Modern Materials Handling - October 2011

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURINGmmh.comOctober 2011®Annette Danek,vice president of fulfillment,Random HouseRandom Housecuts turnaroundin half 16SPECIAL REPORTPallet reader survey:Usage on the rise 24+ Webcast: Results of thePallet Usage StudyThurs., Oct. 27 at 2:00 p.m. ETwww.mmh.com/2011palletINFORMATION MANAGEMENTThe top 20 ADCsuppliers 30EQUIPMENT 101 SERIESData capture basics 34

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UP FRONT Breaking news you should knowManufacturing grows forthe 28th consecutive monthThe manufacturing sectorexpanded in September for the 26thconsecutive month and the overalleconomy grew for the 28th consecutivemonth, according to the latestedition of the Institute for SupplyManagement (ISM) report.“The PMI registered 51.6%, anincrease of 1 percentage point fromAugust, indicating expansion in themanufacturing sector for the 26thconsecutive month, at a slightly higherrate,” said Bradley J. Holcomb,chair of the Institute for SupplyManagement Manufacturing BusinessSurvey Committee. “Commentsfrom respondents generally reflectconcern over the sluggish economy,political and policy uncertainty inWashington, and forecasts of ongoinghigh unemployment that willcontinue to put pressure on demandfor manufactured products.”A PMI reading above 50%indicates that the manufacturingeconomy is generally expanding;below 50% indicates that it is generallycontracting.iGPS names Richard DiStasio CEOIntelligent Global PoolingSystems (iGPS) recently announcedthat Richard “Dick” DiStasio has beenappointed chief executive officer of thecompany. DiStasio brings more than 30years of executive-level experience atleading manufacturing, distribution andservice companies.“iGPS’ innovative pallet and its associated tracking andtracing capabilities are truly revolutionizing how productsare being shipped in North America,” DiStasio said. “Themarketplace’s enthusiastic response to iGPS is a tremendousbase from which to accelerate the company’s growth.”DiStasio has served as president, CEO and chairmanof USF, formerly known as USFreightways, and CEO forGlobal Operations of Martin-Brower, the world’s largestdistributor of products to McDonald’s. Prior to joiningiGPS, DiStasio served as an operating advisor to ArborInvestments, a Chicago-based private equity firm.Crown builds 500th newfuel cell-powered forkliftCrown Equipment Corp. announced that it has built its 500th newforklift to be operated with fuel cells. This is in addition to the Crownforklifts already in operation that have been retrofitted during the lastfew years to accommodate fuel cells. The achievement represents anotable milestone signifying the increased adoptionof this technology in the materials handling industry.A Crown SR 5000 Series moving-mast reach truckwas the 500th truck to be built with a fuel cell. Thetruck designed for fuel cells, which will be deliveredlater this year as part of a larger order, maintains similarfeatures and benefits presentedby the standard model.Conveyor industry orders up38.28% in first six monthsThe ConveyorEquipment ManufacturersAssociation (CEMA) recentlyreported that overall industryorders (bookings) forthe first six months of 2011increased 38.28% comparedto the same period in 2010,with total orders of $4.58billion. CEMA estimatesindustry billed sales (shipments)for the first six months of 2011 increased 39.51%compared to the same period in 2010, with total shipmentsof $4.13 billion.The executives representing CEMA member companieswho attended the Fall Meeting expressed cautiousoptimism for the remainder of 2011 and forcasted an18% increase in shipments for 2011 (changed fromMarch 2011 forecast of an 8% increase).FAST FACT45Percentage of readers whosay their pallet usage hasincreased over the last twoyears (See Pallet ReaderSurvey, p. 24)Source: Peerless Media Research Groupmmh.com Modern Materials Handling / O c t o b e r 2 0 1 1 3

