Modern Materials Handling

Transcription

Modern Materials Handling
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING
mmh.com
®
June 2012
RADIOSHACK:
Making the
little things
count
16
INFORMATION MANAGEMENT
Manufacturing intelligence 22
Jack Harwell,
vice president of
global sourcing and
distribution operations,
RadioShack
EQUIPMENT REPORT
Shuttle technology 28
BEST PRACTICES
Automotive:
Lineside delivery explored 34
Attend Modern’s Virtual Conference
State of Materials Handling Automation
June 28, 2012 @ 11:00 a.m. EDT
Register: www.supplychainvirtualevents.com
FREE
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UP FRONT
Breaking news you should know
SAP to acquire Ariba
Taking large steps to expand its
presence in the cloud, ERP giant SAP
announced that its subsidiary, SAP
America, has entered into an agreement to acquire Ariba, a 15-year-old,
cloud-based supply chain management technology provider for roughly
$4.3 billion.
The deal is expected to close in
the third quarter. SAP officials said
that by bringing Ariba, the leader
in cloud-based collaborative business
commerce, into the
fold, it “establishes
SAP as the leading
3PL market shows gains
Data from supply
chain consultancy
Armstrong & Associates
showed that total
global third-party
logistics (3PL) gross
revenue in 2011 at
$133.8 billion was
up 5.2% over 2010.
Net revenues, at an
estimated $61 billion,
posted a 5.9% annual gain.
Armstrong said that domestic North American transportation and value-added warehousing had strong
years, while a still difficult economic environment in
Europe and a “cooling” Asian economy tempered
results in those locales.
Armstrong & Associates chairman Dick Armstrong said
in an interview that this growth pattern in the global 3PL
sector should remain intact over the next few years even
with various global economies, including Asia, Europe
and Brazil, continuing to have difficulties.
IFCO opens RPC service center
IFCO Systems U.S. announced the grand opening
of its newest reusable plastic container (RPC) Service
Center in Portland, Ore. The new facility is IFCO’s
fifth U.S. service center, extending the company’s
network in North America in support of the continued
expansion of RPC use by leading grocery retailers
throughout the U.S. and Canada. The 85,000-squarefoot facility washes more than 40,000 RPCs per day,
and ships and receives approximately 25 to 40 truckloads of RPCs daily for IFCO’s grocery retail partners
and grower shipper customers. To meet the demand
in the Northwest, IFCO’s Portland service center is
expected to employ more than 100 employees.
Smart Packaging Systems earns DuPont
Award for innovation
FAS T FACT
Smart Packaging Systems, an Austin,
Texas-based company, has been cited for
excellence in the DuPont Awards for Packaging
Innovation. Smart Packaging Systems won the
award for The Cube, a transport packaging
system that enables companies to move their
products from factory to store with maximum
efficiency and full protection of the product.
The Cube is designed to go from product
pack-out at the end of a manufacturer’s production line into distribution,
be it national or international, in any mode of transportation, straight to
the retailer sales floor.
“While every part is recyclable, the units are reuseable and transformable
throughout the supply chain to insure that nothing hits a landfill,” says
Darryl Kelinske, CEO for Smart Packaging Systems.
mmh.com
business network, adding business-tobusiness collaboration to its existing
solutions.” The company added that
this deal will mesh Ariba’s buyer-seller
collaboration network with SAP’s
broad customer base and deep
business process expertise to
create new models for businessto-business collaboration in the
cloud.
30%
Amount of the manufacturers
that have fully automated data
collection processes for metrics
related to manufacturing
efficiency. See story, p. 22.
Source: “Pursuit of Performance
Excellence,” a research report by the
Manufacturing Enterprise Solutions
Association (MESA) International and
Cambashi
Modern Mat eria l s Ha ndl ing / J
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3
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VOL. 67, NO. 6
®
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION,
WAREHOUSING AND MANUFACTURING
Jack Harwell, vice
president of global
sourcing and distribution operations,
RadioShack
COVER STORY
SYSTEM REPORT
16 RadioShack:
Making the little things count
A new mezzanine reduced the space required for picking small parts
and accessories by two-thirds while improving productivity.
20 Mitigating risk
The new pick module features motor-driven roller conveyor, lightdirected picking, and an intelligent warehouse control system that
enables zone skipping for more efficient picking operations.
FEATURES
INFORMATION MANAGEMENT
22 Getting manufacturing intelligence
Manufacturers are managing by data rather than instinct. The next
generation of MES systems is helping them get there.
EQUIPMENT REPORT
28 Automated storage:
Shuttle technology is taking off
From unit loads to mini-loads and now micro-loads, automated
storage and retrieval systems are evolving to effectively manage the
changing needs of today’s order fulfillment operations.
BEST PRACTICES
34 Automotive:
Make lineside delivery count
It’s been a rough road for the automotive industry, but production is
increasing. To keep pace, auto manufacturers are focusing on lineside
delivery strategies that get the right product to the right operator at
the right time.
PRODUCTIVITY SOLUTION
40 Workstation bridge crane handles
big jobs for small machine shop
41 Crane handles lifting of heavy metal
42 Feed Commodities increases storage
mmh.com
60 seconds with..Don DeSanctis
DEPARTMENTS & COLUMNS
3/ Upfront
7/ This month in Modern
12/ Lift Truck Tips: Mobile computing
14/ Packaging Corner: Stretchwrapping
44/ Supplement: Four trends in mobility
50/ Focus On: Dock Equipment
55/ Product Showcase
58/ 60 seconds with...
NEWS
9/ Changes in commerce affect
distribution networks and processes
10/ Industry recognized among
top 250 U.S. trade shows
11/ Gartner releases annual
Supply Chain Top 25 list
Modern Materials Handling® (ISSN 0026-8038) is published monthly by
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MODERN MAT ERIA L S HA NDL ING / J
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Michael Levans
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Editor at Large
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Editor at Large
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Editor at Large
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Group News Editor
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MICHAEL LEVANS
GROUP EditorIAL
DIRECTOR
Automation insight
is just a click away
T
here’s a significant trend that has
been unfolding over the first half of
the year that’s given me hope that the
economy has finally turned the corner: Professionals representing all facets of supply
chain management are starting to step out
of their facilities and offices to attend live
trade shows and events.
For me, it started in February when 20,000
attendees descended on Atlanta to visit Modex. And the good news continues to unfurl
month after month as the staff of Modern
Materials Handling and our sister publications
report back from conferences and shows in all
corners of the country. Attendance is finally
picking up, and the buzz surrounding facility
investment, automation upgrades and future
planning are generally upbeat.
While live attendance numbers are certainly
on the upswing, the live event business is still
falling well short of pre-recession levels. While
many have been given the “green light” to
move forward on an upgrade or new project,
those attendance figures signal that the majority remains tethered to their facilities, weighed
down by the recession’s mantra of doing more
with less. Travel may be back in the budget,
but many simply don’t have the time.
It’s for these folks that we’ve designed
Modern’s upcoming “State of Materials
Handling Automation,” a half-day, virtual
conference where a select team of materials
handling analysts, consultants and practitioners share how today’s leading supply chain
organizations are leveraging automation to
improve facility operations and streamline
overall business strategy.
The event will be sharply focused on
the revolutionary impact that multi-channel
fulfillment is having on materials handling
Member
mmh.com
Member of
automation and overall operations. In today’s emerging, multi-channel environment,
flexible retail warehouse and DC operations
are now handling a variety of functions out
of one facility—direct-to-consumer order
fulfillment, store replenishment, wholesale
distribution, and global distribution. And, of
course, any retailer worth its salt today has
to fill orders in all of these channels, even
though each has distinct order profiles, order quantities and inventory requirements.
The challenge to both retailers and systems integrators has been immense—and
from what we’ve seen, the best have been
equal to the task.
In our effort to offer a complete overview
of the multi-channel effect, executive editor
Bob Trebilcock opens the event with his Keynote that summarizes his conversations with
leading systems integrators and their forecast
for how materials handling automation will
evolve to meet the multi-channel challenge.
Conference sessions will then dive into
goods-to-person order fulfillment and its
role in multi-channel retailing; how warehouse management systems and warehouse
control systems are now collaborating to
better manage the release and flow of
multi-channel orders; and we’ll wrap up with
a look at the rise of AGVs and automated
storage and retrieval systems and the critical part these technologies are playing in
next-generation fulfillment.
So, if you’re anxious to gain more insight
into the latest developments and applications of materials handling automation and
you don’t have the time to leave the facility,
I have good news for you. You don’t have
to catch a flight. You just need to click here:
supplychainvirtualevents.com.
Winner
Jesse H. Neal
Certificates of Merit
for Journalistic
Excellence
Official Publication of
Modern M aterials Handling / J
u n e
2012
7
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RETAIL
Changes in commerce affect
distribution networks and processes
REPORT SHOWS THAT RETAILERS ARE LEVERAGING A MULTICHANNEL APPROACH TO MEET BUYER EXPECTATIONS AND
COMPETE FOR MARKET SHARE.
BY JEFF BERMAN, GROUP NEWS EDITOR
THE ONGOING UPSWING in ecommerce and mobile commerce
activity continues to make a significant impact on how retailers,
distributors and third-party logistics
(3PL) approach distribution network
processes, according to a new report
from global real estate firm Jones
Lang LaSalle (JLL).
In its report, entitled “Retail
3.0: The evolution of multichannel retail distribution,” JLL
noted that retailers are leveraging a multi-channel approach to
meet buyer expectations and
compete for market share. In
addition, about 80% of retailers
said online sales have gone up
in the last five years, with some
saying they are up by as much
as 25%. This increase has led to
retailers modifying traditional
distribution networks to better
match up with how they handle
e-commerce-related business.
“E-commerce was on the
radar screen five to 10 years
ago, but people were not really
doing anything about it,” said
mmh.com
Kris Bjorson, managing director of
JLL’s Retail/e-commerce Distribution
Group. “But now, everyone has some
type of plan around it.”
These plans can vary, though,
with retailers letting third parties,
such as GSI Commerce, handle
things, or retailers building out their
own e-commerce distribution net-
work that they independently own
and operate, he said. Across the retail spectrum, Bjorson told Modern
that companies are at opposite ends
of extremes and trying to define
their multi-channel strategies—when
determining how to implement
them inside or outside of their own
distribution networks.
These implementation steps are
wide ranging, with some retailers
expanding networks through acquisition, as was the case with Walgreens
acquiring drugstore.com, or Bed
Bath & Beyond opening up multiple
MODERN MAT ERIA L S HA NDL ING / J
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e-commerce DCs.
These steps are vital as retailers
are meshing new shopping channels
to add complexity and flexibility into
their supply chains, said Bjorson. This
entails taking steps to do things like
reconsidering store footprints and
total inventory levels. In the report,
JLL noted that retailers are seeing
more cost-effective advantages to
boost online logistics operations over
opening up new brick and mortar
locations. One way of doing this is
to augment regional distribution
networks by rolling out e-commerce
distribution centers.
But these centers also require
more of a capital investment, as ecommerce DCs center around direct
order fulfillment, are more costly, and
require more staff.
“In terms of supply chain improvements, it is really all about
speed as it relates to productivity and picking individual items,
like with Amazon.com buying Kiva
Systems,” said Bjorson. “Using this
type of [robotic] technology helps
Amazon quickly process an order
and box it up and send to a consumer who needs it tomorrow. Speed
drives service. Retailers need to
have facilities located close to UPS
or FedEx ground locations because
consumers want next-day delivery of
their orders.”
This subsequently forces retailers
to think about the design of their facilities to make sure they are quickly
picking individual items and have
enough dock doors and trailer space
to re-circulate trucks, he said. To
successfully do this, retailers need
to be nimble and flexible with their
“inside the box” operations and
have a fluid transportation network
set-up intact.
And with inventory management
crucial for supply chain management
processes, technology is a linchpin
for speed and efficiency from point
of sale to the inventory fulfillment
mechanism.
“Technology is where you talk
about evolution in the e-commerce
distribution world,” said Bjorson.
“One of the big requirements is a
technology investment. From technology it goes down to the materials
handling level as the next big investment in terms of importance, with
real estate further down.” EVENTS
Industry
recognized among
top 250 U.S. trade
shows
PROMAT 2011 AND PACK EXPO Las
Vegas 2011 have been named to the
2011 Trade Show News Network’s
(TSNN) U.S. Top 250 Trade Shows list.
This list represents the top 250 trade
shows held last year in the U.S. ranked
by net square footage.
Pack Expo, sponsored by PMMI,
ranked 23rd, measuring 627,853 net
square feet, expanding 30.5% from
the show’s 2009 previous edition. ProMat 2011, sponsored by the Material
Handling Industry of America (MHIA),
was ranked 80th.
