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 Introducing the Rapistan Modular Conveyor System from Dematic Multiple conveyor functions in a universal frame Another logistics result for your ever changing business requirements. The Rapistan Modular Conveyor System from Dematic is designed for increased operational flexibility. Universal side channels and modular AC or DC conveyor sections (including roller/belted accumulation, curves, inclines/declines, right angle transfers, and steerable wheel diverters) make for faster installations and future modifications. Common components and backward compatability mean fewer overall parts, easier maintenance, and hassle-free retrofits to existing conveyor systems. The controls interfaces on the Rapistan Modular Conveyor System allow you to quickly adjust parameters on the fly, such as carton gapping, speed, and mode, and perform diagnostics from either local or central locations. Totally integrated, scalable and flexible, the Rapistan Modular Conveyor System offers improved carton control, quiet operation, and low energy consumption. Learn more at www.dematic.us/mcs. www.dematic.us 1-877-725-7500 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 AY 2009 3 ... the name to trust! For more than 65 years, RIDG-U-RAK has been the innovative leader in storage rack design and production. Today, the company is stronger than ever. Whether you need a hand full of replacement beams or a storage system covering over 30 acres of warehouse space, RIDG-U-RAK is the name to trust. Trust RIDG-U-RAK with your next project NEW! Full Line Selection Guide REG . #5150 • • • • • One of the largest rack manufacturers in North America Capacity in excess of 60,000 tons per year Project Management, Engineering and Design Support Installation services Customer-centric organization offering the full array of storage system solutions • Strong engineering with unparalleled innovation, design and application experience Toll Free: 866-479-7225 www.ridgurak.com Selective Pallet Rack • Drive-In • Push Back • Flow • Pick Modules • Cantilever • Stacker Cranes • Roll-Out Shelving • Seismic Base Isolation 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 Modern Materials Handling® (ISSN 0026-8038, (GST # 123397457), is published monthly, except October when published semi-monthly by Reed Business Information, 8878 Barrons Blvd., Highlands Ranch, CO 80129-2345. Reed Business Information, a division of Reed Elsevier, is located at 360 Park Avenue South, New York, NY 10014. Tad Smith, CEO. Circulation records are maintained at Reed Business Information, 8878 Barrons Blvd., Highlands Ranch, CO 80129-2345. Phone (303) 470-4445. Periodicals Postage Paid at Littleton, CO 80126 and at additional mailing offices. POSTMASTER: Send address changes to Modern Materials Handling, P.O. Box 7500, Highlands Ranch, CO 80163-7500. Publications Mail Agreement No. 40685520. Return undeliverable Canadian addresses to: RCS International, Box 697 STN A, Windsor Ontario N9A 6N4. E-mail: [email protected]. Please address all subscription mail to Modern Materials Handling, 8878 Barrons Blvd., Highlands Ranch, CO 80129-2345. Rates for non-qualified subscriptions including all issues: US, $119.99/yr, Canada, $159.99/yr (includes 7% GST, GST#123397457); Mexico, $159.99/yr; International air delivery, $249.99/yr. Printed in U.S.A. Modern Materials Handling® is a registered trademark of Reed Elsevier Properties Inc. used under license. MODERN MAT ERIA L S HA NDL ING / M AY 2009 5 T HIS MON T H IN Mode rn EDITORIAL OFFICES 225 WYMAN STREET Waltham, MA 02451 (781) 734-8000 Michael Levans Group Editorial Director [email protected] Bob Trebilcock Executive Editor [email protected] Noël P. Bodenburg Executive Managing Editor [email protected] Lorie King Rogers Associate Editor [email protected] Sara Pearson Specter Editor at Large [email protected] Roberto Michel Editor at Large [email protected] Tom Andel Columnist Jeff Berman Group News Editor Robert Eckhardt Senior Art Director Daniel Guidera Senior Art Director/ Illustration Norman Graf Director of Creative Services Brian Ceraolo Group Publisher EDITORIAL ADVISORY BOARD Ron Giuntini OEM Product-Services Institute John Hill eSync Susan Rider Rider & Assoc. Ken Ruehrdanz Dematic Dr. John Usher University of Louisville Col. Alan B. Will 2d Marine Logistics Group Brett Wood Toyota Material Handling USA BOSTON DIVISION Mark Finkelstein President - Electronics & Manufacturing Division REED BUSINESS INFORMATION Tad Smith Chief Executive Officer John Poulin Chief Financial Officer & Executive Vice President MAGAZINE SUBSCRIPTIONS FREE magazine subscriptions available at: www.getFREEmag.com/MMH Send magazine subscription inquiries to: 8878 Barrons Blvd Highlands Ranch, CO 80129-2345 Phone: 303-470-4445 Fax: 303-470-4280 E-mail: [email protected] SUBSCRIPTIONS Keep up with the latest industry news and resources—sign-up for our FREE eNewsletters at: www.mmh.com/subscribe.asp 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 Want to save time and money on INDUSTRIAL EQUIPMENT? Let BuyerZone do the heavy lifting so you don’t have to. Save time and money on industrial