Modern Materials Handling

Transcription

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING
mmh.com
®
TOGNUM
AMERICA:
Adam Wood,
director of logistics,
Tognum America
July 2012
Around the
world in one
to three
days 16
SPECIAL REPORT
Top 20 SCM software
suppliers 24
EQUIPMENT REPORT
Palletizers: Putting
product in its place 28
BEST PRACTICES
Food and Beverage:
Keeping up with
the SKUs 36
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Reduce Energy Use and Wear
With Automatic Speed Control
Why run your convey and sort system at top speed all
day? Your operation’s activity goes up and down. With
Automatic Speed Control, the convey and sort system
adjusts its speed up or down to match the actual flow
required. The speed of the merge, induct, sorter and takeaway conveyors all adjust automatically to accommodate
surges and declines in carton flow. In a typical system, the
speed will vary from 250 feet per minute up to 540 feet per
minute depending on the rate of carton flow. This means
LESS: energy, wear, maintenance, and sound. In addition,
Automatic Speed Control improves carton control, extends
the life of your system, and reduces the overall
cost to operate.
To find out how more about how to optimize
your convey and sort operation visit
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contact us at [email protected] or 1-877-725-7500.
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UP FRONT
Breaking news you should know
MHIA and AIM co-sponsor Allan Gilligan Award
The Material Handling Industry
of America (MHIA) and the Association
for Automatic Identification and
Mobility (AIM) recently announced
the establishment of a joint award
honoring Allan Gilligan, a revolutionary
developer of supply chain standards
across multiple industries.
The award will be presented to
a member of the industry who has
made outstanding contributions to
the development of automatic identification and data communications
(AIDC) applications. The recipient
tion for individuals who
of the award will be
contribute to both.”
announced at the AIM
“MHIA is happy to jointly
Industry Awards during
sponsor this award with
the AIM Summit on Sept.
AIM to honor Allan Gilligan.
10, 2012 in Rosemont, Ill.
Allan led committees and
“AIM is pleased to
participated anywhere
collaborate with longhe was needed to bring
standing partner, Material
together a wide range of
Handling Industry for
Allan Gilligan
interests in the name of crethis award,” said Chuck
ating automatic identificaEvanhoe, AIM board
tion standards that made the industry
chairman. “AIM’s roots are in MHI,
work better,” said George Prest, CEO
and our organizations are synergistic
enough to warrant significant recogni- of MHIA.
Storopack to open division in Brazil
Storopack, WHICH specializes in
protective packaging and headquartered in
Germany, has announced the establishment
of business operations in Brazil to serve the
Brazilian market and other South American
markets more effectively.
The Packaging Division not only offers
protective packaging for flexible use such
as air cushions, paper pads, PU foam
packaging systems and loose fill cushioning
materials, but also system integration into
customers’ packaging processes.
The air cushion system and the paper
pad system will initially be marketed into
the region. The introduction of the packaging system for smaller requirements is in
preparation.
Avery Weigh-Tronix acquires
Central Weighing
Avery Weigh-Tronix Limited, a
business unit of Illinois Tool Works,
has acquired Central Weighing
Limited. Avery Weigh-Tronix is a
global supplier of weighing solutions, operating out of Fairmont,
mmh.com
Research center focuses on
robotics for human safety
As the newest site in the National Science
Foundation-funded Industry & University
Cooperative Research Program for Safety,
Security, and Rescue Research Center (SSR-RC),
The University of North Carolina Charlotte (UNCC)
is the only center focused on robotic technologies
for human safety in the materials handling, manufacturing and healthcare industries.
The UNCC center is seeking to partner in
research with
manufacturing
and materials
handling industry stakeholders.
Manufacturing
and materials
handling partThe UNCC center focuses on
ners can join the
robotic technologies for human
UNCC SSR-RC
safety.
as members to
leverage and expand their investment in robots
for automating assembly and materials handling
processes.
Minn., with headquarters in the UK.
Central Weighing
specializes in
vehicle weighing,
tracking and management systems. It also offers a
unique Web-based tracking and
monitoring system developed for
municipal vehicles and the waste
industry marketed under the
Exactrak name.
“Avery Weigh-Tronix is one of
the leading industrial scale and
weighing system manufacturers
in the world. The acquisition of
Central Weighing will bring a new
depth of innovative products,
allowing us the opportunity to
expand our global reach and bring
added value to the market by
leveraging existing distribution
networks,” said Peggi Trimble,
general manager of the industrial
division at Avery Weigh-Tronix.
Modern Mat eria l s Ha ndl ing / J
u ly
2012
3
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©Yale Materials Handling Corporation 2012. All Rights Reserved.
VOL. 67, NO. 7
®
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION,
WAREHOUSING AND MANUFACTURING
Adam Wood, director of
logistics, and his team at
Tognum America implemented
a new order fulfillment solution.
COVER STORY
SYSTEM REPORT
60 seconds with...
Greg Aimi,
research director,
Gartner
16 Around the world in one to three days
Tognum America’s service parts DC in Brownstown, Mich., services
the company’s diesel engine needs worldwide with a new order
fulfillment solution.
22 Bringing goods to the person
Tognum’s mini-load automated storage and retrieval and warehouse
management systems are the primary engines behind order fulfillment
in the Brownstown DC.
FEATURES
SPECIAL REPORT
24 Top 20 SCM software suppliers
Modern’s annual look at the supply chain software market revealed
that the industry grew significantly in 2011.
EQUIPMENT REPORT
28 Palletizers: Putting product in its place
Here’s a look at how palletizing equipment improved productivity at
these five operations.
FOOD & BEVERAGE
36 Keeping up with the SKUs
The food and beverage sector is ripe with unique and difficult
materials handling challenges due in part to the growing number of
product choices.
DEPARTMENTS & COLUMNS
3/ Upfront
7/ This month in Modern
12/ Lift Truck Tips: Leasing
14/ Packaging Corner: Sustainability
41/ Special Section: Corporate Profiles
66/ Focus On: Overhead handling
70/ Product Showcase
74/ 60 seconds with...
NEWS
9/ Permira funds to acquire Intelligrated
10/ Intelligrated aims at growth
11/ NACCO seeks to spin off materials
handling business
PRODUCTIVITY SOLUTION
40 Mobile computing equipment furnishes
real-time data
City Furniture installs forklift-mounted computers to track inventory in
real time and honor its promise of same-day, seven-day-a-week delivery.
SUPPLEMENT
58 Lift trucks: Understanding the
economic lifespan
More savvy lift truck fleet managers are realizing that buying, renting
or leasing practices set the tone for future savings.
mmh.com
Modern Materials Handling® (ISSN 0026-8038) is published monthly by
Peerless Media, LLC, a Division of EH Publishing, Inc., 111 Speen St, Suite
200, Framingham, MA 01701. Annual subscription rates for non-qualified
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USA. Periodicals postage paid at Framingham, MA and additional mailing offices. POSTMASTER: Send address changes to: Modern
Materials Handling, PO Box 1496 Framingham MA 01701-1496.
Reproduction of this magazine in
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All rights reserved. ©2012 Peerless
Media, LLC.
MODERN MAT ERIA L S HA NDL ING / J
U LY
2012
5
Supply chain’s best friend
IDEXX Laboratories, one of the world’s fastest-growing providers
of diagnostic and information technologies for animal health,
needed to analyze its global distribution to better serve the more
than 50,000 veterinary practices that rely on their products.
Complex orders with diverse temperature
With a 27% improvement in labor
requirements were processed manually
efficiency, a 6% reduction in material costs
as multi-box shipments, resulting in high
and steep declines in shipping charges,
operating costs and potential customer
IDEXX doesn’t worry about the health
confusion. With our help, IDEXX implemented
of its distribution center. Thanks to a
an automated system to consolidate
successful partnership with FORTE,
orders, simplify material movement and
they can stay focused on improving the
decrease labor travel. Most importantly,
well-being of their customers. To learn
it was done ahead of schedule and
more about how FORTE can help you,
without interrupting their operations.
visit forte-fastest.com.
The fastest-growing companies are making distribution their FORTE.
SUPPLY CHAIN AND FACILITY OPTIMIZATION
|
DISTRIBUTION CENTER DESIGN AND BUILD
|
SYSTEMS INTEGRATION
|
SUPPLY CHAIN SOFTWARE
This month in
®
modern
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MICHAEL LEVANS
GROUP EditorIAL
DIRECTOR
Michael Levans
Group Editorial Director
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Bob Trebilcock
Executive Editor
[email protected]
Noël P. Bodenburg
Executive Managing Editor
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Lorie King Rogers
Associate Editor
[email protected]
Sara Pearson Specter
Editor at Large
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Roberto Michel
Editor at Large
[email protected]
Josh Bond
Editor at Large
[email protected]
Jeff Berman
Group News Editor
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Creative Director
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Art Director
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Illustration
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Group Publisher
[email protected]
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A Division of EH Publishing, Inc.
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President and CEO
EH Publishing, Inc.
Brian Ceraolo
Publisher and
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Peerless Media, LLC
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Recession’s silver lining
I
n business, as in life, the tougher the challenge you face the smarter you have to
work to see your way through to a resolution—and never did the readers of Modern
meet a tougher battle than “doing more
with less” during the recession.
But according to the latest numbers that
our research partners at Gartner dug up on
the worldwide market for supply chain management (SCM) software, it appears that
many Modern readers have indeed learned
some tough lessons and are preparing to
be equal to the task, especially when it
comes to working smarter by leveraging the
enabling benefits of technology.
According to Gartner, the worldwide
market for SCM software applications, maintenance and services came in at $5.2 billion
in 2011, an extremely impressive 12.1% jump
over 2010. In fact, Gartner has projected a
compound annual growth rate of SCM software of 8.7%, which should just about double
the size of the market over the next 10 years.
So, what’s driving supply chain organizations to finally be more aggressive in
SCM software adoption? Gartner’s Chad
Eschinger, vice president of supply chain
research, tells our Bob Trebilcock this month
that the recession era validated six key drivers that will continue to push the adoption
of SCM software—and none of them should
come as any surprise considering the lean
environment Modern readers now find themselves managing within.
I’ll certainly won’t give away too many of
the details that Trebilcock unveils starting
on page 24, but I will touch on just one of
the drivers that illustrate the broader supply
chain thinking that is pushing warehouse
and DC management professionals to bet-
Member
mmh.com
Member of
ter integrate operations with that of other
aligned supply chain functions—and software adoption is proving to be the enabler.
Clearly, the top driver that caused the
most acute pain point for many of our readers
during the recession was the call to “improve
customer service” while your equipment and
labor budget were being cut to the bone.
According to Eschinger, it will certainly remain
the top reason companies will continue to
invest in SCM software in the future.
“More with less” is a mantra that stuck,
but your internal and external customer
demands are now greater than ever.
According to Eschinger, what many supply chain organizations learned once they
adopted supply chain planning (SCP), more
robust warehouse management systems
(WMS), and started to integrate data from
transportation management systems (TMS)
was that they were able to improve demand
planning, orchestrate supply chain activities,
and gain an overall visibility that they had
never had in the past.
“The floods in Asia and the earthquakes
put a spotlight on the complexity in today’s
networks,” says Eschinger. And in turn,
many users were able to manage the disruptions, be more nimble, shift freight and
inventory on a dime and keep costs in line
all while meeting customer expectations.
We continue to discover more and more
case studies of readers who have used the
management pressures of the recession as a
springboard to software adoption, and the
Gartner numbers certainly validate that fact.
And when you think about it, the recession
has generated many silver linings; but the fact
that we’re working smarter through technology may have the longest-lasting benefit.
Winner
Jesse H. Neal
Certificates of Merit
for Journalistic
Excellence
Official Publication of
Modern Materials Handling / J
u ly
2012
7
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AUTOMATION
Permira funds to
acquire Intelligrated
LEADING AUTOMATED MATERIALS HANDLING SOLUTIONS
PROVIDER HAS ENTERED AGREEMENT TO BE ACQUIRED
BY A HOLDING COMPANY IN A TRANSACTION AT A
VALUATION IN EXCESS OF $500 MILLION.
INTELLIGRATED, A LEADING North
American-based provider of automated materials handling solutions,
services and products, announced
that it has entered an agreement to
be acquired by a holding company
owned by the Permira funds in a
transaction at a valuation in excess of
$500 million. Intelligrated’s management, led by founders Chris Cole and
Jim McCarthy, will maintain a significant stake in the company as part of
the transaction and will continue to
lead the company.
Intelligrated designs, manufactures and installs complete materials
handling automation solutions for the
warehousing, distribution, consumer
product manufacturing, postal and
parcel markets. Solutions include
conveyor systems, sortation systems,
palletizers and robotics, order fulfillment systems, warehouse control
software and advanced machine controls. Intelligrated will remain headquartered in Mason, Ohio, a suburb
of Cincinnati, and has operations
throughout the United States and in
mmh.com
Canada, Mexico and Brazil.
Intelligrated is No. 10 on
Modern’s Top 20 Systems Suppliers list reporting $435 million
in 2011.
According to company officials, the Permira funds’ investment will support the company’s
growth opportunities, including
further penetration of its customer
base in North America, emerging
markets expansion in partnership
with its global customers, increased
product offerings and global capabilities through investment and selective
M&A.
“Intelligrated is well-positioned to
capitalize on the growing demands
on companies to increase supply
chain efficiency and better serve
the evolving needs of their customers,” said Richard Carey, partner and
co-head of the Global Industrials
Group at Permira. “Already a market
leader, the company is continuing to
grow, as evidenced by the ongoing
expansion of the facilities in Mason,
which will enhance Intelligrated’s
ability to provide advanced solutions
for its blue-chip customers.”
John Coyle, partner and head of
North America at Permira added,
“This investment fits squarely into the
Permira funds’ strategy. It involves
a team working across three of our
core investment sectors—industrial
services, consumer and technology—
and is wholly consistent with our
approach in North America, which is
to find leading companies in the U.S.
who can utilize our unique ability to
leverage our deep ties in Europe,
Asia and Latin America to realize
their international potential.”
“This is a very exciting new
chapter for our company, and we
are thrilled that a world-class in-
U LY
2012
9
vestment firm such as Permira has
recognized the growth potential in
our business,” said Chris Cole, CEO
of Intelligrated. “This is a strong
endorsement for Intelligrated and
our highly talented workforce, and
we look forward to taking advantage
of the unique global perspective
and industry insight that the Permira
funds will bring.”
The transaction, which is subject
to regulatory approvals and customary closing conditions, is expected to
close in the third quarter of 2012.