“Being recognized on such a
prestigious list is not only a great accomplishment, but a great reminder
that ProMat continues to be the
largest and most relevant event in the
material handling, supply chain and
logistics field in North America,” said
Tom Carbott, MHIA’s senior vice president of exhibitions. “We’re thrilled to
SUPPLY CHAIN
Gartner releases annual Supply Chain Top 25 list
Given that “innovation” was the overriding theme of Gartner Supply Chain
Executive Conference held in Palm
Desert, Calif., it came as little surprise
that Apple was lauded for its remark-
Gartner Supply Chain Top 25:
1. Apple
2. Amazon
3. McDonald’s
4. Dell
5. P&G
6. The Coca-Cola Company
7. Intel
8. Cisco Systems
10
J
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able achievements this year.
Gartner released the findings
from its eighth annual Supply Chain
Top 25 with Apple securely nestled
in its position at the top again.
9. Wal-Mart Stores
10. Unilever
11. Colgate-Palmolive
12. PepsiCo
13. Samsung
14. Nike
15. Inditex
16. Starbucks
17. H&M
2 0 1 2 / MO D E RN MATE R IALS HAND L I NG
The goal of the Supply Chain
Top 25 research initiative is to raise
awareness of the supply chain
discipline and how it impacts the
business.
18. Nestle
19. Research In Motion (RIM)
20. Caterpillar
21. 3M
22. Johnson & Johnson
23. Cummins
24. HP
25. Kimberly-Clark
mmh.com
PMMI is using the same strategy
for Pack Expo International 2012
(McCormick Place, Chicago; Oct. 28–
31). The three pilot markets targeted
in 2011—confectionery, baking/snack
and pharmaceutical—will be joined
by a fourth market, beverage.
TSNN is an online resource and
authority for the trade show, exhibition and event industry. The organization operates an event database
that includes more than 19,500 trade
shows, exhibitions, public events and
conferences. A full list of TSNN’s top
250 trade shows can be found at
TSNN.com/datasite. Loading
Dock Safety
YES!
Lost Time
Folding-Rail Gate
Accidents
NO!
be included again this year and are
looking forward to an even more successful ProMat event in 2013.”
Pack Expo 2011 broke all records. Visitor attendance went up
14.8%, exhibiting companies increased by 36.7%, and international
attendance increased by nearly a
third (32.8%). The secret, PMMI’s
vice president of trade shows Jim
Pittas says, is in the approach. In
2011, PMMI debuted a customercentric approach to the show.
“Taking a customer-centric approach to Pack Expo means looking
at and planning the show from the
perspective of the attendee—our
members and exhibitors. It’s a focus
on specific attendee markets that is
seen in marketing material, on the
show floor, on our Web site and in
programming,” Pittas said. “Clearly,
it works for attendees and for
exhibitors.”
Looking ahead, both MHIA and
PMMI have big events planned for
the industry.
ProMat 2013 (McCormick Place,
Chicago; Jan. 21-24, 2013) will be
the most comprehensive international materials handling, supply
chain and logistics show and conference held in the United States in
2013. It will showcase the solutions
of 800 exhibitors that will fill the
300,000-square-foot show floor.
DOCK SAFETY
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STORING
Get the most out of your space
LIFTING
Move inventory with ease
mmh.com
GUARDING
Protect your facility
©Wildeck, Inc. 2012
MODERN MAT ERIA L S HA NDL ING / J
Wildeck_EdgeGard_HalfPgIsl_MMH.indd 1
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WEDG 1205 AD
2012
11
4/30/12 12:38 PM
lift truck TIPS
Tablets break free of the
fixed mount
Ruggedized mobile computers improve productivity on or off the lift truck.
By Josh Bond, Editor at Large
A
s technology rapidly improves,
on-board computing has added
incredible productivity and
visibility for lift truck fleets everywhere.
However, the pace of that improvement
has some customers concerned that
they will be left with obsolete computer
equipment within a few years.
Given the intensity of many lift truck
applications, customers also wonder
if new computing equipment will hold
up or result in costly and time-consuming repairs. Mark Holleran, president
of Xplore Technologies, says recent
improvements in durability, modular
component design, and user interface
are enabling customers to get even
more from their on-board computers
while ensuring a productive future.
The current trend in warehousing/
distribution, says Holleran, is to move
away from fixed-mount devices to more mobile platforms.
“If, say, 20% of the fleet is down at any given time for
charging, repair or off shift, the device is also down,” says
Holleran. “Similarly, if the computer is down, then so is
the lift truck.”
With easily detachable on-board computers, the customer can purchase and maintain fewer devices. This kind
of flexibility can even enable devices to serve a number
of purposes in a facility, says Holleran, from wall-mounted
time clocks to GPS units.
Holleran says the second key shift in mobile computing
is the preference for tablet-style computers with touchscreens. Customers want stylus and touch capability, and
studies show that the intuitiveness of touch interfaces
increases data accuracy, says Holleran. An additional
benefit of the widespread use of tablets is the ease of
training. “To some extent, training for these devices and
their software is built into the ambient culture,” he says.
Customers want to be able to do on-site repairs for
12
Ju
n e
2 0 1 2 / M ode rn M at e ri als H an d li n g things like hard drives and ports that become damaged,
he says. Some tablets now offer tool-less hard drive
removal, tool-less access to the SD memory card, and as
little as four screws to access the memory chips. These
features allow for quick upgrades, repairs and data transfers in the field.
Durability is also essential, says Holleran. Units should
have a minimum five-year lifespan, he says, as compared
to an 18- to 24-month rotation cycle for desktop computers. Unlike desktops, industrial tablets must contend with
industrial environments, like rough floors and minimal
suspension.
“You need industrial-class components, not just a hard
shell on a consumer-grade product,” says Holleran. “They
call those products ‘semi-ruggedized,’ but customers
need real-world rugged.”
Josh Bond is an editor at large for Modern and can be
reached at [email protected].
mmh.com
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packaging corner
How to pick the right
stretch wrapper
By Sara Pearson Specter, Editor at Large
W
hen applying stretch wrap to a unit
load, many facilities rely on manpower. But wrapping by hand has its
downsides, increasing the risk of worker injury
and inefficiently using stretch film, says Steve
Fleming, director of sales at the Wulftec/M.J.
Maillis Group.
“Based on film costs alone, a machine
can be justified within two years for a facility
currently hand wrapping as few as 10 loads a
day,” Fleming adds. “Plus, there are ergonomic and sustainability benefits.”
In addition to removing the worker from
the process, stretch wrapping machines use
rollers that pre-stretch film by three to four
times before applying it. The load is more
consistently secured with up to 50% less film.
“Film is a petroleum product, and its cost
has increased roughly 15% since January 1,”
says Fleming. Using a return on investment
calculator will help determine the potential
savings from a switch.
Those cost savings, says Fleming, often
prompt a machinery purchase. The two basic
styles are turntable, which rotates the loads as
a static applicator feeds the film, and rotary
arm, that uses a carriage that revolves around
the load to apply the film.
To pick the right stretch wrapper for your application,
consider the following:
1. Load configuration. Unstable loads—mixed pallets or column-stacked (instead of interlocked) cases,
for example—are not stable enough to be rotated on a
turntable stretch wrapper. Facilities that wrap multiple
types of stable and unstable loads would benefit from
the versatility offered by a rotary arm model as well, even
though they’re more expensive than turntables.
2. Load weight. Turntables have a top weight capacity from 3,000 to 5,000 pounds, says Fleming, so loads
weighing that much or more will produce a lot of wear
14
J
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2 0 1 2 / Mo d e rn Mate r ials Hand l i ng and tear on the turntable’s drive system. Alternately,
loads under 500 pounds are often too light for a turntable
wrapper without special modifications that hold the load
securely from the top. In both cases, a rotary arm model
might be better.
3. Process. Wrappers are either fully automatic (selffeeding loads) or semi-automatic (loads placed by pallet
jack or lift truck). Also, says Fleming, do you wrap loads
throughout the day, or all at once at the end of a shift?
Your process will help you pick the right machine.
Sara Pearson Specter is an editor at large with Modern and
can be reached at [email protected].
mmh.com
Looking to boost
DC productivity?
Scan to see how RadioShack consolidated two
DC’s into one super-efficient, smaller-footprint
operation, or visit bit.ly/RadioShackMMH
modern system report
RadioShack
A new mezzanine reduced the space
required for picking small parts and
accessories by two-thirds while improving
productivity.
By Bob Trebilcock, Executive Editor
H
ow many times have
you heard that it’s
the little things that
count? Retailing giant
RadioShack turned little
things into a big business.
The batteries, ear phones, cables and
accessories that make personal electronics work are RadioShack’s signature products. “From a brand perspective, this is the core business that we
are known for,” says Jack Harwell, vice
president of global sourcing and distribution operations. “The signature products are also extremely important to our
profitability.”
It comes as no surprise then that a
new pick module specially designed for
those signature products has resulted
in tremendous improvements at one of
RadioShack’s two 600,000-square-foot
distribution centers in Fort Worth, Texas.
Working with a systems integrator (Intelligrated, intelligrated.com),
the pick module features motor-driven
roller conveyor (MDR), light-directed
picking, and an intelligent warehouse
control system (WCS) that enables
zone skipping for more efficient picking
16
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operations. It has delivered significant
operational improvements, including:
• order accuracy of 99.9%,
• a 100% increase in picking rates, and
• increased SKU density by 75% to
1,800 SKUs.
As an unexpected benefit, the
picking software has provided a
new level of visibility into the productivity of the workforce. That has
allowed RadioShack to reduce the
head count in signature parts picking
by 42%.
The module delivered those very big
results in a 22,000-square-foot footprint that is two-thirds smaller than
the 68,000-square-foot picking area it
replaced. “Reducing the footprint of our
picking area allowed us to consolidate
our order fulfillment operations into
one facility and free up a second DC to
handle returns, repairs and the distribution or our fixtures,” says Harwell.
Order selectors pick signature
products from RadioShack’s
new pick module.
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng mmh.com
makes the little
things count
Jack Harwell, vice president of
global sourcing and distribution
operations
mmh.com
Modern Mat eria l s Ha ndl ing / J
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modern system report
Quiet motor-driven roller conveyor
transports cartons from the pick
module to the packing stations.
took up 68,000 square feet in one of
the other buildings. The system averaged 150 lines per hour, per operator. It
had other limitations as well. “The conveyance system was old, it ran all the
time, and it was noisy,” says Hewett.
“Plus, all of the totes from the old signature parts-picking module went to a
pack out area with 39 packing stations.
It took up a lot of space.”
The old network
RadioShack opened its first audio
equipment showroom in 1947. Since
then, the company has grown to
nearly 4,500 U.S. stores operated by
RadioShack Corp., more than 1,100
independently owned franchise stores,
and 1,500 wireless mobile centers
located inside Target stores. In addition, RadioShack operates 225 stores
in Mexico and has international franchises in 29 countries.
The stores are served by a distribution network that includes regional DCs
in Hagerstown, Md.; Woodlawn, Calif.;
and a joint facility in Fort Worth. “We
had one 600,000-square-foot building
in Fort Worth that was about 35 years
old,” explains Dave Hewett, senior
director of distribution. “And, in 1990,
we built a second 600,000-square-foot
facility in Fort Worth to take care of
growth.”
The Maryland and California facilities serve stores in their region. The Fort
Worth facilities, on the other hand, not
only serve regional stores, they are also
the national distribution hub for select
product lines, handle Web fulfillment
for RadioShack.com, supply products
to franchisees in foreign countries, and
provide specialized labeling services,
such as labeling in Arabic for a dealer
in Egypt.
Prior to this project, the network
also included three additional facilities in Fort Worth for other processes
such as returns, customer service, and
repair and distribution of store fixtures.
At that time, signature product SKUs
were housed in a 20-year-old, lightdirected pick-to-tote operation that
Toward a new design
The seeds for the new module were
sown in 2004. RadioShack commissioned a network study to address its
changing distribution needs. It identified two weaknesses.
First, the seven distribution centers,
including two in Fort Worth, weren’t
adequately
serving
RadioShack’s
needs. Signature products distribution
highlighted the inefficiencies in the
existing network. “We were servicing
about 5,700 stores from the old pick
modules, and we were only able to
make weekly deliveries to about 1,500
stores because at 150 lines per hour.
We were at capacity,” says Hewett.
That meant stores had to either carry
extra inventory to make sure they had
enough to get through until the next
delivery, or they had to wait a long
The pick module takes up just 22,000
square feet, two-thirds less space
than the picking area it replaced.
18
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2 0 1 2 / Mo d e r n Mate r ials Hand l i ng mmh.com
period of time if they ran out.
RadioShack also realized that clustering the chain’s most profitable products in one location known for extreme
weather events created a significant
risk. “Fort Worth is right on the edge of
Tornado Alley,” says Harwell. “If a tornado wiped out that distribution center,
we could be in a world of hurt.”
The net result of that study was that
RadioShack needed to consolidate its
Fort Worth distribution activities to get
more efficient. In addition, it needed
to create a process to regionalize the
distribution of signature products and
mitigate risk.
