April - Modern Materials Handling

Transcription

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING
mmh.com
®
April 2013
Lift trucks give
Scotts Miracle-Gro
a boost 18
Are you thinking
John Smith, manager
of global raw materials,
Scotts Miracle-Gro
CONVEYOR SURVEY
differently? 24
+ 2013 Conveyor & Sortation Survey:
Complex distribution, changing
requirements
April 30, 2013 @ 2:00 p.m. (ET)
www.mmh.com/2013conveyors
SPECIAL REPORT
Top 20 systems
suppliers 30
EQUIPMENT REPORT
Rack and shelving:
Supporting speed 34
BEST PRACTICES
Retail: DC is the
center of it all 40
Model Employee
Gets More Done In Less Time
Wears many hats – inventory buffer, sequencer, order consolidator
Extremely flexible – totes, trays or cartons
Works well with others – static or flow rack, single or double deep
Introducing Dematic Multishuttle 2, the second generation of the Dematic shuttle solution
developed with advanced engineering, aluminum construction and a new load extractor.
Multishuttle 2 is a lighter weight device delivering:
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t.VMUJEFFQTUPSBHFDBQBCJMJUZ
t%JWFSTJýFENPEFMTUPNBYJNJ[FUIFTPMVUJPOCBTFEPO
user’s unique product handling requirements
5IF.VMUJTIVUUMF'MFYPQUJPOJODPSQPSBUFTþFYJCMFMPBEIBOEMJOHUFDIOPMPHZFOBCMJOHIJHI
QFSGPSNBODFTUPSBHFBOESFUSJFWBMPGWBSJBCMFMPBETJ[FTBOEGPSNBUTXJUIPVUUIFVTFPG
trays. The load handling device “flexes” the telescopic arms to adjust to the width of the load
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For more information visit www.dematic.com/multishuttle or contact us at
[email protected] or 1-877-725-7500.
UP FRONT
BREAKING NEWS YOU SHOULD KNOW
Intelligrated acquires Datria
INTELLIGRATED, a leading North
American-based automated materials handling solutions provider, has
announced the acquisition of Datria
Systems, a provider of voice-enabled
solutions. Datria will become part of
Intelligrated’s software subsidiary,
Knighted. Datria, with offices in
Denver, provides voice-enabled solu-
tions for distribution and logistics,
retail store operations, mobile field
service management and manufacturing processes.
Datria’s cloud-based VoIP
architecture is a complement to
Intelligrated’s existing portfolio
of solutions and will immediately
begin to integrate with Knighted’s
New Robotics Roadmap
presented to congress
A NEW “Roadmap for U.S. Robotics” was presented to
the Congressional Caucus on Robotics on March 20. The
roadmap, organized by the Robotics Virtual Organization,
includes updates to the sections on manufacturing,
healthcare/medical robotics and services. The roadmap
summarizes the strategic importance of robotics and
automation technologies to manufacturing industries in
the U.S. economy, describes applications where robotics and automation technologies will dramatically
increase productivity, and outlines
a visionary research and development roadmap with key research
areas for immediate investment
to reach these goals. The report
features images of Symbotic’s
automatic guided vehicles, Kiva
Systems’ autonomous mobile
robots, and Seegrid’s robotic
industrial lift trucks.
software platform.
Intelligrated officials say that voice
will enhance it’s
ability to deliver
modular solutions
that streamline
operations, improve productivity and accuracy, and maximize
the value of labor, automation
and supervisory control.
MHEDA promotes career
opportunities in materials
handling and logistics
RECENTLY, the Material Handling Equipment
Distributors Association (MHEDA) released a video that
explains the impact materials handling and logistics has
on the supply chain.
The video also promotes the many different
career opportunities
available within the industry. For example, marketing, sales, accounting,
operations, engineering,
CAD design, technical support, information technology
and logistics are just some of the career choices the
industry has to offer. The video is part of an ongoing
effort to promote materials handling and logistics careers
by MHEDA and Material Handling Industry (MHI). You can
see the video at: videos.mheda.org.
Video game-inspired forklift simulator
could reduce injuries and deaths
TACTUS TECHNOLOGIES, a spinoff
company from the University at
Buffalo, has developed a first-of-itskind virtual reality training program
for forklift operators, a product that
company officials expect will reduce
work-related injuries and deaths.
The program, called the 3D Forklift
Trainer, allows operators to practice
with a video game-like system that
features a steering wheel, joystick,
pedals and simulated environments
such as warehouses, elevators and
railroad tracks.
“Until recently, such virtual reality
mmh.com
technologies were only available to
military and university laboratories,”
said Thenkurussi “Kesh” Kesavadas,
Tactus co-founder and UB professor
of mechanical and aerospace engineering. “By pioneering the use of
gaming technology and computers in
our software, we are able to offer the
3D forklift simulator at a low and reasonable cost for industrial safety training.”
Created with a grant from the
National Institutes of Occupational
Safety and Health, the simulator incorporates safety lessons aligned with
OSHA standards.
MODERN MATERIALS HANDLING / A
P R I L
2013
3
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VOL. 68, NO. 4
®
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION,
WAREHOUSING AND MANUFACTURING
John Smith, manager,
global raw materials
at Scotts Miracle-Gro
COVER STORY
60 Seconds with
Jeremy Davidson
Fortna
Photography: Chris Cone/Getty Images
SYSTEM REPORT
18 The grass is greener…thanks to lift trucks
At Scotts Miracle-Gro, a fleet management program keeps the
pallets moving.
23 Keeping up with peak demand
Lift trucks, stretch wrap and floor storage are at the heart of Scotts’
distribution activities.
FEATURES
READER SURVEY
24 Conveyor technology: Are you
thinking differently?
With new distribution requirements and more investment in
automation underway, Modern set out to find how readers are now
approaching the use of conveyors and sortation systems.
SPECIAL REPORT
30 Top 20 systems suppliers
Modern’s 16th annual survey of the world’s leading materials
handling systems suppliers shows the top performers have held
their ground, even as the rest of the list climbs steadily upward.
DEPARTMENTS & COLUMNS
3/ Upfront
7/ This month in Modern
14/ Lift Truck Tips: Batteries
16/ Packaging Corner: Pallets
60/ Focus On: Lift Trucks
64/ Product Showcase
66/ 60 seconds with...
NEWS
9/ CEMA: Conveyor industry breaks
another record in 2012
10/ MHI discusses the industry’s first-ever
attempt to unify and set a course
11/ New forecast shows potential for
manufacturing resurgence in coming
decade
EQUIPMENT REPORT
SUPPLEMENTS
34 Rack and shelving: Supporting speed
48 Software: LMS Optimizing
the human supply chain
Racks and shelves are not standing still as efforts to improve speed
and productivity reshape traditional approaches to storage.
BEST PRACTICES
52 Technology: RFID settles in
40 Retail: DC at the center of it all
The DC is in the middle of a transformation in the way retailers
interact with customers.
PRODUCTIVITY SOLUTION
46 A gentle breeze makes all the
difference for brick producer
47 Retrofit kits for dock levelers
control temperature, dust and cost
mmh.com
Modern Materials Handling® (ISSN 0026-8038) is published monthly by
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P R I L
2013
5
Imagine the other wonders they
would have created with a Hyundai.
As one of the world’s top 25 international companies, Hyundai’s success is simple:
provide competitively priced products with a long list of standard features backed
by one of the industry’s best warranties. So no matter what job you dream up,
we have a forklift ready to move you. Learn more at hceamericas.com.
HYUNDAI FORKLIFT
Moving You Further
THIS MONTH IN
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Lift trucks still the workhorse
I
t’s nearly impossible to cover the materials handling market these days without
concentrating on the increasing adoption
of high-speed order fulfillment systems
geared to help retailers meet the multichannel challenge—there’s nothing hotter.
However, we can’t forget that there are
many manufacturers out there who are running
tremendous businesses without a lot of bells
and whistles. In fact, this month in Modern we
fix the spotlight on the gradual, but steady
application of a lift truck fleet management
program that’s now driving impressive productivity gains and generating considerable cost
savings for the folks at Scotts Miracle-Gro.
In this month’s System Report, executive editor Bob Trebilcock takes us inside
Scotts’ 780,000-square-foot warehouse and
distribution center in Marysville, Ohio, where
between January and May they receive and
ship 9,150 pallets of product a day in support of the nation’s busy growing season. To
keep things moving, their primary tools are
stretch-wrapped pallets stacked on the floor
and moved by a fleet of lift trucks that function around the clock.
As you can imagine, productivity at Scotts
is all about the number of pallets moved from
manufacturing into storage and from storage
onto the back of a trailer—and with such a
short window of time to ship, the demands
placed on the lift truck fleet are extraordinary. Just a few years ago, the downtime
from losing two or three trucks to repair and
maintenance was putting a significant dent in
productivity while escalating rental charges
just to keep pallets moving on schedule.
Starting on page 18, Trebilcock walks us
through how John Smith, Scotts’ manager
of raw materials, and the warehouse team
in Marysville set out to re-evaluate its lift
truck requirements. As part of that effort, the
team decided to add single-double lift truck
attachments to handle two pallets at a time.
The also brought in a new high reach truck
model to increase efficiency and create a
more ergonomic environment for the driver.
As part of those additions, the team
methodically began to implement a lift truck
management system that not only helped
them improve fleet uptime, but allowed
them to stay on top of truck technology,
identify training needs and control costs. For
example, the system now includes planned
maintenance of specific components based
on hours of use, helps the team get a better
grasp of rental costs during peak season, and
will help them right-size and optimize leases
in the future. And now that the system has
gradually baked into Scott’s operations, it’s
offered the team a new-found confidence
that it can match the necessary productivity
levels—especially during peak season. “I can’t
remember a day that a lift has been down
for more than a shift,” Smith tells Trebilcock.
“If a lift can’t be fixed at our facility, our local
dealer brings over a replacement to keep us
running.”
And while it may not include automatic
guided vehicles or sophisticated automated
storage systems, the Marysville operation
has achieved impressive results nonetheless.
“Scotts palletizes their product, moves it
with lift trucks, stores it on the floor and ships
it out in bulk—it’s not sexy stuff,” Trebilcock
says. “But manufacturers still want to optimize their processes and reduce their operating costs. Scotts has done both with this
program. Fundamental improvement stories
like this will always find room in our pages.”
Official Publication of
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Certificates of Merit
for Journalistic
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P R I L
2013
7
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AUTOMATION
CEMA: Conveyor industry breaks
another record in 2012
CONVEYOR EQUIPMENT MANUFACTURERS ASSOCIATION REPORTS THAT
2012 SHIPMENTS ARE UP MORE THAN 22% OVER 2011.
AT THE CONVEYOR Equipment
Manufacturers Association (CEMA)’s
annual meeting held last month in
Phoenix, association president Ron
Arkema reported that 2012 shipments
in North America were up 22.44%.
CEMA estimates that shipments
totaled $10.410 billion for 2012, an
increase of $1.908 billion from 2011
shipments of $8.502 billion.
CEMA estimates that new orders
totaled $10.620 billion in 2012. New
orders in 2012 were $1.31 billion
more than 2011, representing an
increase of 14.1%.
CEMA tracks new orders and
shipped sales volume in nine classes
of unit handling equipment and four
classes of bulk handling equipment.
The executives representing CEMA
member companies who attended
the annual meeting expressed continued optimism for 2013 and forecasted a 5% increase in shipments.
annual meeting.
Chandler becomes head of the
North American industry trade group
founded in 1933. CEMA currently has
122 member companies.
Other officers elected at the association’s annual meeting:
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man, sales & marketing manager for
Chantland Pulley & Roller Company
in Humboldt, Iowa
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vice president, system sales and marketing for Intelligrated in Mason, Ohio
UÊ/Ài>ÃÕÀiÀ\Ê>ÀÀÞÊLÀ>>]Ê}i
eral manager/CEO for Screw Conveyor Corporation in Hammond, Ind.
Elected to the Board of Directors
were:
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manager for ABB Baldor-Dodge in
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for Eriez Magnetics in Erie, Pa.
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tion and integrator sales for Dematic
CEMA announces new
officers and directors
Warren Chandler, operations manager of Stephens-Adamson Belleville
in Ontario, Canada, was elected
the next president of the Conveyor
Equipment Manufacturers Association at the organization’s recent 80th
mmh.com
P R I L
2013
9
in Grand Rapids, Mich.
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of Industrial Kinetics in Downers
Grove, Ill.
Carryover members are:
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of sales, marketing and engineering
for Superior Industries
in Morris, Minn.
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dent of Douglas Manuv>VÌÕÀ}ÊÊ*iÊ
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Ala.
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Warren Chandler,
operations manager of
Stephens-Adamson and
incoming CEMA president
ton, senior vice president of
technology for Fenner Dunlop in
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INDUSTRY NEWS
MHI discusses
the industry’s
first-ever
attempt to unify
and set a course
Earlier this month, a collection of industry associations announced a plan
to develop a roadmap for the future
of materials handling and logistics in
the United States.
According to MHLRoadmap.org,
“The mission of the U.S. Roadmap
for Material Handling and Logistics
is to assemble a broad community
of thought leaders with a stake in
the future of material handling and
logistics technologies and practices
to create an industry roadmap that
will increase productivity, reduce
costs, create jobs and improve
the global competitiveness of the
United States.”
MHI says that the broad, industrywide effort will create a blueprint of
market, technological and developmental priorities that are needed to
accomplish long-term industry goals.
The process will begin with four
two-day roundtable-style meetings
to bring together more than 130
thought leaders and experts from
a variety of backgrounds, including
industry, academia and government.
Material Handling Industry is
providing administrative and financial
support for the development of the
Roadmap. Modern caught up with
10
AP
R I L
2 0 1 3 / MODERN MATERIALS HANDLING
mmh.com
model showing that there is ample
potential for U.S. manufacturing to
undergo a resurgence that by 2025
would lead to significantly more
good paying manufacturing jobs,
add to GDP growth, and help create the first surplus in the nation’s
Gary Forger, senior vice president of
professional development at MHI, to
get a sense of the origin and objectives of the roadmap. Forger said the
roadmap was unlike anything that
has ever been attempted.