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2 0 1 2 / MO D E R N MATE R IALS HAND L I NG
ANALYSIS
Intelligrated aims
at growth
By Bob Trebilcock, Executive Editor
THE MATERIALS HANDLING INDUSTRY
was in the news recently with an acquisition valued at more than $500 million.
This time I’m not talking about Amazon’s
$775 million acquisition of Kiva Systems.
Rather, it was the announcement on June
8 that Intelligrated has agreed to be acquired by a holding company owned by
the Permira funds. The deal is expected
to close in late July or early August.
While Kiva has seemingly gone quiet
since the Amazon acquisition, leading
many in the industry to wonder whether
it will remain in the market, Intelligrated’s
management remains firmly in control
of the company’s operations, said Chris
Cole, Intelligrated’s CEO. “I want to make
very, very clear that the company management remains very heavily invested in
Intelligrated and that will continue,” Cole
told Modern. “There is no change in the
operations of the company.”
Instead, the deal represents a recapitalization that will give Intelligrated the
financial strength and international experience to grow “as we want to grow,”
Cole said.
In many ways, Intelligrated’s is a story
of rapid and noteworthy growth. The company was launched on Sept. 4, 2001, one
week before the 9/11 attacks. Since then,
it has grown into a serious international
player. By Modern’s estimates, Intelligrated
is likely the No. 2 systems integrator in
North America behind Dematic. Along
with a significant presence in Central and
South America, Cole said the company has
had real success north of the border with
companies like Canadian Tire and Forzani.
“Frankly, we’ve been very popular with U.S.
multi-nationals expanding into Canada,” he
said. He expects to approach or top $500
million in worldwide sales in 2012.
That growth led to the change of
financial partners. Along with capital
from Cole, co-founder Jim McCarthy and
the Intelligrated management team, the
start-up was funded by Gryphon Investors. Additional capital was added in 2006
by Tudor Investors. Nearly 11 years later,
Gryphon remained an investor. That’s a
lifetime in the investment world.
What’s more, Intelligrated was the
largest investment in Gryphon’s portfolio.
To take the company to the next level
meant bringing on investors with more
financial strength. Enter Primera. “They’re
a $26 billion family of funds,” Cole said.
“They not only have the financial strength
to help us grow, they have resources and
a footprint outside of the U.S. that can
help us expand our geographic reach.”
What’s next for Intelligrated? Cole
mmh.com
outlined several plans:
International expansion: With Europe
slowing, Intelligrated plans to expand its
existing presence in Latin America and look
for opportunities in Asia.
Expansion of services: Expect to
see more of an emphasis on concepting,
analysis, design and after-market services.
“Right now, we’re running the maintenance
departments for some of our customers,”
Cole said. “That’s something we couldn’t
provide as a start-up company. Now that
we have an installed base, we can flesh out
those services.”
Expansion of hardware and software
offerings: “I think we have a very strong
product line, but there are segments and
niches that we don’t fill,” Cole said. “We’ll
continue to look for ways to broaden our
appeal.” While Cole declined to specify the
hardware and software technologies he’s
interested in adding to Intelligrated’s portfolio, don’t be surprised if there are acquisitions in the future.
With 10 years behind him, where does
Cole want to see Intelligrated 10 years from
now? “What I want to see 10 years from
now is what I want to see now, which is to
be a trusted partner for our customers,”
he said. “We want to give them the best
materials handling system to drive their bottom lines.”
NACCO seeks to spin off
materials handling business
HYSTER-YALE MATERIALS HANDLING
announced that it has filed a registration statement with the U.S. Securities
and Exchange Commission relating to
a proposed spin-off by NACCO Industries of its materials handling business
to NACCO stockholders. Hyster-Yale
Materials Handling, as an independent
public company, will own and operate the NACCO Materials Handling
Group (NMHG) subsidiary of NACCO
Industries.
“Hyster-Yale Materials Handling is
a strong, established company, with
leading brand names and an experienced management team. As a result
of the spinoff, Hyster-Yale Materials
Handling will have greater flexibility to
pursue strategic growth opportunities
such as acquisitions and joint ventures
in the materials handling industry,”
September 9-12
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and to register today!
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2012 Keynote Speaker: Steve Forbes
Chairman and Editor-in-Chief of Forbes Media
said Al Rankin, chairman, president
and CEO of NACCO Industries.
He added that the spinoff will
reinforce management’s focus on
serving each of Hyster-Yale Materials Handling’s market segments and
customer application needs.
Following the spinoff, Rankin will
become the chairman, president and
CEO of the new company. Michael
Brogan, current and continuing president and CEO of Hyster-Yale Materials Handling’s operating company,
NACCO Materials Handling Group,
will also be an officer. It is expected
that the spin-off will be completed
during the third quarter of 2012.
In Modern’s annual lift truck ranking, NACCO Industries reported $1.8
billion and was ranked No. 4 on last
year’s list.
lift truck TIPS
Leases give lift truck customers
more leeway
Traditionally viewed as restrictive, new finance practices
tailor leases to customer needs.
By Josh Bond, Editor at Large
T
he concept of leasing lift trucks once meant adherence to a rigid contract that could result in steep
penalties at the end of a term. Payments might have
been consistent through that term, but they’d remain
consistent despite low utilization. Tina Goodwin, director
of financial services for NACCO Material Handling Group,
says leasing is no longer a restrictive premise.
“Customer demand has forced finance partners to become much more flexible,” says Goodwin, who adds the
numbers tell the tale. “I’ve seen it flip from one side to
the other. I’d say 80% of our customers lease equipment,
as opposed to the 30% to 40% just 15 years ago.”
Fifteen years ago, big companies bought equipment
outright, kept it too long and ended up with very high
maintenance costs, says Goodwin. Customers figured
since they owned the equipment they would get as much
use out of it as possible and run it into the ground. Now,
fleet management techniques have established economic
life cycles and have enabled customers to do much more
efficient replacement planning. Of NACCO’s national
accounts with fleets of 50 or more, nearly 95% lease,
says Goodwin.
“Customers can now spend as little as possible for the
best possible value,” says Goodwin. “If you want to keep
your costs as low as possible, consider leasing.”
Rule one, according to Goodwin, is to never underestimate or overestimate the hours of use over the course of
a lease term. Underestimation may reduce the payment
in the short term, but the customer could see massive
overage costs at the end of the term. Underestimation
can also add up, says Goodwin. For instance, a lift truck
that sees only 2,000 of its 2,500-hour annual allotment
will cost the customer a full 2,000 hours of unused time.
Goodwin says as many as 80% to 90% of lift trucks have
unused time when returned at the end of the lease term.
The first step to accurate planning is data collection,
and customers should dial in their usage figures to within
a couple percent margin of actual before signing a lease.
But if business picks up or slows down in the months
and years to come, a customer can always contact their
12
Ju
n e
2 0 1 2 / M ode rn M at e ri als H an d li n g finance partner to adjust lease payments or lease term on
the fly, says Goodwin.
“A customer should never be afraid to call us and notify us of any change,” she says.
Many finance partners now offer the option to bill by
the hours of use, and might contract for 12,000 hours that
could take anywhere from 40 to 70 months to accrue. In
one variation of the hourly lease model, an 80% minimum
usage charge is reconciled annually, meaning a customer
with a lift truck that goes unused in any given month will
pay zero dollars for that month. Though heavily dependent on robust fleet data measurement, the hourly lease
model allows customers to more accurately tie revenues
to expenses.
After all, says Goodwin: “Fleet and finance go hand in
hand.”
Josh Bond is an editor at large for Modern and can be
reached at [email protected].
mmh.com
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Warehouse Controls and Equipment
packaging corner
Turn trash into treasure
Reverse logistics service converts used packaging
waste into a valuable asset.
By Sara Pearson Specter, Editor at Large
Y
ou might call Rehrig
Pacific Logistics’
director of innovation and operations, Todd
Rodewald, a modern day
Rumpelstiltskin. But instead
of turning straw into gold,
he’s spearheading his
company’s efforts to help
retailers and manufacturers
uncover the value hidden in
their trash.
Rehrig Pacific Logistics
(RPL) offers asset management and reverse logistics
with a specific emphasis on
packaging (pallets, corrugated boxes, reusable
plastic containers and shrink
wrap). The company has two
facilities to recycle wood
and industrial plastic waste.
“This is an evolution of a
full circle service,” says Rodewald. “In addition to tracking
assets, customers work with us to manage their waste. We
turn their waste streams into a value-add.”
RPL’s Pennsylvania micro-mill takes 100% post-consumer pallet wood waste, grinds it, mixes it with formaldehyde-free binding resin, and subjects the blend to heat
and pressure. “Typically, pallet wood waste is converted
into low-value fuel or mulch,” explains Rodewald. “This
process yields a usable building material similar to particle board.”
Both boards and manufacturing process are in the
process of gaining Forest Stewardship Council certification and California Air Resources Board (CARB) II compliance. The sustainable boards can be used for green
construction or manufacture of laminated furniture. Or, in
the ideal closed-loop system, “boards made from wood
waste generated in a retailer’s supply chain could be re14
J
u ly
2 0 1 2 / Mo d e rn Mate r ials Hand l i ng directed back for the manufacture of furniture marketed in
their stores, as shelving in their warehouses or as display
fixtures,” he adds.
Similarly, in Rancho Cucamonga, Calif., an RPL facility provides closed-loop recycling by processing postindustrial, high-density polyethylene (HDPE) plastic and
converting it into regrind material that can be reused in
plastics manufacturing processes.
“Before the recession, there was an increasing emphasis on sustainability. Now, companies are looking at it as
another way to reduce operating costs—and waste is a
large expense,” he says. “We help identify items of value
in a waste stream, or find ways to further maximize that
value. And it’s good for the environment, too.”
Sara Pearson Specter is an editor at large with Modern and
can be reached at [email protected].
mmh.com
modern system report
Around the
Tognum America’s service parts DC in
Brownstown, Mich., services the company’s diesel engine
needs worldwide with a new order fulfillment solution.
H
ow do we turn out a consistent product day in and day
out? That’s a question challenging companies around
the globe.
It’s hard enough to
be consistent from one production or
order fulfillment run to the next within
a plant or distribution center. It’s even
more of an issue for companies operating multiple facilities. The hurdles rise
exponentially when those facilities are
located in different geographic areas
around the globe.
Tognum America, a manufacturer of
off-highway diesel and gas engines and
power generation systems, answered
that question with a new parts and
logistics center in Brownstown, Mich.
Formerly known as MTU Detroit
Diesel, Tognum America is a subsidiary
of Tognum AG, the corporate entity
behind MTU engines, MTU Onsite
Energy generator sets and L’Orange
fuel-injection systems.
The new 350,000-square-foot service parts distribution center was
designed together with a consultant
(i+o Industry Planning + Organization,
www.io-consultants.com) to deliver
16
Ju
ly
spare parts to customers of MTU diesel engines in North America and
around the world within one to three
days. More importantly, the order fulfillment engine is a mirror of the system Tognum AG implemented in
Überlingen, Germany, about four years
ago and which will be rolled out in
another logistics center in Asia in the
near future.
“Our global parts logistics strategy is
to have the same systems and processes
worldwide,” says Adam Wood, director of logistics for Tognum America.
“While we tailor our processes a little
to a region, we want a system that looks
and feels the same to a customer no
matter where they are located.”
By the same token, the order fulfillment system is designed to deliver the
exact same product in the same manner, regardless of whether that order is
filled in Michigan, in Germany or in
The Tognum team (left to right):
Ervil Smith, Ed Irvine, Adam Wood,
Kim Rowe and Mike Monahan.
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng mmh.com
world in one
to three days
mmh.com
u ly
2012
17
“While we tailor our processes a little
to a region, we want a system that
looks and feels the same to a customer
no matter where they are located.”
—Adam Wood, director of logistics
for Tognum America
Asia. “There will always be some differences as far as legal requirements
and country of origin are concerned,”
says Wood. “But the part out of the box
should be in the same condition regardless of where we fill the order.”
To achieve that level of consistency, Tognum used the same system
and design consultancy firm on the
German and North American projects. It also installed the same automation equipment and software from
the same vendors, including the same
mini-load automated storage and
retrieval (AS/RS) and warehouse management (WMS) systems. Together,
they are the primary engines behind
order fulfillment.
The facility is managing 40,000
stock keeping units (SKUs) with
the ability to manage 80,000 SKUs.
Located near the outbound docks, the
AS/RS holds 22,500 storage trays and
uses an ultra-quiet conveyor system to
deliver trays to five ergonomic goodsto-person workstations with lightdirected picking operations. Using a
goods-to-person configuration reduces
the amount of time associates spend
walking and reduces the amount of
conveyor in the facility. Live since
October 2011, the system is handling
360 picks per hour during normal
operations.
“This configuration gave us the most
flexibility and enabled us to fit our
main order fulfillment operations in
about 25,000 square feet, including the
conveyor and staging areas,” says Kim
Rowe, senior manager of after sales
logistics.
A history rooted in power
Tognum America has a heritage and
history that stretches back more than
100 years. Founders Karl and Wilhelm
Maybach formed Maybach Engines in
Germany in 1909 to power the first
Using automated storage and
retrieval and WMS technologies,
Tognum is handling 360 picks per
hour, with room to grow.
18
Ju
ly
Zeppelin airships. Over the years, they
expanded into Maybach engines for
automobiles, diesel-electric locomotives and other off-highway engineers.
In the 1960s, the company merged
with Daimler-Benz to form MTU, which
stood for Motor and Turbine Union. In
1994, MTU formed a partnership with
Detroit Diesel to develop two series
of engine families. A little more than
a decade later, Tognum GmbH was
launched in Friedrichshafen, Germany,
as the parent company of MTU and
MTU Detroit Diesel. U.S. operations
were renamed Tognum America in
2011 and include eight locations in
the U.S., including two manufacturing
facilities, located across the country.
The Brownstown facility manages
service parts for the MTU family of diesel engines in North and Latin America
and supports legacy Detroit Diesel twocycle engines parts worldwide. “We
are supporting Detroit Diesel engines
that were manufactured as early as the
1940s and MTU engines that are even
older than that,” says Wood.
The global parts logistics initiative
was launched about four years ago,
when Tognum began to investigate an
order fulfillment solution that could be
rolled out wherever Tognum did business. A number of different solutions
were explored. “We looked at everything from miles of conveyors to multilevel pick mezzanines driven by pick-tovoice and pick-to-light technologies,”
says Rowe.
The goal, adds Wood, was a facility that could fill a customer’s order
from anywhere in the world, regardless of where the customer is located.
If Germany was out of a part, then it
could just as easily get shipped from
Michigan or Asia if it was in stock
there. As importantly, the part should
arrive looking the same to the customer,
regardless of which facility shipped it.