The new pick module addressed
both of those objectives, but not without some work. “The old pick module
was too big to move into one of the
other DCs,” says Hewett. Instead,
RadioShack decided to consolidate
the signature products picking operation into an existing 22,000-square-foot
pick module in one of the other buildings. To do that, “we had to reduce the
physical footprint of the picking operations,” Hewett says.
Several technologies were evaluated, including put-to-light and tilt-tray
sortation solutions, before RadioShack
chose the design recommended by its
systems integrator.
Two key features resulted in space
and labor gains. One was the pick-tolight picking technologies. The other
was zone-skipping technology that will
only deliver a shipping carton to a zone
where there are picks. “That reduced
idle time of the pickers,” explains Randy
Crowe, director of industrial engineering. Crowe adds that if a zone is full,
the system software will automatically
divert the carton to another zone with
available work and then revisit the
other zone later. “The carton is always
moving,” he says.
The old conveyor system was
replaced with motor-driven roller conveyor technology. Now, conveyor is only
turning when it has product to move,
which saves energy. In addition, the
MDR conveyor is much quieter than
mmh.com
Voice technology directs the picking operations in pick zones
outside the signature product pick module.
the older system. “In the old facility, it
was hard to carry on a conversation with
active picking going on,” says Hewett.
Small footprint, big results
Since going live, RadioShack has realized
significant benefits. Average lines picked
per hour have doubled. Associates’ average picking efficiency also doubled, with
peak picking efficiency rates up as high
as 165%.
“As we get better at slotting and
our people get more familiar with the
system, we’ve been able to gradually
draw down the labor in the picking
module,” says Hewett. “That has let
us transition people into other parts
of the DC without increasing our
head count. It’s a real continuous
improvement process.”
RadioShack plans to extend the
robust WCS to other areas of the building. This will provide RadioShack with
labor management functionality that it
does not have in the proprietary warehouse management system (WMS).
“We will be able to track the performance of individual pickers throughout
the building,” Crowe says. “We have
more visibility into our labor than we
ever have before.”
That information has been used to
identify best practices that can be used
to coach underperforming associates,
or identify those associates who might
be better suited to other tasks in the
facility. “We have more visibility into
our labor than we ever had before,” he
says.
Most important of all, RadioShack
is realizing its broader network goals.
Where it once had five DCs, all of its
Fort Worth activities including returns,
repairs and fixtures, have been consolidated into two adjacent facilities.
More importantly, RadioShack is
regionalizing the distribution of signature products, with new small parts
pick modules that will go live this July
in Maryland and California. “We’re
going to have a higher level of service
to our stores, which will allow us to
ship every store on a weekly basis,”
Harwell says. “And any one of the
three DCs could ship on a national
basis if necessary. That mitigates the
risk of losing the Fort Worth DC to a
tornado.”
Similarly, the WCS will allow
RadioShack to better manage the labor
in the other two facilities as well. “That
has been an absolute bonus that we
discovered after we went live,” says
Harwell. M
Modern Mat eria l s Ha ndl ing / J
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2012
19
modern system report
RadioShack
Fort Worth, Texas
Mitigating risk
Size: 600,000 square feet total, of which
The new pick module features motor-driven roller conveyor,
light-directed picking, and an intelligent warehouse control
system that enables zone skipping for more efficient
picking operations.
25,000 square feet represents the new pick
module and 95,000 square feet represents
dedicated storage for the pick module
Products handled: Small parts and
pieces, such as electronics parts, batteries
and accessories
By Bob Trebilcock, Executive Editor
Stock keeping units: 1,800
A
new layout coupled with
new technology has enabled
RadioShack to reduce the space
devoted to small parts picking while
increasing productivity. The pick module
is driven by its own receiving, replenishment, picking and shipping processes.
Putaway/replenishment: Pick module replenishment is a paper-based
replenishment process driven by the
legacy warehouse management system
(WMS). Orders that will be picked during the day are received into the WMS
each morning. The SKUs and quantities
required to fill the orders are matched
against the amount of product already in
the forward picking area (1). Stock move
tickets are then automatically created
to replenish any inventory that is below
the quantity necessary to fill orders.
RadioShack refers to these as auto move
tickets.
The auto move tickets are distributed to lift truck operators assigned to
replenishment. The tickets direct them
to the correct reserve storage location (2) to retrieve pallets or cartons
required to replenish a forward pick
location. Those items are then dropped
off in a ready rack area—comprised of
shelving located behind the forward
pick locations designated for replenish-
Throughput: 300 lines picked per hour
from pick module
Employees: 70
Shifts/Days: 1 shift/4 days per week
ment. There, an associate transfers the
product from the ready rack to the correct carton flow rack in a forward pick
location.
Picking: At the corporate level,
an inventory management team
reviews the current sales history for
each store and a forecast for what the
stores are expected to sell. Based on
that review, the team creates replenishment orders for the stores served
2
Reserve
storage
Forward pick module
1
2
Reserve
storage
3
Light-directed
small parts
picking
Coveyor
induction
5
3
4
Coveyor
induction
Voice-directed
picking
4
6
Voice-directed
picking
Packing station
Conveyor
Conveyor
8
7
8
7
Merge
Merge
9
Loading area
20
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2 0 1 2 / M o d e rn M ate rial s Hand l i ng mmh.com
MODERN system report
by the Fort Worth facility. The goal is to make sure that
each store is replenished in advance of the weekend,
which is RadioShack’s busiest time. Orders are downloaded into the WMS each evening and are then passed
to a transportation management system (TMS). To make
a weekend replenishment schedule, orders are prioritized
based on the transit times: Orders for the stores with
the longest transit times are scheduled to be picked on
Monday while orders with shorter transit times are shipped
later in the week.
The TMS also optimizes the orders, based on whether
it is most economical to ship using a pooled distribution
model, express freight or some other type of shipping mode.
Once the TMS has optimized orders, they are passed back
to the WMS and shipping labels are printed.
Once the picking begins, shipping labels are placed
on a carton which also includes a license plate bar code.
The carton is automatically scanned when it is inducted
onto the conveyor system (3) and delivered to the first
zone where there is a pick. Consumer electronics and
other products are picked from one of nine voice-directed
picking zones (4). Signature products are picked from the
light-directed small parts picking module in the center of
the picking module (5). There, an associate scans the carton. The pick-to-light system then tells the operator which
items and in what quantity are picked in that zone. Once
the picks are complete, the system directs the associate to
pass the carton to the next picker in the zone, or to push
the carton onto a takeaway conveyor that will direct it to
the next zone with a pick.
Packing and shipping: Once all of the picks for that
carton are complete, the last associate closes the carton and
it is diverted to a takeway conveyor that delivers it to a packing station (6). There it is filled with any dunnage required
for shipping and automatically taped. From there, the carton is merged (7) onto a conveyor system (8) feeding the
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U N E
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21
modern information management
Getting
manufacturing
intelligence
Manufacturers are managing by data rather
than instinct. The next generation of MES
systems is helping them get there.
By Bob Trebilcock, Executive Editor
22
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2 0 1 2 / Mo d e r n Mate r ials Hand l i ng mmh.com
M
anufacturing is in transition.
The shop floor was once managed
and monitored by instinct and experience. The manufacturing execution systems (MES) that manage manufacturing
processes were transactional. The MES
made sure that each of the steps in the
manufacturing process, or transactions,
were completed according to the rules
for that process and the plan for that
manufacturing run of product. They
were also historical; the data about a
shift often wasn’t reviewed until after a
run was complete.
Today, gut instinct and experience
are slowly giving way to fact-based decision making supported by the next generation of real-time manufacturing software tools. At the best manufacturers,
these systems are being employed to
drive action down on the shop floor as
it’s happening. They are also connecting the manufacturing plant back to the
business at the corporate level.
The transition is enabled by data
collected by machine-level control
systems and data capture technologies
and analyzed by the MES. Much of
that data has always been there, locked
away in control system databases.
Today’s MES and manufacturing-centric software systems have added the
ability to unlock that data and turn it
into metrics to measure and monitor
what’s happening on the shop floor in
real time. If required, that data can be
linked to the business strategies being
developed in the executive suite.
The transition from instinct to
metrics is highlighted in “Pursuit of
Performance Excellence,” a research
report released by the Manufacturing
Enterprise
Solutions
Association
(MESA) International and Cambashi
last February. (A summary of the report
can be found here: tinyurl.com/cco2tjk).
“MESA members have been increasingly clear that the old way of manufacturing is no longer adequate,” says
Julie Fraser, author, analyst and lead
researcher of the report. “The question
is: How do you create a metrics program
that measures the right things that make
a financial difference over time?”
mmh.com
The best manufacturers are collecting real-time data to monitor the metrics
that make a difference in their operations.
After all, there are thousands of
things that can be measured in a manufacturing operation. Figuring out which
ones make a difference and then measuring those all the way down the line
to the operators and maintenance personnel is the key. “The companies that
did manage to improve their business
outcomes focused on improving on certain metrics more than other folks we
surveyed,” Fraser says.
Changing times
A number of factors are driving this transition, according to Fraser and the software vendors that supported the study.
Global competition has raised the bar
in terms of quality and customer service. Correcting a mistake can cost you
money, a customer and your reputation.
Manufacturing is more complex
than ever. Companies are releasing
new products faster and in more configurations than ever before. In a global
economy, country-specific regulations
also impact the assembly line. “A product like the defibrillator used in airports, may get manufactured in a consumer and a medical version and each
of those versions may be customers by
language or country of delivery,” says
Susan Lamb, senior manager of customer programs for Camstar. “Each of
those variations is a divert on the line.
Those complexities cannot be handled
on paper.”
With outsourcing and the distribution of manufacturing responsibilities
across multiple sites, suppliers and
countries, the manufacturing network
is more complex than ever.
Finally, there is more volatility.
“Quite simply, the ground is shifting
under the feet of most manufacturers,”
says Fraser. “There is a lot less certainty
from one week to the next whether
orders are going to come in the way you
thought they would.”
That’s not to say that experience
on the line doesn’t count. But, experience can only take you so far in a more
complex environment. “You want to
combine your gut with data and then
refine what it is you’re measuring,” says
Fraser. “It’s the ability to see the entire
context of your business.”
What’s more, that data needs to be
provided across the business, from the
C-level to the shop floor. While many
world-class manufacturers are moving in this direction, Fraser says only a
small percentage are there now. Among
Modern Mat eria l s Ha ndl ing / J
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23
modern information management
the respondents to the MESA survey, a
little more than 30% of the best manufacturers have fully automated data collection processes for metrics related to
manufacturing efficiency. Just less than
20% of the best manufacturers were
automatically capturing quality data.
Among the remaining respondents, an
estimated 15% were automatically capturing efficiency data and 10% were
capturing quality data.
Meanwhile, although they were capturing the data, only 25% of the best
manufacturers were sharing it with line
level operators and technicians while
only 12% of the rest were sharing that
data with their operations staff.
Manufacturing intelligence
This transition is reflected in the challenges manufacturers are presenting
to manufacturing software providers. “Manufacturers are getting a lot
of high-level data,” says Mike Gay,
CPG industry manager for Rockwell
Automation. “They’re not able to use it
MES systems enforce quality into your
processes, ensuring that every step is
completed per the plan.
at a more granular level.”
A french fry maker, for instance,
knows that it should cost $1.00 to make
a unit of product and that the cost of
production is running $1.10 at one particular plant. With current systems, that
manufacturer can identify all of the raw
materials going into a batch of product
and quantify what it produced. What it
can’t tell is what happened at the line
that cost the extra 10 cents. “The plant
may know that they’re getting a 40%
Spirited manufacturing
Mobile manufacturing technology
accelerated performance at Diageo
North America.
Diageo may not be a household—or
even a barstool—name. But Diageo
brands such as Smirnoff, Johnnie
Walker, Tangueray, Jose Cuervo and
Sterling Vineyards are among the top
selling wine and spirits labels around
the globe.
Thanks to continuous improvement initiatives, involving TPM,
Lean and Six Sigma methodologies,
Diageo had already brewed up a
manufacturing culture focused on
excellence. The wine and spirits
operator implemented a real-time
manufacturing intelligence system
(Solarsoft) to capture and analyze
real-time production metrics that
would take its operations to the next
level.
The system monitors production
by plant, production line, by machine,
by SKU, by product family, or by
24
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line by time and day across North
American operations. In all, the application is monitoring and analyzing
10,000 data points at any given time.
That information is then analyzed
by the software to identify the best
improvement opportunities across
the network of facilities as well as
within a facility.
To make it more user friendly, the
information is distributed to management and plant personnel though
an app on their iPads. Using that
shop floor data, Diageo saw a 25%
improvement in its operational efficiency in the first full year after going
live with the solution. “The data gives
our operations team and senior executives visual insight to tackle tough
problems and propagate best practices,” says Ewan Andrew, senior vice
president of manufacturing and distilling. ”Our focus now is to take this
application and continue to build,
sustain and multiply the improvements into the future.”
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng yield from each load of potatoes that
gets turned into fries,” Gay says, “but it
doesn’t know what’s happening to the
other 60% of the batch.”