“Right now, the industry lacks a
unified vision,” said Forger. “This is
an effort to help organize an industry
that has never tried to come together
like this before. It’s an opportunity for
people with vision for the industry’s
future to formalize what they and their
peers have been working toward and
then to put together a roadmap.”
At the conclusion of the four
sessions, information collected
from each will be aggregated and
released as a report before the end
of the year, Forger said. “We will
have built a community, we will have
brought people together who don’t
usually talk to each other, and it’s
an opportunity to align with what’s
going on, whether you’re a supplier,
end-user, academic, government or
non-governmental organization.”
MANUFACTURING
New forecast
shows potential
for manufacturing
resurgence in
coming decade
goods and services balance of trade
since 1975.
The study was sponsored jointly
by The Aspen Institute’s program
on Manufacturing and Society in the
21st Century and MAPI. The economic model and expert advice used
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The Aspen Institute and the Manufacturers Alliance for Productivity
and Innovation (MAPI) recently
released a new econometric forecast
mmh.com
P R I L
2013
11
Four
Smart
Solutions
For
Productivity
Whatever your material handling or storage needs, let Lauyans
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quality engineered material handling equipment, with in-depth expertise
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for the projections were provided by the University of
Maryland’s Interindustry Forecasting Project (Inforum).
“The robust results presented in the study are achievable with only modest acceleration of current trends,
and none of the policy recommendations mark a radical departure from current policy trajectories. But, they
require a willingness to change in a disciplined way,”
“With just a few policy shifts, however,
manufacturing in America can experience
a resurgence that will ensure new
innovation, increased productivity,
more jobs, and a rise in living standards
on our shores.”
—Stephen Gold, MAPI president and CEO
Engineered Product
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Overhead Conveyer
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Custom application expertise for
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Economical, efficient overhead conveyor
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said Thomas J. Duesterberg, report author and executive
director of the Aspen Institute’s Manufacturing Society
program.
Stephen Gold, MAPI president and CEO, concurred:
“With no changes in public policy, the manufacturing base will continue to shrink as a share of GDP as it
has for the past decade. With just a few policy shifts,
however, manufacturing in America can experience a
resurgence that will ensure new innovation, increased
productivity, more jobs, and a rise in living standards on
our shores.”
Inforum was commissioned to make projections based
on a target of moving manufacturing’s share of GDP back
to the level last seen in 1998 (approximately 15%), before
the “dot-com” recession and the “Great Recession.”
Results were projected to 2025.
Various scenarios were tested to determine what
economic trends could power a change. The “manufacturing resurgence” scenario was then contrasted with a
baseline forecast where the manufacturing value-added
share would remain at today’s level, approximately
11.5%.
The study found that by focusing on key drivers
(exports and imports; capital investments; energy supplies; regulatory and tax policy; and the skills gap for
manufacturing workers and researchers) the growth path
for manufacturing and the U.S. economy could improve
dramatically.
“At a minimum, this forecasting exercise ought to
lend some hope that we can indeed look ahead to a
manufacturing resurgence and the sustainable economic
gains that it brings, if we choose to follow this path,”
Duesterberg said. 䡺
USA Manufactured
12
AP
R I L
1986
2 0 1 3 / Since
MODERN
MATERIALS HANDLING
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For information visit www.enersys.com or call 1-800-EnerSys
LIFT TRUCK TIPS
Battery management replaces
gut reactions and guesswork
Three practices can help users take the bite out
of ‘the vampire in the battery room.’
By Josh Bond, Associate Editor
A
nyone with a battery room could probably identify
some things they’d like to improve. The expensive
hub for increasingly expensive batteries can have
a big impact on productivity, both by the minute and
over the lives of those batteries. More often than not, the
immediate needs of an operator will trump any overall
program to monitor and maintain the health of individual
batteries. To put it mildly, this can result in some waste.
Harold Vanasse, vice president of sales and marketing for
Philadelphia Scientific, puts it less mildly.
“I sometimes say there’s a vampire in the battery
room sucking the life blood out of an organization,” says
Vanasse. “There’s a lot of money spent there, but it’s often
overlooked.”
The problem with battery room waste is that it’s very
hard to quantify, especially when some wasteful acts
are perceived as a quick way to get back to work. Vanasse says each of the lean methodology’s eight types of
waste can be found in a battery room, and that battery
management systems can cut into all of them. “As it
rapidly spreads through other operations, lean thinking
has not yet made its way to the battery room,” he says.
“But this is the information age, so it’s only a matter
of time.”
There are three primary steps a battery room owner
can take to improve: rotation, watering and right-sizing.
Rotation is often confused with a first-in, first-out (FIFO)
approach, which is not ideal. With FIFO, there’s no way
to tell if the first battery has completed its cycle, when it’s
possible the second or third battery has. This can create a
downward spiral of poorly charged batteries, less runtime
and battery damage.
Just as poor rotation practices consist of guesswork
and bad habits, battery watering is rarely optimal and
can be just as damaging to equipment and productivity.
“Some top off their batteries frequently, and some just
water every Friday,” says Vanasse. “But it is possible to
over-water and under-water a battery.”
The best time to water is after a full charging cycle, and
it’s better to not simply use a bucket. Vanasse says about
14
AP
R I L
70% of users water manually, at about one minute per
cell. That adds up to more than 15 minutes per battery,
whereas a battery watering system can ensure the job
is done well in five minutes or less. Some can water an
entire battery in just 15 seconds.
When a battery management system is installed,
Vanasse said about half of users find they have too many
batteries, and half don’t have enough. For operations
with big seasonal shifts in volume, battery management
system can inform battery inventory strategy year-round,
as opposed to building a battery room around seasonal
peaks. “The old philosophy is one charger and three batteries for each lift truck,” says Vanasse. “By pooling and
effectively managing those batteries, it’s often possible
to reduce battery inventory by one per lift truck.”
Josh Bond is Modern’s associate editor and can be reached
at [email protected]
mmh.com
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BY VOCOLLECT.
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Visit www.mmh.com/vocollect2 to register.
© 2013 Intermec IP Corp. All Rights Reserved.
PACKAGING CORNER
Want to make your own
plastic pallets? Now you can.
Plastic pallet making machines can be cost
justifiable for certain companies.
By Sara Pearson Specter, Editor at Large
A
bout six years ago, Russ LaBelle, president
of blow molding and injection molding
machine maker Wilmington Machinery,
noticed that 90% of sales inquiries for the injection machines were for making plastic pallets.
“Prior to that, we were building a ‘general
purpose’ machine that could make plastic pallets,
but it was extremely expensive,” recalls LaBelle. “So we engineered five different machine
models—each designed to create different types
of plastic pallets, from a one-way nestable to a
heavy-duty, one-piece double deck—to reduce
the entry costs.”
Of course, the equipment is by no means
cheap. Depending on the style of pallet desired
and the quantity required (Wilmington’s machines can
crank out anywhere from 240,000 to 900,000 pallets per
year), costs run from $1.5 to $5 million. But, for certain
companies and particular areas of the world, the ability
to produce plastic pallets in-house can be cost justifiable,
LaBelle says.
“We currently have four machines under construction,
and they’re all destined for overseas purchasers,” he says.
“In the United States, wood is roughly $0.16 a pound,
whereas plastic resin can be $0.90 a pound, so it’s more
difficult to justify. But, in the Middle East, for example,
plastic resin and electricity are far less expensive. Further,
in many Asian countries—particularly China—the demand
is very high for plastic pallets.”
Potential purchasers of Wilmington’s plastic pallet
making machines include current wood pallet manufacturers who see an opportunity to expand their offerings in
plastic, as well as start-up companies looking to tap the
demands of the Asian and Middle East markets.
16
AP
R I L
“There’s also a lot of interest from plastic recyclers,”
adds LaBelle. Because the machines use structural foam
injection molding to create the pallets, they don’t require
virgin plastic.
“The machines can use 100% recycled polyolefin plastic—which includes polyethylene and polypropylene—in
flake form. As long as the material is clean and dry, it
doesn’t have to be repelletized first, which is not only
a time and cost savings but also allows the material to
retain more of its intrinsic strength properties,” he says.
Think you might be ready to make your own plastic
pallets? Wilmington Machinery has published a free
white paper, “Plastic Pallets Made Easy,” that explains
both the process and the financial justification calculations to help you get started. It’s available on their
Web site.
Sara Pearson Specter is an editor at large with Modern and
can be reached at [email protected].
mmh.com
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MODERN system report
The grass
thanks to
At Scotts Miracle-Gro, a fleet
management program keeps
the pallets moving.
By Bob Trebilcock, executive editor
A
John Smith,
manager, global
raw materials
18
AP
R I L
pril showers bring May flowers. And, if you’re The
Scotts Miracle-Gro Company, the start of the growing
season also brings orders for lawn and garden products.
Between January and May, Scotts receives and ships
9,150 pallets of product a day from its 780,000-squarefoot warehouse and distribution center in Marysville,
Ohio, to support the busy growing season. The
Marysville facility is just one of the distribution centers
operated by Scotts, which markets the Scotts, MiracleGro, Ortho and Roundup brands in North America.
Forget conveyor, AGVs and automated storage.
The primary tools at the Marysville facility are stretchwrapped pallets stacked on the floor and moved by a
fleet of lift trucks (Toyota Material Handling, U.S.A.,
toyotaforklift.com) operating 24/7.
To keep the fleet running during the peak season,
Scotts implemented a fleet management program sev-
mmh.com
is greener…
lift trucks
eral years ago in Marysville. “We have a
short window to ship our product, and we
operate in a demanding environment,”
says John Smith, manager of global raw
materials. “Prior to putting in the fleet
management program, it wasn’t uncommon to have two or three lifts a day down
for repairs.”
That downtime led to lost productivity and increased rental charges to keep
pallets moving. Since putting in the
program, Smith adds, “I can’t remember a day that a lift has been down for
more than a shift. If a lift can’t be fixed
at our facility, our local dealer brings
over a replacement to keep us running.”
In addition to keeping the trucks
up and running, the fleet management
program is creating a wealth of information about the repair history of each
truck, operator performance and fleet
utilization. Although Scotts is not taking advantage of that information at the
moment, the lawn and garden company
is compiling data generated by the program to improve performance and control costs in the future.
“This will help us define what we’re
spending on planned maintenance and
identify our unplanned repairs,” says
Matthew Chute, senior buyer of indirect sourcing. “By comparing the performance of vehicles in different plants
and with different operators, we believe
we will be able to identify best practices and change the habits of people,
which can reduce maintenance costs.”
Managing fleets
Scotts’ implementation of a fleet management program has been a gradual
but steady process that reflects three
warehousing and distribution trends:
r 5IF JNQPSUBODF PG VQUJNF BOE QSP
ductivity in a conventional warehouse;
r 5IF FWPMVUJPO PG MJGU USVDL UFDIOPM
ogy; and
Scotts relies on double handling
attachments to move two pallets
at a time.
mmh.com
P R I L
2013
19
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Avoid the Static.
20
AP
R I L
mmh.com
Once built, pallets are stretchwrapped and ring-wrapped before
they are put away into storage to
await shipment.
emergency repairs during the other
two shifts. If a truck can’t be fixed and
put back into service onsite, the dealer
provides a replacement lift while the
Scotts truck is out of service.
Part of this change was a result of an
effort to reduce emergency rental costs
during the busy season. “With our old
provider, it wasn’t uncommon to have
multiple days where we had to have
rentals because two or three lifts were
out of action,” Smith says.
Part was also the fact that today’s
lift trucks, like today’s cars, are increasingly sophisticated, computer-controlled
machines. It now takes technicians,
it .
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mmh.com
P R I L
2013
21
rather than mechanics, to keep them
running. “As the technology evolved, it
became increasingly difficult for a general
repairman to make an adjustment to get
a lift truck back into service,” says Smith.
Reducing costs
While uptime is of paramount importance, Scotts’ fleet management program is playing an emerging role in the
company’s efforts to manage its distribution and supply chain costs.
For example, the program includes
the planned maintenance of specific
components based on hours of use. It
also includes a certain percentage of
unplanned maintenance for certain
components, up to a negotiated price
threshold.
At the moment, Scotts is realizing
two financial benefits from the program, according to Chute, the senior
buyer who is responsible for purchasing
the lift truck fleet.
The first is that Scotts has better control over its rental costs during the peak
season. That’s not just the cost of renting lifts because a Scotts-leased truck
is out of commission. Rather, Scotts is
able to make informed decisions about
when to lease versus rent a unit to meet
peak demand. “We can lease a truck
for about 25% less than we can rent a
truck,” Chute says. “However, we don’t
need all those trucks all year long. So, it’s
important that we are fully utilizing our
leased fleet to minimize how much we
spend in rentals. The information we’re
getting from the fleet management program helps us strike the right balance.”
The second benefit is that Toyota
offers a better residual rate to lessees
who use the fleet management program. “We’re able to offset part of the
cost of the maintenance programs by
lower lease payments,” Chute says.
“Toyota is willing to do this because
they believe in the program.”
Going forward, Chute intends to utilize the fleet and repair data in several
new ways to further reduce costs. They
include:
r 3JHIU TJ[F GMFFUT BOE PQUJNJ[F
MFBTFT In the past, Scotts has leased
22
AP
R I L
After leaving the palletizer, a Scotts associate adds display materials before
the pallets are conveyed to the stretch wrapper.
all of its lift trucks for 48 months/2,500
hours. In the future, Chute wants to
use the operational data to make sure it
is fully utilizing all of its vehicles. If not,
Scotts can take steps to right size the fleet
or rewrite leases to reflect actual usage.
r 2VBOUJGZ UIF CFOFGJUT PG
QMBOOFE NBJOUFOBODF “In the past,
we have been reactive. We fixed things
when they broke,” says Chute. “With
planned maintenance, we are being
proactive.” Scotts is in the process
of extending the program to its other
plants. The next step is to implement a
third-party maintenance software tool
to aggregate and compare data across
facilities. “We see the value in the program,” Chute says. “However, we need
the data to prove that it’s saving us
money.” Chute also plans to use the
data to compare operational costs across
facilities. This may identify best practices in one facility that can be implemented in other facilities. “We have the
same vehicles and the same operations
across the company,” he says.
r *EFOUJGZ PQQPSUVOJUJFT GPS
PQFSBUPSUSBJOJOHScotts assigns specific lifts to specific operators. As part
of the fleet management programs, it
receives a performance chart that identifies the repairs to each vehicle. “One
of the things we want to identify is what
are we spending on planned maintenance versus unplanned maintenance
or repairs that are the result of how the
truck is used,” says Chute. “We hope
to be able to identify the operators that
could benefit from further training.”