equipment purchases. Get free advice and pricing articles on everything from forklifts, to pallet racks to floor cleaning equipment and more. BuyerZone is here to do the heavy lifting of finding all the suppliers. You just need to make the final decision. At BuyerZone, you’re in control. We’re just here to make your work easier. Join the millions who’ve already saved time and money on many of their Industrial Equipment purchases by taking advantage of BuyerZone’s FREE, no obligation services like: • Quotes from multiple suppliers • Pricing articles • Buyer’s guides • Supplier ratings • Supplier comparisons REQUEST FREE QUOTES NOW! Call (866) 623-5565 or visit BuyerZoneIndustrial.com Where Smart Businesses Buy and Sell A division of Di@blog 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 AY 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 AY 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 AY 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. Running out of space? Custom vertical lifts: • Efficiently access additional space in your existing facility • Engineered to order • Guaranteed code approval • Commitment to safety • Nationwide factory trained dealer network • Over 14,000 installations Call 414-352-9000 for a custom application assessment or visit: www.Pflow.com DID YOU KNOW… You can now follow Modern Materials Handling on Twitter at twitter.com/modernmhmag Superior design. Better service. Free Online Lift Truck Price Quotes Forkliftcompare.com is the industry’s premier online lift truck database representing over 3,500 lift truck models from over 27 leading Original Equipment Manufacturers. The ‘search & compare’ database contains more than 175,000 lift truck specifications and provides users with: side-by-side model comparisons, customized product specifications and reports, new model introductions, resale and residual value calculators, request for quotes, and much, much more..... LIFT TRUCK RESEARCH MADE EASY www.forkliftcompare.com LIFT TRUCK TIPS 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. Cracked-Concrete Solutions TESTED TO MEET IBC ® 2006 Simpson Strong-Tie Company Inc. THDSBSETXP09 The 2006 International Building Code (IBC) has been adopted by a majority of states, which could complicate how you choose concrete anchors. Some applications will now require anchors that perform in cracked concrete, while others may not. Rest assured that Simpson Strong-Tie has the products to meet both types of anchoring challenges. Our Titen HD® screw anchor, Strong-Bolt ™ wedge anchor and SET-XP™ anchoring adhesive are all ICC-ES code listed for use in cracked and uncracked-concrete applications. And we still offer a full line of traditional wedge, sleeve and drop-in anchors for almost any anchoring application. When you have questions, look to us to help you crack the code. For more information about all our 2006 IBC codelisted products, visit www.simpsonanchors.com or call (800) 999-5099. © 2009 Anchors that crack the code. Titen HD® ICC-ES ESR-2713 22 M AY Strong-Bolt ™ ICC-ES ESR-1771 SET-XP ™ ICC-ES ESR-2508 2 0 0 9 / MO D E RN MATE R IALS HANDL I NG 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 AY 2009 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 AY 2 0 0 9 / MO D E RN MATE R IALS HANDL I NG 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 AY 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 M AY 2 0 0 9 / MO D E RN MATE R IALS HANDL I NG 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 AY 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.” Smarter. Faster. Better Distribution Automation. Price & Performance Breakthrough ROI of 6 to 9 months. The Numina Group’s X-Press PAL™ is the industry’s best value print-and-apply labeling solution. It’s designed to easily integrate with existing pick, pack, and ship lines, or to automate small to mid-size distribution shipping operations. Prices start below $60,000 and include integration with your existing manifesting system. X-Press PAL™ supports the full family of Panther Industries print-and-apply label applicators. Fits in as little as 10´. Labels and manifests 650-plus cartons per hour for FedEx, UPS and USPS. Visit our website to view a video of the X-Press PAL™ in action and to request further information. Give us a call for your free ROI analysis. www.numinagroup.com 630-343-2609 www.print-n-apply.com 1-800-530-6018 10331 Werch Drive Woodridge, IL 60517 www.numinagroup.com 30 M AY 2 0 0 9 / MO D E RN MATE R IALS HANDL I NG 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 AY 2009 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 M AY 2 0 0 9 / MO D E RN MATE R IALS HANDL I NG 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 AY 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 M AY 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 AY 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 AY 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 Shown with Optional Pedestal Mount LodeArm Shown with Optional Trolley Mount Your Complete Lifting Solution ReactionArm 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. PVC CONVEYOR ROLLERS Expertly Engineered Designs