VOL. 66, NO. 10®PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION,WAREHOUSING AND MANUFACTURINGAnnette Danek,vice presidentof fulfillment,Random HouseCOVER STORYPHOTO: EDWIN REMSBERGSYSTEM REPORT16 Random House cuts turnaround in halfThanks to a tilt-tray sortation system, Random House is beating thecompetition to market and improving turnaround times by nearly 50%.20 Speed to marketRandom House’s new picking methodology aggregates orders forfaster turnaround times and speedier delivery to the market.60 seconds with... David KrebsPHOTO: CHRIS LEWISFEATURESSPECIAL REPORT24 Pallet reader survey: Usage on the risePallets are the foundation of the materials handling industry. Here’swhy they are important to our readers.Special Webcast: Results of Modern’s 2011 Pallet Usage Study,Thurs., Oct. 27 at 2:00 p.m. ET www.mmh.com/2011palletIMFORMATION MANAGEMENT30 Top 20 automatic data capture suppliersAfter a challenging 2009, the ADC market bounced back in 2010 andlooks strong moving forward.EQUIPMENT 101 SERIES34 Data capture basicsData capture technology can help an operation see its products inreal time and take proactive steps to keep materials moving smoothlythrough the supply chain. Here’s a look at several basic data capturetechnologies.PRODUCTIVITY SOLUTIONS40 Driving efficiencies and qualityPick-to-light solutions result in improved picking performance andmore reliable sensing for automotive components suppliers.41 Picking the light solutionLight-directed put stations are designed to help an apparel retaileroptimize split case fulfillment and account for a 300% improvementin pick rates.DEPARTMENTS & COLUMNS3/ Upfront7/ This month in Modern14/ Lift Truck Tips: Operator training43/ Focus On: Automated Storage58/ 60 seconds with...NEWS9/ MHIA announces leadership changes10/ Modex 2012: Keynote speakers,conference details announced12/ Manufacturers are becoming lessoptimistic about economy, saysGrant ThorntonModern Materials Handling ® (ISSN 0026-8038) is published monthly byPeerless Media, LLC, a Division of EH Publishing, Inc., 111 Speen St, Suite200, Framingham, MA 01701. Annual subscription rates for non-qualifiedsubscribers: USA $119, Canada $159, Other International $249. Singlecopies are available for $20.00. Send all subscription inquiries to ModernMaterials Handling, 111 Speen Street, Suite 200, Framingham, MA 01701USA. Periodicals postage paid at Framingham, MA and additional mailingoffices. POSTMASTER: Send address changes to: ModernMaterials Handling, PO Box 1496 Framingham MA 01701-1496.Reproduction of this magazine inwhole or part without written permissionof the publisher is prohibited.All rights reserved. © 2011 PeerlessMedia, LLC.mmh.com MODERN MATERIALS HANDLING / O C T O B E R 2 0 1 1 5

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EDITORIAL OFFICES111 Speen Street, Suite 200Framingham, MA 01701-1496(800) 375-8015Michael LevansGROUP EDITORIAL DIRECTORmlevans@ehpub.comBob TrebilcockEXECUTIVE EDITORrobert.trebilcock@myfairpoint.netNoël P. BodenburgEXECUTIVE MANAGING EDITORnbodenburg@ehpub.comLorie King RogersASSOCIATE EDITORlrogers@ehpub.comSara Pearson SpecterEDITOR AT LARGEsara@moxiemarketingllc.comRoberto MichelEDITOR AT LARGErobertomichel@new.rr.comJeff BermanGROUP NEWS EDITORjberman@ehpub.comJosh BondCONTRIBUTING EDITORturbobond@gmail.comMike RoachCREATIVE DIRECTORmroach@ehpub.comWendy DelCampoART DIRECTORwdelcampo@ehpub.comDaniel GuideraILLUSTRATIONdaniel@danielguidera.comBrian CeraoloGROUP PUBLISHERbceraolo@ehpub.comPEERLESS MEDIA, LLCA DIVISION OF EH PUBLISHING, INC.Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING, INC.Brian CeraoloPUBLISHER ANDEXECUTIVE VICE PRESIDENTPEERLESS MEDIA, LLCMAGAZINE SUBSCRIPTIONSStart, renew or update your FREEmagazine subscription atwww.mmh.com/subscribe.Contact customer service at:Web: www.mmh.com/subscribeEmail: mmhsubs@ehpub.comPhone: 1-800-305-0633Mail: Peerless MediaP.O. Box 1496Framingham, MA 01701ENEWSLETTER SUBSCRIPTIONSSign up or manage your FREEeNewsletter subscriptions atwww.mmh.com/enewsletters.®Random House turnsup the heatIf you admire companies that buck trendsand aren’t afraid to invest in their businesswhen their competition is on the ropes,you’re going to like reading about what thedistribution leadership team at RandomHouse has been up to over the past twoyears.For starters, the world’s largest Englishlanguagetrade book publisher has boldlyidentified distribution as one of its corecompetencies. In fact, it’s actually growing asuccessful third-party distribution businessat a time when most of its competitors arescrambling to figure outa new business model asthe popularity of electronicbooks continues to grow.Under its Random HousePublisher Services Group,the company is now shippingtitles for more than30 publishers to brick andmortar retailers, distributors,wholesalers, as wellas direct-to-consumer WebTHIS MONTH IN MODERNIn response to the newmarket realities, theRandom House team,with the blessing ofcompany CEO MarkusDohle, made a strategicinvestment in a 712-foot, single tray, tilt-traysorter.orders—not to mention handling customerservice and back office support functions aswell.As executive editor Bob Trebilcock detailsin this month’s System Report (page 16), thedistribution team was watching a major shiftin the profile of the orders shipped for thisnew customer base and quickly realized itneeded to respond and stay ahead.“As people are buying more electronicbooks, you don’t need as many physicalbooks in the supply chain,” Annette Danek,vice president of fulfillment, tells Trebilcock.Sounds simple enough; however, with thisdramatic shift, full pallets comprise fewerMICHAEL LEVANSGROUP EDITORIALDIRECTORthan 10% of the units shipped from RandomHouse’s 1.3-million-square-foot DC inWestminster, Md. Today, 60% of the unitsshipped are now full cartons while 30%are loose picks, or single titles picked to amixed carton.In response to the new market realities,the Random House team, with the blessingof company CEO Markus Dohle, madea strategic investment in a 712-foot, singletray, tilt-tray sorter. The advanced equipmentallowed the Westminster operationto handle the mixed-case and direct-toconsumerorders with littleproblem while improvingturnaround time by 50%.These results helped theServices Group land 10 moreclients since going live.“We decided to invest inour physical infrastructure ata time when most publishershave put on the breaks withtheirs,” says Danek. And, Ibelieve this is where the realinspiration of this story resides.Not only has this once-traditionalpublisher capitalized on one of its corecompetencies to grow a supplemental business,but it was able to make a calculatedinvestment and turn up the heat inside itsfour walls during a time when most materialshandling investment had cooled.“This is a great example of an industryleader using materials handling automationto grow its business and outpace thecompetition at a time when investment waswaning,” says Trebilcock. “It will be a positivesign for the industry if we see a few more storiesof this caliber over the next six months.”MemberMember ofWinnerJesse H. NealCertificates of Meritfor JournalisticExcellenceOfficial Publication ofmmh.com MODERN MATERIALS HANDLING / O C T O B E R 2 0 1 1 7