Most important of all, say Chute and
Smith, the program ensures that Scotts
gets the most value from its materials
handling equipment. “A lift truck is
the tool of the trade in our facilities,”
says Smith. “When a driver is on it for
8 or 12 hours a day, you want that truck
to have the necessary power and performance when it’s needed. Our fleet
management program is getting the job
done for us.” 䡺
Keeping up with peak demand
Lift trucks, stretch wrap and floor storage are
at the heart of Scotts’ distribution activities.
T
he Scotts Miracle-Gro distribution
center in Marysville, Ohio, exemplifies conventional storage and distribution. The manufacturing process
is highly automated, right through the
bagging, palletizing and stretch wrapping processes. But once pallets have
been prepared for shipment, they are
stored on the floor and moved by lift
trucks outfitted with attachments to
handle two pallets at a time.
3FDFJWJOH Scotts operates multiple production lines (1) in the facility. At the end of each line, the product
being mixed is automatically bagged,
palletized (2), stretch wrapped and ring
wrapped (3), labeled and automatically
scanned. It is now in the warehouse
mmh.com
The Scotts
Miracle-Gro
Company
Marysville, Ohio
SIZE: 780,000 square feet
PRODUCTS: Lawn and garden products
SKUS: 144
THROUGHPUT: 9,150 pallets a day
received and shipped during peak
season
SHIFTS: 3 shifts a day/7 days per week
during peak season
EMPLOYEES: 85 people in distribution
management system and ready for putaway into storage (4). While that represents the bulk of the product stored
in the facility, some product is received
(5) from other Scotts’ facilities. Those
pallets are scanned as they’re unloaded
from the trailer.
Storage: The storage process is the
same whether the product is coming
directly from the manufacturing line
or has just been received in a truck. A
lift truck operator scans the pallet and
chooses a storage location (4) in an
area where other pallets with the same
SKU are being stored. At the storage
spot, the operator scans a location tag
to confirm the putaway location for that
pallet. All product is stored on the floor
utilizing a pyramid stacking pattern.
The bottom layer of the pyramid is five
pallets across; successive layers have
fewer pallets while the top of the pyramid may be one or two pallets.
Picking: Order fulfillment is managed by Scotts’ enterprise resource
planning (ERP) system. Pick tickets
associated with an order are printed
and distributed to lift truck operators.
Once the lift truck operator arrives at
the storage location (4) associated with
a pick ticket, the operator scans the
location bar code label before picking
up a pallet.
Packing and shipping: Most of
the pallets picked during the second
shift are loaded directly from storage
System suppliers
LIFT TRUCKS: Toyota Material Handling
U.S.A., toyotaforklift.com
FLEET MANAGEMENT PROVIDER: Toyota
Material Handling Ohio, tmhoh.com
LIFT TRUCK ATTACHMENTS: Cascade
Corp., cascorp.com/americas/en
PALLETIZER: Packaging Systems
International, pkgsys.com
STRETCH AND RING WRAP EQUIPMENT:
Lantech, lantech.com
ERP/WAREHOUSE MANAGEMENT
SYSTEM: SAP, sap.com
MOBILE COMPUTING: Motorola Solutions,
motorolasolutions.com
onto a trailer at the docks in the receiving/shipping area (5). The operator
scans a location tag to confirm that the
pallet is loaded onto the correct trailer
at the right dock door. Pallets picked
on the first and third shifts are typically
staged on the loading dock. They are
then loaded during the second shift. 䡺
Receiving/shipping
5
Stretch
wrapper
Palletizers
Production
lines
Pallet storage
4
3
2
1
Manufacturing
mmh.com
P R I L
2013
23
MODERN special report
Conveyor technology:
Are you
thinking
differently?
With new distribution requirements and
more investment in automation underway,
Modern set out to find how readers are
now approaching the use of conveyors and
sortation systems.
By Bob Trebilcock, Executive Editor
C
onveyor and sortation systems are the foundation of any automated materials handling solution. If there is only one piece of automation in a facility, it is likely to be
a conveyor. And, if it goes to more than one location, a sorter is sure to be associated with the system.
Those are givens. With new distribution requirements and an unprecedented
level of investment in automation underway, are end users thinking differently
about how they use conveyors and sorters? Those are among the questions we put
to Modern’s readers in our annual survey of conveyor technology.
As with years past, we set out to learn about our readers’ plans for the purchase of conveyors and sortation systems in warehouses, DCs and manufacturing
applications in the coming year. With all of the recent investments in automation,
especially by retailers and food and beverage distributors, we also sought to learn
24
AP
R I L
mmh.com
2013 Conveyor Technology Webcast
«ÀÊÎä]ÊÓä£Î]ÊÓ\ääÊ«°°Ê/ÊUÊÊÌÊ°VÉVÛiÞÀÃÓä£Î
if end users are thinking differently about how they deploy
conveyor and sortation systems, as well as what they value
in conveyor technologies. Finally, we wondered if there are
attributes that end users are willing to pay a premium for in
their conveyor systems.
To answer those questions, Peerless Research Group
(PRG) surveyed subscribers of Modern as well as a sample
of recipients of our e-newsletters. We received more than
200 qualified responses, defined as a reader who buys or
uses conveyor. The respondents represented a range of
company sizes, with 27% reporting revenues of more than
$500 million, 15% reporting revenues of more than $100
million and the remainder less than $100 million.
While our respondents work in facilities that average
157,000 square feet, 20% work in facilities with more than
500,000 square feet, including 9% who work in facilities of
more than 1 million square feet.
They also represent a mix of manufacturers, distributors
and warehouses associated with manufacturing:
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The fact that the numbers add up to more than 100%
illustrates the changing nature of warehousing and distribution today: Many facilities are responsible for more than
one duty.
Finally, our respondents represent a variety of industries, from automotive to food and beverage to the chemical industry to retail trade. Here are the most important
results.
In the past 12 months or in the next 12 months,
has/is the way you are designing or employing
your conveyor systems changing?
Yes 31%
No 69%
Source: Peerless Research Group (PRG)
What is the nature of the items being handled
on your conveyor systems?
mmh.com
42%
Individual items
30%
Plastic totes
Pallets
27%
Poly-bagged items
Mixed SKU pallets
Beverage cartons
Other
Continued investments in productivity
The Conveyor Equipment Manufacturers Association
(CEMA) is predicting slow growth for the conveyor marLFU GPS UP 4IJQNFOUT BSF FYQFDUFE UP HSPX CZ
5% to $10.9 billion while the orders booked are expected to
EFDMJOFNPEFTUMZCZUPCJMMJPO
Those steady-as-she-goes numbers are reflected in the
purchasing plans of ModernT SFBEFST /FBSMZ TBJE
they plan to increase the level of conveyor in their facilities
XIJMFQMBOUPNBJOUBJOUIFTUBUVTRVP0OMZQMBOUP
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QMBO UP NBJOUBJO UIF TBNF MFWFM 0OMZ QMBO UP SFEVDF
their use of sortation.
55%
Cases/boxes
17%
14%
10%
19%
Source: Peerless Research Group (PRG)
8IJMF B NBKPSJUZ PG SFTQPOEFOUT QMBOT UP TQFOE
less than $75,000 on conveyor systems, parts and accesTPSJFT JO UIF OFYU NPOUIT QMBO UP TQFOE NPSF
than $500,000, including nearly 11% who plan to spend in
excess of $1 million.
Conveyors at work
From belt to towline conveyors, the conveyor industry offers
a diverse mix of products. Modern’s readers are employing
them all:
rBSFVTJOHCFMUDPOWFZPS
P R I L
2013
25
The percentage of respondents handling
individual items, poly-bagged items and plastic
totes may be a reflection of the growing volume
of direct-to-consumer orders.
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Which best describes your shipping environment?
24%
We ship out on mixed pallets
22%
We ship item level direct to customers
19%
We ship out on full pallets
16%
We ship on mixed cartons
We ship on full cartons
Other
2%
17%
Source: Peerless Research Group
26
AP
R I L
mmh.com
2013 Conveyor Technology Webcast
«ÀÊÎä]ÊÓä£Î]ÊÓ\ääÊ«°°Ê/ÊUÊÊÌÊ°VÉVÛiÞÀÃÓä£Î
cartons, and 22% are shipping item
level orders directly to customers.
Most facilities are operating conventional order fulfillment solutions:
rQJDLQBDLBOETIJQPSEFSTBT
they are received in the facility
rIBOEMFJUFNTNPSFUIBOPODF
during the order fulfillment
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shipping container
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they ship
Is distribution changing?
There is little question that distriCVUJPO SFRVJSFNFOUT BSF DIBOHJOH
(SPDFSZ TUPSF DIBJOT BOE CJH CPY
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pallets that are designed for specific
aisles in a store. Retailers that once
received full pallets of product once
BXFFLPSNPOUIBSFOPXSFDFJWJOHB
few cartons every day.
%JTUSJCVUJPO DFOUFST BSF IBOEMJOH
more individual items than ever. In
fact, nearly 44% of respondents agreed
UIBU UIFJS EJTUSJCVUJPO SFRVJSFNFOUT
are changing. While this is not true
for every industry, only 4% of respondents disagreed with that statement.
Given the changes in requirements,
XFBTLFEJGUIBUDIBOHJOHMBOETDBQFJT
impacting the use of conveyor.
On the one hand, the vast majority of respondents (69%) say that they
have not changed the way they are
designing or using conveyor systems
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are not currently designing materials
handling systems that use less conveyor than in the past.
)PXFWFSNPSFUIBOPGSFTQPOEFOUT JOEJDBUFE UIBU UIFZ BSF MJLFMZ UP
evaluate a change in their order ful-
mmh.com
GJMMNFOU QSPDFTTFT XJUIJO UIF OFYU UXP
years. Additionally, a surprisingly high
QFSDFOUBHF JOEJDBUFE UIBU UIFZ
are using some type of high-density
storage technology, such as a mini-load
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and orders ready for shipment. A surQSJTJOH PG SFTQPOEFOUT TBJE UIBU
they have implemented or are consid-
ering the implementation of a goodsto-person fulfillment solution. Those
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the way that conveyor is used in a facility, or whether conveyor is used at all.
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TPNF PG UIF WFSCBUJN SFTQPOTFT XF
received from readers.
ri0VSGPDVTIBTTIJGUFEUPJNQSPWing processes and material flow,” wrote
Which best applies to your order fulfillment processes
in your DC operations?
We handle items more than once
(i.e. tote to packaging area and pack)
30%
Pack direct to shipping container
23%
18%
We let inventory accumulate and then we ship
We make up our orders on a per order
basis and ship on a per order basis
Other
50%
10%
How likely are you to evaluate changing this process
within the next 2 years?
Extremely likely
8%
Very likely 17%
Somewhat likely 22%
Not very likely 34%
Not at all likely 19%
P R I L
2013
27
Do you use any metric to assess your
conveying system?
Yes 32%
No 68%
What are you assessing?
71%
ts
Maintenance cos
Maintenance
costs
SOME THINK
OPTIMAL LOAD
STABILITY
COSTS MORE.
WE THINK
DIFFERENT.
At BEUMER we have a reputation for making things a little
different. Take the BEUMER stretch hood® transport packaging system. In a sector where energy-intensive shrink
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method represents the state-of-the-art sustainable alternative. The result: better load stability, higher throughput
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consumption and 90% energy savings.
For more information, visit www.beumergroup.com
28
AP
R I L
Accuracy–reduction in errors
66%
Manpower needed to operate/man hours
63%
Time savings
59%
Units moved on an hourly/daily basis
59%
Energy efficiencies
54%
Space requirements
Reduction in damaged goods
51%
46%
mmh.com
RIDG-U-RAK
one respondent. “Conveyor may be necessary in our facility,
but we are looking at alternate equipment so that the floor
space can remain open.
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only using conveyor for the takeaway process in packing,”
wrote another.
ri8FBSFCVJMEJOHHSFBUFSJOUFMMJHFODFJOUPPVSPSEFSGVMfillment and wave planning processes,” wrote a third.
ri.PSFBVUPNBUJPOBOETPGUXBSFuPSTPNFWBSJBUJPOXBT
a phrase that cropped up over and over in written responses.
What matters to readers
The old adage that you can’t manage what you don’t measure
is beginning to be applied to conveyor and sortation systems.
A third of respondents indicated they are now using metrics
UPBTTFTTUIFJSDPOWFZJOHTZTUFNT.PTUBSFVTJOHNPSFUIBO
one metric. The most commonly cited include:
rBSFNFBTVSJOHNBJOUFOBODFDPTUT
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the facility
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daily basis
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rBSFNFBTVSJOHFOFSHZFGGJDJFODJFT
Since conveyor and sortation systems are mission critical to a distribution center, respondents were asked what
factors were most important in the purchase of a conveyor
system. It comes as no surprise that ease of maintenance
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EFTJHO GMFYJCJMJUZ XFSF MJTUFE BT WFSZ JNQPSUBOU PS
somewhat important.
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more for design flexibility.
"U UIF PUIFS FOE PG UIF TQFDUSVN POMZ BSF XJMMJOH
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willing to pay extra for faster lead times.
Since item-level handling, faster turnaround times and
mixed SKU palletizing show every indication of increasing in
use, Modern expects to see the adoption of more automation
JO UIF GVUVSF 8F XJMM SFWJTJU UIFTF RVFTUJPOT JO OFYU ZFBST
survey to see how they are impacting conveyor and sortation
going forward. 䡺
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General Manager,
Roberts Warehousing
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mmh.com
Modern’s 16th annual survey of the world’s leading materials
handling systems suppliers shows the top performers have held
their ground, even as the rest of the list climbs steadily upward.