“To do that, we have to have the same
packaging and the same process so it
has the same look and feel, regardless
of where the product was stocked,”
Wood says.
mmh.com
Tognum’s new service center replicates a distribution center in Germany.
A third, similar facility will soon be built in Asia.
Tognum also decided it needed common equipment at all three facilities.
Otherwise, there would be inherent
differences in orders filled by manual
processes compared to highly automated processes. According to Wood,
the only real difference between the
first two facilities to go live with the
system is the layout of the shop floor.
“Germany built a greenfield facility and
we had to adapt the design to a brownfield facility,” Wood explains. “Some of
our manual materials handling systems
are different.”
In choosing between technologies, a conventional light- or voicedirected piece picking mezzanine with
a conveyor and sortation system was
rejected. “One of our concerns was
that a system with a lot of conveyor
would obstruct the flow of material
to other areas of the facility,” Rowe
explains. “We aren’t always picking to
an outbound shipment. Sometimes,
we are picking for the kitting area and
then those kits will go back into storage. This system allows the materials handlers to easily go wherever the
system tells them to go without the
obstruction of a conveyor system.”
As a service parts business, most
orders consist of a few parts picked by
the piece. The mini-load AS/RS was
designed to handle about 85% of the
picks from the facility. Parts are stored
in specially designed configurable trays
that can have up to 32 compartments
each and hold up to about 550 pounds.
The AS/RS is located close to the
outbound docks. Associates manning
the five workstations pick into a custom designed shopping cart. When the
order is complete, the cart is pushed
to an outbound staging lane. They are
then delivered to a packing area about
200 feet away. In addition to order fulfillment, the facility does a lot of kitting, such as kits for an engine overhaul or for a turbo replacement. Those
parts, which may come from multiple
suppliers, are packaged together. Then,
depending on their size and weight, are
stored in the AS/RS or on shelving in a
reserve storage area.
One unique aspect of the design is
that the goods-to-person philosophy
was extended to picking in a storage
area for medium-sized parts that won’t
fit in the AS/RS. Instead of picking
from a pallet rack to a pallet jack, a turret truck retrieves a pallet from storage
and delivers it to a picking station at the
u ly
2012
19
front of the area. Once an
associate completes a pick,
the pallet is returned to
storage.
Lean thinking
The design of the system
was also driven by lean
manufacturing principles.
For that reason, the facility
is very visual. “Everything
has an identifiable location
right down to the brooms,
garbage cans and printers,”
says Wood. “If something
is out of place, we can
address it immediately.”
Visibility also led to
Specially designed
and fabricated metal
containers manage the
parts in storage.
the implementation of Extended
Warehouse Management (EWM), the
new warehouse management system
from SAP, on a global basis. The WMS
controls all of the warehouse functions,
including putaway operations and picking operations at the goods-to-person
workstations. The warehouse control
system is only responsible for storing
and retrieving trays in the AS/RS.
Having one common WMS provides a new level of visibility into the
Brownstown operations. “We used to
use a third-party logistics provider in
Ohio for distribution,” says Wood. “We
weren’t integrated into their system, so
we had little visibility into their processes or the people that were controlling that facility.”
However, having a common WMS
has also provided visibility into operations on a global basis. All three facilities are able to benchmark their per-
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formance against a common set of key
performance indicators. If one facility
is outperforming or underperforming
the other two, it is readily apparent.
Similarly, if one facility makes a minor
change in the WMS that improves
operations, that system improvement
is available to all three centers. “The
WMS is a big part of our global quality
improvement program,” says Wood.
The facility exceeded expectations
from day one. While the company had
expected to spend up to two years getting the new warehouse and equipment
up and running, it was all installed in
nine months.
Meanwhile, Tognum America set
aside 12 weeks to move 17 million individual pieces into the new warehouse,
starting with the slow-moving parts first
and including a two-week shutdown to
move the 26,000 fastest-moving parts.
The work was finished in 10 weeks.
The mini-load AS/RS holds
22,500 storage trays and
manages about 40,000 SKUs.
Tognum knew the original plan
would need to be accelerated
when the first shipment that
arrived in Brownstown contained a slow-moving part that
hadn’t sold in 10 years but suddenly had an urgent order for it.
“We hadn’t planned to launch
shipping that day, but printed
out a shipping label online and
hand-carried the order to the
carrier,” says Wood.
Adds Rowe, “Our original
goal was to hit 2,000 line items
a day, and we did that within the
first 4.5 weeks on a sustainable
basis. Now, we’re watching our
costs go down.”
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mmh.com
u n e
2012
21
MODERN system report
Bringing goods to the person
Tognum’s mini-load automated storage
and retrieval and warehouse management
systems are the primary engines behind
order fulfillment in the Brownstown DC.
Scan the QR code to watch
the System in action.
DSD VALUE
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The EZ Pal One-Touch Delivery System offers
measurable DSD productivity benefits and
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side-bay trailer and dolly systems. Significantly
reduce fleet costs by improving the picking,
loading and delivery of DSD products.
EZ Picking
EZ LoADing
EZ DELiVEry
Receiving: Most inbound product is shipped from overseas in shipping containers. Prior to shipment, Tognum
America receives an advanced ship notification (ASN)
from the freight forwarder that aggregates the shipments.
Domestic suppliers provide a notification through electronic
data interchange (EDI). Regularly scheduled deliveries by
specific trucks are created in the warehouse management
system (WMS). As soon as Tognum receives a bill of lading and packing slips for a load, that delivery is assigned
to one of the trucks scheduled in the system. That allows
them to post the delivery as soon as it is unloaded from the
truck in the receiving area (1). Once the load is counted and
inspected in the staging area (2), the receipt is confirmed
and the product can be prepared for putaway.
Preparation for storage: Prior to putaway, inventory
is prepared for storage. A significant amount of material is
removed from its transport packaging and repacked in a prepacking area (3) according to how it will be handled in the
future. For instance, an item that is sold as an individual
part will be packed in its final packaging before putaway.
Other products may be kitted with companion items before
they go into storage. Small parts are stored on carts that can
be rolled to an induction point for the AS/RS. Larger parts are
palletized. Once all the parts have been counted, accepted
and are ready for storage, an associate places a green cone on
the material. That is a visual cue that the product is ready for
storage.
Putaway/replenishment: Once a cone is on product
that is ready for putaway, an associate will scan a bar code
on a pallet or cart. The system will then direct the materials
handler to a storage location. As much inventory as possible
will be directed to the automated storage and retrieval system (AS/RS) (4). At the induction station, an associate scans
Tognum America
Brownstown, Mich.
SIZE: 350,000 square feet
PRODUCTS: Heavy duty diesel engine parts
STOCK KEEPING UNITS: 40,000 SKUs with capability to expand to
80,000
THROUGHPUT: Designed to handle up to 4,000 lines filled per day
EMPLOYEES: 100 employees
Phone: (800) 421-6244
Email: [email protected]
Web: rehrigpacific.com/ezpalvideo
22
JU
LY
SHIFTS/DAYS: 2 shifts/5 days per week
A fAmily TrADiTiOn Of grOwTh, SErvicE AnD innOvAT
v iOn
vAT
mmh.com
System suppliers
area (5) or on the floor in
a bulk storage area (6).
Consultant: i+o Industry Planning + Organization,
Medium size parts are
io-consultants.com
stored in racks in a speAS/RS and conveyor: TGW Systems, tgw-group.com
cial area (7). A lift truck
Lift trucks: Crown Equipment Corp., crown.com
operator is directed by the
WMS: SAP, sap.com
WMS to a putaway locaBar code scanning: Motorola Solutions,
motorolasolutions.com
tion in the right reserve
Rack system: Pallet rack, Ridg-U-Rak, ridgurak.com; Cantilever
storage area. The operarack, Unarco Material Handling, unarcorack.com
tor scans the location bar
Metal containers: Tiffin Metal Products, tiffinmetal.com
code on the rack to confirm the putaway.
a bar code label on a cart holding multiPicking: Nearly 85% of orders are
ple parts. The scan releases all the nec- picked at one of five goods-to-person
essary trays from storage to the station. picking stations located at the AS/RS
When the tray arrives in the station, (8). When an order selector logs on to
an operator scans the parts and a light their station, they choose an order that
system identifies the slot on the tray for is available to pick. The AS/RS then
that part. Once all the parts have been begins to deliver trays for that order to
loaded, the operator releases the tray. their workstation. A pick-to-light system
It travels through an automated weight identifies the part to be picked from the
and height check station. This verifies tray. The order selector confirms the
that the weight and ensures that no pick by scanning a bar code label on the
parts are hanging over the tray that may part and then places it in a cart. Once
get caught in the automated system. the order is complete, the order selector
The tray is automatically putaway into scans the cart, which is then delivered
the correct storage location.
to an outbound staging and packing area
The rest of the material will go into
one of several reserve storage areas. Large
parts are stored in racks in a large parts
7
Medium parts
storage
6
Bulk storage
(9) where it is married to any other parts
for that order. Parts may also be picked
and sent to a kitting area (12). Examples
may include all of the parts for an engine
overhaul. Once kitting is complete, it is
returned to a storage location according
to its size.
Packing and shipping: Tognum
uses a series of colored lights as visual
cues in the packing area (9). Each
packer has a monitor that displays the
available orders for that station. A yellow light indicates that some of the
items for an order are available for
packing. A green light that all of the
items are available for that order. Once
the packer decides to begin packing an
order, parts belonging to that order are
pulled from the staging area. Items are
packed in a shipping carton and placed
on a pallet or cart. Once the order is
complete, a materials handler delivers
it to the appropriate outbound staging
lane (10) based on planned mode of
transportation. There, a shipping coordinator verifies that the right items and the
right quantity have been prepared for
shipment, and the required paperwork/
labeling has been attached. Once the
quality check is complete, the order is
loaded onto an outbound truck or a shipping container at the shipping docks
(11). Once the truck or container is
fully loaded, the order is closed
and the inventory is removed in
the WMS. M
4
Mini-load
AS/RS
5
Large parts
pallet rack
8
12
Goodsto-person
picking
station
Kitting
Outbound packing
9
10 Staging
11
Shipping
3 Pre-packing
2 Staging
1
Receiving
mmh.com
Mode rn Mat e ri a l s Ha ndl i ng / J
u n e
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23
MODERN special report
ANOTHER GOOD BOUNCE:
Top 20 supply
chain management
software suppliers
Modern’s annual look at the supply chain software market
revealed that the industry grew significantly in 2011.
By Bob Trebilcock, Editor at Large
I
f the supply chain management software industry was a mutual fund, it
would have been a growth fund in 2011.
And, if revenues reflected stock prices,
it would have been a good investment.
The worldwide market for supply
chain management (SCM) software
applications, maintenance and services
came in at $7.74 billion in 2011, including applications for procurement software. Without procurement, the market
was nearly $5.2 billion, according to
Chad Eschinger, vice president for supply chain with Gartner (www.gartner.
com). That’s an impressive 12.1% jump
over 2010 revenues for the group of
applications excluding procurement that
are most relevant to Modern’s readers.
“The industry built off of 2010’s momen-
24
tum,” Eschinger says.
Looking forward, Gartner is predicting a compound annual growth rate
(CAGR) for SCM software excluding
procurement of 8.7%. At that rate, the
market will double in less than 10 years.
The top five market leaders will look
familiar to readers of last year’s survey. SAP ($1.018 billion) and Oracle
($935.6 million) continue as the Hertz
and Avis of the industry.
Those companies were followed
by JDA Software ($368.5 million),
Manhattan Associates ($141.5 million)
and RedPrairie ($99.7 million), according to Gartner’s analysis.
The most impressive move was that
of Epicor, which jumped from No. 12
($57 million) in 2010 to No. 6 ($92.9
J U L Y 2 0 1 2 / MO D E R N MATE R IALS HAND L I NG
million) thanks to the purchase of
Activant. That was also the most noteworthy acquisition of the year.
One other important note on the
numbers: The Big Three of SAP, Oracle
and JDA accounted for 44.7% of the
total supply chain management software market. Together, they picked up
an additional 2% of market share from
the prior year.
While it was a slow year for SCM
news, the most impactful event was the
continued roll out of EWM from SAP,
a warehouse management system that
includes automation control.
Making the list
Modern began tracking this space back
in 2001, following the Internet boom.
mmh.com
Although we initially focused on the top
providers of warehouse management
system (WMS) solutions, the lines
between supply chain execution (SCE)
and supply chain planning providers
are no longer clearly drawn—enterprise
resource planning (ERP) providers supply WMS and supply chain execution
providers supply planning and optimization solutions.
For that reason, Modern now partners
with Gartner to create the list. It is a
numbers game and not a value judgment.
The rankings are based on Gartner’s estimates of a provider’s annual sales for
2011. Gartner’s estimates are based on
revenues related to supply chain management software excluding vendor-generated services and hardware and not a
company’s total revenues.
Admittedly, this is an imperfect
science. Gartner, for instance, strips
out hardware sales from its estimates.
Those are the reasons, for example, that
Gartner credits Manhattan Associates
with $141.5 million when the company’s overall revenues are more than double that amount. What’s more, Gartner
does not follow the warehouse control
(WCS) or manufacturing execution
(MES) spaces for the purposes of their
chart. However, it is an apples to apples
comparison. More importantly, whether
you agree with all of the numbers, the
mmh.com
order provides a good ranking of the
major providers across the supply chain
management space.
Modern’s one addition to the chart
is Retalix, a provider not covered by
Gartner, but which is relevant to our
readers in the retail supply chain. That’s
the reason our Top 20 has 21 vendors.
Notable trends
Several trends were at work last year
in each of the four categories relevant
to our readers: ERP and supply chain
planning (SCP), WMS, transportation
management (TMS) and MES systems.
ERP/SCP: Last year’s growth may
have been a continuation of 2010’s
momentum. But interest in supply
chain management was also sparked by
economic volatility. “The floods in Asia
and the earthquakes put a spotlight on
the complexity in today’s networks,”
Top 6 SCM drivers
With a focus on the supply chain,
here are the key drivers behind
those projects going forward.
1. Improve customer service
2. Target supply chain contributions
to drive business growth
3. Innovation
4. Improve efficiency or
productivity
5. Reduce costs
6. Improve business processes
Source: Chad Eschinger, Gartner
says Eschinger. SCM tools enable companies to deal with supply chain complexities, volatility and disruptions.
Several trends were also at work,
including:
• The customer is king: Improving
productivity and cost reduction have
historically been the leading reasons
why companies invest in supply chain
software. Last year, meeting customer
service demands rose to the top of
the list. “Companies are looking for
improvements in demand planning,
supply chain visibility and the orchestration of their supply chain activities,”
says Eschinger. “They’re asking how
they can do a better job of meeting customer expectations.”