Similarly, the plant doesn’t know
whether something in the washing
and prep area affected what happened
down the line, whether yield was lost
when the finished product was packaged, or whether a quality problem
caused the plant to scrap some of the
product. “Rework and scrap are two of
the biggest wastes in manufacturing,”
says Lamb. “If you have real-time visibility and you enforce quality into your
processes with an MES, you reduce
those wastes and increase your yields.”
In theory, MES have always been
able to capture granular data. What they
haven’t done is turn it into manufacturing intelligence. Nor have they integrated that manufacturing intelligence
data into the broader business systems
at the enterprise level. “To really improve
your processes, you not only want to
increase efficiencies in manufacturing, you want to view it in the context
of the entire supply chain,” says Ganesh
Hegde, senior director of manufacturing
solutions marketing for SAP.
For example, a manufacturer may be
able to identify that one plant is continually underperforming other similar
plants in the network when it comes
to uptime, production rates or quality. Manufacturing intelligence allows
the manufacturer to identify the problems affecting that plant. It also allows
it to apply whatever was learned from
this analysis to the next revision of the
product or the next line. “You can loop
manufacturing intelligence back into
the design process so that the next generation of your product is improved,”
says Lamb.
But a problem may be a result of a
larger issue in the network. “You may
have good manufacturing processes,
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modern information management
but you are manufacturing the wrong
mix of products at a location based
on where the customers are for those
products,” says Hegde. Similarly, a
plant may be operating efficiently but
quality is suffering because of an issue
with a downstream process. “It’s not
just taking intelligence from one particular plant, but integrating and analyzing that information in a more real-time
fashion in a broader supply chain context,” says Hedge.
Next generation tools
Manufacturing software providers,
including MES, are developing new tools
to address the transition to fact-based
decision making in a variety of ways.
One is more dashboards that can
deliver role-based operational metrics
across an enterprise. Role-based means
that the information being generated
is pertinent to an individual based on
their job. A C-level executive responsible for multiple plants may want
information on finished goods being
produced at each plant. Meanwhile, a
supervisor or operator on the line may
need throughput, rework or yield rates
so they can make real-time adjustments
to machines and equipment when performance metrics are out of line.
A second is the creation of new
tools that extend the capabilities of
conventional controls, MES and ERP.
One example is a cloud-based, unified
manufacturing software platform that
sits atop other systems. The platform
collects information being generated
by the underlying infrastructure of
PLCs, devices and distributed controls systems that are running manufacturing equipment and systems. It
also accesses information generated by
disparate software systems within an
enterprise. The solution then isolates
the relevant information from those
various systems to make critical business decisions at a role-based level.
“The platform has the ability to connect to virtually any data source that
a company has and pull data in sub-
26
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The next generation of manufacturing tools are utilizing dashboards that
deliver role-based metrics across an enterprise.
second times if required,” explains
David Gustovich, president of iQity
Solutions.
A yeast manufacturer, for example,
sends blocks of yeast across an inline
scale at a rate of 32 blocks a minute,
or nearly 2,000 blocks per hour. In a
conventional plant, a quality inspector takes 10 blocks every 15 minutes
to verify the weight on another scale
and manually chart the weights on a
control chart to make sure they are
in compliance. If those blocks are
out of compliance, the inspector may
alert the line. Meanwhile, nearly 500
went across the line in that 15 minute
period that may have to be reworked.
“Instead, we connect to the inline
scale and read every block in real time
and apply rules to those data points
to determine whether the product
is in compliance in real time,” says
Gustovich. “If they’re out of compliance, the system can proactively alert
someone at the line level all the way to
the C suite if required to take action.”
Meanwhile, manufacturing-centric
ERP systems are developing tools to
connect the shop floor to the enterprise
with analytical tools that identify issues
related to overall equipment effectiveness. “We’re providing tools that monitor and measure whether machines are
available when they should be, whether
the line is making the quality of product
that it’s supposed to make and whether
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng the line is running as fast as it should
run,” says Andy Amalfitano, vice president and general manager for Solarsoft.
“The goal is to identify the top three
losses in any organization, fix those and
then make sure they stay fixed.” (See
the sidebar on Diageo, p. 24, to see how
one manufacturer put these tools into
action.)
As MES and other manufacturing software tools like these proliferate on the shop floor, Julie Fraser sees
big improvements for early adopters.
“The most successful companies have
combined lean manufacturing practices with manufacturing software systems that give them visibility into their
operations and put those metrics in a
context and continually measure an
outcome,” says Fraser. “Those are the
manufacturers who were really able to
improve their financials more than the
rest of the pack.” M
Companies mentioned
in this article
Cambashi: cambashi.com
camstar.com
iqitysolutions.com
MESA International: mesa.org
Camstar:
iQity Solutions:
Rockwell Automation:
rockwellautomation.com
SAP: sap.com
Solarsoft: solarsoft.com
mmh.com
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modern equipment report
Automated storage:
Shuttle technology
is taking off
From unit loads to mini-loads and now micro-loads, automated
storage and retrieval systems are evolving to effectively manage
the changing needs of today’s order fulfillment operations.
W
By Lorie King Rogers, Associate Editor
hen automated storage and retrieval
systems first appeared on the materials
handling scene back in the 1960s, they
were designed and built to handle heavy
pallet loads, known as unit loads. As
automated storage and retrieval system
(AS/RS) technology progressed, system
incarnations were introduced to handle
smaller, lighter loads in totes, trays, cartons and bins. This more compact cargo
became known as mini-loads.
Now, there’s another emerging storage technology known as shuttle technology, and it handles micro-loads. Like
the mini-load AS/RS, shuttle technology is a computer-controlled system
that uses moving vehicles known as
shuttles to put away, store and retrieve
goods in a racking structure.
But while there are similarities, there
are also differences between the two
solutions. For example, two significant
differences between a mini-load AS/RS
and the newer shuttle technology are
weight and directional movement. Both
systems can transport product in totes,
28
Ju
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trays, cartons and bins, but the load
handling devices in a mini-load AS/RS
system are capable of carrying loads of
up to about 1,000 pounds. Shuttle systems are designed to carry even lighter
loads, typically limited to about 100 to
110 pounds.
The mini-load AS/RS uses one
stacker crane that moves horizontally
and vertically, forward and back, and up
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng and down an aisle. But in a shuttle system, two separate transport devices carry
out vertical and horizontal movements.
A lift, like an elevator, at one or both
sides of the unit, moves up and down to
the designated storage level within the
system. Some lifts are designed to raise
and lower more than one load at a time.
Then, to move product horizontally—
meaning to and from the lift and in and
out of the storage aisle—each level is
equipped with one or more load handling devices, or shuttles.
“Shuttles and lift systems work independently from each other,” explains
Roman Schnabl, product manager for
Knapp USA. “This guarantees a maximum utilization of lift capacity and
optimized throughput.”
Another thing that makes the shuttle different from the typical mini-load
crane is speed. Stephen Schwietert,
Shuttle systems use a lift at the end of
the unit to raise and lower loads.
mmh.com
Moving product in
totes, trays, cartons
and bins, shuttle
systems are designed
to handle loads up to
about 110 pounds.
mmh.com
Modern Mat eria l s Ha ndl ing / J
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2012
29
modern equipment report
integrated systems sales manager for
TGW Systems, says shuttles can multiply throughput rates. “Because there can
be a number of shuttles operating in a
single aisle, and these shuttles are moving simultaneously, the throughput per
aisle can be five to 10 times greater than
a typical mini-load AS/RS,” he says.
So while the vehicles act concurrently on different storage levels and a
high throughput can be reached, typically it is the vertical lift at the end of the
aisle that sets the limit for the possible
throughput per aisle. However, according to Kenneth Hayer, senior consultant
for Swisslog, there can be several lifts
per aisle depending on performance
requirements. Lifts can be located at the
front, middle or end of an aisle.
Still, the lifts also move at a fast
rate. In fact, Hayer says that each lift
can perform approximately 500 vertical
lifts every hour and make it to the top of
a 45-foot high rack structure in about
three seconds.
These differences give shuttle technology some advantages over a miniload system and can make it a better
solution for certain automated materials handling applications.
Here’s the answer, what’s
the question?
An AS/RS only brings value to an
operation when an order is filled, says
Dave Simpson, director of applications engineering for Schaefer Systems
International. “It’s a holding tank for
inventory, getting the right SKU to the
right place at the right time.”
So why do the features and benefits
of shuttle technology make it a good
materials handling solution for certain
operations with certain requirements
and not the ideal solution for others?
The best way to understand the answer
is to ask the question: What are you
moving and why?
If an operation that is handling a
variety of goods in a variety of sizes,
shapes and packages, shuttle technology could be the right match—especially if that operation is a warehouse
or distribution center handling multichannel order fulfillment.
Multi-channel order fulfillment is
a term that we’re hearing a lot these
days. Online shopping, smart phones,
catalogs, 3:00 a.m. infomercials and
brick and mortar stores offer shoppers
more choices than ever. More options
for consumers means a proliferation
of SKUs for warehouses and distribution centers. It also means that more
frequent and smaller orders are being
shipped directly to individuals.
Filling more small orders means a lot
more leg work and that’s where shuttle
technology steps in. The idea is to take
the leg work out of order fulfillment and
replace it with a goods-to-person strategy,
which is supported by shuttle technology.
“If an operation has products that
are handled in case or unit quantities,
and you have associates walking or riding to pick this merchandise, shuttles
may eliminate the need for walking and
increase productivity two to six times
greater than your current process,”
explains Schwietert. “This is where technology moves beyond the ‘wow’ factor,
to a technology solution that integrates
with an operation to deliver results.”
With this solution, the integration
Shuttle systems are a flexible materials handling solution that can accommodate consumer
demand and serve as a holding tank for the ever increasing number of SKUs.
30
Ju
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2 0 1 2 / Mo d e r n Mate r ials Hand l i ng mmh.com
of shuttle technology results in getting orders to customers quickly and
accurately. Shuttle technology supports goods-to-person order fulfillment configurations. According to Ken
Ruehrdanz, warehousing and distribution market manager for Dematic,
“shuttle technology supports higher
order and inventory accuracy, increased
productivity and controlled access
to inventory.” It also accommodates
the growing trend to improve the performance of the replenishment task,
meaning the replenishment of inventory into the pick modules.
The goods-to-person picking concept has gained traction over the past
couple of years. “Because of their speed
and ability to sequence, shuttles have
opened up the idea of goods-to-person
picking. Almost anyone with a traditional multi-floor pick module, may
have an opportunity for goods-to-per-
son picking using shuttle technology,”
Schwietert adds.
Conserving energy
The demand creating the opportunity
for this technology is a constant struggle to balance storage effectiveness,
throughput capacity and SKU representation, Ruehrdanz says.
When operations were only filling
large orders for wholesalers or retailers, he points out, unit-load AS/RS systems were a fine solution. But unit-load
systems that handle pallets are not as
effective in this case. It’s comparable to
using a service elevator to deliver a cup
of coffee when you could have used a
dumbwaiter
Using shuttles to deliver product to
the operators in a goods-to-person operation uses the right equipment to handle
the job, and the shuttle’s lightweight
design and advanced controls contribute
to reduced energy consumption.
In comparing the weight of miniload crane, which is about 20,000
pounds, to a shuttle carrier, which is
less than 100 pounds, the difference is
significant and so is the ratio of energy
needed to move the load.
The shuttle system has extremely
low energy consumption at full speed.
This is because carriers are driven by
super capacitors and the system has
energy recuperative features for both
the carriers and the lifts that feed
energy back into the system, Swisslog’s
Hayer explains. Additionally, the control software continually optimizes
transport routes and transport movements, making an added and important
contribution to energy conservation.
The interplay between lift system
and shuttles makes a constant level of
performance possible, avoiding energy
consumption peaks and providing an
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31
MODERN equipment report
even supply of containers, says Knapp’s
Schnabl. “One rack line of the [shuttle] performs 800 storage and retrieval
movements in one hour and consumes
approximately 2 kWh, which corresponds to the energy consumption of
two vacuum cleaners.”
Multi-benefits of shuttle
In addition to being fast and energyefficient, shuttle systems are flexible,
explains Dematic’s Ruehrdanz. With
the ability to handle totes, trays, bins,
cartons, cases and trays, shuttle systems
can accommodate different load types
in variable sizes and the load handling
device can ‘flex’ to multiple load widths.
Flexibility is also gauged by the system’s ability to work within the confines
of an irregular building space. A traditional mini-load AS/RS doesn’t have the
same modular design options because it
needs a square form of racking, but the
shuttles’ modular rack structures can
32
JU
N E
be adapted to existing irregular building shapes which optimizes the storage
space inside the building’s cube.
Because shuttles can go in and out
both ends of aisle, the system can be
configured to accommodate unusual or
irregular facility dimensions. Modular
rack can be designed around building
components on the ceiling like air conditioning units or designed to bridge floorlevel concerns like lift truck traffic routes.