O
nce again, the results of an industry
survey show growth is leveling off—yet
remaining steady—following the release
of post-downturn, pent-up demand. The
elastic band snapped back in grand fashion in 2011, when the combined revenues of the top 20 materials handling
systems suppliers jumped nearly 26%.
For 2012, Modern’s 16th annual survey
reflects more modest improvement, as
the grand total of $14.66 billion grew
just 4.1% over 2011’s $14.08 billion.
The top five held their own, accounting for 50% of the list’s total worth.
30
AP
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Although revenues fell by a combined
$60 million—less than a percent—
such a small shift might simply be
due to changes in currency valuations
inherent in the global nature of the
industry. Those ranked sixth through
10th posted a combined $200 million
in growth, with cumulative revenues
up 5.6%. Overall, there wasn’t much
movement at the top half of the list,
with the top 10 up a combined $140
million, or 1.3%. But the real story is
in the bottom 10 companies, who
reported an additional $437 million, or
mmh.com
Top 20 worldwide materials handling systems suppliers
2012
Rank
2011
Rank
Worldwide 2011
revenue (US$)
Worldwide 2012
revenue (US$)
Company
Web site
1
Schaefer Holding
International GmbH
Headquarters
ssi-schaefer.us
1
2.5 billion
2.57 billion
Neunkirchen, Germany
2
Daifuku Co., Ltd.
daifuku.com
1
2.5 billion
2.37 billion
Osaka, Japan
3
Dematic
dematic.us
2
1.3 billion
1.3 billion
Luxembourg
4
Murata Machinery,
Ltd.
muratec-usa.com
3
1.05 billion
1.05 billion
Kyoto, Japan
5
Mecalux, S.A.*
mecalux.com
4
952 million
952 million
Barcelona, Spain
6
Vanderlande
Industries
vanderlande.com
5
747 million
785 million
Veghel, The Netherlands
7
Beumer Group GmbH beumergroup.com
8
657 million
722 million
Beckum, Germany
8
Swisslog AG
swisslog.com
6
617 million
680 million
Buchs, Switzerland
9
Kardex AG
kardexremstar.com
7
596 million
630 million
Zurich, Switzerland
10
Intelligrated
intelligrated.com
10
435 million
524 million
Mason, Ohio
11
Fives Group*
fivesgroup.com
9
508 million
508 million
Paris, France
12
Knapp AG
knapp.com
11
423 million
490 million
Hart bei Graz, Austria
13
TGW Logistics Group
GmbH
tgw-group.com
12
394 million
473 million
Wels, Austria
14
KUKA Systems North
America **
kuka-systems.com
13
352 million
352 million
Sterling Heights, Mich.
15
Witron Integrated
Logistics, Inc.
witron.com
15
270 million
300 million
Arlington Heights, Ill.
16
FlexLink AB*
flexlink.com
16
228 million
228 million
Allentown, Pa.
17
Wynright *
wynright.com
17
216 million
216 million
Elk Grove, Ill.
18
System Logistics
systemlogistics.com
N/A
107 million
207 million
Fiorano, MO, Italy
19
Dearborn Mid-West
Company
dmwcc.com
20
110 million
155 million
Taylor, Mich.
20
Elettric 80
elettric80.com
19
120 million
147 million
Viano, RE, Italy
* 2011 revenues. 2012 revenues not available by press time.
** 2011 revenue for North American sales.
13.8%. The revenues of the bottom 10
still only account for 24.6% of the overall list, but that’s up two full percentage
points over 2011.
The cutoff for inclusion on the list
is up to $147 million from $110 million in 2011 and $100 million in 2010.
Since none of the top 20 have acquired
one another (as has happened in years
past), the growth is almost entirely
organic. It is clear that companies on
the list have not rested on their laurels, as many noted expansions into
new product lines, services and geog-
mmh.com
raphies as contributing factors to their
strong performance in 2012.
Life at the top
Schaefer is No. 1 on this year’s list with
$2.57 billion in revenues, an almost 3%
gain. Tied last year for No. 1, Daifuku
fell to No. 2, reporting revenues of $2.37
billion after converting from yen to U.S.
dollars. Although Daifuku reported an
increase in sales, the year-end currency
conversion resulted in a 5% decrease
over 2011 revenues.
In third place is Dematic, which
finished 2011 in second place behind
the first place tie between Schaefer
and Daifuku. Dematic, Murata and
Mecalux each held steady in 2012,
matching last year’s $1.3 billion, $1.05
billion and $952 million respectively.
Following last year’s acquisition of
Beewen, a German company specializing in AS/RS systems, Vanderlande
took sixth place, adding 5% to come
in with $785 million. Seventh-place
Beumer added $65 million, or 10%.
Swisslog grew 10% to $680 million
while Kardex finished 9th with 6%
P R I L
2013
31
growth to $630 million. Intelligrated
secured the 10th place slot at $524
million.
Standout performances
Intelligrated crossed the half billion
mark with 20% growth, and acquired
supply chain software provider
Knighted, which specializes in Webenabled logistics software. In mid2012, Intelligrated was acquired by
European private equity firm Permira,
which will support the company’s
global growth.
Intelligrated CEO Chris Cole says
2012 was a record year in profitability, marking an expanded footprint and
new product offerings. “Our joint venture with SDI is now up and running
in Brazil, and we’ve been very popular
with U.S. multi-nationals expanding
into Canada,” says Cole. “Activity outside the U.S. now represents 18% of
our sales.”
TGW also grew 20%, and at $473
million, its 2012 revenues are up 55%
over 2010. According to the company’s
Web site, the growth is due to customers such as Adidas, Audi, Bentley and
Gap. President Georg Kirchmayr says
the long-term goal is to operate production sites on all continents.
“In the U.S., the level of automation in the materials handling business
is much less than in Central Europe,”
says Kirchmayr. “In warehouse logistics,
automation has just started to establish
itself.” He also emphasized the possibilities for China and the growth market
in Brazil, where Kirchmayr says TGW’s
investment in CSI in Brazil makes them
“perfectly prepared for expanding in the
Latin American region.”
Knapp grew 16% to $490 million.
According to marketing manager Jerry
Johnson, Knapp’s sales growth can
be attributed to positive economic
strength in several key markets including pharmaceutical/healthcare, e-commerce/multichannel, fashion, retail
and cosmetics. “Additionally, expanded
technology developments and services
offered in Asian and Australian markets contributed to another record year
for the company and set the stage for
future sales increases,” says Johnson.
After just missing the list last year,
System Logistics returned with 93%
growth from $107 million to $207 million. Paul Roy, vice president of channel sales and marketing, says success
in key market segments and growth in
both Europe and South America were
to thank for the strong showing.
Michael Paisley, controller for
Dearborn Mid-West, commented on
his company’s 41% spike to $155 million. “We hired more staff, found new
customers, launched new product
lines, and started larger projects across
the board with our propriety material handling systems,” says Paisley.
Revenues from both the company’s
automotive and bulk handling groups
Making the list
To qualify for Modern’s Top 20 list,
companies must be suppliers of materials
handling systems, not just equipment
providers. In addition to manufacturing
at least two major handling system
components, a company must also
employ full-time staff that designs,
installs and integrates materials handling
systems.
These systems include at least two
of the following: transportation devices,
storage and staging equipment, picking
units, sortation systems, information
32
AP
R I L
management systems, data capture
technologies and other types of handling
equipment.
To be considered worldwide suppliers,
companies must have a presence in North
America and must also be able to report
materials handling revenues to Modern.
(Lockheed Martin, for example, is a
systems supplier with a North American
presence, but isn’t included in our Top
20 list because they can’t single out
the revenue that comes from materials
handling contracts.)
grew in 2012, with $105 million in
auto, up from $90 million in 2011, and
$50 million in bulk handling, up from
$20 million in 2011.
At nearly $20 million more than its
next competitor, Italy-based Elettric
80 secured the 20th spot on the list.
Company revenues hit $147 million in
2012, 23% more than the previous year.
Ones to watch
After ranking 19th on the list in 2011
and 18th in 2012, viastore is one to
watch. The fact that it missed the list
this year despite growing 25% from
$104 million to $130 million in two
years is a testament to the competitiveness of the market. The same can be
said for SDI Industries, which would
have taken 19th place just two years
ago with its $115 million in revenues.
Savoye is a business unit of Legris
Industries, which has been reported on
this list for the past few years where it
floated around between 8th and 14th
place. This year, in an effort to keep
the list focused on materials handling
systems, Savoye was broken out of
the overall revenue of Legris, which
includes business units in other markets. Savoye’s 2012 figures were not
available by press time, but last year’s
$128 million means they could make
an appearance on next year’s list.
The outlook
As the industry continues to reinvent
itself, the companies on this list will
play an important role. And like the
larger industry, some players will find
success, some will lose some ground,
and some will hold on tightly to what’s
already theirs.
The list’s average growth rate lines
up nicely with the overall industry growth estimates from Material
Handling Industry (MHI). In last
month’s annual Industry Outlook,
George Prest, CEO of MHI, said
growth is projected to improve into
2014. Following industry growth rates
of 14% in 2011 and 10% in 2012, 2013
could hover around 6% before breaking double digits again in 2014. 䡺
mmh.com
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MODERN equipment report
Rack and shelving:
34
AP
R I L
mmh.com
Supporting speed
Racks and shelves are not standing still as efforts to improve speed
and productivity reshape traditional approaches to storage.
S
torage systems were once designed to
do one thing well: Hold goods until
they were needed. Recently, however,
the hunt for speed and efficiency in the
warehouse and DC has placed more
emphasis on every step a worker takes
and every cubic foot of unused space.
Because they touch every item that
passes through a facility, racks and
shelves are no longer built simply to
be big enough. These systems are now
designed to reduce labor costs, optimize available space, and react quickly
to changing business conditions. The
best racking and shelving systems are
about more than providing a temporary home to inventory; they are about
serving the specific profile of the stock
keeping unit (SKU).
“Racking is connected more than ever
to the promise a company makes to its
customers and the target service levels
required to fulfill that promise,” says
David McLain, national account manager for Steel King, who cites the growth
of the e-commerce market as a key influence. “Businesses need to get the product in, have it on the shelf for as short a
time as possible, then ship it to the customer directly and much more quickly
than they’ve done in the past.”
The growth of warehouse management systems (WMS), per-item visibility
and next-day/same-day shipping objectives has prompted companies to think
differently about how product is stored
and retrieved. Instead of endless rows of
mmh.com
selective rack, facilities are now designed
with an assortment of storage and picking systems to accommodate pallets and
eaches, seasonal items and daily sellers,
large and small items, and everything in
between. The choice of storage for each
can make or break a facility’s efforts to
speed up product movement.
The rack race
Traditionally, a warehouse might be
filled with single-deep selective rack,
which gives the impression of product accessibility since every pick face
is open for business. In practice, this
approach cannot keep up with customers’ desire for rapid order fulfillment,
according to Carlos Oliver, president of
Frazier Industrial.
“When you start asking about SKUs
and volumes and movement, you start
realizing you don’t store fast-movers the
same way you store slow-movers,” says
Oliver. “If you walk out into your warehouse and it’s filled with the same type
of racking, you’re looking at an opportunity for improvement. You’re ignoring
one end of the spectrum or the other.”
McLain agrees, saying he watched
one customer replace a facility’s homogeneous storage system with a picking
mezzanine with shelving, pallet flow in
certain areas between six and 10 deep,
high-rise shelving with narrow-aisle
picking for individual parts, a carton
flow/pallet flow pick module and four
different profiles of selective rack for full
pallet storage. In most cases, this type
of transformation results in more work
being done by fewer people in less space.
“There’s more competition for rapid
order fulfillment and things like sameday shipping, and that impacts our
industry,” says David Olson, national
sales and marketing manager for RidgU-Rak and current president of the
Rack Manufacturers Institute. Olson
says rapid order fulfillment is an area
of increased emphasis as companies
attempt to compete with the Amazon
model. “Easy access and highly efficient picking systems have become
important, so we’re doing more pick
modules in large DCs.”
Pick modules are increasingly used
for the efficient storage and selection of
cartons and eaches. As these modules
grow in popularity, they’re also growing
in size. Older style pick modules might
have been replenished by forklifts, with a
small center aisle and just one conveyor
takeaway system, says McLain. “We’re
now seeing much larger center aisles,
15- to 20- or 25-feet wide,” he says,
“with four or five lanes of conveyor for
both incoming and outgoing product.”
In many case-picking environments,
staggered roller beds are replacing conventional wide roller carton flow shelves
to accommodate rapidly changing SKU
mixes, says McLain. Magnetic labels
on the pick side and configurable lane
indicators on the replenishment side
make adjustments simple. “You have to
P R I L
2013
35
be able to change from six SKUs on a
shelf to 10 and change those out very
quickly, he says. “Dedicated individual
lanes hamper your ability to use 100%
of your storage system. The carton flow
industry and the picking of items are all
becoming much more flexible.”
The desire to keep a single carton
pick face as full as possible highlights
the emphasis on reducing unused
space. Wasted space results in a larger
storage system footprint, which in turn
impacts the distance a worker must
travel to retrieve an item, both of which
can increase costs. “Customers always
had an appreciation of the impact of
a storage system on their business,”
says McLain, “but technology was the
limiting factor.” Without granular data
about each SKU, older systems drove
a more traditional style of storage and
selection, when the expectation was to
ship in pallet loads and large cartons
Racks are designed for speed and
might even include a captive lift to
increase worker productivity.
to the store. Individual items being
shipped directly to the end customer
has required big changes.
“Warehouse management systems
are driving the whole process, and that
seems to be the starting point for many
companies,” adds McLain. “They’re
wondering how that per-item visibility fits into what they want to do, and
based on that, how they design a racking system to fit.”