• The supply chain as an engine of
growth: The supply chain is increasingly
looked at as a market differentiator and as
an engine for business growth at forward
looking companies. That was the second
reason for investing in SCM tools.
• Innovation: Think of it as the Apple
effect. Increasingly, companies are
looking to innovation to separate them
from the pack in the market. SCM is
seen as a tool to enable innovation.
• Cloud computing and mobile
devices continue to get traction: The
market for subscription-based supply chain services is growing at about
20% a year, says Eschinger. He adds
MODERN MAT ERIA L S HA NDL ING / J U L Y 2 0 1 2
25
Top 20* supply chain management software suppliers
No. Supplier
2011 Revenue
URL
SCP
WMS
MES/MRP
TMS
1 SAP
$1.018 billion
www.sap.com
x
x
x
x
2 Oracle
$935.6 million
www.oracle.com
x
x
x
x
3 JDA Software
$368.5 million
www.jda.com
x
4 Manhattan Associates
$141.5 million
www.manh.com
x
5 RedPrairie
$99.7 million
www.redprairie.com
6 Epicor
$92.9 million
www.epicor.com
7 Descartes Systems Group
$87.7 million
www.descartes.com
8 Servigistics
$64 million
www.servigistics.com
9 Kewill Systems
x
x
x
x
x
x
x
x
x
x
x
x
$63.7 million
www.kewill.com
10
IBS
$58 million
www.ibsus.com
x
x
11
Totvs
$57.8 million
www.totvs.com
x
x
12
Logility
$52.3 million
www.logility.com
x
x
13
Lawson Software
$51 million
www.lawson.com
x
x
14
Retalix
$50.9 million
www.retalix.com
x
x
15
IBM
$50.8 million
www.ibm.com
x
16
Infor
$50.5 million
www.infor.com
x
17
GTNexus
$46.2 million
www.gtnexus.com
x
18
HighJump Software
$45.8 million
www.highjumpsoftware.com
19
Quintiq
$39.5 million
www.quintiq.com
20
Accellos
$35 million
www.accellos.com
21
Kinaxis
$34.6 million
www.kinaxis.com
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
* Source: Revenue estimates provided by Gartner (www.gartner.com) with the exception of Retalix, which was provided by the company.
that the most aggressive companies
are implementing 40% to 45% of their
supply chain software on premise and
outsourcing the rest. A company may
have a core product like advanced
planning and scheduling from SAP on
premises but add a specialized cloudbased sales and operation planning tool
for integrated business planning activities. “Going forward, we think about
70% of those specialized applications
will be in the cloud,” Eschinger says.
Similarly, there has been a steady adoption of mobile technologies, especially
for field personnel. “The cloud, mobility and even social networking are forcing businesses to rethink some of their
processes,” Eschinger says.
WMS: Like supply chain planning,
the market for warehouse management
software grew about 15%, and once again
topped $1 billion, according to Gartner.
While there were no significant
mergers or acquisitions in 2011,
Top 5 SCE software suppliers
(by Revenue – 2011)
Suppliers
2011 Revenue
Share (%) of market 2011
Oracle
$ 405 million
17.4%
SAP
$ 231 million
10%
Manhattan Associates
$ 133 million
5.7%
RedPrairie
$ 100 million
4.3%
Descartes
$ 88 million
3.8%
Source: Chad Eschinger, Gartner
26
Gartner’s Dwight Klappich, vice president of research, noted some significant market drivers.
One is that core WMS, which manages the basic processes of a warehouse, is a mature technology. “We’re
approaching parity across WMS suppliers,” Klappich says. “That doesn’t mean
that all WMS providers are the same.
Like buying a car, there are differences
in quality. But, also like a car, any WMS
should cover the basics.”
Instead, the most important differences are the applications that extend
the value of the core product, such as
labor, yard management and performance management. “To a large extent,
the market is being driven by upgrades
and replacements because the 10-yearold WMS that was installed to pick
cases can’t handle piece picking,”
says Klappich. “And in nine out of 10
replacement deals, it’s those add-on
mmh.com
mmh.com
their ERP system. That has inhibited
the growth of the space. “The benefits
from MES are clear,” says Jacobson.
“There are also real efficiencies to be
gained by standardizing on an MES
platform on a global scale. But there’s
still a need to educate executives to
improve productivity
components that are driving the deal.”
Considerable growth is also coming
out of emerging economies like Latin
America. In those areas, the focus
is still on core WMS. “A retailer in
Mexico City may not care about labor
management because labor is cheap,”
says Klappich. “But they can’t afford
to ship the wrong product or send an
order that is short three items.”
TMS: Once again, the market for
transportation management software
clocked in at just under $1 billion.
The market grew at a 15% rate, driven
by tight capacity and high fuel costs.
“We’re back to 2007 and 2008 levels,”
Klappich says.
While major shippers have been
using TMS applications for years,
growth is now coming from mid-size
shippers spending $25 million to $100
million a year on freight. “Maybe 10%
to 15% of those companies have a
TMS, so there’s a lot of growth potential,” says Klappich. Those companies
are typically implementing transportation sourcing and benchmarking modules rather than optimization engines.
“A company running five loads a day
doesn’t need optimization,” Klappich
says. “But they do want a platform to
manage their freight.”
Meanwhile, more sophisticated
companies are looking at supply chain
execution convergence—technologies
such as the supply chain execution platforms from Manhattan and RedPrairie
that can integrate data from a TMS into
a WMS to synchronize an end-to-end
process.
MES: The market for manufacturing execution software solutions,
or MES, for discrete manufacturers
reached an estimated $1.5 billion for
licensing and revenues in 2011, according to Simon Jacobson, a vice president
who covers the MES space for Gartner.
While the benefits of WMS and
TMS are now widely accepted in the
board room, Jacobson says it is still a
challenge to sell the benefits of an
MES systems to a C-level executive
who thinks the bases are covered by
understand that MES can add value to
an ERP system.”
Looking forward, Jacobson expects
to see a wave of consolidation in the
industry as large MES players buy up
point solution providers to add functionality to their offerings. 5S LEAN
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27
MODERN equipment report
Palletizers:
Putting product
in its place
From manual devices to robotic arms, there’s more than
one way to build a pallet. Here’s a look at how palletizing
equipment improved productivity at these five operations.
By Lorie King Rogers, Associate Editor
B
uilding a pallet, especially a mixed SKU, or
rainbow pallet, can be a challenge, but it’s a
vital link in the supply chain.
While the palletizing needs of a manufacturer with limited SKUs may differ from a
DC with hundreds, both can see the bottom
line impacted by the palletizing process. “In
all cases, companies today are working from
a continuous improvement perspective,”
explains Tom Eagan, vice president of industry relations for the Packaging Machinery
Manufacturers Institute (PMMI).
Here’s a look at how five companies took
proactive steps to solve their palletizing problems and how those solutions have contributed to successful process improvements.
28
JU
LY
mmh.com
Pallet positioners reduce strain, increase control
HVAC industry leader, Belimo invests in pallet positioners
to safeguard workers from fatigue and injury.
belimo customization in danbury,
Conn., designs and manufactures
damper actuators and control valves for
HVAC systems. While Belimo is focused
on creating comfort, safety and efficiency
in buildings, they are also keen to those
same needs for their employees.
To lend employees a helping hand as
they transfer boxes from conveyor belts
to pallets, Belimo purchased nine pallet positioners (Southworth Products,
southworthproducts.com) that are ergonomically designed to virtually eliminate the bending, reaching and stretching that can lead to fatigue and injuries.
Six of the pallet positioners at
mmh.com
Belimo are traditional spring models
that maintain the top layer of a pallet
load at a convenient height and can be
modified by changing the springs in
its scissor lift to run lighter or heavier
loads. But on three of the conveyor
lines, the boxes vary greatly in dimension and weight every day, so Belimo
installed three powered hydraulic pallet positioners, each with a 2-ton load
capacity.
With this model, the operators can
work at a comfortable height by precisely adjusting the positioner with
a foot pedal, which adds or releases
compressed air from an airbag under
the platform. And because electrical
cables and shop air lines run beneath
the concrete floor and come up only
where needed, tripping hazards are
eliminated.
The pallet can also be rotated on
the positioner’s turntable, allowing the
operator to work on the nearside of the
load rather than walking around it.
“Because our products have many
different configurations, the cartons
aren’t always similar weights, says Lenny
Casacalenda, Belimo’s plant logistics
manager. “So the pneumatic model gives
employees the power to make sure the pallet is always in the best spot for them.”
u ly
2012
29
modern equipment report
Palletizer offers
flexible patterns
and eliminates
hand stacking
High-infeed palletizers at
Producers Rice Mill increase
production and uptime
while reducing expenses.
Palletizing system increases
throughput, cuts labor costs
Graphic Packaging International installs a complete
palletizing solution to meet throughput goals and
reassign workers to more skilled positions.
graphic packaging international
(GPI) is a leading provider of paperboard
packaging solutions, including folding
cartons and specialty bag packaging.
Headquartered in Marietta, Ga., GPI
serves customers in 10 countries with
manufacturing in 22 cities and consumer
packaging facilities in 43 locations.
A recent expansion and a labor-intensive process at GPI’s Fort Smith, Ark.,
facility resulted in decreased production and increased ergonomic issues.
Five lines were being manually palletized, which was physically challenging
for workers who were falling short of
throughput requirements.
So, GPI looked for a solution to
optimize the workforce and relocate
people from manual palletizing to other
skilled positions. After working with a
supplier (Bastian Solutions, bastiansolutions.com) that analyzed the manual
process, GPI installed a complete palletizing solution from in-feed conveyor
to stretchwrappers. The final system
includes low pressure in-feed con30
Ju
ly
veyor, 90-degree rotation conveyors,
row-forming conveyors, pallet conveyor,
layer building table, shuttle car system, palletizers, a gantry system with a
specially designed end-of-arm tooling,
stretchwrapper and control system.
This approach provided the mechanics to support product from the bottom,
while offering the versatility of multiple
palletizing patterns. The end design
resulted in a traditional palletizing system handling eight cases per minute in
50 unique stacking patterns.
“This solution is user friendly and
easily set up by the operators,” says
Gregg Ruple, GPI project engineer.
“Adjustments to each pattern are stored
in the system so that those adjustments
are automatically made the next time
the pattern is selected and run.”
According to Ruple, “The palletizer system has allowed us to reduce manual palletizing by 50%, run more of our finishing
equipment without adding any additional
headcount and allowed workers to take on
other positions in the facility.”
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng when producers rice mill was formed
in 1943, it milled 143,500 barrels its
first year and had assets of $125,000.
Today, its annual milling rate is more
than 60 million bushels and sales have
topped the $500 million mark.
One of the plants contributing to
the companies success is the packaging
parboil rice division plant in Stuttgart,
Ark., which packages raw rice into a
commercial grade, consumable product to be distributed throughout the
United States. Unfortunately, its hand
stack line and old palletizing equipment were contributing to high labor
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costs and limited throughput.
So, Producers Rice implemented a
new system that conveys two finished
products out of the packaging room up
to an elevated height to new palletiz-
ing machines. Previously each line discharged on to a common hand stacking line. Now, each product moves
on a conveyor and is then automatically fed to two high-infeed palletizers
(vonGal, vongal.com). The new palletizers eliminate the hand stacking
line as they stack the cases before discharging them on a pallet.
By installing a new conveyor and two
new palletizing machines, Producers
Rice was able to increase productivity
from 8,000 cases per day over a 12-hour
production shift to 13,000 cases over an
eight-hour shift and decrease its workforce
by two people over a two-shift period.
Jeremy Herring, parboil packaging
manager at the Stuttgart facility says, “I
was very impressed with the easy installation and start-up of these machines.
We installed the system over the weekend and both lines were running full
production by mid-week with no issues.”
Also impressed with the palletizers’
flexibility, Herring says the pattern editing
software allows them to make changes to
patterns and machine functions on the
fly, which cuts down on machine downtime. As a result, Herring reports, “We’re
at a steady 99% uptime to date.”
Producers Rice’s
new palletizing
machines increased
productivity from
8,000 cases per
day over a 12-hour
production shift to
13,000 cases over
an eight-hour shift
while decreasing
labor costs.
32
JU
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mmh.com
“I need You to put ALL of this...
in there.”
Robotic layer picker
increases safety, quality
and productivity
Nestlé turns to an integrated robotic layer
picking solution to transform workplace
safety and significantly improved the
productivity of mixed case palletizing.
from toll house cookies to sports nutrition to pet care,
Nestlé is a leading global provider of food and wellness
products and a household name. So it comes as no surprise
that Nestlé’s high-volume DC stores and distributes hundreds of SKUs from its consumer food and beverage, food
service and pet food businesses.
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2012
33
u ly
The high demand for Nestlé’s household brands means that about 80% of
its DC’s orders are distributed as full
pallets. But picking the remaining 20%,
which are distributed in pallet layer
and full case quantities, involved the
manual handling of about five million
cases per year. This created a significant, ongoing ergonomic challenge, not
to mention a productivity challenge.
To address those challenges, Nestlé
installed a layer picking solution
The robotic layer picking system’s
pallet build quality has improved
transport utilization and resulted
in less product damage and fewer
returns, all of which have reduced
Nestlé’s distribution operating costs.
34
JU
LY
(Dematic, dematic.com) that eliminates the need to manually handle
about four million cases. The robotic
layer picking system achieves picking
efficiency by removing layers from one
pallet then creates the right case layer
quantity for another order. By crossmatching orders and pairing those
with compatible order profiles, the system enables about 20%, and in some
instances up to 50%, of cases for orders
to be distributed without each layer
being physically picked.
Orders from Nestlé’s warehouse
management system are downloaded
to the warehouse control system to
initiate picking. The system calls for
the stock required for layer picking
in the sequence required to fulfill the
next wave of orders. Full pallets are
retrieved from adjacent bays of reserve
storage by RF-directed forklifts and
loaded onto the induction conveyor.
As pallets are fed into the layer picking
cell, they are scanned and the control
system directs the operator to remove
the required amount of stretchwrapping from the pallet.
As new pallets of stock are fed into
the system, the layer picker selects
the required layers and transfers the
stock to one of four customer order
pallets. Any stock remaining on a pallet either forms the basis for another
order through the system software, or
is returned to the reserve storage bays.
Orders that need additional case
picks to be added to the layers exit the
robotic cell. From there, operators add
the cases needed to complete the order.
