Advisory
Group
TITLE: Service Director, Supply Chain
Management
COMPANY: ARC Advisory Group,
www.arcweb.com
LOCATION: Dedham, Mass.
EXPERIENCE: 13 years as a supply
chain industry analyst.
PRIMARY FOCUS: Supply chain execution software solutions, including warehouse management systems, replenishment planning and supply chain visibility.
Anyone who has followed the warehouse management system (WMS)
industry has probably talked with Steve
Banker, a supply chain analyst with ARC
Advisory Group. His annual report on
the size of the WMS market is a mustread. Modern wondered how a onetime assistant professor with a PhD in
speech communications came to study
the supply chain.
Modern: What led you to make the
switch from academia to analyzing
the supply chain?
Modern: Why is WMS so important to
warehousing and distribution today?
Banker: It’s important to different companies for different reasons. If you’re a
company without real time insight into
54
Modern: What’s the most significant
change you’ve seen in the industry?
Banker: If you’re looking at a 10-year
bucket, the major change is that WMS
vendors went from being WMS vendors to supply chain execution vendors.
The top players have WMS, TMS and
a layer of logic that floats above the
M A Y 2 0 0 9 / MO D E RN MATE R IALS HANDL I NG
WMS to make decisions across the network. In the last five years, the biggest
change has been at the auto-ID level.
We’ve gone from working with bar
code scanning to scanning and voice
recognition and RFID.
Modern: Where do you think the
industry is going next?
Banker: The talk about service-oriented
architecture and flexibility and adaptability is becoming more than just
rhetoric. The next stage WMS is going
to be about creating a solution with
the right logic to support automation
and to better simulate what a warehouse can do, whether you’re talking
about a person picking or automation.
Whatever makes the most sense, we’ll
be able to snap those pieces together.
mmh.com
Photos by Shawn G. Henry/Getty Images
Banker: I was teaching at the Penn
State branch in Altoona and doing
research into political campaigns. I
began to think that might be a more
interesting way to make a living, so
I went back to get an MBA. There, I
discovered that business strategy was
every bit as interesting as political
strategy. Meanwhile, I met someone
who brought me into ARC in the supply
chain area and I never looked back.
your inventory, you can put in a lowcost WMS that will take you from 92%
to 99% accuracy with a payback of less
than a year. It’s costly to ship the wrong
goods to a customer; it’s costly to take
an order because you think you have
the inventory when you don’t. It’s more
costly to deal with disputes over orders
than people realize. When you’re talking about a more complicated solution,
the payback is all in labor productivity.
THERE ARE TWO DISTINCT
PERFORMANCE GROUPS FOR LIFTS
ADVANCE LIFTS CAN PROVIDE BOTH TYPES
ECONOMY
HIGH PERFORMANCE
- FAST SPEEDS - LONG WARRANTY
A typical 36 inch rise 2500# capacity unit:
LOW PROFILES
- SLOW SPEEDS - LIMITED WARRANTY
A typical 36 inch rise 2000# capacity unit:
HIGH PROFILES
• Lowered height of 6.5 inches
• Lowered height of 7.25 inches
• Main axle bearing 1.75” wide
• Main axle bearing .75” wide
• Full travel speed of 11 seconds
• Full travel speed of 22 seconds
• Standard Voltage 230/60/3
• Standard Voltage 115/60/1
• Warranty 250,000 Cycles/10-Years
• Warranty 2-Years
ADVANCE LIFTS “P” SERIES
ADVANCE LIFTS “E” SERIES
Our “E” series and all similar lifts are designed as low cost solutions for light duty applications. Our “P” series
is designed for high production applications. Advance gives you a choice. Most competitors only offer one type of
lift. Be careful to compare features like lowered height, speed and warranty to be sure you are comparing apples
to apples and specify the right type of lift for your application.
EXCLUSIVE ADVANCE FEATURES THAT CREATE SUPERIOR VALUE
• Patented Platform Centering Device: This feature doubles or triples the life of a lift.
• UL Listed Control Panel Assembler: This feature insures reliability and safety.
NOTE:
Advance Lifts also offers High Cycle units with 1,000,000 cycle warranties
and Ultra High Cycle models with 3,000,000 cycle warranties.
1-800-843-3625
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