Business intelligence
For some operations, racking might
escape scrutiny as the focus hovers on
WMS, lift trucks and picking technologies to cut labor costs, increase productivity and optimize slotting. Information
technology is one piece, but storage
systems that hamper the speed of
putaway and retrieval, or result in too
much empty space, will limit an operation’s potential.
“More and more, the intelligence
is becoming important to the storage
design,” says Alan Schneider, product
manager for vertical storage solutions at
Stanley Vidmar. “Knowing something’s
Shelving isn’t static: 3 products from ProMat
The industry continues to find better
ways to store goods and present them
to workers. Here are three examples
from ProMat 2013, held in January.
activity, a complete engineering analysis ensures that the structure meets
all state and local required safety
requirements. Penco Products, 800562-1000, www.pencoproducts.com.
the rail system to enable access to the
cells containing SKUs in the rear rows.
Holland Storage Systems, 616-7722052, www.speedcell.net.
TubeRack system
SpeedCell storage system
Clipper and Erectomatic shelving
Clipper and Erectomatic shelving consists of industrial grade components
configurable as a variety of multi-level
storage structures in distribution
center, warehousing, manufacturing
and record storage applications. The
systems combine structural stair and
mezzanine/work platforms with posts
and shelves for storage installations
up to four levels high. Shelving—
offered in 24 different standard powder coated colors—is tailored to each
job with an assortment of accessories.
For installations in areas of seismic
36
AP
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The SpeedCell storage system for
carton and individual SKU storage
turns dead space into cost-effective
and efficient hand-picking areas. As a
vertical shelving accessory, the system
consists of a collection of durable,
flame- and water-retardant vertical
textile columns. Capable of holding
25 pounds per shelf and up to 230
pounds per vertical column, each
column is suspended from a racking
structure from a rail system that allows
them to move from side to side. Each
bay-set can be up to five rows deep,
with those at the front sliding aside on
Incorporating a dual-movement frame,
the TubeRack system by Hannibal
Industries allows flexibility both frontto-back and side-to-side. This enables
it to safely withstand impacts and seismic events. Its horizontal-bolt-together
modular construction can
handle higher
capacities with
less steel, while
reducing the
stress on the
slab. Its modularity also allows for
future flexibility
and lower freight
costs. TubeRack
can be used in all
of the supplier’s
storage rack solutions, including selective, double deep, push back, pallet
flow, drive-in, and automated storage and retrieval systems. Hannibal
Industries, 888-246-7074, www.
hannibalrack.com.
mmh.com
location is essential to efficiency, especially if you have a
dynamic system. Searching for and locating material is not
very efficient, the idea of holding inventory ‘just in case’ is no
longer sustainable, and visibility is paramount.”
The impact of business intelligence on storage optimization is exposing strengths and weaknesses of racking solutions that even their manufacturers could not have predicted.
When Frazier launched its pushback racking, Oliver says the
company thought it would be used for three- or four-deep
applications. In recent years, he found it is almost exclusively
double-deep, when a customer could get the same density
for a lower cost with purpose-built double-deep. In the past,
the decision would be simple; the same density with less
expensive rack would win every time.
“Now it’s all about productivity,” says Oliver. “Pushback
essentially operates the same as single-deep, without the
need for pantograph lift trucks. The difference between running ‘single-deep’ pushback racking at 18 pallet moves per
hour and double-deep reach racking at 12 means I can make
up the racking costs in manpower.”
Analysis of business information can help a customer see
the big picture, instead of prioritizing one metric, such as not
missing a shipping window, at the expense of another, such
as pallet moves per hour. Oliver says there are three legs of
the stool when making decisions around racking: equipment
price, the cost of the building space, and the price of labor,
Used racking: A cautionary tale
The longevity of racking
equipment means it is likely
to outlast the materials
handling system it serves.
When it’s time to consolidate or update facilities, it’s
likely a large amount of
perfectly good rack will
end up on the used market.
While it is often possible
to find quality used rack,
there are a number of factors to consider. According
to David McLain, national
account manager for Steel
King, the specific properties of each rack installation
make it difficult to find a
used product that meets
all requirements in a new
application.
“You’ve got to be sure
it meets the seismic standards for the region and
the capacities of the application,” he says. “Used
rack is rarely used for new
picking systems, where the
mmh.com
level of needed customization makes it just as easy and
cost-effective to get the exact
design direct from the rack
supplier.”
David Olson, national
sales and marketing manager
for Ridg-U-Rak and current president of the Rack
Manufacturers Institute,
recommends the end-user
contact a qualified design
engineer to review the component metals and intended
usage before purchasing used
rack. Carlos Oliver, president
of Frazier Industrial, takes it a
step further, advising buyers
to investigate the background
of anyone in the business of
selling used equipment.
“Used racking is a huge
problem in the marketplace,”
he says. “There are lots of
small operations running
around selling used rack, and
they’re happy to take your
money and disappear.”
P R I L
2013
37
Flow storage system accelerates company’s expansion
Crider, a leader in canned and frozen
chicken in the United States, added
a 100,000-square-foot warehouse to
its Stillmore, Ga., facility to accommodate new business. The company took
the opportunity to rethink its warehouse logistics, which had become a
bottleneck restricting growth.
“We had to move product to get
to other product, which made first-in,
first-out (FIFO) product rotation difficult,” explains Phillip Rehberg, vice
president of operations at Crider.
“Over-handling and over-stacking
the pallets caused
costly, unnecessary
finished product
damage. Forklift
operators spent too
much time searching
for product to ship,
which made staging
and loading delivery
trucks inefficient.”
The company
selected a dynamic
pallet flow storage
system (Steel King,
steelking.com) with
10,240 pallet posi-
tions that are stored four high and
12 deep. Once the system is loaded,
FIFO product rotation is automatic.
Since fewer aisles are necessary, aisle
space was reduced by 75% and up to
100% more product could be stored
than with traditional selective pallet
racking.
“Before the flow system and new
warehouse, we might ship 16 truckloads on a good day,” says Rehberg.
“Now we can routinely ship 25 truckloads in less time with less labor.”
The company also installed an
over-dock pallet storage rack from
the same supplier to unclutter the
production area and free up about
2,000 square feet of space for additional equipment. The rack keeps
empty pallets safely out of the way
until needed, and accommodates
empty pallets, skids or returnable
shipping containers.
FORTNA
They help drive our business
When O’Reilly Auto Parts acquired CSK Automotive,
the race was on to merge both companies’ distribution
operations. So O’Reilly called Fortna to help them shift
into overdrive. In just two short years, seven additional
facilities were integrated into a distribution network
that now serves more than 3,500 stores with up to
120,000 SKUs.
“Given the magnitude of the project and its
impor tance to our customers and investors,
we knew Fortna was the partner we wanted.
They have the talent, the
tools and the
commitment to deliver on their promises.”
– Greg Johnson, SVP Distribution Ops
To learn how we deliver results for clients like O’Reilly Auto Parts,
check out more stories at www.fortna.com
> SUPPLY CHAIN STRATEGY > DISTRIBUTION CENTER OPERATIONS > ORGANIZATIONAL EXCELLENCE > MATERIAL HANDLING > SUPPLY CHAIN SYSTEMS
which can be inflated by as much as
30% with the wrong racking approach.
For retrofits, the challenge is to work
within limitations. But for new facilities, says Oliver, “the building should
be designed to surround the best materials handling solution, not the other
way around.”
Planning for the future
Only about 50% to 70% of new facilities are shaped around the materials
handling system, says Oliver. In the
planning of new facilities, rack and
shelving rarely drive the discussion,
even when the availability of space
might have been a primary motivator
for the new project. “People look at
storage areas and say all it does is cost
money,” adds Schneider. As we have
seen, the cost of storage cannot be
viewed in a vacuum, especially since
the wrong system can increase costs
long after it is installed.
mmh.com
In an effort to ensure flexibility in
both short-term and long-term storage needs, more customers are designing with an eye toward future needs.
“There are a lot of multi-phase projects and allowances for add-ons in the
quoting packages we see,” says Olson.
“People have been in the mode of only
spending what they really know they
will need, so they’d also like to be able
to plan for anticipated costs. They’re
looking further down the road.”
As a result, single-level picking modules are often designed to support the
easy installation of a second, third or
fourth tier in the future. Planned additions and expansions tend to be less
disruptive to operations, especially as
storage systems become more efficient
and cube utilization approaches 100%.
With optimized storage, it becomes
more difficult to remove all the product, rip out the racking, and install an
updated system, even if the cost of the
racking is relatively small. The level of
disruption in a world of same-day shipping would simply be too great.
New projects are also the time to
consider the right equipment mix and
how each tipped domino can impact
another. Rack will need to interface
with conveyors, lift trucks, people and
software, and must be designed to
optimize order fulfillment in addition
to pallet positions in the cube. “With
a new building, it’s an opportunity to
design a storage system with equipment components that complement
one another and align with the target
process,” says Schneider. 䡺
Companies mentioned
in this article
FRAZIER INDUSTRIAL: frazier.com
STEEL KING INDUSTRIES: steelking.com
RIDG-U-RAK: ridgurak.com
STANLEY VIDMAR: stanleyvidmar.com
DXWRPDWLRQVVLVFKDHIHUXVPDWUL[
P R I L
2013
39
MODERN best practices
Retail:
DC at
the center
of it all
The DC is in the middle of a
transformation in the way retailers
interact with customers.
By Bob Trebilcock, Executive Editor
40
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B
lame it on the Internet. Blame it on
Amazon. Whatever the reason, there is
no debate that shoppers have different
expectations today than in the past and
that retailers are being forced to rethink
how they interact with shoppers.
Whether its free shipping, expedited delivery or unparalleled selection,
e-tailers are changing the way the game
is played. Brick-and-mortar retailers,
in particular, are struggling to master a
new set of rules.
The distribution center is at the heart
of this transformation. Increasingly, it is
the tool that allows a retailer to meet
its customers’ expectations. “It’s a new
mmh.com
world for distribution centers,” says Jeff
Mueller, vice president of Sedlak. “They
are no longer just part of the overhead.
They are part of the profit equation.”
These changes are creating a new
set of best practices to optimize the
processes inside the retail distribution
center. Here is a look at five ways retailers are approaching their operations in
new and different ways.
1. Flexible solutions for shortened
time horizons
One example of how the new retail landscape is impacting distribution centers is
in how new facilities are designed. The
mmh.com
traditional practice was to construct a
building and select equipment to handle the next 10 years growth. “With the
emergence of e-commerce, we’re building for a three-year window because you
don’t know what’s coming,” says Kim
Baudry, market development director
for Dematic. “Our customers are building facilities to handle what they do now
as a core solution, but with the flexibility to scale in the future as their needs
change.”
That process begins with a good,
engineered analysis of a retailer’s present business that considers a number of
factors including:
Peak-to-average ratios: That is a
comparison of the volume of orders that
will be filled and shipped on an average
day versus peak days during the important selling periods, such as the backto-school or holiday seasons.
Order profiles: A retailer wants to
understand the characteristics of a typical order, including the lines per order
and the number of pieces per line.
Growth expectations: Is the volume
of orders increasing? Is the volume of
inbound merchandise changing? Is the
number of SKUs or the cube required
for each SKU increasing? Each of these
can impact the design of a solution.
P R I L
2013
41
SKU profile: Retailers need to
understand the cube associated with
each SKU, including the dimensions,
weight and any special handling associated with an item. That is especially
important if more items are going out
as parcel shipments for e-commerce
orders. Similarly, the movement of
each SKU in the facility plays a role
in designing storage and slotting solutions.
“Once you’ve done the analysis of
the business, you can design a system
that makes the most sense for you,”
Baudry says. “For instance, if there’s a
lot of variation between your peak-toaverage shipments, you don’t want to
invest in a highly automated system
that will sit idle a great deal of the time.
In that instance, we may recommend
automation for storage but a manual
picking system. If you’re average outbound orders is close to your peak
orders, an automated goods-to-person
picking system may make sense.”
2. Optimizing picking waves
Picking is the most labor-intensive
activity in any distribution center. That
is especially true with the increase in
item-level picks associated with the
rising volume of Internet and catalog
orders. Retailers that have installed a
sortation system to handle their peak
volumes in November and December
can use those systems to pull inventory from reserve storage areas to fill a
wave, rather than have associates walk
through an active picking area.
“We look at peak order files at the
individual order level by analyzing data
for the two weeks before and after
Thanksgiving,” says Sedlak’s Mueller.
“That allows us to look for the best
ways to combine orders and inventory.”
Instead of sending associates to pick
slots in the active picking locations for
all of the orders, pallets and cases are
pulled from the reserve storage area to
satisfy half or more of the orders. The
cases that will satisfy a wave of orders
are queued at the sorter. When the
wave is released, the cases are sorted
to a picking station where an associate
picks the items needed from each case.
Those items, in turn, are re-inducted
at the piece level and sorted to a packing station where they are prepared
for shipping. “The goal is to minimize
the amount of walking and handling,”
Mueller says. “There is still some picking in the active area, but not nearly as
much as if you picked the whole wave
from that area.”
3. A store within a DC
Until recently, many retailers operated two types of facilities that were
independent of one another. One
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AP
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mmh.com
Sortation systems and other automated technologies are used to optimize
picking waves. In this instance, cases from reserve storage are sorted to
picking stations to reduce associate travel times.
handled cases and pallets for store
replenishment. The other handled
eaches for e-commerce fulfillment.
That approach not only required two
facilities, it also required two buck-
mmh.com
ets of inventory. In many cases, that
also meant two different order fulfillment software systems. One might
be a warehouse management system
(WMS) optimized to receive, pick and
ship cases and pallets and then another
WMS designed for item-level picks.
One of the advantages of combining
those different sales channels into one
multi-channel fulfillment center is that
all customer orders can be filled from
one set of shared inventory. The challenge is coming up with a single inventory management system that controls
all of the decision making for picking,
packing and shipping, says Luther
Webb, director of operations solutions
development for Intelligrated.
“What we’re seeing is that retailers
are using their WMS to create a store
within the distribution facility,” Webb
explains. “That store within the building becomes the e-commerce fulfillment center.”