Since implementing the new systems, Nestlé has created a safer workplace by reducing forklift operations and
ergonomic risks associated with manually pallitizing. In addition, the system’s pallet build quality has improved
transport utilization and resulted in less
product damage and fewer returns, all
of which have reduced Nestlé’s distribution operating costs.
mmh.com
Articulated arm robotic palletizer
picks up 220 pounds at one time
In its new DC, Dunn-Edwards uses a specially designed
robotic system to handle today’s palletizing needs and
accommodate future company growth.
dunn-edwards is a leading manufacturer and supplier of paints and supplies serving professionals and consumers throughout the southwest, and sells
most of its paint through its own 109
store network.
In 2010, Dunn-Edwards consolidated all manufacturing and distribution operations into a new, fully automated facility in Phoenix, Ariz. An
integral part of the automation portfolio
is a high-performing robotic palletizing
system that handles 5-gallon buckets
of paint. In designing the system, the
requirement was to palletize the buckets, 36 buckets to each pallet, at a rate
up to 48 buckets per minute, building
two pallets every 90 seconds.
While the equation seems daunting,
throughput numbers are met using the
new palletizing system that includes a
single articulated arm robot (ABB, abb.
com/robotics) and a vacuum gripper
that can pick up four of the 55-pound
buckets at a time.
Because the system is able to
achieve such high speeds, DunnEdwards is able to serve two incoming conveyors and build two pallets at
a time. The robot sits between the two
conveyors and picks buckets from the
left conveyor and puts them on a left
pallet or from the right conveyor for
placement on the right. And, if needed,
the buckets from line A can be placed
on pallet B, or from B to A.
While the vacuum gripper is strong
enough to pick up the buckets, it’s sensitive enough not to remove the tint plugs
that are attached to the top of each pail.
But the biggest consideration was
the cycle time, says Clay Fenstermaker,
director of engineering at DunnEdwards. “We first considered an overheard gantry robot system, but [our supplier] came up with a simulation that
showed that the fixed-position robot
could deliver the rate we needed.” M
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35
MODERN best practices
FOOD & BEVERAGE:
Keeping up
with the SKUs
The food and beverage sector is ripe with unique and difficult
materials handling challenges due in part to the growing number
of product choices. Here’s a look at how technology can help
keep the shelves stocked and the customer satisfied.
F
ood and beverage producers are trying to be all things
to all people at all times. That’s because consumers are
demanding an ever-increasing variety of food and beverage products that satisfy the taste for ethnic organic,
gluten-free, sugar-free, low-fat, high-fiber, low-sodium
and caffeine-free products.
And it’s not just more food choices. Products are
now available in a wider array of package forms than
ever before, including six packs and fridge packs, single-serve, family-size and club size.
The result is warehouses and retail stores bursting
at the seams with profound SKU proliferation—creating a demand for flexible materials and information
handling solutions that allow manufacturers and distributors to deal with all those SKUs as efficiently as
possible. Here’s a look at best practices that food and
beverage companies use to help handle the growing
number of SKUs.
Convey with care
New packaging creates materials handling challenges. Smaller, softer containers and less corrugate
are making it more challenging to move product
through the supply chain. Bottled water is a good
example. “A water bottle is now more like a water
bag,” says Brian Keiger, logistics account manager for
KUKA Systems, “and that can have an effect on every
36
piece of automation along the way.”
Conveyors are used to move these products
through a facility, but varying package types, sizes,
shapes and weights mean that there’s no one right
conveyor for all jobs.
“There are a number of types of conveyor technology available,” explains Tom Roberts, director of manufacturing systems regional sales and operations for
Intelligrated. “But the variations that come into play
make it difficult to make a universal statement.”
For example, Roberts says, roller conveyor could be
the best form of conveyance if your products have a
solid base and are long enough to be supported by at
least three rollers at all times, like a case of dog food,
for example. But if the packages are too small, rolling
could cause marring of the primary package.
Nobody wants to pay top dollar for damaged goods,
so one solution is to consider a belt conveyor. “The
advantage,” says Roberts, “is that the plastic belt gives
the complete support you need for small packages or
packages with soft bottoms.”
Store slow movers
Along with conveyance, you should consider velocity. A
DC with thousands of SKUs, might store slower movers in an automated storage and retrieval systems (AS/
RS). Scalable and flexible, an AS/RS is a computermmh.com
controlled system that uses automated moving vehicles to
put away, store and retrieve goods, and bring them out to the
picker in sequence to fill an order.
It’s a good idea to assign the fast moving SKUs a fixed location and store the slow movers in a mini-load AS/RS or shuttle
AS/RS that handles lighter micro-loads, recommends Sean
O’Farrell, market development director for Dematic.
“Since the majority of warehouses and distribution centers were established many years ago, the existing buildings are being challenged by more SKUs. As more space
is needed to accommodate more SKUs, automated storage
systems can reduce the footprint required by a ratio of 8-to1,” O’Farrell says.
You’ve got to slot
Slotting software can calculate best use of storage space by
finding the ideal location for SKUs. “Operations are shuffling or re-slotting their picking slots to face the challenges
presented by more SKUs,” says O’Farrell. And, slotting software can provide an analysis to help you know your orders,
simulate moves, and put fast moving SKUs in the ideal picking slot.
In fact, before you actually change the location of an SKU,
it’s a good idea to simulate the move. “The dynamic slotting
of pallet and case locations puts a lot of stress on the [AS/
RS] machines, so it needs to be simulated before its put
into action,” says Bill Ostermeyer, vice president of sales for
viastore. “A system with dedicated locations for all SKUs can
be more simply, mathematically calculated, but dynamic reallocation for picking makes simulation vital for its success.”
Slotting software can also determine the right size of
the picking location and effectively manage the real estate
inside the four walls. “In a perfect world, you’d have enough
floor space, but even warehouses with a million square feet
have issues with floor space,” says Tom Kozenski, vice president of product strategy for RedPrairie.
This situation forces the best practice, Kozenski says, which
is to slot product in a very sophisticated manner, even multiple
times during the day, which requires an automated system.
There are countless reasons for an SKU’s velocity to change.
Whatever the reason, SKU velocity can change overnight and
so should SKU storage locations.
mmh.com
PHOTOGRAPHY BY NAME
Software and robotic palletizers work together to form
store-ready mixed SKU pallets (top). Providing dense
storage, a mini-load AS/RS uses automated moving vehicles
to put away, store and retrieve goods, and bring them out
in sequence to fill an order (middle). There are a number of
ways to handle and convey product, but SKU variation and
throughput requirements presents unique materials handling
challenges for every operation (bottom).
37
modern best practices
As a bonus, in the evaluation process, you could uncover unexpected
opportunities like being able to consolidate a number of slow movers into a
bigger tote and bringing many items to
a picker in one tote. Not only does this
save labor, it cuts down on wear and
tear of the equipment.
Palletizing process
Palletizing needs on the manufacturing side of the food and beverage sector are different from the needs on the
distribution side. On the manufacturing side, a single production line can be
directly linked to a palletizer, repeatedly
handling a single SKU.
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J U L Y 2 0 1 2 / Mo d e r n Mate r ials Hand l i ng MMH-Island-Ryson-Feb.indd 1
Inside a DC however, SKU proliferation and the retailers’ demand for
store-ready orders makes palletizing
more like solving Rubik’s cube. This
is where software and robotic pallet-
Fishing for a
handheld device to
stand up in extreme
conditions
Established in 1910, Ocean Beauty
Seafoods is one of the most successful seafood companies in the
Pacific Northwest. During the height
of fishing season, the company
employs about 2,000 workers at its
six Alaskan processing plants and
ships millions of pounds of canned,
frozen and fresh seafood to customers including Chicken of the Sea and
Bumble Bee Foods.
To meet global food quality standards and traceability requirements,
Ocean Beauty installed a software
solution (SIMBA, simba.com) that
uses bar code technology. But they
needed more rugged, ergonomic
handheld equipment to operate in
the cold, wet processing environment. Working with a systems integrator (Dynamic Systems, dynasys.
com) that specializes in bar code
technology, Ocean Seafood incorporated 15 rugged handheld devices
(Psion, psion.com) to interface with
its software system.
Together, the technologies track
the catch. After fish is processed, it’s
placed in a carton with a bar code
label that includes contents and
product tracking information. When
the carton is pulled from the freezer
for shipment, an employee scans the
bar code with the handheld device
and product data is entered into the
inventory system at the company’s
Seattle headquarters. From there,
they track it through distribution and
delivery, ensuring accurate orders
and delivery of fresh seafood.
“The new equipment enables us to
handle a wider variety of products and
ship directly to the customer, giving us
better transportation rates,” explains
Tom Marshall, superintendant for
Ocean Beauty’s Excursion Inlet Alaska
plant. “Without these two technologies, it would be impossible to track
such a high number of varied shipments from vessel to destination.”
6/20/12 9:16 AM
mmh.com
izers work together. “Software tells
the storage system what cases to send
and in what sequence. Then it tells
the palletizer, here’s what you’re getting and here’s how you have to put
it together,” explains RedPrairie’s
Kozenski.
Since robotic palletizers can handle
virtually any product—whether it’s fragile, has a solid bottom or open top—
and can adapt quickly to an operation’s
changing needs and changing SKUs,
they are ideal for palletizing in the food
and beverage sector. “Not only can the
robot’s end effector be changed to handle multiple package types,” explains
Kuka’s Keiger, “you can add a robot to
increase throughput, and a robot’s arm
can work 24/7 without getting tired.”
With a number of end-or-arm tooling
devices like grippers and vacuums, the
ability to lift and rotate product, robotic
palletizing solutions are designed to
handle the latest big box directive
called “labels out.” Keiger explains that
certain retailers demand that all product in a pallet to be positioned with its
front label facing out to form a type of
mobile billboard.
C-channel framing. The square shape
is completely closed off which prevents
contaminants from getting inside.
In today’s complex food and beverage sector, regardless of the number of
SKUs that come on the scene, the goal
is to deliver high quality products to the
consumer in a timely manner. M
Companies mentioned
in this article
Cubic Designs: cubicdesigns.com
Dematic: dematic.com
Intelligrated: intelligrated.com
Kuka Robotics: kuka.com
RedPrairIe: redprairie.com
viastore systems: viastore.com
Food-grade components
The Food and Drug Administration
and USDA set extremely strict requirements for food and beverage manufacturers, and often times those requirements can follow a product out into
the packaging areas. These requirements can determine the specific
type or style of equipment used for a
certain process—like sanitary designs
for mezzanines that support picking
operations.
“The simple rule of sanitary design
in production equipment is to prevent
catch points where bacteria, pathogens, microbiological organisms or
other debris could collect, grow and
ultimately contaminate the food or
beverage,” explains John Moore, vice
president of marketing for Cubic
Designs.
One way to meet sanitary regulations is to construct food-grade platforms with square tubing rather than
mmh.com
Modern Mat eria l s Ha ndl ing / J U L Y 2 0 1 2
39
modern productivity solution
Mobile computing
equipment furnishes
real-time data
City Furniture installs forklift-mounted computers to track
inventory in real time and honor its promise of same-day,
seven-day-a-week delivery to customers.
C
ity Furniture is one of Florida’s
fastest growing furniture retailers. Headquartered in Tamarac,
Fla., the company currently has 15
stores and nine Ashley Home Store
showrooms that sell quality home
furnishings in a fun environment.
But it wasn’t fun for the staff in
its one-million-square-foot warehouse when the aging data collection
hardware mounted to the fleet of lift
trucks needed repairs. The trucks
operate 23 out of 24 hours every
day, and “users aren’t always gentle
in a rugged industrial environment,”
explains Ricky Maharaj, network
administrator at City Furniture.
Unreliable equipment posed a risk
of downtime in the warehouse. Since
City Furniture promises its customers
same-day delivery seven days a week,
the company couldn’t take that risk.
It uses a Web-based warehouse management system (WMS) to maintain
real-time inventory and keep the flow
of merchandise moving smoothly. And, associates use the computers to access the system as they are directed to specific aisles
to put away new inventory or pull it for delivery.
City Furniture’s evaluation team chose a new supplier
(Glacier Computer, glaciercomputer.com), and since implementing the new units, they have seen a lot of improvement.
Maharaj reports the new units have faster boot times and
include built-in smart battery technology that allows the sys40
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2 0 1 2 / Mo d e r n Mate r ials Hand l i ng tem to operate while employees perform battery changes.
“The improvements allow us to focus on other aspects
of the company, as well as increased warehouse productivity with increased equipment uptime,” says Maharaj. “In
our fast-paced, rugged environment we depend on equipment that is durable, can sustain rough usage and still maintain great uptime. The new system has delivered for City
Furniture.”
mmh.com
M O D E R N C or p o R a t e p ro f i l e S
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For more than a decade,
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air that would otherwise slip off the end of the airfoil.
With a history of focusing exclusively on premium fans, the
Basic 6 is the company’s first entry-level offering for the
industrial market. Although the fan was designed for those
on a more modest budget, it features the same quality
engineering and proven performance of all Big Ass Fans.
mmh.com
Developed by a team of engineers in the
Big Ass Fan Company’s custom-built research
and development facility, the Company’s new
line of products underscores its commitment
to innovation while providing a full range of
flexible options to provide comfort and energy
efficiency to facilities worldwide.
For more information, visit www.bigassfans.com or call
toll-free 877-BIG-FANS.
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ADVERTISEMENT
Cannon Equipment’s Sustainability Initiatives
As a manufacturer of material handling carts and automated machinery, we at Cannon Equipment
take our responsibilities to the environment and the communities in which we operate very seriously.
High standards of responsibility are, in our view, compatible with growth and business efficiency.
Cannon Equipment, along with our parent company IMI, plc has identified four key priorities within
our overall approach to Sustainability and Responsible Business.
• Continually improving our working practices to minimize health and safety risks.
We encourage best practice throughout our business and monitor performance
through our Corporate Health and Safety requirements and systems of guidance
and auditing.
• Understanding and meeting our customers’ Responsible Business (CSR)
priorities. Our operations seek to understand the whole business environment
experienced by our customers, including their social and ethical responsibilities
and priorities.
• To manage the particular challenges relating to manufacturing facilities in low-cost
countries. We ensure that all our facilities operate in accordance with our policies
on health, safety, environment, employment practices (particularly child labor), pay,
benefits, working conditions and improper gifts and payments.
• To maximize energy efficiency each of our facilities is required to set targets aimed
at minimizing emissions that have global warming potential and reducing the as
sociated costs.
Cannon Equipment
15100 Business Parkway
Rosemount, MN 55068
855.234.6870
www.CannonEquipment.com
42
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M O D E R N C O R P O R AT E P R O F I L E S
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Dematic is dedicated to improving logistics results. To that end, we guarantee successful system performance.
Visit www.dematic.us or call 1-877-725-7500 to learn how we can create logistics results for your organization.
mmh.com
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The fastest-growing companies are
making distribution their ForTe.