Still, shuttle technology should be
treated like another tool in the toolbox. This tool, for example, works well
in ambient environments but has not
yet been perfected for use in the deep
freeze warehouse environment, says
Swisslog’s Hayer. This is because the
vehicles have electronic components
that don’t function well in temperatures
that dip below 32 degrees Fahrenheit.
Keeping freezer temperatures low is a
high operational expense, so you don’t
want to introduce anything in the
2 0 1 2 / MO D E R N MATE R IALS HAND L I NG
freezer environment to heat up the
components that could add to the cost
of temperature control.
With virtually unlimited design possibilities, Knapp’s Schnabl says, a system
can be tailor-made to fit the customer’s
requirements today and in the future
can be adjusted simply and effectively to
meet changes in their market sector.
“Shuttle technology will allow integrators to have a bit more flexibility
in developing the most cost effective
solution for end users,” says Schaefer’s
Simpson. Companies mentioned
in this article
Companies mentioned in this article
DEMATIC: dematic.com
KNAPP USA: knapp.com
SCHAEFER SYSTEMS INTERNATIONAL:
ssi-schaefer.us
SWISSLOG: swisslog.com
TGW SYSTEMS: tgw-group.com
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modern best practices
Automotive:
Make lineside
delivery count
34
mmh.com
modern best practices
It’s been a rough road
for the automotive
industry, but production
is increasing. To keep
pace, auto manufacturers
are focusing on lineside
delivery strategies that
get the right product to
the right operator at the
right time.
By Lorie King Rogers,
Associate Editor
I
n an automotive assembly plant, it’s all
about keeping the line moving. In 1913,
Ford’s Model T rolled off the assembly
line in about 93 minutes. These days,
manufacturers are rolling out vehicles
at a rate of about a car a minute.
To keep pace with these revved up
rates, every step of the process must
be lean and efficient, including the
delivery of parts to the assembly line,
or lineside delivery. This means getting
the right parts and components to the
right operator at the right time with the
right equipment.
The assembly line work areas are
shrinking as companies work to lean
down operations. Gone are the days of
storing days worth of just-in-case product, today companies are storing hours
worth of product and making deliveries
just-in-time and just-in-sequence for the
next vehicle cruising down the line.
But it’s not just when the inventory
Shifting away from the line,
components can be preassembled
in other areas of a manufacturing
facility and delivered to the line
ready to be installed in the vehicle.
mmh.com
An automatic guided cart, guided by magnetic tape, moves a customized trailer
carrying fascias in an automotive factory.
is presented that matters, it’s also the
what and how that makes lineside delivery an important part of the manufacturing process. For example, rather than
individual parts being delivered to the
line, more kits and assemblies are being
presented to the operator’s workstation.
These kits, often housed in totes, give
workers the parts and tools necessary
to complete the specific components
they are building, while assemblies, like
dashboards, are complete units delivered lineside ready for installation.
“In the old days there were 6,000 to
7,000 pieces that had to be assembled
on the line,” explains Tom Meyers,
national sales manager for Muratec.
“Now you may have 200 to 300 assemblies that go to the line ready to be
incorporated into the car. This has
saved the auto industry a lot of money
and brought up the quality because you
can test the assembly along the way
before it’s put into the car.”
Different assembly strategies mean
different lineside delivery strategies
and technologies. Here’s a look the
best practices of lineside delivery and
how equipment like manual carts,
smart carts, automatic guided vehicles,
autonomous mobile robots and overhead handling equipment are being
implemented.
Manually operated carts
While the trend in the materials handling sector, including the automotive
industry, is toward automation, manual
Modern Mat eria l s Ha ndl ing / J
u n e
2012
35
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modern best practices
Manual carts can be outfitted
with customized uppers that
allow materials to be presented
to operators ergonomically.
movement can still be a best practice
for some operations. “Lean operations
have the same goal: Invest less capital
and come up with simpler solutions,”
explains John Neumann, president of
K-Tec. “Carts bring material flow to
lean manufacturing, but the challenge
to suppliers is to come up with new
ways to be effective.”
Because end users want customized solutions, there are hundreds of
cart design options available. In one
example, carts with rotating decks can
be individually equipped with stainless
steel uppers, like pop-up shelves, to
allow more parts to be moved on the
cart. The horizontal shelves are stocked
with parts and delivered to the workstation in the right sequence. As the operator selects parts from the shelf, the
deck can be rotated to allow quick and
easy access, without excessive reaching. When the operator has unloaded
the top shelf, the shelf springs up into
a vertical position so the operator can
access the stock on the next shelf.
This simple solution works well
for a number of reasons. According to
Neumann, manual carts make it easy
to quickly locate and pick up the right
parts ergonomically. Additionally, he
says, “The operator on the line doesn’t
have to do anything other than the
operation, meaning no searching for
parts, making decisions about the right
tools to use, or unpacking parts and
removing packaging materials from the
workstation. And, if a big plant wants to
change a line, you can move a cart in 10
minutes for free.”
While manual carts offer an inexpensive, flexible way to transport parts,
there are limitations. To avoid worker
injuries, an operation has to apply spe-
A fork-free environment
Manual carts, AGCs, AGVs, autonomous mobile robots and overhead
handling systems all share a few
important characteristics—they
improve ergonomic handling and they
are not lift trucks. Lift trucks working
alongside people in a manufacturing
facility can raise safety concerns. One
way to enhance safety is to create a
“fork-free” environment, which means
limiting the use lift trucks in areas
where there are a lot of people, areas
like the assembly line.
A fork-free environment opens the
door for automated solutions to transport product to the line.
“Transportation is considered a
low value-added component–necessary, but low. But if you modernize
your transportation, you could design
a more efficient work cell. In other
words, you have to look beyond the
work cell in order to improve it,” says
Bill Torrens, director of sales and marketing at RMT Robotics.
Beyond the work cell, another
benefit of using these solutions
for lineside delivery is that you
can change the dimensions of the
aisles. The design of manufacturing
facilities was once determined by
the materials handling equipment.
Today’s advanced technology is not
only improving lineside delivery, it
is enabling manufacturers to design
and build smaller facilities, which
presents tremendous savings opportunities.
USA Manufactured
mmh.com
Powered lineside delivery solutions, which are capable of moving loads up to
6,000 pounds, are easy to install, scalable and can be customized to transport
virtually any car parts from storage to the line.
cific guidelines of gender, height and
weight to determine the ergonomics and
safety of usage.
AGC and AGV spell flexibility
Moving from manual to powered lineside delivery solutions, smart carts, or
automatic guided carts (AGCs), are
capable of moving loads up to 6,000
pounds. Guided by magnetic tape on
the floor, they allow users to change the
guide path quickly and easily.
“AGCs are popular for lineside delivery because they are extremely flexible,”
explains Noel Dehne, vice president of
automotive for Daifuku Webb. “These
systems improve the process by automating it and by providing flexibility
that other forms of automation cannot.
They are also easy to install and scalable, enabling users to simply add more
carts to increase throughput.”
In some cases, AGCs, or tugger systems, pull trailers that can be customized to transport kits, pre-assembled
components and virtually any car parts
from storage to the line. They can also
be equipped with customized carriers to
move specific parts. By simply changing
the customized carrier, different parts
can be moved to the assembly line.
“One day the AGC can move fascias,
but if the company needed to move
steering wheels a new carrier could
be designed and still be moved by the
mmh.com
cart,” Dehne explains.
AGCs can also be equipped with
other devices such as scissor lifts that
can raise and lower the load for improved
ergonomics when delivering the product
to the operator at the workstation.
Like AGCs, automatic guided vehicles (AGVs) can also be introduced to
the lean manufacturing process without
the need for plant modifications and are
flexible enough to adapt to an operation’s changing business needs. Batterypowered and computer-controlled,
AGVs also have defined paths and are
effective solutions for moving materials
on repetitive, pre-determined routes.
Both AGCs and AGVs can redistribute workers in your plant to valueadded positions, improve safety and
material tracking, and reduce labor
costs. These automated materials handling systems reduce lift truck traffic,
increase plant safety and improve the
quality of the build because workers
don’t have to walk to the storage area
and make selection decisions, explains
Neville Croft, executive vice president
of Transbotics.
When the AGV arrives lineside
with its delivery, there’s a handshake of
sorts, explains Croft. The exchange of
information validates that the AGV has
arrived in the right place with the right
material and initiates the process and
activates controllers, motors, lifts and
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modern best practices
other electro-mechanical devices that
complete the delivery.
Autonomous mobile robots
Traditional AGCs and AGVs work well
in repetitive applications that move
from point A to point B. However, they
are not autonomous, meaning they are
tethered to their guidance systems and
travel on a fixed path. Autonomous
mobile robotic solutions, however,
can navigate and maneuver around
objects—moving or stationary—independently from a random origin to a
random destination.
This capability is especially important in a manufacturing area where
“Imagine the profit you
could glean if you build
one more car per hour.”
—Bill Torrens, director of
sales and marketing for
RMT Robotics
things are moving randomly. Bill
Torrens, director of sales and marketing at RMT Robotics, describes the
manufacturing environment as “organized chaos” and explains that autonomous mobile robots “have the flexibility
to move within that labyrinth. Using
a solution that has the flexibility of
an autonomous mobile robot, you can
change the game.”
Torrens explains that you can change
the location of a kitting area without
creating the challenge of transporting parts to the line. The advantage of
dynamic layout means space efficiency
and optimized productivity.
But don’t think of these robots are
a replacement for workers. “Robotic
solutions don’t eliminate people, they
amplify throughput at a workstation,”
Torrens says. “Think of it as the technology lending a helping hand to increase
performance, not to replace people. If
you could realize a 20% improvement,
that would be huge. Imagine the profit
38
Ju
n e
Carrying materials from
the kitting area to the
assembly line, mobile
robotic solutions are
flexible systems that can
navigate from random
origins to random
destinations.
you could glean if you build
one more car per hour.”
Ergonomic
enhancements
Leading automotive manufacturers are using materials handling equipment
to lend a helping hand
when it comes to how the
parts are delivered to the
line and presented to the
worker. Delivering parts to
workers ergonomically, or
in the golden zone, means
they don’t have to reach
and strain, and can focus
more easily on the task at
hand so the part goes into
vehicle with precision.
“Cost savings, process
improvement and increased
productivity within a plant
stem from changes in technology.
Automotive manufacturers are always
looking for materials handling solutions
that improve safety and ergonomics,”
explains Michael Paisley, controller
of the Dearborn Mid-West Conveyor
Company.
One example of delivering work
to the operator in the golden zone is
with an overhead rotational carrier. It
holds the suspended car body upright
then rotates it 90 degrees, one way or
another. Its rotating capability enables
the worker to safely access specific
areas of car without reaching and bending. “The carrier rotates the car sideways so the worker can look straight at
it to work on it,” explains Paisley.
Another overhead handling solu-
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng tion is a monorail system. Electric
and quiet, some monorails can handle
loads of up to 250 pounds, while others can move and handle the entire
car. Ergonomically speaking, explains
Muratec’s Meyers, “it’s better to drop
down to the height needed rather than
lift up to the height needed.” M
Companies mentioned
in this article
Companies mentioned in this article
Daifuku Webb: daifukuwebb.com
Dearborn Mid-West Conveyor
Company: dmwcc.com
K-Tec: ktecinc.com
Muratec: muratec-usa.com
RMT Robotics: adamrobot.com
Transbotics: transbotics.com
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modern productivity solution
Workstation bridge
crane handles big jobs
for small machine shop
Fuller Machine Shop’s
overhead handling solution
enhanced worker safety
and ergonomics.
By Lorie King Rogers,
Associate Editor
T
he Fuller Machine Shop, located
in Newport, N.Y., tools metal parts
for customers in a number of industries
including aerospace, computer, solar
and alternative energy.
The company has been independently owned and operated by Rodney
Fuller for the past 15 years. As a skilled
machinist and businessman, Fuller
was growing the business and expanding his customer base. But as that customer base grew and the parts he was
running through his lathes and milling
machines were becoming larger and
more diverse, Fuller had a heavy problem on his hands.
“A lot of the parts were small, maybe
65 pounds, but now we’re getting parts
that are 12-inches in diameter and
weight about 225 pounds,” says Fuller.
The challenge was how to handle
the larger parts and safely and efficiently load them into the lathe and milling
machines. Fuller had been using an
engine hoist, but it would take three
workers to maneuver the load.
40
Ju
n e
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng mmh.com
modern productivity solution
So Fuller invested in a ceilingmounted, workstation bridge crane with
a 500-pound lifting capacity (Gorbel,
gorbel.com). The overhead system features an enclosed track that allows the
crane to move with very minimal manual effort.
“The system has exceeded my expectations,” says Fuller. “What used to take
three people 45 minutes is now a one
person job that only takes a minute or
two. Our productivity has improved significantly.”
The bridge crane has also solved the
problem of maneuvering the chucks
that hold the metal in place while it’s
being processed. Moving the chucks,
which weigh about 80 pounds each,
had required the workers to simultaneously lift and reach out about 18 inches.