The idea is that the case-level product required for e-fulfillment is picked
from reserve storage and “shipped” to
the store within the warehouse as if it
P R I L
2013
43
was any other replenishment order for
a brick-and-mortar location. The difference is that the e-commerce fulfillment
store may be located just a few aisles
away from the replenishment system.
“Once the inventory is received in the
store, associates pick from that inventory to fill orders,” Webb says.
“E-commerce is forcing us to rethink
how we receive and how we store
inventory in order to satisfy these different order profiles,” Webb adds.
“Retailers are struggling with this, but
the best are using software systems to
drive these changes. If they’re not doing
it now, they will be doing it in the next
three to five years.”
4. Same-day fulfillment
The battle for retail customers is
increasingly being fought over shipping.
“Customers want instant gratification,”
says Adam Mullen, retail industry lead
for Fortna. “The days of a 7- or 10-day
promise are long gone. Customers want
to know that you received their order,
that it’s picked, and that it’s on the way.”
For many retailers, that means sameday shipping—meaning the order is on
the truck the same day it was received.
For those in an arms race with Amazon,
such as Walmart, it could mean sameday delivery in some select markets.
Either way, “even a one-day improvement in order fulfillment times can
mean a major change inside your distribution center,” Mullen says.
While the solutions that enable
same-day fulfillment may vary from
retailer to retailer, Mullen says they
share several common characteristics.
Visibility is key: The system has to
have real-time visibility into the pool of
incoming orders. That allows a retailer
to make decisions about which orders
to pick first to meet cutoff times.
Replenishment is also a priority:
Product needs to be available at all
times, which means a system in place
to monitor inventory levels at picking
slots in real time and to coordinate
replenishment activities.
44
AP
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Voice-directed technologies enable
the high volume of pieces that
are now picked in e-fulfillment
distribution environments.
Packing is more important than
ever: The facility needs to be able to
verify the accuracy of the order and pack
very quickly at the end of the process.
“At the end of the day, doing this
right requires software and automation,” says Mullen. “We’re certainly
leveraging a mix of technologies in
the systems we’re implementing now.”
Those technologies include automated
storage and shuttle systems for case
storage, voice-directed pick modules,
unit sortation and automated packing
systems. Above it all are warehouse
control, warehouse management and
distributed order management systems to make the right decisions about
where and how orders should be filled.
5. Sequence at the DC,
save at the store
For years, retailers have focused on
reducing the cost of handling a pallet, carton or item in the distribution
center. Forward thinking retailers are
turning that equation upside down and
looking for ways to use the distribution
center to reduce the cost of handling
product in the store.
“A number of retailers are removing
store labor by pushing activities back
on the DC,” says Rob Schmit, executive vice president of Daifuku Webb.
However, Schmit isn’t just talking about
value-added services such as price
ticketing. “The push is to do product
sequencing so a store associate doesn’t
have to walk all over the store to put
inventory on the shelf,” Schmit says.
The first wave of sequencing solutions involved using a mini-load automated storage and retrieval system (AS/
RS) to deliver cartons to a palletizing
station in the sequence they would be
put away on a shelf in an aisle. The
next wave, Schmit adds, is to sequence
product into the preferred sequence in
a container or tote. That allows a store
merchandiser to cut down on the time
needed to restock a convenience store,
for instance, or to create a counter or
shelf display in a department store.
At the other end of the DC, retailers
are using automated storage technologies to buffer and sequence pallets, cartons and totes into the back of a delivery truck or trailer.
While sequencing software and
automated storage technologies are
central to these solutions, so is a new
view of the role of distribution within
an organization. “The cost of handling
a case or pallet inside the DC may very
well go up,” Schmit says. “However, the
cost of transportation and the cost of
store labor go down. To be successful,
this has to be high on an organization’s
list of priorities.” 䡺
Companies mentioned
in this article
DAIFUKU WEBB: daifukuwebb.com
DEMATIC: dematic.com
FORTNA: fortna.com
INTELLIGRATED: intelligrated.com
SEDLAK: jasedlak.com
mmh.com
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MODERN productivity solution
By Josh Bond,
Associate Editor
A gentle breeze makes all the
difference for brick producer
High-volume fans
reduce condensation,
prevent mold and
speed brick
production.
K
entucky-based Owensboro Brick & Tile produces
30 to 35 million bricks annually. When condensation and moisture buildup began to severely impact
product integrity, the company installed a series of
fans to keep air moving in its production facility. The
result improved health and safety for workers while
boosting production speed.
The staging area holds 300,000 to 400,000
bricks at a time as they dry out before going into
the kiln. “We have to get a certain percentage of
moisture out of the brick before we can fire it,”
explains plant manager Mark Sexton. As one set of
bricks would come out the kiln, the steam would
keep the area hot and perpetually wet, negatively
affecting the dryers. Sexton says they tried using
numerous small fans to clear the moist air, but the
steam kept all surfaces covered in a fine layer of
slick water and clay.
The company considered both dehumidification
systems and heating systems. However, the cost of
46
AP
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these approaches for the company’s large industrial
space was impractical.
Instead, four 16-foot diameter high-volume,
low-speed fans (Big Ass Fans, bigassfans.com)
were installed to evenly distribute humidity in the
air. The fans improve air circulation and aid in the
evaporation of moisture from the bricks waiting to
be fired, while also dissipating heat and moisture
from the steaming bricks coming out of the kiln.
The large size of the fans paired with their slow
speed equates to a larger volume of air being moved
without disrupting the workplace.
“These fans are helping the dryer out, to get
the moisture out of the brick,” Sexton says. “So it’s
actually letting me run our kilns a little faster to get
more product out.” The same air movement that
boosts product integrity also helps curb condensation issues that negatively affect employee safety,
the most common of which are wet floors and mold/
mildew growth. 䡺
mmh.com
MODERN productivity solution
By Josh Bond,
Associate Editor
Retrofit kits for dock levelers
control temperature, dust
and cost
End-user qualified for energy rebates after installing
improved seals around leveler and pit.
W
hat began as a small women’s fashion shop
in Duluth, Minn., in 1931, is now Maurices,
a clothing retailer with more than 800 stores in 44
states across the country. The heavy dock traffic at
its air-conditioned Iowa distribution center made
it difficult to control temperatures. After installing dock leveler equipment designed to prevent
the transfer of heat at dock doors, the company
was able to save energy, improve worker comfort,
and even take advantage of energy rebates from the
local utility company.
The company’s 365,000-square-foot DC in
Johnston, Iowa, is a hub serving stores across the
country. The facility is air-conditioned, but keeping
the cold air inside during the summer and outside
during the winter was a challenge. Although brush
weather seals were installed on the sides of dock
levelers, air movement into and out of the facility
was still a problem.
Retrofit kits (APS Resource, apsresource.4frontes.
com) were deployed at each of the facility’s 33 docks
mmh.com
to improve the seal between the dock leveler and the
pit wall. The kits’ design closes off the gaps between
the sides and rear of the dock leveler and the concrete pit walls that are typically missed by traditional
weather seal or under-leveler seals attached to the
front of the dock leveler. By preventing the mass flow
of air, the kits minimize the transfer of heat and energy into and out of the facility.
In addition to helping prevent energy loss, the
kits help block dirt, debris and pests that may enter
the facility through the leveler gaps. Designed to fit
many brands of dock levelers, the kits installed easily and require little to no maintenance. “It’s easy
to use and it keeps the department cleaner,” says
Tom Rupp, manager at the Johnston DC. “Once it’s
installed, you don’t even have to think about it.”
In addition to temperature and dust control, the
dock levelers helped the company take advantage
of energy rebates totaling $300 per dock position,
making the return on investment even quicker than
anticipated. 䡺
P R I L
2013
47
Special Report: Inventory Management
LMS
Optimizing the human
An increasing number of logistics managers are using
labor management systems to monitor productivity,
identify bottlenecks, and optimize the workforce.
Here’s how they’re getting it done.
BY BRIDGET MCCREA, CONTRIBUTING EDITOR
t’s no secret that labor costs eat up
a big part of any company’s bottom
line. And unlike some other major
expenses—the cost of raw materials, overhead and utilities—human
productivity can be extremely difficult
to gauge, control and optimize. Without
the right tools in place, warehouse managers choose to fly by the seat of their
pants when it comes to “human supply
chain” management, hoping that their
tactics pay off in the long run.
Now for the good news: Technology
has put effective labor management
within reach for companies of all sizes
and across all industries. Using a labor
management system (LMS), managers can collect information about labor
activity and compare that data against
historical information and established
labor standards. Armed with that data,
companies can monitor productivity, identify bottlenecks, and optimize
labor both inside and outside of the
I
48
AP
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2013 /
warehouse, distribution center, and
even the cab of a truck.
Drilling down even further, these
managers can use their LMS to forecast required staff numbers right down
to the job level, determine exactly
how much time it takes to complete
a specific task, and provide immediate performance feedback to workers.
Managers use the information to more
easily conduct effective labor planning
and gain customer service enhancements at the same time.
Currently in the midst of this year’s
ARC Advisory Group Warehouse Management Systems Study (of which LMS
is one of several components), Steve
Banker, director of supply chain solutions for the research firm, says a growing number of logistics professionals
are taking an interest in labor management and related systems.
According to Banker, market growth
has been more robust in the United
Modern Materials Handling
States versus Europe, where laws prohibit most firms from comparing performance levels among employees. “If
an LMS is showing how one person
is compared to another, then it is illegal in Europe,” says Banker, who has
seen some European companies taking a different approach when it comes
to labor management. “When LMS is
implemented there, it’s usually for the
purpose of planning or knowing how
many workers you will need in the
next day or two for a certain amount of
orders that will drop.”
In the U.S., Banker says one of the
LMS market’s primary drivers right
now is picking, where “most of the
expenses occur” within the four walls
of the warehouse and distribution center. “Putting standards around picking has always been a primary LMS
driver,” says Banker, who estimates the
average LMS implementation payback
at one year—versus two for a ware-
mmh.com
A SPECIAL SUPPLEMENT TO:
supply chain
house management system (WMS).
“Sometimes that initial push expands
into other parts of the warehouse over
time,” he says.
At Aberdeen Group, Bob Heaney,
senior research analyst for supply
chain management, says he’s seeing
renewed interest in LMS as companies look to optimize their existing
labor forces. “Labor is an important
element for companies right now,” says
Heaney, who is currently working on
an updated LMS report that will be
released during the summer.
Heaney sees the growth in global
business as yet another LMS market
driver. With labor chains stretched
across continents, human resource
visibility has become more and more
difficult to manage without the use
of technology. The need to address
issues in real-time—and not after
the fact—is also pushing companies
to explore their labor management
mmh.com
options right now. “Interactive LMS
on the market today help achieve that
goal,” he adds.
Proven software option
Companies interested in LMS have a
good number of predecessors who are
already tapping into the value of techenabled labor management. Dwight
Klappich, research vice president for
Gartner, points to RedPrairie—which
merged with JDA Software Group in
2012—as one supplier that’s been selling LMS for more than 10 years. He
says offerings from Manhattan Associates and Kronos are two market-leading options for those looking for varied
degrees of LMS functionality.
“Labor management is a well-proven
software option—it’s not emerging,”
says Klappich. LMS has, however,
been largely relegated to large DCs
that employ 500+ workers and that
have industrial engineers on staff to
handle labor and staff development.
Key performance measures tracked
include travel time (how long it takes
for the worker to get from one place
to another within the warehouse) and
pick time (how long it takes a worker
to pick and pack the product). Those
numbers are then compared to company and industry standards to determine the performance levels of specific employees.
And while some LMS solutions
help capture coarser-grained information (such as transaction-level data
versus task-level), in most cases Klappich says that a DC that employs 100
or fewer workers “wouldn’t put in an
LMS to save two people in the warehouse” and then be forced to hire two
industrial engineers to run the labor
management setup.
“LMS has been relegated to the
higher end of the marketplace, where
it’s used to support incentive pay
/ AP
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49
Special Report: Inventory Management
systems at a very granular, individual
level,” says Klappich. “It’s about measuring someone, understanding how
much time and effort a task should
take, and then paying the worker
based on his or her performance on
that task.”
The value of LMS goes beyond just
understanding which employees are
performing up to snuff and which are
not. The systems can also enhance
labor forecasting, optimizing, and
planning—all of which work together
to improve overall supply chain productivity and customer service levels.
For example, when a warehouse manager knows in advance that he needs
150 workers to handle the next eighthour shift, he can quickly redeploy
extra labor, delay lower-priority tasks,
or take other measures to ensure that
the work is completed within the allotted timeframe.
Klappich says that using an LMS
to redeploy labor to more productive
tasks is a union-friendly strategy that
doesn’t generally rustle feathers among
those who see labor management as
a big brother-like way to monitor an
employee’s every move. To companies
looking to achieve this and other benefits, Klappich says a thorough, introspective look at current operations is
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the best first move.
“Try to fix the big issues within your
warehouse first, like the worker who
spends 30 minutes walking back and
forth across a 100,000-square-foot DC
to punch in and out on a time clock,”
says Klappich. “The more you can finetune in advance, the more effective
your LMS will be.”
Harnessing labor management
With the typical LMS implementation
resulting in 15% to 20% lower labor
costs, it’s no wonder companies are
taking a bigger interest in this corner
of the supply chain software market.
Take the healthcare company in
Puerto Rico that’s using a Next View
Software LMS across three facilities.
William Nowak, a senior consultant
with TranSystems, says he helped with
the third implementation that centered
on the firm’s warehouse picking operations. For the healthcare company, the
LMS generates data that the firm uses
to evaluate its employees, establish
staffing levels, and get a better handle
on “how many people it takes to do a
certain amount of work,” says Nowak.
The LMS also provides historical
labor information, tracks documents
in a paperless fashion with bar code
scanning, and helps the company
determine incentive-based pay scales.
Nowak says that the system has
helped the company achieve three key
labor goals: reduce turnover; increase
productivity; and cultivate a more
“senior” workforce.
“The LMS gives everyone visibility
over what is being done,” says Nowak,
“and lets everyone find better ways of
doing things and improving the company’s operations as a whole.”