FORTE is a leading consulting/engineering and technology firm, focused on driving high-performance
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For more information, please visit our
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Positive feedback...Every time
ID Label was founded in 1994 as a manufacturer of variable barcode products for a variety of
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mmh201207_IDlabel_corpPrfl.indd 1
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Keeping Your Business Moving.
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Intelligrated® (www.intelligrated.com) is a leading North American-owned, single-point provider of automated material
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Engineering for a better ROI. Solving customer challenges. That’s the Intelligrated Way.
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WarEhouSE rack SolutionS
SAN MAR increased its production turnover
400 percent in less than a year.
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EL MILAGRO opened production on a new
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• Increased pallet capacity past 1,180
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• 160,000 sq. ft area
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Engineering Solutions
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Delivering Warehouse-to-Enterprise Connectivity
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Achieving warehouse operational excellence requires
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Sapient Advertorial 2012 6/21/12 1:58 PM Page 1
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New Levels of Intelligence in Automated
Storage & Retrieval Systems
Fast, Flexible & Low Cost "Each" Picking and Handling Automation
Picking, storing and retrieving "eaches
or split-case" parts and items is what
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Reduces labor by up to 2/3
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And many more!
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A complete line of state of the art
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Full Range of “Goods to Person” Automated Storage & Retrieval Systems
The Sapient Automation Advantages:
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Steel King provides a Fast Solution
to material handling distributors
Quick Ship program highlights:
Three convenient locations
New London, WI • Rome, GA • Montebello, CA
Now on the West Coast
With the June 1st opening of Steel King’s West
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Over 200 products are available.*
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• SK2000® Boltless Pallet Rack
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Seismic designed frames and beams
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• I-Beam Cantilever Rack
Starter and adder kits
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Everything needed to install an
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For more information about Quick Ship, visit
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For credit terms, product availability,
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For over 40 years, Steel King Industries, Inc., has
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industrial racking systems, safety products and containers
to meet virtually every material handling need.
2700 Chamber Street • Stevens Point, Wisconsin 54481
800-826-0203 • www.steelking.com
mmh.com
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ADVERTISEMENT
Partnership. Innovation.
Creating Supply Chain Solutions.
A Wealth of Expertise
For more than 60 years, System Logistics Corp. has been a trusted leader in the design,
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reduce costs, and improve order accuracy. Our approach is to collaborate with our customers
at every step. The development process begins with comprehensive data analysis in order to
understand how best to address their unique challenges. Next, system planning and design are
supported by our full range of material handling technology and our suite of advanced software
solutions. The end result is a flexible and dynamic system that allows for expansions and
modifications as our customers grow, evolve, and pursue new opportunities.
Whether you’re tackling e-commerce distribution, food and beverage distribution, or
constructing jumbo jets, we have a solution that fits your business.
A Universe of Order Fulfillment Possibilities
A virtually countless array of solutions — each one specific to indvidual customers — can be
designed utilizing our comprehensive line of order fulfillment technologies. We provide partially
and fully automated, split-case picking, full-case picking and pallet handling systems tailored to
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experienced sales, design and support staff to ensure that the picking solution created for you
exceeds your expectations for accuracy, productivity and economy.
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Our range of order fulfillment technologies is designed to make your manufacturing plant,
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Our family of technologies available to solve your specific material handling challenges includes:
AS/RS unit- and mini-load • DIAMOND Horizontal Carousel • POWERdepot™ Vertical Carousel
• MODULA® Vertical Lift Module • DirectPick™ Pick-to-light and Pick-to-voice • Automated
Buffers/Sequencers • Conveyor and Sortation Systems • Laser Guided Vehicle • System Vehicle
Loop • Palletizers and Depalletizers
Advanced Software Control
From a single piece of equipment to an entirely automated distribution center, the SYSTORE®
suite of software packages streamlines your integrated material handling solution for the
efficient management of all your operations.
Think Accuracy. Think Productivity. Discover System Logistics.
System Logistics Corp.
888-233-6796
[email protected]
www.systemlogistics.com
52
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BILL PFLEGER
President, Yale Distribution
For more than 150 years, Yale Materials Handling Corporation has made good on the promise to get the
job done better, faster and at the best value. Yale® lift trucks are intelligently and innovatively designed,
engineered to high-performance standards, manufactured in world-class facilities, and supported by one
of the largest and most experienced dealer organizations in the world. In fact, the Berea, Ky., manufacturing
facility was awarded Plant Engineering’s prestigious 2011 Top Plant Award in December 2011.
“We combine our customer-centric product orientation with world-class manufacturing focus, evidenced
by awards like the Top Plant Award, to provide high-quality products that meet our customers’ needs,” said
Bill Pfleger, president of Yale Distribution. “We apply this strategy across the globe by developing a strong
product base globally and then tailoring the features and options to the specific local needs of our customers.”
The full line of Yale products ranges in capacity from 2,000 to 36,000 lbs. and includes electric, gas, LP-gas
and diesel powered lift trucks, along with narrow aisle, very narrow aisle and motorized hand trucks.
“Our broad product base provides a vast array of materials handling solutions designed to reduce our
customers’ total cost of operation,” Pfleger added. “As customers consider not just the initial purchase price
of the lift truck, but also the increased performance, the reduced maintenance and the robust interactive
features to make operators more efficient, they will understand the overall value that Yale® lift trucks provide
their business operation.”
Yale continues to add to and improve upon its product lineup. In the last 18 months, Yale introduced a new,
industry-leading 3,000-4,000 lb. sit-down electric rider truck series, a heavy duty end rider series with
industry-leading characteristics, and introduced a new model—the LX series.
“We are working hard to provide many more new products and
innovations in 2012 and beyond,” said Pfleger. “We see ongoing
areas for innovation in our electric product range and will pursue those
to provide an even greater, more efficient product to our customers.
We continually work with our customers and suppliers to identify
and develop new products and features that add value to our
customers’ operations.”
For more information or to find the Yale lift truck dealer nearest you,
call 1-800-233-YALE or visit www.yale.com.
YA L E M AT E R I A L S H A N D L I N G C O R P O R AT I O N
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Aigner Index creates a new, wholly owned subsidiary!
Aigner Index, Inc., a leading manufacturer and distributor of insertable,
plastic label holders for the material handling and library industries,
has established a new, wholly owned subsidiary,
Aigner Label Holder Corporation.
Aigner Label Holder Corporation will continue in its focus being the
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Modern today!
Mat eria l s
Ha ndl ing / J
u ly
2012
A spe ci a l suppl e men t t o m odern m aterials ha n d lin g
special report
Lift trucks:
Understanding
the economic
lifespan
More savvy lift truck fleet
managers are realizing that buying,
renting or leasing practices set the
tone for future savings.
By Josh Bond, Editor at Large
I
58
Ju
ly
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng t can be said that the recent economic downturn was
the catalyst of modern fleet management, forcing lift
truck fleet owners to analyze their operations in ways
they never had before.
Not only has the market seen tremendous
advancements in fleet tracking and monitoring technology, but it has also witnessed the evolution of lift
truck financing options. Savvy customers have developed an understanding of a truck’s economic lifespan, and lately more are focusing on the beginning
of that life—the moment when a signature finalizes a
purchase, rental or lease.
Because that moment can make or break a compa-
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ny’s efforts to optimize its fleet over the
coming years, Modern spoke with industry analysts and lift truck finance experts
to help readers prepare for that pivotal
stroke of the pen.
“When a business considers acquiring a new piece of lift equipment,
that’s akin to a consumer considering
whether to buy, lease or rent a new car,”
says Jonathan Kipp, relationship manager with GE Capital. Few consumers
would rent a car just to get to work, or
A S P E C I A L S UP P L E M E N T TO M ODE RN M ATE R I A L S HA ND L I NG
perception of leasing as a restrictive
agreement destined to produce huge
end-of-term bills.
However, as customers become
more devoted to squeezing each and
every penny from their fleets, so have
equipment finance partners developed products around the same goal.
Along with the fairly straightforward
processes of buying, renting and leasing, customers can now pursue pay-bythe-hour leases, unconventional term
lengths, negotiable lease provisions, and on-the-fly term
extensions or monthly payment adjustments.
None of these options is a
guaranteed success, but with
a comprehensive understanding of the lift truck’s application and a working relationship with a finance partner,
fleet owners will be ahead of
the curve.
When and how to buy
Not long ago, more customers
were buying outright than leasing, says Jeff Bailey, director of
Crown Credit Company. “It
has been a very trying last few
The right fleet finance option should be tailored years,” says Bailey. “During the
recession, there wasn’t a lot of
to the application, which often varies within a
anything going on.”
facility.
There
was
pent-up
lease a backup vehicle, and fleet own- demand, he says, and a lot of comers would be wise to avoid these situa- panies had cash built up—so, many
tions as well.
bought outright. Government incenCurrently, many more lift truck cus- tives for capital expenses contributed
tomers lease rather than rent or buy to the recovery. “Now we’re trending
outright, according to Kipp. “Many differently,” says Bailey. “Now it’s flipof the benefits of leasing apply just as flopping again, and more customers are
much to small businesses as to Fortune leasing.”
500 companies,” he says. “Leases can
For Brian Markison, senior manbe structured to maximize cash benefits ager for national accounts at Nissan
in addition to helping address a maze Forklift, the decision of whether to buy
of tax and accounting rules, while miti- or lease hinges on how quickly the cusgating many risks and expenses of asset tomer will consume the economic life
ownership.”
of the asset. If the answer is “quickly,”
Although the affordability and pre- then lease. If the lift truck will only be
dictability of leasing offers improved used 1,000 hours per year, don’t lease.
cash management and flexibility, some Instead, the customer might buy or rent
customers still cling to the historical long-term.
60
JU
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Another consideration, says Markison,
is whether the asset in question is a specialty item or has a robust secondary market. If not, it might be best to buy.
Bill Buckhout, marketing manager
for Raymond Leasing Corp., says the
customer niche that buys equipment
should have an application where equipment will last a long time, maybe as
much as 20 years. “For all the right reasons, a customer who would like to pay
in cash should not buy outright,” says
Buckhout. “They might consider a single-payment lease, but then they’ll have
to plan for that equipment to go away at
some point. All kinds of bad things can
happen when people try to buy something with a finite economic life.”
When and how to rent
Rentals for any length of time, whether
one day or one year, require the customer to pay a premium for the convenience of returning a lift truck at their
leisure. While rentals can provide great
flexibility, they are also more costly.
“Short-term rentals must be just
that—no more than two to three
months,” says Markison. “A customer
who keeps renewing these agreements
can spend as much in one year as the
asset would cost to buy outright.”
Some customers slip into this cycle
accidentally, he says. Rental expenses
might come from a different budget
than capital expenses, and might be
subject to less scrutiny as a result. “I’ve
seen operations with rental trucks that
corporate didn’t even know about,”
says Markison. However, if a company
is strongly averse to a commitment of
more than 12 months to 24 months, a
long-term rental might be appropriate,
he says.
Tina Goodwin, director of financial services for NACCO Material
Handling Group, has a different rubric.
“When I look at renting, I think of a
customer with seasonal peaks who
needs a truck for just a month or two at
a time,” she says. “That’s the only time I
would recommend renting.”
Realistically, however, customers
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year before.
“Companies that are
in business today have
worked hard, made
smart choices, and navigated many challenges
to get to this point,” says
Kipp. “In my opinion,
companies are carefully
managing their working
capital and they’re aware
of the need to keep sufficient liquidity on hand.
A strategic replacement cycle ensures operators
One of the ways they
benefit from state-of-the-art equipment and safety
can manage their cash
features.
is by taking advantage
often end up in long-term rentals if of the benefits of leasing equipment
they can’t find the right lease agree- rather than buying it.”
ment to satisfy internal provisions, or
Leasing today looks very different
if for any reason a rental is not subject than the landscape even a decade ago,
to the same internal scrutiny, as in the when Bailey says some customers “had
case of Markison’s customer.
no idea a lease was expiring until a
“Otherwise, there are essentially no salesman came out to visit.” Especially
advantages to the customer over a lease after the credit crunch, customers are
for the same term,” says Goodwin.
looking for consolidated services—
equipment, maintenance, and financWhen and how to lease
ing—from the suppliers.
Back when businesses were flush and
“Customers are starting to get smart
lift trucks languished at the bottom of about tracking their fleet, and that’s
the list of priorities, lease agreements changing things,” says Bailey.
were executed hastily as a matter of
Eric Gabriel, senior manager of sales
housekeeping. Canned agreements operations for MCFA, says customers
rarely lined up with the disparate reali- should begin with an application surties of the lift truck’s application, and vey and structure the lease around the
leasing ended up with the reputation it available data.
is still working to shed.
“We want to bring precision to
“The lessee’s viewpoint was that that agreement for our customer, and
leasing was just a ticket to get taken at the more precisely they know the
the end of the deal,” says Bailey. “Now application, the better,” says Gabriel.
it’s a very desirable program. We quote “Replacement should be happening at
leasing options on every sale.”
the exact right moment.”
According to Kipp, the equipment
Now, instead of traditional three-,
finance industry continues to be a pow- four-, or five-year leases, customers can
erful engine for the U.S. economy, driv- enter a 39-month term, says Markison,
ing manufacturing and service sector if that’s what works for their applicasupply chains across the country. In fact, tion. Still, too many customers rely on
the Equipment Leasing and Financing faulty—and costly—assumptions.
Association (ELFA) estimates that last
“It’s common for customers to sign
year U.S. businesses, non-profits and an agreement for 2,000 hours per
government agencies financed $628 year and end up returning a really
62
JU
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nice piece of equipment with 5,000
fewer hours than they paid for,” says
Markison. “Unfortunately, customers
assume that because an operator is
paid for eight hours a day that magically the forklift will be used for 2,000
hours per year—when in reality it is
probably much less.”
Goodwin says she sees customers on
almost a daily basis who keep lift trucks
far too long. One customer averages
about 4,000 hours per truck per year.
They requested a five-year lease, which
means they’ll return equipment with
20,000 hours on it.
“That’s just unheard of,” says
Goodwin. “The whole purpose of
leasing is to use the truck for its economic life. The maintenance costs in
that scenario would be huge, and the
monthly payments for the lease are
going to be comparable to buying the
truck outright.”
That customer should be on a
36-month term, says Goodwin, but is
fixated on the lowest possible monthly
payments. The same fixation can lead
customers to shop different leasing
companies for the lowest payment
despite huge differences in the structure of the lease. “That customer comes
back to us within a couple of years and
says they got a huge bill for all sorts
of nickels and dimes at the end of the
term,” says Goodwin.