for your Unique Requirements… Better than Lifetime Warranty all at a competitive price! z Abuse Resistant Belts work where others fail. z Super Strong Joints are virtually unbreakable. z High Tension Belts move heavier loads. z Super Red Belts double conveyor capacity. s High-Capacity Mini-Rollers s Larger Diameters Available s Wash-down Duty s Customized, Innovative Designs s Quick Ship Service s Made in the USA s CSE Low-Price GUARANTEE New Split Line-shaft Spools Contact us today for more information, or visit us on the Web: High precision. Reasonable price. Easy to install. Zero downtime. Can be locked to shaft. Eliminates need for keyed spools and shafts. Dura-Belt 38 M AY 800-770-2358 614-777-0295 Fax: 614-777-9448 www.durabelt.com 2 0 0 9 / MO D E RN MATE R IALS HANDL I NG www.PvcConveyorRollers.com Fax us a copy of our competitor’s invoice or proposal (no older than 90 days) at the time of our price quote, and we’ll guarantee that our prices will be at least 10% lower than our competitor. Some restrictions apply. Contact CSE today for more information. Phone: 866-9-ROLLER (866-976-5537) Fax: 847-350-0850 E-mail: [email protected] mmh.com 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. Move heavy loads without the pain. One person can move up to 150,000 lbs. with PowerPusher.® .BUFSJBMIBOEMJOH TPMVUJPOTGSPN1PXFS1VTIFS SFEVDFSJTLTBOEJNQSPWF TBGFUZCZBMMPXJOHPOF QFSTPOUPNPWFUIF IFBWJFTUXIFFMFEMPBETXJUI UPUBMDPOUSPM"WBJMBCMFJOGPVSNPEFMTGSPNUPMCDBQBDJUJFT XJUIBIPTUPGPQUJPOBMIJUDIFTUPXCBSTBOEQVTIQMBUFT1PXFS1VTIFSJT UIFDPNQBDUDPTUFGGFDUJWFNBUFSJBMIBOEMJOHBMUFSOBUJWFUPFYQFOTJWF GPSLMJGUTBOEPUIFSSJEFPOFRVJQNFOU Go to: www.powerpusher.com for a free instructional DVD. PowerPusher ® If it rolls... we can move it.™ %JWJTJPOPG/V4UBS*ODtXXX1PXFS1VTIFSDPNt MODERN MAT ERIA L S HA NDL ING / M AY 2009 39 When times are hard, Toyota lift trucks work the hardest. Toyota lift trucks are built according to some of the most innovative, environmentally responsible manufacturing processes in the world. So nature can go about its daily business as you go about yours. Add a lower cost of ownership and even the most challenging of times are no challenge at all. 800-226-0009 • EarthsNumberOne.com 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 AY 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 Experience our Full Circle Commitment. Regardless of where you are in the life cycle of your latest material handling project, Intelligrated can help. Our comprehensive offering of products and services is designed to support you in any and every stage for projects both large and small. Visit www.intelligrated.com to learn more about the Intelligrated 360° customer centric approach and schedule your free consultation today. 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 mmh.com RACK LABEL aisle sign LPN LABELS lamination PALLET ID LABELS DIGITAL PRINT freezer applications tote labels retro reflective sign BARCODE check digit harsh environment OVAL FLOOR PLATE ID KITS national installation services from prototype to 100 million Positive Feedback...Every Time 461 Park Ave Lake Villa, IL 60046 800.541.8506 www.idlabelinc.com WAREHOUSE LABELS & SIGNS WAREHOUSE SIGNS From Long Range Retro Reflective signs to Dock Door and Aisle Signs, ID Label offers solutions for all your bulk storage identification needs. We manufacture a proprietary blend of PVC which won’t crack or fade in either indoor or outdoor applications. RACK LABELS A durable polyester rack label can help insure consistent bin location year after year. ID Label produces (and installs) over 2 million rack labels each year and offers the highest quality laminated solution. 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Channel Partner inquiries welcome. A SPECIAL WAREHOUSING AND DISTRIBUTION CENTER SUPPLEMENT 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 Ergonomic Holster Systems Bumpy Rides? Secure Your Terminal, and Holster Your Side Arm... with a LOGISTERRA ® truck-mount Holder ...or a slinger, right or left • Proven products • Years in service • Deployed worldwide • Made in USA Career Opportunities Label Holders Material Handling and Logistics Opportunities Available Now! 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Serving the industry since 1988 L O G I S T E R R A , I N C. 6190-K Fairmount Ave San Diego CA 92120 800-338-8759 or 619-280-9992 [email protected] • www.logisterra.com Ergonomic Lifting System www.mmh.com Industrial Leasing Premiere Industrial Space For Lease Mid-Michigan Location - Competitive Lease Rates Low Expenses - On-Site Management Catellus Group, LLC www.waretechindustrialpark.com Load Transfer Systems (810) 695-7700 Advertise in MMH’s Classifieds: • Career Opportunities • New/Used Products for Sale • Materials Handling Solutions Contact Jennifer Drevline 847-223-5225 ext. 16 [email protected] 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. 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Sign-up for our FREE eNewsletters at www.mmh.com/subscribe.asp Sign up now at SupplyChainDaily.com 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. 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