Nowak says that employees have
taken well to the new system and
credits the company’s early educational approach and determination to
get employee buy-in with creating a
smooth transition to the management
labor environment.
In fact, Nowak adds that employees
appreciate accurate feedback and tend
to respond well to it. “If you can get an
LMS that’s simple enough to use, and
then get buy-in from your employees
on its usage, the results can be significant,” says Nowak, who sees growing
interest in LMS across the board in
2013 as companies strive to do more
with less. “This is definitely an expanding segment of the supply chain software market.”
Bridget McCrea is a Contributing
Editor to Modern Materials Handling
Sign of things to come?
I
n 2012, Amazon.com shelled out $775
million for Kiva Systems, a maker of
robots that roam warehouse floors and
expedite the picking and order fulfillment
process. Kiva uses materials handling
technology and sophisticated control
software to simplify operations, reduce
costs, and increase flexibility.
Steve Banker, director of supply
chain solutions for ARC Advisory
Group, sees Amazon’s acquisition as
a sign of things to come in the labor
management sector. “It validates the
idea of mobile robots bringing stuff
to workers in the warehouse,” says
50
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Banker, who points to e-fulfillment as a
growing piece of the warehouse management systems market—and one
that’s rising “at a faster pace than the
other pieces.”
More robots in the warehouse could
affect how managers handle labor management. In fact, Banker says that process actually becomes much easier in a
goods-demand scenario that’s enabled
by robots. For example, it eradicates the
need to do time studies on how long it
takes to get from Point A to Point B, or
how long it takes someone to reach up
to a second level versus a third level.
“These time studies offer great payback but they aren’t easy to conduct,”
says Banker. “Once you have good demand and specially designed stations,
these projects can be so much quicker
and easier.”
If Banker’s hypothesis is on target,
and if more Kiva-like robots make their
way into warehouses and distribution
centers nationwide, labor management
may become easier for managers who
may or may not need to continue to rely
on LMS suppliers to develop solutions
around what today remains a key challenge for most companies.
mmh.com
Special Report:
State of RFID/ADC
A SPECIAL SUPPLEMENT TO:
RFID
settles in
With suppliers jumping on the RFID bandwagon
and more deployments looming on the horizon,
the future of RFID remains promising. Here are
the market drivers that continue to push ADC/
RFID adoption and examples of facilities that
are putting it to work.
BY MAIDA NAPOLITANO, CONTRIBUTING EDITOR
rom keyless ignitions to moisture-sensing diapers, RFID technology continues to permeate everyday living. In today’s supply chains, the technology relies on readers and passive UHF tags to automatically and wirelessly
capture and leverage electronic product codes (EPC) encoded with product
information and serialization.
Unlike a bar code, these tags do not need to be within line of sight of the reader,
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52
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Special Report: State of RFID/ADC
resulting in increased operational efficiencies. Unloading an inbound container, for instance, which may take
about two and a half hours to individually scan, sort and count cartons, may
now take less than half an hour with
RFID-tagged cartons.
Despite these proven benefits, however, RFID’s adoption in the supply
chain has been wrought with twists
and turns. Wal-Mart’s initial focus
of tagging pallets and cartons of consumer goods has for the most part
“languished on the vine,” according
to some experts. Instead, in 2010,
the retail giant decided to shift its
focus and began tagging at the item
level. Other U.S. retailers, including
Macy’s, Bloomingdales and American
Apparel followed suit, launching their
own successful item-level RFID pilots
of mostly apparel and footwear—
reporting much-improved visibility and
higher sales at their stores.
Today, item-level tagging remains
one of the biggest drivers of RFID
adoption. “Those with pilot projects
last year are now in full deployment,
and that represents big progress for
the industry,” reports Mike Liard, vice
president of auto ID and data capture
for VDC Research. “We’ve got some
new retailers on board who are international players and who are significantly
enhancing the volume.”
In fact, these early item-level adopters are now busy fine-tuning the process. “They want to know how to deploy
RFID faster and more efficiently,” says
Patrick Javick, vice president of retail
apparel and general merchandise for
the standards-setting group GS1 US.
“The question now is: ‘How do I get
my vendors on board?’” According to
Javick, the number of suppliers tagging
products with RFID has increased
from approximately 200 to as many as
600, and these suppliers now want to
know how they can get the extra benefits from the technology.
Multi-modal handheld RFID readers
with voice technology and scanning
capabilities can acquire, in real time,
proof of identification and monitor
an asset’s location and its current
status.
RFID Pilot Project: Tagging high-value consumer electronics
A
s part of GS1 Italy’s i.Trace initiative,
Mediamarket, a leading European
electronics retailer, in partnership with
DHL, Sony and Samsung, recently completed a successful pilot of EPC-enabled
RFID technology for high-value consumer
electronics. The project aimed to study
the benefits of tagging a range of valuable
consumer electronic products—some of
which were small and particularly susceptible to theft and loss.
At the start of the pilot, 55 SKUs from
Sony and 34 SKUs from Samsung were
selected. In total, more than 10,000 units
were tagged, including notebooks, digital cameras, video games and mobile
phones. Linda Vezzani, EPC specialist
for GS1 Italy, noted how these products
are more difficult to process from an RFID
perspective. “They are small and contain
a higher quantity of metal parts,” says
Vezzani. “All of this makes the traceability
of these products particularly complicated all the way through the chain.”
The operation begins with Mediamarket’s logistics provider, DHL, receiving products from Samsung and Sony
at two high-value warehouse locations.
54
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Upon receipt, products are inspected,
wrapped, and put away into storage.
For this pilot, products bound for
Mediamarket’s Saturn store in the Le
Due Torri di Stezzano shopping mall
are tagged at the warehouse. In a process known as “thermo-retraction,” the
tag is activated, read and associated
with a product’s serial number. Multiple
smaller units are associated with the
EPC code attached to a larger carton,
and reading the tag on that carton will
automatically identify the SKUs and
units inside it. Cartons bound for the
same store are put on a pallet that also
has its own tag that identifies the cartons on that pallet.
A lift truck driver transports completed pallets through a dock door portal equipped with an RFID reader. By
moving through the portal, the system
automatically reads the tags and records
the quantities and serial numbers of each
SKU that is being loaded into the truck.
At the store’s receiving dock, inbound pallets are again transported
through another gateway portal and are
automatically received. A second gate-
way portal between the store’s backroom and the sales floor automatically
traces and records the individual serial
numbers that are being moved to the
store floor.
In the warehouse, this RFID pilot resulted in a 30% reduction in the time it
took to process store shipments. Shipping accuracy improved while enhancing
the security of the supply chain leading
to fewer losses, while inventory managers now have better visibility to potential “stock-out” events. In addition, the
shorter cycle time to stores meant that
products make it to the store’s shelves
quicker.
At the Saturn store, receiving operations are automatic and much more efficient. Inventory visibility into backroom
stock and the stock on store shelves
is also improved, and store employees
who used to scan and manually count
inventory are now focused on making
sales. Considering the effects not only
in terms of efficiency, but also effectiveness, the payback period for the RFID
investment could be achieved within a
few months.
mmh.com
With suppliers jumping on the
RFID bandwagon and more deployments looming in the horizon, the
future of RFID remains promising.
Being able to automatically capture
data by simply passing tagged items
through portals and readers—without
opening or sorting through cartons—
has improved efficiencies in the DC
while increasing visibility throughout
the chain.
Push toward source tagging
For years, it took a retailer’s mandate
to trigger a supplier to move forward
with RFID adoption. According to
experts, however, this is beginning
to change as an increasing number
of retail partners are looking at itemlevel RFID tagging at the point of
manufacture.
“The majority of EPC tagging efforts
takes place in the DC where it is just
not as cost effective,” says Javick. “The
last 12 months has seen a significant
increase in the number of brand owners (suppliers) in the apparel and general merchandise industry starting
to move EPC-enabled RFID deployments back to the source—and industry leaders are expecting to see this
trend continue.”
As suppliers start to deploy and tag
products at the source of manufacture,
the goal is for them to also enjoy the
benefits with more accurate inbound
and outbound audits in their own DCs
as well as more efficient receiving and
shipping processes.
Managing assets
Increased asset management continues to be another leading reason for
growing RFID adoption. In this application, passive and/or active tags are
affixed to products, containers equipment—and even people.
Using handheld computers integrated with RFID readers, organizations can acquire, in real time, proof
of identification and monitor an asset’s
location and its current status.
Adding a Web-based solution allows
users to transfer this information
online so that upper managers and
other interested third parties can also
access the most up-to-date data and
make timely decisions regarding these
56
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Pallet jack driver transporting RFIDtagged items through an RFID portal.
assets from any location in the world,
as long as there is Internet access.
For years, supply chains have been
using RFID to track and manage
returnable product containers, especially in closed-loop systems. The same
technology has also been applied to
yard management and even warehouse
workers on the floor. Depending on the
asset, a range of unique specialty tags
have been developed to solve specific
business challenges.
This year, in support of its vision
to improve healthcare efficiency, the
Department of Veterans Affairs (VA)
announced that it was funding $543
million in a project to establish realtime location systems (RTLS) at all 152
of its hospitals and seven outpatient
pharmacies. This deployment would
involve attaching millions of RFID tags
to medical equipment, surgical instruments and supplies, further driving
RFID adoption in the healthcare industry to unprecedented levels.
This project would begin with
simple asset management and the
management of supplies in laboratories, but is slated to expand to tracking patients and controlling patient
wandering. In RTLS, tags attached to
objects or people emit wireless signals that determine an asset’s location
usually within a building or other contained area.
Better tags and readers
Another big driver for RFID adoption
is the continued improvement of all
components of RFID technology. Kurt
Mensch, principal product manager for
RFID for Intermec, says that their new
70-series readers have become highly
portable, mobile and multi-modal—not
only reading tags, but still able to scan
bar codes and use voice technology for
warehouse tasks. The mobility provider
has also solved the issue of reading
peripheral tags through software “so we
can detect tags that are in motion and
those that are stationary.”
Reader throughput has also made
significant strides. “In 2009 we were
reading 5,000 items in an hour,” adds
Javick, “Today we are capable of reading 20,000 items in an hour.” Longer
read ranges and the ability to read
labels on metals and liquids are other
more notable developments. In fact,
GS1 Italy just completed successful
item-level pilots of consumer electronics involving the tagging of products
with high metallic content (see p. 54).
The tags themselves also continue to
improve. Some tag providers are manufacturing tags so thin that they can be
placed within banknotes. Some are
embedding them into an item’s clothing care label and combining them with
Electronic Article Surveillance (EAS)
systems. “It’s not only an inventory
control solution, but it’s also a security
or loss prevention system attributed to
RFID,” says VDC’s Liard.
With increased adoption, tag price
points continue on their downward
spiral, hovering between 10 cents to
15 cents depending on quantity, how
elaborate you need them to be (graphics, print, card stock), and the amount
of memory it needs to carry. “That’s
much improved from 25 cents just
three years ago,” says Javick.
He also adds that software systems
related to RFID solutions are becoming more turnkey. “This allows for
greater integration into the core legacy
systems and these store systems are
able to better manage the serialized
data that comes with EPC reads.”
Product tracking and traceability
Another driver for RFID adoption has
been the continued pressure from govmmh.com
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ernment agencies to protect America’s
food supply by ensuring product traceability. Mike Maris, senior director for
transportation, distribution and logistics
for Motorola Solutions, describes traceability as the ability to track the flow of
each food item in its cold chain “from
farm to fork.” Because it involves the
real-time recording of a considerable
amount of information, traceability
becomes a natural candidate for itemlevel RFID tagging.
With traceability, product-related
data—including proper storage and
transport temperatures, manufacture
dates, shelf life, expiration dates, lots,
batch and serial numbers—are stored
directly on RFID tags that are attached
either directly to the product or on pallets and returnable plastic containers.
At each stage of the cold chain,
product data can be recorded and
updated wirelessly and automatically as products move through RFID
portals from the farms through warehouses to stores. The information on
the tags can also be used to quickly
“GS1 US offers an educational program to brands
and retailers as part of deployment support.”
— Patrick Javick, vice president of retail apparel and general
merchandise for the standards-setting group GS1 US
trace product back through the cold
chain in the event of a recall.
With RFID, an electronic record of
a product’s journey through the supply
chain—or its pedigree—can be created and maintained to verify authenticity, combat counterfeiting, and
ensure consumer safety. Liard reports
how South Korea is currently tagging
millions of units of pharmaceuticals at
the item-level in response to government mandates and to stem the illicit
trade of counterfeit drugs.
What’s holding RFID back?
Despite these drivers that are spurring
adoption, many remain unsure about
RFID. Education and awareness continues to be a big challenge. “Many
executives believe that it’s still about
tagging cases and pallets; it’s moved
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well beyond that,” says Javick. “They
have not looked at it recently. GS1 US
offers an educational program to brands
and retailers as part of deployment support.” This program provides the training, tools and community support to
incorporate EPC item-level tagging into
day-to-day operations.
Liard points to industry collaboration—such as those pilots spearheaded
by the retail community—as what helps
drive the market. “Retail came together
as a community to share their learning,”
adds Liard. “They demonstrated the business case and the return on investment.
We don’t have that collaboration outside
of retail quite yet, and that’s a big challenge. That’s what’s keeping us back.”
—Maida Napolitano is a Contributing
Editor to Modern Materials Handling
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&NBJMJOGP!QSPTUBDLDPNtMedford, NJ 08055 USA
www.prostackpallets.com
WORK ACCESS LIFTS
SAFER & MORE EFFICIENT
THAN LADDERS OR SCAFFOLDING
Lift Trucks
2,200- and 3,000pound capacity electric
orderpickers
Equipped with three-phase AC technology for strong acceleration and high
lifting speeds with low energy consumption, the new EOP11N2-EOP15HN2
series of orderpickers is offered. The
orderpickers’ frames measure 35.5
inches wide for greater clearance between trucks when passing
in tight spaces and narrow aisles. Features include an adjustable operator console, regenerative braking and lowering for
longer run-times and full load capacity (2,200 to 3,000 pounds)
at heights up to 295 inches. Chassis, cabin width and operator
height options are offered, along with RFID floor control technology that maps out the aisles and allows for key truck management functions, such as end of aisle stopping. Mitsubishi Forklift
Trucks, 800-648-5438, www.mit-lift.com.