Signing the contract
According to Rhonda Endo, product
marketing and development for Toyota
Financial Services, just 10 to 15 years
ago, the local warehouse or operational
managers made the buying decisions
for purchasing or financing equipment
in their areas. They might have been in
the habit of swapping entire fleets every
so often, as opposed to establishing
staggered replacement cycles that are
key to cost management.
“Today, customers are moving
toward more centralized procurement
models that bring a higher level of
sophistication into the buying process,”
says Endo.
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But that doesn’t mean operations
should be kept out of the process.
Markison recommends operations personnel consult with the CFO during
lease negotiations to ensure the customer has a thorough understanding of
their obligations, such as return provisions. What is acceptable end-of-term
damage? What about overtime, relocation or early termination?
“So many people sign a document
without reading it,” says Buckhout.
“Lease contracts require more than
legal overview. Someone who understands the operation must look it over
in advance of signing, and should negotiate with the lease company to ensure
a good fit. In fact, if you’re dealing with
a leasing company that does not work
with you to tailor the agreement, you’re
dealing with the wrong company.”
Kipp recommends that lift truck cus-
To ensure a good fit, someone in your
organization who understands the
operation should look over the lease
agreement.
64
JU
LY
tomers expand from local or regional
banks to financing companies and specialty lenders, where they will gain more
than alternative sources of funding.
“They gain a trusted financial adviser
and a valuable ally who can suggest
additional leasing scenarios that may
offer improved capitalization strategies
over the long term,” he says.
When the end of the lease term
arrives, Gabriel says it’s generally
not ideal to extend the lease, which
can often result in unplanned costs.
However, lease extensions can also be
used strategically, he says, instead of
as an emergency alternative to careful
planning.
“I’ve seen customers that have gone
as long as 24 months defaulting to
monthly or quarterly renewals,” says
Gabriel. “You should be well-prepared
to make a decision at least six months
before the lease expires.”
For instance, if utilization were slow
over a two-year period of the lease, a
12-month extension might be just the
thing to ensure the customer gets value
for their money.
Future trends
Endo predicts the economy will
continue to improve, as will customers’
equipment expenditures. Leasing is
flexible and convenient, she says, and
could remain the ideal choice for many
businesses. But now that the traditional
three-, four-, and five-year structures
have been broken down, what other
innovative approaches lie ahead?
In early June, NAACO Material
Handling Group formally launched a
new product called “Power Advantage,”
according to Goodwin. The program
features pay-per-hour leases that can
be paired with pay-per-hour maintenance. Under the program, the lease
company tracks and bills for hours
used. Those administrative functions,
as well as the risk associated with
lease/sub-lease arrangements, are
lifted from the dealer’s shoulders, says
Goodwin.
This sort of new, more flexible struc-
ture resembles a “material handling as
a service” model, although that’s currently a term without a definition, says
Buckhout. The concept could allow
fleets from 1 to 100 to purchase the use
of equipment. As far as the customer
is concerned, the truck has no serial
number and might be new or used.
Buckhout says that this approach began
in the 3PL industry, which is constantly
pushing for more flexibility.
“It is very difficult for even a large
company to make a five-year commitment these days,” says Buckhout.
“These sorts of tools will allow customer to confidently scale their fleets.”
Buckhout also mentioned some
potential changes to the Generally
Accepted
Accounting
Principles
(GAAP), the standards for the preparation of financial statements. Though
currently in the proposal stage, the new
initiatives are designed to put assets
back on balance sheets in an effort to
make a statement a more honest depiction of the organization.
Currently, many lease expenses do
not appear as capital assets on these
balance sheets, he says. The ramifications of such a move include a potential reduction in a company’s return on
assets, on which some bank loans and
employee incomes are predicated.
“These changes could be three to
five years out,” says Buckhout. “Those
companies that prepare financial statements three years in arrears are likely
listening closely, but it remains to be
seen how new leasing products will fit
into any new standards.”
As leasing structures evolve, attentive forklift customers will likely find
themselves with as much flexibility,
predictability, and liability as they might
like. In the meantime, they can prepare
themselves by shedding outdated practices, mining for data, and finding the
right business partners for equipment,
maintenance, and financing.
If they’re lucky, they might be able
to get all three from the same source.
“After all,” says Goodwin, “Fleet and
finance go hand in hand.” mmh.com
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FOCUS ON
Overhead handling
connect with a quick disconnect coupling
with a universal coupling pin. Offered
in two models, the hoists feature load
capacities of 275 or 550 pounds and lift
heights of 9 and 14 feet respectively.
Demag Cranes & Components, 440248-2400, www.demag-us.com.
Maximize vertical space
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Quick ship electric
wire rope hoists
The Yale Cable King electric wire rope
hoist is now offered in two quick ship
configurations of 5 and 10 tons that are
capable of lifting to heights of 30 and 44
feet respectively. Engineered for shorter
lead times, each can be delivered in four
to six weeks. The hoists feature a pendant, NEMA 12 geared upper/lower limit
switch, NEMA 4 block upper limit switch,
safety yellow paint and hoist and trolley
motor fuses. Columbus McKinnon, 800888-0985, www.cmworks.com.
Safely operate electric chain
hoist with one hand
Featuring one-handed operation, the
DCM-Pro Manulift electric chain hoist
includes a control unit that is securely
connected to the hoist with a helical
cable, then rigidly
connects to a variety
of load handling
attachments. The
device is single hand
operated by either
the left- or righthand, and the operator can easily move
the chain hoist and
accurately guide the
load. Attachments
66
Ju
ly
The Sky-Rav overhead hoist transportation system makes effective use of ceiling space to enable the construction of
highly flexible lines. The systems travel
along ceilings, leaving work paths on
the ground unobstructed. Traveling at
speeds up to 721 feet per minute, the
units offer flexible
horizontal movement,
including shunting,
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movement, the unit also
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to production and
storage equipment. It
may be equipped with
a variety of handling
and transfer devices—such as cage and
chucking systems or belt conveyors—to
support multiple load types without
requiring any special fixed equipment
(including dedicated lifters) on the
ground. Murata Machinery, 800-4288469, www.muratec-usa.com.
Electric chain hoists offered
in seven capacities
Offered in seven capacities from 125 to
1,050 pounds, dual speed, single phase
ED Infinity electric chain hoists include
a pendant equipped with easy access
external speed adjustment knobs for
quick customization of high and low
hoist speeds. A heavy-duty, metal-hinged
cover protects the knobs from damage
and prevents the speed settings from
shifting during operation. Ideal for workstations and work cells, assembly lines,
pick-and-place operations and fast pro-
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng duction environments, the
unit includes a lightweight
die-cast aluminum body,
making it easy to install,
transport and store. Other
features include Westonstyle and regenerative load
brakes, a friction clutch for
over-winding protection,
nickel-plated, heat treated
load chain and a standard upper limit switch.
Harrington Hoists, 800-233-3010, www.
harringtonhoists.com.
Smart crane can be
monitored remotely
Customizable with a variety of technologies such as sway control, adjustable
working limits, protected areas and shock
load prevention, the Smarton crane incorporates a smart motor/gearbox/control
unit and remote monitoring and troubleshooting with the supplier’s data center.
The crane’s steel housing is based on box
construction for torsion resistance, while
its box girders are built with a positive
camber that decreases the uphill effect
as the trolley moves towards the end carriage truck. For true vertical lift, the unit’s
twin-rope configuration minimizes horizontal movement during load lift and lowering for increased positioning accuracy
with less wear on ropes, rope sheaves
and rope drums. The crane may be
specified with two different hook types—
single or ramshorn—both offered with
either manual or motorized turning. With
a single trolley, the crane lifts capacities
from 6.3 to 250 tons; two trolleys can lift
up to 500 tons. Konecranes, 877-3631895, www.konecranesamericas.com.
mmh.com
Warehouse Racking Systems
Selective Rack
Drive-In / Drive-Through
Push
Back
We manufacture
Pallet Flow
warehouse solutions.
866.632.2589 | www.interlakemecalux.com
Cantilever
FOCUS ON
Overhead handling
Single speed or
inverter control
electric chain
hoist lines
With capacities from
1,000 pounds to 10 tons,
a line of electric chain
hoists is offered. The
hoists come in single
speed or inverter control
models. Standard equipment includes mechanical load brake, electric motor brake,
overload alert, push button station and
chain container. The hoists are stocked
in lug, hook, plan or motorized trolley
configurations. ACCO Material Handling
Solutions, 800-967-7333, www.accomhs.com.
Position loads vertically,
horizontally with articulated
jib lifter
The Articulated Jib Lifter horizontal and
vertical positioning device features an
air balancer built into the second arm,
making it ideal for reaching into inaccessible areas where headroom limitations
prevent conventional balancer use. A
variety of standard models accommodate
light to heavy lifting applications. For
safety, the lifter comes standard with a
threaded interface at the end-of-cable
and a safety latch hook at end-of-chain.
To accommodate low overhead clearance
applications, the secondary arm can be
mounted above the primary arm, while
both primary and secondary joints provide 360-degree continuous rotation. The
lifter does not require an air lubricator,
and includes
a pistol grip
metering
valve control
for vertical
lift. Conco,
800-8316026, www.
concomanipulators.
com.
68
Ju
ly
Explosionproof hoists for
heavy industry
A line of compressed
air- and hydraulicpowered (optional)
equipment for safe
lifting, moving and
placement of loads is
ideal for use in hazardous areas and environments with potential
explosion risk. The Profi TI series hoists
for surface and underground use operates with four or six bar air pressures
to lift capacities from 550 pounds up to
100 tons. The hoists may be outfitted
with manual, reel chain and motorized
traverse trolleys for overhead monorail
operation at lift ratings up to 20 tons. To
accommodate tandem or synchronized
lifting operations, monorail style hoists
lift up to 115 tons each. J D Neuhaus,
888-638-4287, www.jdneuhaus.com.
Pneumatic air manipulator
handles loads up to 940
pounds
For jobs that
require the compliance and float of a
pneumatic manipulator, the Simple Air
Manipulator (SAM)
device provides operators with high level
feel and payload positioning. The device
uses pneumatic power for quick response
and maneuverability of loads up to 940
pounds. Vertical lifting and positioning is
accomplished with compressed air that
is operator controlled with a pistol grip
metering valve. Optionally, an ergonomic
twist grip controller with precision bearings minimizes vertical movement resistance. Features include end-of-arm rotating axis with up to 18,000 inch pounds
of moment loading and 360-degree
rotation, pantograph construction for a
rectangular working window, and an endeffector mounting surface that deflects
less than 2 degrees when fully side load-
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng ed. Mounting options include overhead,
trolley, pedestal or mobile/portable base.
Positech, 800-831-6026, www.positech.
com.
Hoist attachment handles
55-gallon drums
The Parrot-Beak model HCB-BC drum
handling attachment
safely lifts steel, fiber
and plastic drums
weighing up to 2,000
pounds. Attached to
any overhead hoist,
crane or boom, it
engages drums automatically. To ensure
safe, reliable pick-ups,
the device’s mechanical clamping system engages the top
lip of the container, while an adjustable
counter-balance on the main frame of the
unit handles drums from 15 to 27 inches
in diameter. During transport, a padded
belt cradle protects the drum sidewall.
The unit is offered in one- or two-drum
configurations, including stainless steel
units for food grade and pharmaceutical
applications. Liftomatic, 800-837-6540,
www.liftomatic.com.
Control overhead cranes
and hoists with handheld
radio remote
The Flex Pro handheld
radio remote control for
crane and hoist applications
allows operators to maneuver loads with precise control and smooth operation.
The control uses the crane’s
variable frequency drive
control for stepless operation and proportionally moderate speeds. Features
include plug and play
format and modular,
seamless integration
with the supplier’s line of
components for customized control. Magnetek,
262-252-6947, www.
magnetekmh.com.
mmh.com
Transfer a load between cranes
and monorails
To allow a load to be transferred between cranes and monorails
to any destination within a facility, the patented track interlocking system uses a series of cranes, interlocks, spur rails, curves
and switches without setting the load down. This saves time and
enhances safety. For flexibility, the hoist carriers are not limited
to the bays of the crane runway; they interlock crane-to-crane
on parallel runways, or crane-to-spur-rail over a transfer point.
The system may be equipped with manual pull chain, electric
motor or air operation functionality. To ensure proper alignment
prior to engagement,
indicator lights are
included. All open rail
ends feature trolley
stops for safety. TC/
American Monorail,
763-497-7000, www.
tcamerican.com.
Cubic Designs mezzanines come
standard with an attractive and
resilient powder coat paint finish that
provides a lasting impression.
• Durable, scratch-resistant finish
• Clean, professional look
• 14 standard colors to choose from
• Custom colors and finishes available
For a powder coat paint finish that you can take at face value,
we’ve got you covered. Call 855.241.0258 to learn more.
the perfect fit
855.241.0258
mmh.com
www.cubicdesigns.com
© 2012 Cubic Designs
Magnetic plate handling system
is battery powered
Using electrically controlled permanent lifting magnets, a line
of magnetic plate handling systems requires only low electrical
power to turn the permanent magnets on and off. They feature
large multiple magnets powered by a 24-volt DC wet cell battery power supply that does not require a power supply cable
reel drop. For safety, an indicator lighting system provides the
operator with a positive indication that each magnet is attached
to the load at full strength. Radio controlled, the device provides single plate handling off a stack and will not pick up burn
table support slats. Permadur Industries, 800-392-0146, www.
permadur.com.
NO
DESIGN
COST.
NO
MOLD
COST.
NO
LEAD
TIME.
Fairlane Products, Inc.
33792 Doreka Drive
Fraser, MI 48026
(586) 294-6100
FAX (586) 294-6822
800-548-2935
www.fairlaneproducts.com
Just rollers when you need them.
No need to deal with all the
problems associated with special
orders. Our in-stock line up now
includes urethane covered bearing
and press fit rollers in addition to
our solid, DuraSoft ® no crush and
finned rollers. They are available in
a variety of styles, mountings and
durometers and can be custom
modified for your specific application.
And they’re available when you need
them without the design and mold
cost or the lead time.
FRL-058A 3.25x4.625.indd 1
U LY
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69
5/23/12 5:11 PM
cy
are
ht
reinand
d
They
IS,
e
he
atd in
x 10
de
tive
ck
w.
Product Showcase
Containers nest and stack
New line of forklift
trucks debuts
Now offered in select U.S. markets in
5,000- and 6,000-pound capacities,
the Utilev line of diesel and LPG fuel
forklift trucks are an alternative to
vehicles with advanced functionality. As
an uncomplicated solution for light- to
medium-duty operating environments,
the vehicles are ideal for facilities that use backed by a standard limited warranty
lift trucks intermittently during the day
of 12 months/2,000 hours, and by a netor week. A range of standard features
work of dealers with complete parts and
Nest
and stack
containers
space bymaintenance
stacking when
and
options
may be
selected tosave
configure
availability. Utilev, 440-449fulltruck
and to
nesting
when
empty.