The bridge crane makes maneuvering
easy, which is crucial because Fuller’s is
a job shop, meaning everyday is a different job with a different set up.
The overhead bridge crane has made
handling easier, improved productivity
and safeguarded the operation.
the coils and that took time,” explains
Tom Coward, president of Excelsior.
“Then, if you found the one you needed
on the bottom of a stack of coils, you
had to move the ones on top before you
could pull it out and get it into the processing system.”
Excelsior installed an automated
handling system (Demag Cranes
& Components, demag-us.com).
The integrated coil storage system
includes a top-running double girder crane that can handle 40 metric
tons and is equipped with on-board
controls for automatic operation and
inventory tracking as well as storage
strategies.
Upon arrival from the customer’s
processing mill, coils are assigned a
unique identity. Then, using data points
like diameter, length and weight, the
system models a profile to determine
the ideal storage location.
The system remembers each storage
location for quick retrieval. It moves
along the grid and lowers the open coil
grab arms to the precise height. When
the arm’s photo eye beam hits the
receiver on the other arm, it’s safe to
close the arms and lift the coil. Then,
if only some of the metal on a coil is
processed, the system records new
data points to determine a new storage location. And, the system is pro-
Crane
handles
lifting
of heavy
metal
Excelsior Steel installed
an automated overhead
handling system to
improve inventory
tracking and provide
product protection.
S
ince 1967, Excelsior Steel, headquartered in Toronto, Canada, has
been processing heavy metals, like
stainless steel, copper and aluminum,
for customers in a broad spectrum of
industries such as hospital kitchens,
railcars and exhaust systems.
The company had been using a manual overhead handling crane system to
move metal coils that weigh between
15,000 and 20,000 pounds. “In the
manual set up, you had to look to find
mmh.com
Modern Mat eria l s Ha ndl ing / J
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2012
41
modern productivity solution
grammed to stack coils safely and to
avoid product damage.
According to Coward, the new system has enabled Excelsior to run faster
and more efficiently. Metal coils are
still stored three levels high, but now
Excelsior knows where inventory is at
all times, and customers can access the
system online to track their product
from arrival through processing. The
system provides better customer service, better inventory management, and
had freed up Excelsior manpower to do
more value-added tasks while the crane
does the heavy lifting.
Feed Commodities
increases storage
F
eed Commodities is a feed and grain business located in
Tacoma, Wash. The company recycles bakery by-products
into animal feed for use in the dairy and poultry industries. In
early 2009, president Jim Seley found that lack of warehousing space was becoming an issue and needed to act quickly
to take advantage of rising opportunities within the industry.
“We needed a new building to add warehousing space so
that we could introduce a new product to our end users,”
Seley
says. “We had a tight timeline to do this in, or we would
P SERIES 1/4 PAGE 2012_MMH - Advance Lifts 1/30/12 3:43 PM Page 1
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competitors’, lifts only have .75” wide main axle
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42
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2 0 1 2 / Mo d e r n Mate r ials Hand l i ng have missed a great opportunity.”
Seley began researching online for possible warehouse
options and decided to install a 100-foot wide by 100-foot
long fabric building and worked closely with the supplier to
erect the structure in about 30 days (ClearSpan, clearspan.
com).
The structure is working well for the company, and Seley
says the extra space has more than one advantage.
“We are using the space for much more than anticipated.
Apparently, if we have covered space, we will use it,” he says.
“We converted the parking lot into a building without losing
any of the parking lot functions. I can park equipment inside,
but if I need the space for something else, I have a great
covered space.”
The structure’s open interior allows ample space and
height for material and equipment, and the natural lighting
that filters through the cover is an added benefit. M
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special report
A spe ci a l suppl e me n t t o m od ern m aterials ha n d lin g
By Bridget McCrea, Contributing Editor
The market’s top analysts discuss
the trends that are pushing mobility
deeper into every day use and explain
just how far we are from realizing
real-time supply chain management,
complete with visibility that was once
only the stuff of dreams.
44
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2 0 1 2 / Mo d e r n Mate r ials Hand l i ng mmh.com
Trends
shaping
mobility
I
n some cases, traditional logistics and supply
chain operations are slowly but surely giving way
to more streamlined, mobile processes that rely
heavily on wireless devices and applications to
operate at peak efficiency levels around the clock
and around the world.
But, many organizations are still saddled with
wires, siloed systems and business partners who
don’t communicate with one another. These grim
realities are holding many logistics managers
back from being able to fully realize the benefits
of a truly mobile supply chain—that ultimate,
“mobile-centric” Nirvana where shipment visibility becomes second nature.
Over the next few pages, we’ll look at the top
four mobile trends shaping the supply chain and
talk to top analysts about just how far away we
are from realizing real-time supply chain management, complete with visibility that was once only
the stuff of dreams.
mmh.com
Modern Mat eria l s Ha ndl ing / J
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2012
45
modern special report
1
Cellular technology is advancing rapidly. If
there’s a technology that’s helping to get us to realtime visibility in a mobile supply chain, it’s mobile
devices and the software that makes them tick. The
capabilities of both have progressed significantly over the
last decade, with even the most basic cellular phones now
including GPS functionality, text messaging capabilities and
application functionality.
According to Clint Reiser, research analyst with ARC
Advisory Group, several technology-agnostic mobile application platforms have been developed to help suppliers extend
their enterprise, supply chain and commercial applications to
mobile devices. These applications run on handheld cellular
devices and offer features such as information capture and
retrieval, dispatching, driver and route progress tracking, and
location and event reporting.
“The performance of the cellular mobility market has progressed much more rapidly than the traditional fleet telematics market—technology that remotely monitors the location,
status, health and activity of vehicles and allows for ongoing
two-way communications with drivers,” Reiser says. “Cell
phone network coverage has become more extensive and
the capabilities of mobile
devices and mobile software
ecosystems have progressed
significantly.”
As cellular technology
progresses it’s also slowly displacing older, legacy methods of moving and tracking
freight outside of the four
walls of the warehouse and distribution
center.
Those cellular
A s p e c i a l s up p l e m e n t to m ode rn m ate r i a l s ha nd l i ng
“In the past, the PepsiCos and
Coca-Colas of the world were the
only companies that could justify
the cost of such solutions.”
—Dwight Klappich, research vice
president for Gartner
advancements have even outpaced customer requirements,
making traditional telematics systems obsolete in many cases.
“Cellular technology has partially displaced traditional
fleet telematics solutions, which generally include in-cab displays, on-board computers, and satellite communications,”
says Reiser, who points to improved handheld devices, more
robust application software, and cellular network proliferation as the driving forces behind cellular’s prowess. “Future
advancements in modern mobility,” says Reiser, “threaten
to displace additional segments of this well-established
[telematics] market.”
2
Device costs have decreased significantly.
Ten years ago, it would have been cost prohibitive
for the average company to outfit its managers,
employees, and drivers with handheld phones. Cabmounted, onboard computers were even further out of reach,
often fetching $5,000 or more per unit.
Today, the proposition is much more affordable. The fact
that device costs have come down across the board have placed
supply chain mobility on the radar screen of more companies,
says Dwight Klappich, research vice president for Gartner.
He points to the Xata Turnpike fleet optimization device
as a good example of how onboard computer capabilities can
be achieved with just $30 to $50 a month versus $5,000 per
unit. The size of a deck of playing cards, the device is powered by a cable connector and uses Bluetooth to communicate with handheld devices. “In the past, the PepsiCos and
Coca-Colas of the world were the only companies that could
justify the cost of such solutions,” says Klappich. “The guy
with five trucks was left out of the loop. Thanks to reduced
device price points that’s no longer the case.”
3
Mobile technology is helping companies gain
unprecedented visibility. There’s nothing quite like
a little peer pressure to get people to pay attention to
advancements in mobile technology. When it comes to
the supply chain, visibility gains tend to be the key drivers: When
one company achieves them, everyone else wants them, too.
“Right now we’re seeing unprecedented visibility across
the supply chain made possible by mobile technology,” says
46
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2 0 1 2 / Mo d e r n Mate r ials Hand l i ng mmh.com
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modern special report
A s p e c i a l s up p l e m e n t to m ode rn m ate r i a l s ha nd l i ng
Drew Nathanson, director of research operations for VDC
Research. Extending from the point of manufacture all the
way through to the point of sale, that level of visibility certainly puts the control in the hands of the user.
“When companies receive actionable intelligence on
precise product location in the supply chain,” says Nathanson, “they can leverage that information internally and use
it to gain operational efficiencies, streamline their operations, and reduce costs.”
4
The consumer is leading the mobile charge.
Most of the mobile advancements taking place in the
supply chain right now can be traced back to today’s
demanding, hyper-informed consumer.
“Customers want to know about everything: product
design; delivery times; how to return the product if they don’t
like it,” says Tom Wrobleski, vice president for Capgemini
Consulting’s supply chain practice. “All of that has to be
handled in the background at both the manufacturing and
retail levels.”
To make that happen, Wrobleski says an increasing number of companies are turning to mobile devices, solutions and
applications. Visibility over customer orders is a top concern
that most supply chain executives are trying to tackle right
“Customers want to know about
everything: product design;
delivery times; how to return the
product if they don’t like it.”
—Tom Wrobleski, vice president for Capgemini
Consulting’s supply chain practice
now, says Wrobleski, who sees cellular devices, mobile applications, GPS locators (for reaching out to the consumer at
the point of sale), and the cloud as a few of the most important tools managers will need to achieve data synchronization
and sharing.
“Companies will have to focus on flexing up and
handling the proliferation of data and an increasingly
demanding consumer,” says Wrobleski. “Mobile will play a
key role in helping them achieve those goals in their supply
chain operations.”
Bridget McCrea is a Contributing Editor
for Modern Materials Handling
Is a real-time, mobile supply chain in the works?
with these key trends affecting the
state of mobility in the supply chain,
many managers are left wondering
just how close or how far away we
are from real-time supply chain management—complete logistics and
supply chain visibility made possible
by mobility.
At least for now there isn’t a direct
answer to that question, but some
of the industry’s top analysts offered
their thoughts on just how far off that
Nirvana really is.
The fact that the smart phone
is now affordable for companies
to purchase and distribute to individuals across the supply chain has
put managers a few steps closer to
mobile-enabled, real-time visibility,
says Gartner’s Dwight Klappich.
“That affordability opens up the marketplace and allows companies to
procure technology at a much lower
price point,” he says.
But it will take more than just a
phone for companies to begin reaping the rewards of complete supply
chain visibility. Klappich says com-
48
Ju
n e
panies will have to develop holistic,
mobile strategies that factor in all
aspects of their operations—including
activities that take place in and out of
the warehouse.
VDC Research’s Drew Nathanson
says that as companies continue
to educate themselves and adopt
mobile technologies on a piecemeal basis, the picture of real-time
supply chain management and visibility is coming into focus.
One area where companies need
to place more focus, according
to Nathanson, is on better supply
chain collaboration among business
partners, customers and vendors.
Without that piece of the puzzle in
place, real-time supply chain visibility won’t be achievable.
“Companies are going to have
to start communicating and collaborating with one another,” says
Nathanson, who expects companies
to move in that direction over the
next 12 months to 24 months. He
says he’s already starting to hear
about more partnership-type struc-
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng tures in industries like fashion and
luxury goods, where companies can
“see” all the way through from the
point of manufacture to the point
of sale. “It’s definitely happening in
some sectors,” says Nathanson, “but
I still think we’re years away from
that ‘amorphous’ supply chain where
everybody talks to everybody else.”
With mobile technology continuing its evolution and becoming more
affordable for companies of all sizes,
the mobile, real-time supply chain is
sure to surface in some iteration over
the next decade.
Knowing this, Capgemini’s Tom
Wrobleski says the time is right for
logistics and supply chain professionals to educate and equip themselves
with the tools they need to harness
the trend and to accommodate their
own demanding, tech-savvy customers—most of whom are already
mobile-enabled.
“We can’t avoid the mobile supply chain,” says Wrobleski, “and we
also can’t get far enough out in front
of it.”
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FOCUS ON
Dock equipment
structurally supported rigid head member.
A watertight seal at the top of the vehicle
is created with an integrated spring
loaded, foam filled, pivoting header component. Fairborn USA, 800-262-1188,
www.fairbornusa.com.
Light up the loading dock
with LED illumination
Safety barrier protects
open dock doorways
Three different models of the DJG-100
dock barricade protect open doorways at
loading docks. The barricades come in 8or 10-foot widths and are configured for
either electric/hydraulic or manual hand
crank operation. The electric/hydraulic
unit includes a safety stop that reverses
the arm’s direction when contacted.
Constructed of heavy-duty welded steel,
the device sports a safety yellow finish
with black and yellow safety tape for high
visibility. Vestil Manufacturing,
800-348-0868, www.vestil.com.
Providing additional light at the loading
dock, the flex LED Docklite delivers illumination comparable to an incandescent
dock light with a 150-watt PAR38 lamp.