Durable, energy-efficient
pallet truck
Durable and energy efficient, the 8000
series pallet truck has been engineered
to maximize productivity with construction that includes increased material
strength for heavy-duty applications.
All components are reinforced to reduce wear and minimize
downtime. Third-party tested, the trucks demonstrate 33%
more energy efficiency than competitive models. User-friendly
features include a roomy operator compartment with padding
and multiple lean points, accessory bars with lights and fans,
large storage totes and additional caster options. To reduce
steering effort by 90%, the vehicles are equipped with powered,
speed-sensitive steering. The Raymond Corp., 800-235-7200,
www.raymondcorp.com.
Three-wheel electric comes in cushion
and solid pneumatic tire models
• $'!()% )$!!("")#&")!$')(($&()
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1-800-843-3625 www.advancelifts.com
62
AP
R I L
The AM50 series of compact three-wheel electric forklifts is offered
in cushion tire and solid pneumatic tire models with capacities of
3,000, 3,500 and 4,000 pounds. A high-mounted rear axle and
a low-mounted battery keep the vehicles’ center of gravity low,
ensuring turning stability. Features for improved operator comfort
and reduced operational costs include: completely AC-powered
drive, hydraulic and power steering systems; high-visibility masts;
tilt and telescopic steering console; large operator compartment
with full suspension seat; seat deck mounted proportional hydraulic control valve levers; and thumb-actuated forward and reverse
button on the side of the lift/lower lever. For outdoor use in rain
and snow—or indoor use in freezers, coolers and wash-down
applications—the vehicles meet the IPX4 waterproofing standards.
Komatsu Forklift, 847-437-1823, www.kfiusa.com.
mmh.com
FOCUS ON
Lift Trucks
Export and Domestic
Pallet Solutions
Low emissions, low
noise from series of LPG,
gas and diesel forklifts
Ranging from 2,000 to 7,000 pounds capacity, the EcoMaxx
series of LPG, gas and diesel forklifts produce low emissions and
low noise for an improved working environment. All diesel and
LPG models are offered with EPA-approved GM and Yanmar
engines that have advanced combustion technology to reduce
fuel consumption. Features include a rubber-mounted transaxle
for decreased vibration, wide-view mast for a clearer sightline
to the forks, a rugged steer axle for durability, hydrostatic steering for easy maneuvering, and a simplified oil and filter change
system for easy maintenance, inspection and repairs. To enhance
safety, an operator presence detection system is integrated into
the ergonomic seat, locking out lift and travel functions—and disengaging the transmission to a neutral state—should the operator leave the seat while the vehicle is in use. Starke Material
Handling, 877-435-4352, www.starkeusa.com.
PRES
PALL
ŹMinimize Waste
Cut Packaging Co
ŹFree of Bugs, Mold
TCP and TCA Che
ŹReduce Fork Truck
7UDI¿F
ŹReduce Shipping
Costs
ŹIncrease Product
Protection
ŹReduce Shipping
Damages
Ź&HUWL¿HG6XVWDLQDE
Which Pallet
Will You Choose?
LITCO International Pallets
Add-on package
enables lift trucks
to work outdoors
Export and Domestic Pallet Solutions
855-296-2891 t www.litco.com
Adding the environmental package to the supplier’s line of electric lift trucks enables the vehicles
to handle applications traditionally
limited to internal combustion powered trucks—including lumber,
dock yards, food preparation and handling, and recycling. The
package comes with three tiered options. First, an IP54 sealed
drive axle and motors with belly pan and side shields prevent
debris from interfering with truck operations. The second, an outdoor protection and wash-down package, features sealed bearings and waterproof cover relays and connectors for use in wet or
rainy environments. The third option, mud-guards added to the
front fenders, protect the attachment and load from drive tireslung debris and water. Hyster, 800-497-8371, www.hyster.com.
SPACS95-8/12
Forklift operates
inside, outdoors
Capable of operating both
indoors and outside, the
Platinum II Nomad lift truck
rides on solid pneumatic tires
that can traverse exterior
improved surfaces. Powered
by an ultra-low-emission
engine, the vehicle features precision maneuverability, easy
operation systems and rugged construction. Standard equipment
includes a seat-actuated operator presence system that automatically locks lifting and tilting when the operator exits the truck.
For further customization, optional equipment may be specified.
Nissan Forklift, 815-568-0061, www.nissanforklift.com.
mmh.com
P R I L
2013
63
POWER TRANSMISSION-PART CONVEYING
PRODUCT
Showcase
®
PYRATHANE BELTS
With Lifetime Warranty Against Manufacturing Defects
"%.1-)3%6%,-%&-)%4-,44-)02/0'03490-023Available
Very%"'$')"*,$('1%$&$',"+T"'+$('$'#"-$ "+
/ "),$('%*+$('"+$+,' "
LINE SHAFT
CONVEYOR BELTS
ORIGINAL EQUIPMENT & CONNECTABLE
Try our
PYRATHANE® BELTS
on your conveyor; they have
become the standard of the industry.
CUSTOM MADE IN INCH, METRIC & O-RING SIZES
Round, Flat and Connectable Polyurethane Belts
AN ISO 9001
CERTIFIED COMPANY
www)0*&$!"%,+ (&
9.%,- [email protected]
522 North Ninth Avenue East, Newton, IA 50208
PROTECH® Precision Pallets
Ideal
Pharm for the
aceu
& Foo tical
Indus d
tries
Powered drum
handler lifts, rotates
and dumps loads
Lift, rotate, pour and dump loads with
the <PILOT> walk-behind drum handler.
Power-propelled, the unit reaches floor
speeds of 3 miles per hour and drum lifting
speeds of 25 feet per minute. Capable of
lifting 1,500-pound loads to heights of 10.5
feet and 11 inches beyond its straddle-type legs, the unit gives
operators full load control for enhanced safety and productivity.
Morse Manufacturing, 315-437-8475, www.morsedrum.com.
Mini-load AS/RS’s crane handles
up to four cases at one time
The FX Quad mini-load automated storage and retrieval system (AS/RS) provides flexible handling of one, two and four
cases weighing up to 660 pounds. For high storage efficiency,
the system allows for free rack location and double-deep storage and works with multiple load handling devices including
rear-hook double-deep,
single fork, twin fork with
belt conveyor, and doubledeep twin fork with belt
conveyor. Its crane travels
at speeds up to 984 feet
per minute and hoists at
speeds of 590 feet per
minute. Murata Machinery,
704-394-6900, www.
muratec-usa.com.
Automated system feeds goods-to-person
picking workstations
Always in stock and ready to ship!
Tired of waiting for Structo-Cell pallets? PROTECH 4048 pallets
save time and money to keep your operation moving.
t Standard PROTECH is made with FDA-rated resin and color
t FM-approved fire-retardant PROTECH is decaBDE-free
t Easy to clean, mold- and insect-resistant, hygienic
t Four-way forklift and jack entry
t Optional intermittent 1/2” perimeter lip
Ready to Ship
in 24 hours!
or grommets
866-713-9446
www.tmfcorporation.com
64
AP
R I L
The automated Matrix system feeds goods-to-person workstations—or automated mixed-case palletizing in store/
aisle friendly sequence—at throughput speeds up to three
times faster than traditional methods. Modular and flexible,
the machine allows any stored SKUs to be directed to any
workstation location in sequence. All SKUs are equally accessible from all workstations, making all on-hand inventory
fully available for picking. The scalable system also allows
flexibility in staffing during peaks and valleys in the picking
process. Because the system segregates and parallels all X-,
Y- and Z-axis movements, delivery bottlenecks are eliminated.
To minimize the footprint and maximize the cube, all of the
transportation media are contained inside the storage system
envelope. SSI Schaefer, 877-724-2327, www.ssi-schaefer.us.
mmh.com
PRODUCT
Showcase
Mezzanine work platforms
A line of industrial steel, bolt-together mezzanine platforms
is offered as standard or custom-engineered structures to
expand facility capacity and provide additional space for
manufacturers, DCs, and warehouses. The platforms come
in five different framing options and decking configurations. Included are a beam and bar joist structure ideal for
medium-to-large mezzanines requiring wide spans and higher
load capacities up to 300 pounds per square foot; a bolted
C-section structure for
smaller bay areas measuring 11 x 16 feet with load
capacities up to 200 pounds
per square foot; and a
rugged beam and beam
structure for higher mezzanine load and span requirements. Wildeck, 262-5494000, www.wildeck.com.
classified
Warehouse Safety
Label Holders
Holsters
Bumpy Rides?
Secure Your
Terminal, and
Holster Your
Side Arm...
800.242.3919
with a LOGISTERRA ®
truck-mount Holder
www.aignerlabelholder.com
[email protected]
Truck Casters
...or a slinger,
right or left
UÊ*ÀÛiÊ«À`ÕVÌÃ
UÊ9i>ÀÃÊÊÃiÀÛVi
UÊi«Þi`ÊÜÀ`Üì
UÊ>ìÊÊ1-
L O G I S T E R R A , I N C.
619-280-9992
info@}ÃÌiÀÀ>°VÊUÊÜÜÜ°}ÃÌiÀÀ>°V
To advertise, or for more information contact:
Jennifer Drevline, 847-223-5225, ext. 11,
[email protected]
mmh.com
P R I L
2013
65
MODERN 60 Seconds with...
Jeremy Davidson
Fortna
TITLE: Industry lead in sporting goods and retail
specialty group.
LOCATION: Reading, Pa.
PRIMARY FOCUS: Working with retailers and
industrial distributors on how best to make their
facilities function and operate.
Modern: We saw a nice bump in
the revenues of the Top 20 system
suppliers last year. As companies
continue to automate, are they
looking at technologies differently
than in the past?
Davidson: I think they are. I see
my customers moving away from
point solutions and technologies
that are focused strictly on labor
productivity, like a voice or pick-tolight picking solution. Instead, they’re
addressing the overall operational
flow through the facility. For instance,
end users are realizing that they can
put in a great picking solution, but
they can’t improve their inventory
turns if their inbound inventory sits
on the receiving dock. So, there’s
a concerted effort to look at the
operational flow through the whole
building and to not just look at
functional areas for improvement.
Modern: Does that mean that end
users are finding ways beyond
a reduction in labor to justify
automation?
Davidson: Absolutely. The biggest
change is that our customers are
designing facilities with capabilities
to match their business strategy.
We have customers who are willing
to pay a premium in the cost of
distribution because it will result
in service level improvements.
The growth of e-commerce, in
66
AP
R I L
particular, is pushing us
to discussions around
much richer business
cases than we saw five
years ago. Companies are
asking: What is the cost
of doing nothing? How
much am I putting the business at
risk or constraining the business if I
don’t make these investments and my
competitors do? Those are the kinds
of questions they’re asking today that
they weren’t asking five years ago.
Modern: If that’s the case, what’s
different about the systems they
are deploying?
Davidson: This is a great topic. First,
let’s talk about the things that aren’t
changing. The time-tested principles
of design, such as the shortest path,
the least number of touches and
effective slotting, haven’t changed.
What is changing is the look of
process solutions. Customers are
looking at their inbound operations
for ways to automate receiving,
streamline returns or opportunities
for crossdocking. They’re looking at
ways to mix and match technologies
and solution providers to optimize
solutions or to adapt processes that
have worked in one functional area to
other functional areas.
Modern: What are the trends
driving these changes?
Davidson: There are a number of
trends. One is the rising cost of
real estate. For instance, customers
might be looking at storage and
asking how they can generate more
capacity within the same footprint.
That is leading to discussions around
using mini-loads, shuttles and
automated storage and retrieval
system (AS/RS) technologies to bring
product to a person or a storage
area.
Safety is a significant concern.
For instance, customers want to
increase the number of items picked
per hour, but they want to make
sure the operation is safe, reliable
and consistent. We’re also talking to
customers who may have a solution in
place, like a picking mezzanine, that
isn’t fully depreciated. They want to
leverage that existing infrastructure,
but get more throughput. That’s
leading to solutions like batch picking
to a cross-belt or tilt tray sorter that
can handle store replenishment
and e-commerce orders. There are
a number of rich discussions going
on right now, and I don’t see these
trends ending any time soon. 䡺
mmh.com
YOUR OPERATION NEEDS TO BE MORE EFFICIENT THAN EVER.
YOU NEED TO CUT COSTS AND INCREASE PRODUCTIVITY.
AND THERE’S NO ROOM FOR ERROR.
Hyster® lift trucks are designed to
help you get more done with less.
In fact, the Hyster CT uses up to 12%
less fuel than the leading competitors,
but don’t just take our word for it.
In an independent survey, current
customers ranked Hyster #1 in Total
Cost of Ownership.*
To see how our tough, reliable
lift trucks finished first, visit
hyster.com/TCO.
*Peerless Media Research Group, 2011
12HST5683
© 2012 Hyster Company. Hyster and
are registered trademarks of Hyster Company.
hyster.com
STABILITY IN
AN UNSTABLE WORLD.
Who knows what lies around that corner up ahead? Whatever it is, you’ve got 30
dedicated engineers, no fewer than 126 patents and 14 years of proven stability on
your side. That’s Toyota’s industry exclusive SAS™ technology. The world’s first,
and only, active stability system that dynamically helps protect the driver as it
maximizes productivity. A system so incredibly effective, it can save lives by reducing the likelihood of tipovers
and catastrophic accidents. And most recently, led to Peerless Research’s recognition of Toyota as the safest
manufacturer of lift trucks in the business. It’s one tough world out there as we all know. But if anything can
tame it, it’s Toyota’s SAS. Do yourself, your loads and your drivers a favor and check it out at toyotaforklift.com.
8 0 0 -2 2 6 - 0 0 0 9 • t o y o t a f o r k l i f t. c o m

April - Modern Materials Handling

Transcription

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