Offered in9669,
a variety
of
the
the needs
of the
applicawww.utilev.com.
materials
accommodate
range of needs, the formution.
Easy totooperate,
the trucksafeature
lations
include
resistance
to chemicals, electrostatic
dis-store flammable
Protect and
an
ergonomic
operator
compartment.
charge
andsimple
degreasers,
autoclavability,
flame retardance,
liquids
in all-steel safety
The
vehicles’
components
can
and
food handling.
facilitate
movement,
matched dolcabinets
be
maintained
without To
PCs,
laptops or
lies with 3-inch
diameter swivel
casters Store
may be
specified.
flammable
liquids safely while prodiagnostic
tools. Constructed
with robust
Dimensionsefficient
range from
25.25
18 x 6 inches
42.5 x and valuable property
tecting to
employees
components,
filtration
andxeffec20 cooling,
x 14.25 the
inches
and
lids
protect
with to
all-steel
safety cabinets. Offered
tive
trucks
areinclude
reliable optional
and
with a choice of manual or self-closing
doors, the cabinets feature fully welded,
18-gauge double wall construction with a
1.5-inch insulating air space. All components are manufactured from cold rolled
steel. For easy fingertip operation, a
flush-mounted paddle handle is included,
while a fail-safe closing mechanism utilizes a three-point stainless steel bullet
latch. The cabinet
comes with a
double key set and
can be padlocked.
All models meet
NFPA Code 30 and
OSHA standards.
Lyon Workspace
Products, 800323-0082, www.
lyonworkspace.
com.
contents from dirt and damage. Molded Fiber Glass
Tray Co., 800-458-6050, www.mfgtray.com.
POWER TRANSMISSION-PART CONVEYING
®
PYRATHANE
BELTS
With Lifetime Warranty Against Manufacturing Defects
Samples available at little or no cost • Colors Available
Very Clean in Operation • Eliminates Tensioning Devices
Exceptional Abrasion Resistance
LINE SHAFT
CONVEYOR BELTS
ORIGINAL EQUIPMENT & CONNECTABLE
Try our
PYRATHANE® BELTS
on your conveyor; they have
become the standard of the industry.
e
nuly-
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h
ows
For
ts,
ty
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Round, Flat and Connectable Polyurethane Belts
Efficient.
Productive.
Safe.
Increase your order picking
productivity and minimize
workplace injuries with Pallet
Dispensers from Cherry’s.
• Quick, no-touch
pallet handling for
pick operators.
• High speed dispenser: dispenses a
pallet/s to the ground every 10 seconds.
• Dispenses GMA, stringer, rental, plastic,
aluminum, export and two-way pallets.
• Single deep and double deep models.
Capacity: 40 pallets and 80 pallets
• Organize & maximize warehouse space
by centralizing empty pallet storage.
AN ISO 9001
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(P) 641.792.2405 • E-mail: [email protected]
522 North Ninth Avenue East, Newton, IA 50208
70
Ju
ly
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng 800-350-0011
PalletDispenser.com
600 Morse Ave. Elk Grove Village, IL
mmh.com
best storage position in the unit, based
VLM
on optimal space andRugged,
retrieval time.”
Mid-range industrial
label
%
The new trays feature
thinner side walls
durable
Bin dividers create
organization, enhance
storage
printers
omatic Featuring
tray height
scan- for more storage space;line
flat bottoms
of for use
fast throughput and metal
automatically
determines
without
tray
liners;
and
unobstructed
open
3-wheel
construction, the PM43 and PM43c
xact storage
heightmid-range
require- rugged
storagelabel
areas with no tow
dividers or support
industrial
n to a 1-inch
increment—
crossenvironments
members. Trays tractors
come in 2-, 3- and
printers
are ideal for harsh
including transportation,
manufacturing
tray is retrieved,”
Romaine 4-meter
widths, making more parts availThe tray
CTXto increase
and distribution
centers.
The
scan interfaces
with the
able
forprinters
picking on each
offer
reliable
and
intuitive
communication
40/70
elecol system to determine the productivity while reducing labor
costs.
options with a full color touchscreen,
tric threea choice of 10 languages or easy-towheel
tow that
tractors
storage out of the
space
theyhave been released.
use universal icons, andmore
a multi-lingual
Offered
in
two
models,
currently
Clark said. “And it the tractors
intuitive Web-based user
interface.have,”
To
equipped
in applications
varyincreases
density in are
areas
where with
pick-an all-AC powered,
reduce ITwith
support
needs
they include
48-volt
drive
system
management,
eights forintegrated
maximumdevice
storage
ers don’t allowing
have to travel into; instead the and regenerative
the
printers
to
be
monitored
from
system enhances picking product comes out tobraking.
them.” For smooth control and easy
anywhere
from
handheld
computers,
entry
and exit from
Additionally, as TGW expands
glob-the vehicle, ergonomncluding each picking and
laptops, smart phones or tablet
ics
have
been
optimized—including
a
box picking,
by delivering ally to support its customers around the
computers using Wi-Fi or Ethernet
fully
adjustable
full
suspension
seat,
and
world,barthe
company has opened three
ate storage.
connection. They print small
codes,
automotive-style
pedal,
column
and
dash
of its flexibility,
shuttle
new offices
in China, Switzerland and
text and the
images
with pinpoint
accuracy
instrumentation.
Rugged
durability
is
facilitiesand
withno-touch
low andconfiguration
high Brazil.
“We
with
an recognize the importance of
with
an all-steel frame. Clark
optional embedded
chip. aIntermec,
having
local officeenhanced
staffed by
people
more facilities
becoming RFID
Material
Handling,
800-347-2636,
www.intermec.com.
particularly in the metro who understand the unique needs of866-252-5275, www.
clarkmhc.com.
he said.
stem helps companies get that particular region,”
Reach for the
proven
solution.
To create additional compartments inside
a line of storage bins, a line of new length
dividers has debuted. The heavy duty
40224 and 40234 dividers (for AkroBin
models 30224 and 30234) support 5S
Lean and other productivity initiatives.
Molded of high-impact polypropylene,
the bins and dividers are impervious
to weak acids
and alkilis. The
sturdy, one-piece
construction
is water, rust
and corrosionproof, allowing
them to be used
in multiple settings. The bins can be
used alone or with steel shelving, wire
shelving, hanging systems and pick
racks to create a complete storage and
organization system. Akro-Mils, 800-2532467, www.akro-mils.com.
to
p
u
Move bs
l
0
0
8with this!
Lift, rotate, turn, tilt,
reach and position
with confidence.
Positech and
Conco brand
manipulators:
One person can safely
and easily lift and move
55-gallon drums.
• Increase safety
• Boost productivity
• Reduce injury
ve
TM
mmh.com
11 15:55:13
Find a proven solution at
www.positech.com
800-831-6026
M O D E R N M ATE RIAL S HAND LING / M
www.powerpusher.com | 800-800-9274
client: NuStar | designer: [email protected] | project: 1/4-pg ad for MMH |
A R C H
2012
MODERN
49
size: 3.375 x 4.625
NUS_MMH-Qtr-pg_Bv1.indd 1
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8/24/11 15:55:13
PRODUCT Showcase
Specialty foam protective
packaging includes
recycled content
Offered as a sustainable packaging alternative, three recycled content specialty
foam products have debuted: Ethafoam
MRC (maximum recycled
content),
Ethafoam HRC
(high recycled
content) and
Stratocell RC
(recycled content). The foams are ideal
for packaging/shipping products such as
electronics, automotive parts, hardware
and other items that need additional protection during transport. The Ethafoam
MRC polyethylene foam is made of 100%
pre-consumer recycled resin content.
The Ethafoam HRC polyethylene foam
Cl
MAKE ROOM
Cab
For b
man
acryl
a-gla
poin
philo
tures
solid
boar
523-
includes minimum 65% recycled resin
content. Stratocell RC is comprised of a
minimum of 60% recycled resin content.
All three products are offered in black.
Sealed Air, 877-722-7631, www.ethafoam.com, www.sealedair.com.
Temperature control cold
chain packaging
Super-insulated temperature control and
protective mailers and packaging linthe mailer includes an EPA-approved
™
Maximize
storage space
with ProHANGER
…totheprevent
perfect crossers are made with components
that are
anti-microbial
additive
solution
for
storing
and
organizing
long
parts
and
supplies.
completely biodegradable. ThermoPod
contamination. The double sealed mailmailer envelopes and ThermoKeeper
ers come in three sizes: 9 x 11, 12 x 14,
insulated box liners are offered as enviand 14 x 18 inches. Box liners include the
ronmentally friendly alternatives to foam
same padding and antimicrobial additive,
coolers and other non-biodegradable
formed into a soft flat panel, customshipping containers. Constructed of
sized and laminated. The liners fold
waterproof poly film on the outside,
together and are compressed to ship flat
perforated poly film on the inside, and
prior to use. MP Global Products, 888recycled cotton and wool textile padding, 379-9695, www.thermopod.net.
U.S. Patent Pending
PALLET SOLUTIONS
Longer Lasting Belts
AS LOW AS US$5.00 EACH
(24″x40″ in quantities, FOB origin)
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PRESSWOOD
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72
Better than
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.
New Split Line-shaft Spools
High precision. Reasonable price.
Easy to install. Zero downtime.
Can be locked to shaft. Eliminates
need for keyed spools and shafts.
Dura-Belt
44
M
A R C H
800-770-2358 614-777-0295
Fax: 614-777-9448 www.durabelt.com
mmh.com
2 0 1 0 / MODERN MAT ERIA L S HAN D LIN
G
Trea
E-fus
men
mold
men
trost
used
ucts,
866-
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able
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inven
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time
indic
for fa
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data
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light
Product Showcase
Green sheet foam protects,
visually communicates
environmental benefits
Offered as a means to visually communicate the environmental profile of
protective packaging, Microfoam Green
is a low-density polypropylene (PP) sheet
foam. The material is photodegradable,
disintegrating between 44 and 77 hours.
Manufactured with 40% less resin than
polyethylene foam in the same thickness,
the material is lighter in weight than small
air cushioning at equal square footage
for both source and shipping cost reduction. It comes in 0.0625-inch thickness
and roll widths of 24, 36 and 72 inches. To
reduce the chance
of abrasion, its high
coefficient of friction
enables it to cling to
the item it is protecting. Pregis, 877-6926163, www.pregis.
com.
SAVE
WITH CREFORM AGVs.
Get lean by eliminating labor-intensive manned tuggers, forklifts or carts.
Creform can help you automate your in-plant warehouse and production floor
material handling. Our bolt-on AGV drives automate pipe & joint built carts and
heavy-duty welded frame carts or just a few BST undercarriage AGV tuggers
can mobilize an entire fleet of carts. From simple back-and-forth operations to
plant-wide systems, Creform can do it all.
On time. Just in time. All the time. Saving time. Take a minute to give us a call.
w w w. c r e f o r m . c o m • 8 0 0 - 8 3 9 - 8 8 2 3
CRE-392 4.5x4.625.indd 1
1/18/12 3:12 PM
Label Holders
Ergonomic Holster Systems
Bumpy Rides?
classified
To advertise,
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please contact:
Jennifer Drevline,
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[email protected]
TIME
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800.242.3919
www.aignerlabelholder.com
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Forklift Equipment
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mmh.com
u ly
2012
73
modern 60 Seconds with...
Greg Aimi
Title: Research director, Gartner
Location: Boston, Mass.
Experience: 18 years in supply chain
and logistics
Primary Focus: Research related to
strategies and best practices in logistics
for Gartner’s supply chain division.
Modern: Last fall, you and your colleagues
published a study on the “Evolution of Logistics
Sustainability” How is this area evolving?
Aimi: One of the early indications in our
research was that when it comes to sustainable logistics, there is a divide between people
who own and operate physical transportation
assets, such as transportation firms that move
freight and shippers that don’t own their assets.
Shippers were doing things that may have been
sustainable, but really were just good business
practices, like optimizing routes and redesigning their packaging to ship less air.
They were trying to do more with less, which
is a good idea anyway. We also saw shippers
doing some evaluation of mode shifting, or
balancing service level requirements against the
cost of the service. An example of that might be
shifting from air freight, which is fast but expensive, to truck, intermodal, pure rail or vessel. And, we saw
some shift to slow steaming where the ship slowed down
to save fuel, but took longer to make a delivery.
some major consumer product goods (CPG) companies
are including the SmartWay program as part of their
selection criteria. All things being equal, they would
rather source from a green transportation provider.
Modern: How are things changing for transportation
firms that own assets?
Aimi: On that side of the business, we’re seeing a lot
more work that was physical in nature. We see interest in
the EPA’s SmartWay program (epa.gov/smartway), and
that will help owners become greener transportation
logistics providers.
Companies are focusing on better performance from a
sustainability and emissions standpoint. So, for instance,
we’re seeing more alternative power units to control the
temperature in the sleeper unit instead of running the
diesel motor.
There’s a whole laundry list of things a firm can do
to make a vehicle more efficient. We’re also seeing that
Modern: Is the interest in sustainable logistics being
driven by the consumer or by the board room?
Aimi: It may be a little of both and it often depends on
the type of industry you’re discussing. One of the things
we have found is that companies that are more connected to the consumer, like a CPG company, are interested in their sustainability profile because there was
some indication that consumer buying habits were being
changed by the reputation of the company they were
buying a product or service from.
That was less the case when you were talking about
an industrial company supplying components or raw
materials to another manufacturer, like an industrial
supplier of parts. M
74
J
u ly
System / Pick Modules
Pallet Racks / Drive-in
Since 1970, Steel King Industries has been designing and manufacturing
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• Cantilever Racks
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For more information, call (800)
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OUR PALLET BUSTER CART PROVIDES SIGNIFICANT ADVANTAGES OVER PALLETS.
TM
• Maximizes cube space in truck, one cart equals two pallets. Saves on labor and fuel costs.
• Eliminates the use of mechanized equipment (pallet jacks, forklifts, etc).
• Carts are safer and more ergonomic.
• Reduces chronic injuries associated with bending and lifting off pallets.
• Carts are not flammable - wood and plastic pallets can be toxic, or flammable.
• Carts are sustainable since they are made from steel.
• More environmentally friendly, no additional wrapping materials needed.
• Carts are more secure, protects load from product damage and reduces product theft.
Ask us about our Pallet BusterTM and our automated cart loading machinery!

Modern Materials Handling

Transcription

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