The LED head offers 84% energy savings
over incandescent dock lights with 150watt lamps by only requiring 0.15 amps
to operate. With a light source rated for a
50,000-hour average rated life, the lamp
and rubber side seals and baffle. Goff’s
Enterprises, 800-234-0337,
www.goffscurtainwalls.com.
Surface-mounted dock
lifts offered in 25
different models
features compact construction to minimize the chance of impact by overhead
doors or fork trucks. The light comes with
an installation mounting bracket that is
compatible with most dock light mounting hardware and a flexible arm for easy
positioning. Allied Solutions, 800-6435424, www.alliedproductsolutions.com.
A line of surface-mounted dock lifts has
been expanded with 25 new models.
The 6000 series of lifts are offered in
four capacities—8,000; 10,000; 12,000
and 15,000 pounds—to accommodate
heavier fork trucks and loads. Multiple
platform sizes may be specified. The lifts
feature lowered heights with shorter
ramps to ease loading and unloading.
Advance Lifts, 800-843-3625,
www.advancelifts.com.
High-speed, highperformance doors are
wind load rated to 45 mph
Block inclement weather
with dock door header
The WeatherGuard 1600 series of dock
door headers protects the loading dock
area from rain, snow, sleet, hail and wind.
Ideal for areas where the drive approach
slopes toward the dock opening—causing
rain water to funnel into the dock area—
the unit enhances employee comfort and
prevents cargo damage. The header is
offered as a complete package or as a
retrofit to existing seals and shelters. To
allow natural light into the loading operation, the header features a translucent,
50
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Custom-made, high-speed G2 high performance doors are ideal for interior and
exterior use. Featuring easily replaceable,
exchangeable panels offered in vinyl,
mesh and clear PVC, sections of the door
can be swapped out without downtime
or destruction of the door. Wind load
rated to 45 miles per hour on a 10- by
12-foot size, the doors automatically
reset after an impact or blow out. Unique
fiberglass extrusions slide securely into
custom extruded aluminum side beams
for use with both manual and motorized
door operations. The doors also include
a reverse safety function, welded seams,
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng mmh.com
Replace dock lamps with
energy-saving LED bulbs
Offered as a replacement to incandescent dock lights, the E-Saver LED lamp
saves energy without sacrificing light
output. The lamp incorporates LED
optics that use 27 watts of power to
reduce energy costs by 80%, compared
to a traditional 150-watt incandescent
bulb. Each lamp has a 50,000-hour
lifespan to save on utility, maintenance
and replacement costs.
Equipped
with a PAR38
base, the
unit fits most
existing
dock light
housings
and provides
maximum illumination throughout the
truck trailer. Durable construction allows
the lamp to withstand impacts, while the
LED technology keeps the lamp head
cool to the touch. APS Resource, 262518-1000, www.apsresource.com.
Hot dip galvanized
dock levelers resist rust,
Dock door exclusively for
use with vertical levelers
For use specifically with vertical storing
dock levelers, the VertiCool door features
a 4-inch thick R-23 insulated panel that
mirrors the insulated wall panel for superior thermal protection, and 48-inch panel
heights that reduce the number of panel
joints by 50% for energy efficiency and
easy cleaning. To prevent damage, dual
compression side seals are mounted to
the door panel while a closed-cell foam
interior prevents moisture accumulation. The door also includes a heavy-duty
polymer thermal
break track that
runs the full
opening height,
UV stabilized
exterior painted
aluminum skin,
dual overlapping
header seal and
compression
loop bottom
seals that maintain a consistent seal around all sides.
TKO Dock Doors, 877-408-6788,
www.tkodoors.com.
Automatic door drive-away
prevention system
corrosion
A line of hot dip galvanized levelers features a zinc coating that bonds with the
metal beneath to create a barrier that is
an extension of the metal itself. The coating extends the unit’s overall lifespan by
significantly reducing rust and corrosion.
Ideal for use coastal areas, food service
industries and chemical/pharmaceutical
environments, the leveler withstands
extreme weather and stringent, chemical-based cleaning requirements. Beacon
Industries, 800-454-7159,
www.beacontechnology.com.
mmh.com
Eliminating the risk of unscheduled truck
departures from loading docks, the Salvo
brake line interlocking system minimizes
the possibility of human error to protect
workers from injury and property from
damage. The device includes a glad hand
lock, control panel, and internal and external traffic lights for visual communication.
When a truck arrives, the unit attaches
to its emergency brake line, immobilizing
it. With the device properly attached, a
uniquely coded key is released for use in
the control panel. Inserting the key into
the control panel turns the traffic light
green inside to alert workers that the
dock door is now unlocked and it is safe
to enter the truck trailer, while a red light
outside reminds the driver that the truck
is not able to depart. Until the automatic
door is closed and locked, the control
panel will not release the key. Castell
Interlocks, 312-360-1516,
www.castell.com.
Barrier system guards
overhead doors from
damage
To increase door safety while
eliminating expensive impact
repairs, the patented overhead door safety guard system
provides a highly visible reflective safety barrier. The barrier
obstructs the vehicle operator
from driving through the opening until the door is completely
out of the way. Once the vehicle
is in position, the barrier arm
automatically raises fully open to
allow normal use of the doorway.
The device requires no electricity
to operate and can be installed
in less than an hour. It accommodates door openings measuring 14 x 10 feet or larger. Erich
Industries, 800-882-5839, www.
docksafety.com.
Modern Mat eria l s Ha ndl ing / J
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2012
51
FOCUS ON
Dock equipment
Galvanized construction
extends dock lift life
Vehicle restraint prevents
trailer pull outs
Dura-Dock lifts transfer loads quickly and
safely to and from any truck bed to any
dock height without ramps or inclines.
Offered in 5,000- and 6,000-pound
capacities, the lifts feature corrosionresistant, galvanized base and legs standard. For higher capacities (up to 20,000
pounds) galvanized construction is
optional. The lifts work from grade level
to a maximum height of 59 inches can be
installed to accommodate any truck parking configuration, including perpendicular or parallel. To prevent standing water
in outdoor installations, a drain is located
in the lift’s base. Platform sizes range
from 6 x 8 feet to 8 x 12 feet. Features
include a weatherproof pushbutton
NEMA-4X control with 20 feet of coiled
cord; a diamond-tread, steel platform
with beveled toe-guards painted yellow
for safety; and removable steel handrails
with mid-rails and 4-inch-high kickplates.
The TPR truck positioned vehicle restraint
automatically positions itself and secures
a trailer’s rear impact guard, reducing the
likelihood of a premature trailer pull out.
The system includes advanced communications housed within its NEMA 12-rated
control panel. Three lights provide a safe
and efficient loading dock environment
by establishing
a clear line of
communication
between the
truck driver
and dock
attendant.
Other features
include a gear
motor that
keeps the hook
continuously engaged, restraining force
in excess of 30,000 pounds, and a lowprofile, 9-inch carriage with service range
of 9 to 27 inches off grade. McGuire,
800-624-8473, www.wbmcguire.com.
Southworth, 207-878-0700,
www.southworthproducts.com.
Prevent energy loss with
dock leveler perimeter seal
When placed along the sides and rear
hinge of a dock leveler, the Energy Guard
perimeter seal blocks dirt, debris and
insects. The patent-pending seal closes
the gaps between the dock leveler and
concrete pit walls up to 9 inches above
dock level to stop air flow, preventing heat and
energy loss.
Factoryinstalled on
new equipment—or
offered as a
retrofit to existing equipment—the seal has no mechanical components or springs, and requires
no scheduled maintenance. Because it
does not use curtains or fabric, the seal
permits unrestricted access for pit cleaning and dock leveler inspection. Kelley,
877-558-6960,
www.kelleycompany.com.
52
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2 0 1 2 / Mo d e r n Mate r ials Hand l i ng mmh.com
Truck restraint automatically
adjusts to trailer height
Prevent falls with gate for
loading docks, shipping pits
The patented SentryGuard cantilever gate
helps prevent falls off loading docks and
shipping pits. The gate lifts up and out of
the way in seconds, so it doesn’t obstruct
floor traffic. Gas-assist struts make lifting
the gate effortless. Simple to install, the
gate requires a small footprint and six concrete anchor bolts to secure it to the floor.
A positive-lock mechanism holds the gate
fully opened or closed. To enhance visibility, the gate has a high-gloss, powdercoat epoxy finish and special markings.
Sizes for 4- to 24-foot wide openings are
offered. Garlock Safety Systems,
763-694-2614, www.railguard.net.
To prevent unscheduled trailer departure,
trailer creep and tip overs, the Impact rotating hook vehicle restraint secures a trailer
at the loading dock. The device engages
the rear impact guard with a large rotating
hook. The housing automatically adjusts to
various truck heights and maintains position
with the rear impact guard during loading
operations. A direct drive system eliminates
clutches, brakes or chains and provides
safer constant upward bias hook force.
Capable of securing all trucks with 32,000
pounds of restraining force, the device
comes in automatic and manual models.
It is stored above ground in a low-profile
housing. Nordock,
866-885-4276,
www.
nordockinc.com.
Heavy-duty hydraulic
pit leveler
Capable of accommodating heavier
loads, the HDH heavy-duty hydraulic pit
leveler offers dynamic capacities up to
80,000 pounds. The leveler uses extra
heavy rear angle with gussets to provide
maximum structural support and frame
strength. Constructed with 55,000pound minimum yield steel, the device’s
base frame support struts provide structural reinforcement and safety. For safety, yellow and black diagonal stripes are
included on the integral toe guards with
yellow full range toe guards. Pioneer
Dock Equipment, 800-251-3382,
www.pioneerleveler.com.
Put a Pencil to Us
Trapped key system secures
trailers to dock
Protecting dock workers by enforcing
a safe sequence of actions, the DSS
trapped key loading dock safety system
is easily installed with minimal disruption.
The system does not allow a loading dock
door to be opened until the trailer brakes
are locked. When air is released from the
trailer’s brake line, the mechanical brakes
automatically engage. Once the trailer
brake glad-hand is set, the glad-hand
key is released allowing the loading dock
door to be opened. The system keeps the
brakes locked until loading/unloading is
complete. Usable with all vehicle types,
the system can also interlock with other
existing dock safety products. Omron
Scientific, 800-479-3658, www.sti.com.
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Modern Mat eria l s Ha ndl ing / J
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53
FOCUS ON
Dock equipment
Air-powered dock leveler
requires no electricity
Offered as an alternative to hydraulic,
mechanical, low-pressure, high-volume air
bag levelers and power-assisted levelers,
the CentraAir series powered dock leveler incorporates an automotive grade bellows system. Based on the same technology found in air-ride suspension systems
throughout the trucking industry, the system uses existing shop air or a dedicated
compressor. It can be run manually by a
lanyard control (located at the back of the
leveler) or can be push-button operated.
Ideal for power-starved or conveyor-loading applications, multiple units
can be run
off a single
air supply.
Its low amp
draw at
each dock
(0-0.07 amp) saves costs in comparison
to conventional push-button leveler systems. Poweramp, 262-255-1510,
www.poweramp.com.
Portable steel yard
ramp facilitates loading/
unloading
High-volume, low-speed
dock fan controller
The iFAN system networks high-volume,
low-speed (HVLS) fans throughout a
facility—including those located at the
dock—to control them from a centralized location. Up to 30 fans can be
managed per configuration. The fans
are networked to a 23-inch touchscreen
computer that displays custom graphics representing the facility’s exact fan
layout. This screen allows administrators
to control fans individually, by zone and
throughout the entire facility. Variable
parameters include time settings, temperature settings or temperature adjustments. Serco, 877-933-4834,
www.sercocompany.com.
Allowing traffic to move from the dock
level down to the ground, or from the
ground into the back of a truck, a portable steel yard ramp
helps loading/unloading flow smoothly. The
ramp includes 18-inch
industrial solid rubber
pneumatic tires
for easy
movement
of the ramp
around the
shipping yard.
For fast, reliable height adjustment, a
hydraulic system is integrated into the
unit. Other features include a tow clamp
or fork clamp for easy transportation,
serrated bar grating on the ramp surface
for traction and to prevent debris build
up, and a 72-inch long, level-off section
for easy access to end loads. Safety
chains hold the ramp in place while in
use. Systems Inc., 800-643-5424,
www.docksystemsinc.com.
Hook-style truck restraint
Dock seal, shelter options
provide weather barrier
Three dock seal and shelter options help
improve dock efficiency. The Terminator
gap seal automatically closes the opening
left by trailer swing-out doors to create
an effective weather, dust and insect
barrier that also saves energy costs and
increases security. Installed with fullheight Velcro fasteners, the curtain can
be removed when weather conditions
require additional ventilation. To extend
shelter life, a head curtain includes wear
pleats to prevent tearing caused by the
corners of the trailer. A safer dock environment is created by a rain shield that
automatically seals to a standard-height
trailer top to divert water away from
the dock seal. Hugger Dock Equipment
Company, 800-837-4847, www.huggercfp.com.
54
Ju
n e
For securing of vehicles at the loading
dock, the Lock & Load hook-style truck
restraint features a specially engineered
gear motor that uses a one-way mechanical disc brake system to keep the hook
continuously engaged for added safety.
The gear motor uses multiple powertrain
components
to distribute
stress and optimize velocities,
maximizing
long-term durability. Requiring
electrical current only when
engaging or
disengaging the rotating hook with the
trailer’s rear impact guard, the device
saves energy. Its slim profile reduces the
risk of collision damage unit or to truck
trailers. Key switch override is included
standard, as are LED communication
lights. Nova Technology, 262-502-1592,
www.novalocks.com.
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng Mobile yard ramp provides
ground-level access to
trucks, railcars or buildings
Capable of converting any vacant space
into a freight-handling center, the portable Copperloy mobile yard ramp is
offered. The ramp expands present dock
capacity, or creates loading facilities
where no dock exists, without new construction. Easily rolled from job to job,
the ramp provides ground-level access to
trucks, railcars or buildings. To accommodate forklift traffic, the ramp accommodates capacities up to 30,000 pounds.
JH Industries, 800-321-4968,
www.copperloy.com.
mmh.com
Product
Showcase
Pre-engineered
palletizing package
includes robot
A pre-engineered palletizing
configuration, the PalletPack
460, provides packaged
robotic palletizing components for high-speed, endof-line palletizing. Featuring
the IRB 460 palletizing robot,
the system offers integrated
hardware with full documentation to significantly reduce overall project costs and engineering set-up time. This allows integrators to more easily specify
and design palletizing systems. The package can be configured
for either high-speed bag palletizing or compact end-of-line
case palletizing. It also includes an end-of-arm tool, a PLC, a
safety PLC, support software, user documentation and a control
pendant with easy-to-use graphical interface. ABB Robotics,
248-391-9000, www.abb.com/robotics.
Sloped storage
bin inserts
Slope-It bin inserts for
the supplier’s model
30224, 30230 and 30240
AkroBins improve visibility and accessibility
of supplies by keeping
them close to the front of
the bin. The snug-fitting,
15-degree slope inserts
direct parts to the front
of the bin without impeding its normal hanging
or stacking capabilities. Tight-fitting wiper seals on the insert
edges prevent parts from migrating underneath. Ideal for a variety of applications—including industrial, retail, manufacturing,
order picking and more—the inserts transform the supplier’s
existing bins to a slope-bottom bin in one easy step, and can be
removed and reused. To minimize scratches, they feature a textured surface. Akro-Mils, 800-253-2467, www.akro-mils.com.
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Case packer supports quick,
pre-programmed changeovers
To run multiple package sizes and pack patterns, the Model 206
case packer quickly switches from a variety of pre-programmed
options selectable from the operator console to reduce changeover time. The packer handles multiple styles of cartons, cans,
and semi-rigid containers forming them into regular slotted
containers, half-slotted containers, half-slotted container display cases or trays. Operators select the new product and case/
tray size from the options and the motorized changeover is activated. For extreme product size changes where change parts
are required, modules with locking handles support a no-tools
changeover. The unit packs up to 30 cases per minute (depending on the product and pack pattern) and handles cases ranging
from 7 x 6 x 5.5 inches to 18 x 16 x 18 inches. A-B-C Packaging,
800-237-5975, www.abcpackaging.com.
mmh.com
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Modern Mat eria l s Ha ndl ing / J
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55
Product
Showcase
Single mobile unit houses
battery watering, changing
station
Industrial fan offers 28%
increase in coverage area
The Powerfoil X2.0 industrial fan has
been upgraded to significantly increase
its airflow coverage area over the previous model. Using a system that combines patented airfoils and winglets with
patent-pending AirFence technology, the
fan’s overall coverage has been increased
by 28%. The winglet improves airfoil
effectiveness by eliminating turbulence
at the tip, while the AirFence captures air
that would otherwise slip off the end of
the airfoil. Offered in diameter from 8 to
24 feet, the fan is covered by a 15-year
warranty. Big Ass Fans, 877-244-3267,
www.bigassfans.com.
Desktop printers handle
light-duty labeling needs
Offered as intuitive, flexible and smart
solutions for light-duty labeling applications in transportation, manufacturing
and warehouse environments, the PC43d
and PC43t desktop printers are flexible
and user friendly. The printers produce
4-inch direct thermal and 4-inch thermal
transfer labels at speeds up to 8 inches
per second.
Equipped with
a universal icon
interface or
color LCD in 10
languages, the
printers provide
immediate and
intuitive notifications to reduce
training and
support needs while maximizing uptime.
The printers support one-handed media
loading and quick configuration via a
USB stick device for easy installation and
maintenance. Intermec, 800-347-2636,
www.intermec.com.
56
Ju
n e
The Battery Mule is an all-in-one battery
changing and watering station in a single,
mobile unit. The device allows a depleted
battery pack to be easily removed from
an electric vehicle, and replaced with a
charged pack. For charging, the depleted
battery pack is rolled to the nearest 110to 240-volt outlet while the electric vehicle remains is in operation. An optional
battery watering refill station conveniently holds a gravity refill container for complete battery maintenance. Pallet jacks
are not needed, due to an integrated lift.
The station is ideal for recharging stock
chasers, burden carriers, tow tractors,
personnel carriers, automatic guided
vehicles, walkies and forklifts equipped
with battery slide-out systems. Wesley
International, 800-241-2869,
www.batterymule.com.
Adhesive-backed floor
frames protect bar code
labels
A line of adhesive-backed floor labels
and aluminum frames can be installed
without screws, saving installation time.
Field-tested and proven to be extremely
durable, the labels prevent floor damage
from screws and eliminate frequent location and slot painting. The kit includes
a 0.125-inch beveled aluminum frame
backed with a specially formulated, pressure-sensitive adhesive for peel-and-stick
installation. For accurate putaway processes, a bar code label can be placed in
the frame—which then protects the label
from pallet and traffic abuse. Camcode,
800-627-3917, www.camcode.com.
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng Hygienic plastic pallet
protects against bacteria
To maximize sanitary materials handling
practices, the Sani-Pallet hygienic plastic
pallet is formed without sidewall seams,
gaps, holes or other potential bacteria
traps. Residue cannot pool or collect on
any exterior surface, making inspection
and cleaning more efficient. Featuring
built-in Microban antimicrobial protection, the pallet’s high density polyethylene (HDPE) construction provides an
added layer of protection against odor
and stain-causing bacteria. An impactresistant, double wall delivers high usefullife-to-cost ratio. Bonar Plastics, 630293-0303, www.bonarplastics.com.
Convert static rack to
mobile to increase storage
capacity
A line of mobilized storage systems
addresses the industrial storage and
space problems faced by manufacturers.
The ActivRAC system boosts productivity by allowing a facility to easily convert
multiple aisles of static storage racks into
a compact, single-moving aisle that easily opens and closes for access. Typically
installed on an existing concrete slab
without the need for a second concrete
pour, or additional structural footings,
the system mobilizes any existing industrial storage rack to free up space. It also
increases storage capacity up to 100%
without adding more square footage,
while centralizing storage for better
control and organization of raw materials, work-in-process, finished goods, and
essential support material. Spacesaver
Industrial, 866-767-1888,
www.industrial.spacesaver.com.
mmh.com
Label Holders
classified
Hoist’s hand chain
cover rotates 360
degrees
The WP 3000 series walkie pallet truck
maneuvers in tight spaces and incorporates brushless AC motor technology
for responsive acceleration, smooth
direction changes and consistent performance throughout battery discharge.
Smooth, consistent braking relies on
full-motor function, returning energy
to the battery for further efficiency.
Heavy-gauge steel is used in the frame
and forks, while a 30% improvement in
grade clearance at the fork heel reduces
wear on the undercarriage. The riser
axle is positioned at the highest possible
point on the forks, eliminating repairs
that occur as a result of
constant contact with dock
boards, pallets and uneven
floors. Crown Equipment,
419-629-2311,
www.crown.com.
[email protected]
Security
The best low-cost
alternative to building
permanent walls.
W
Durable, maneuverable
walkie pallet truck
800.242.3919
www.aignerlabelholder.com
NE
With a patented hand chain
cover that rotates 360
degrees, the Hurricane 360
hoist allows for positioning,
pulling and lifting of loads
from virtually any angle.
Offered in models with capacities from 1,000 pounds to 10
tons, the device may be specified in multiple configurations of lift and
headroom to accommodate any application. Features include a Weston-style
braking system for positive load control
and minimal maintenance through easy
disassembly (no special tools required).
For safety, a load limiter is included standard for simple, automatic overload protection. All internal gears and pinions are
built from heat-treated steel. A powdercoated finish protects against corrosion.
Columbus McKinnon, 800-888-0985,
www.cmworks.com.
To advertise, or for more
information please contact:
Jennifer Drevline,
847-223-5225, ext. 11,
[email protected]
Folding Guard’s Saf-T-Fence™ partitions.
They deliver security and an unobstructed
view of your property – with no change to
your lighting or heating systems. Modular
system can be easily installed, expanded
or relocated in any space. In Stock.
Download FREE guide at FoldingGuard.com/ kit
Components
Forklift Equipment
AVAILABLE FOR ACQUISITION
forklift EQUIP.company
Location: GULF COAST , Annual Sales: $1.5 mil , Profitable
Mix: Sales/Service/Refurbishment , Owner: Retirement
Contact: Doug Ashby, [email protected] , 832-239-9262
mmh.com
MODERN MAT ERIA L S HA NDL ING / J
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2012
57
modern 60 Seconds with...
Don DeSanctis
Title: Founder, SDI Group USA
Location: Pacoima, Calif.
Experience: Nearly 60 years
designing and engineering
automated materials handling
solutions. Founded SDI Group 35
years ago.
Primary Focus: SDI Group
consults, designs and integrates
distribution centers, with a focus
on unit sortation for the apparel
industry.
Modern: Don, your company is
celebrating its 35th anniversary,
and you’re celebrating your
80th birthday. Those are major
milestones. What led you to the
materials handling industry?
DeSanctis: Back in 1965, I was hired
by Allied Stores, a regional department
store chain, to design and build distribution centers. There were a lot of
family-owned department stores in the
country back then that were expanding from one big store to chains of five,
six or seven stores, and they didn’t
have a clue how to do distribution.
Neither did I, but I built my first DC for
Allied in Seattle and then worked for
them for another four or five years. In
1977, I opened my own operation in
California. My focus was distribution
systems for retailers and that evolved
into a specialty in soft apparel.
Modern: You started out as a
consultant, but today SDI Group
also manufactures conveyor and
sortation equipment. How did you
make that transition?
DeSanctis: We started providing
the hardware in 1980. A year or two
later, I was in Europe and saw some
of the first garment-on-hanger sorters. We licensed that technology and
began building the equipment. After
that, we brought in bomb bay sort58
J
u n e
ers. When we first began implementing those systems, we could sort 200
units on hanger an hour. Today, we
can distribute to 1,000 stores at the
rate of 10,000 units an hour with two
people. We have flat sorters that can
do 14,000 units an hour. Those types
of technology have really improved
productivity in the retail industry. It
used to take three to seven days to
get an order ready for delivery to a
store. Now, it takes about four hours.
And, by doing all of this, we’ve seen
distribution centers reduce footprints
by 50% and 60% in the last 10 or 12
years.
Modern: After nearly 60 years in
the industry, are there any trends
that you’re watching?
DeSantis: I’m watching to see what
happens in China. A couple of years
ago, I was running around Shanghai
for one of our manufacturing customers in the apparel industry. They
2 0 1 2 / Mo d e r n Mate r ials Hand l i ng wanted us to set up a distribution center in China where we would prepare
orders for delivery right to a store or
end customer, rather than bring it to
California and then distribute it. We
were expecting the big retailers to follow suit. For some reason, that never
happened. It seems the thinking now
is that it still makes more sense to
bring the product through customs in
the U.S. However, I’m waiting to see if
that changes.
Modern: Do you have any plans to
retire?
DeSanctis: I retired once. Two years
ago, the president of the company
asked me to help set up an infrastructure in South America. It’s an enormous
market. If I were 45 or 50 years old,
I’d move there in two minutes. Right
now, I spend about 90 days a year
down there, and I expect to do that for
another two years. Ask me then, and
I’ll tell you if I want to keep at it. M
mmh.com
Critical Industry News
at Your Fingertips!
Modern Materials Logistics Management Supply Chain Management
CRITICAL TOPICS
Critical Topic areas help
you develop strategies and
expand your knowledge.
Each topic provides you
with the news, information,
and resources you need —
each day.
• Automation
Modern Materials Logistics Management Supply Chain Management
• Conveyors & Sorters
• Inventory & Picking
• Loading Dock
Equipment
• Mobile & Wireless
• Shipping Pallets
• Storage Systems
• Containers & Totes
• Energy & Sustainability
• Lift Truck & Fork Lift
• Handling & Warehouse
Ergonomics
• Packaging
• Software & Technology
www.mmh.com/criticaltopics
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