Compact, Scalable, High PerformanceThe RapidPick SystemIt’s a high capacity split case order fulfillment solution that stores your inventory in a controlledenvironment and delivers each SKU in sequence to “good-to-person” workstations.The RapidPick System is:• High Performance – Designed for Maximum- Pick Rates- Ergonomics- Accuracy• Compact – Fits into Small Footprint- Inventory close to pick station- Uses vertical cube space, controlled access- Energy efficient• Scalable – Modular Design Expands for Future Growth- Increased Pick Capacity- Future SKU Growth- More Storage CapacityExperience the Dematic Difference. Visit www.dematic.us or email USInfo@dematic.com formore information.

FollowModern Onlinefacebook.com/mmhmagazineTwitter | @modernmhmagWeb | mmh.comMHIAMHIA announces leadership changesAT THE FALL MEETING, ASSOCIATION SAYS NOFSINGER WILL RETIREAT THE END OF THIS YEAR AND NAMES PREST HIS SUCCESSOR.BY NOËL P. BODENBURG, EXECUTIVE MANAGING EDITORJohn B. Nofsinger,chief executiveofficer of MHIAsince 1999, isretiring.THE BOARD OF GOVERNORS of theMaterial Handling Industry of America(MHIA) announced last month thatJohn B. Nofsinger, chiefexecutive officer of MHIAsince 1999, will retire onDec. 31, 2011. And, GeorgeW. Prest, chief operatingofficer of MHIA, will be hissuccessor as of Jan. 1, 2012.“I am honored to begiven the opportunity tobuild on the solid foundationJohn is handingoff,” Prest said. “I wantto thank the Board ofGovernors and John forthe confidence they havein me. I accept the challengeof leading MHIA with humbleconfidence.”Nofsinger has more than 45years of experience in the materialshandling and logistics industry.He is recognized as a national andinternational authority on materialshandling and logistics. Beforejoining MHIA in 1986, Nofsinger wasemployed for 20 years by RepublicStorage Systems. During that timeas a volunteer leader within MHIA,Nofsinger served as vice presidentof the Board of Directors and chairmanof the Shelving ManufacturersAssociation.“John’s 45 years of service to theindustry and his 25 years ofservice to MHIA have beenmarked by major changesand improvements to thevalue that MHIA offers itsmembers. He has also greatlyadded to the value of MHIAevents and programmingoffered to end users,” saidMaterial Handling Industryexecutive chairman ColinWilson. “The association isextremely grateful to Johnfor his leadership and numerouscontributions to the materialhandling and logisticsindustry.”Nofsinger serves on theBoard of Governors andexecutive committee ofMaterial Handling Industry(MHI), boards of directorsfor MHIA and Material HandlingEducation Foundation(MHEFI). He also serves asmanaging executive for theRack Manufacturers Institute(RMI) and the StorageEquipment ManufacturersAssociation (SMA).George W. Prest,chief executiveofficer of MHIA asof Jan. 1, 2012.His other industry service includesthe Board of the CharlotteRoundtable of the Council of SupplyChain Management Professionals. Inaddition, Nofsinger was integral toMHIA’s current and ongoing participationas a founding member ofthe American Logistics Aid Network(ALAN).“John’s leadership in the developmentof MHIA as a national andinternational standard for industrialassociations is renowned,” saidPrest. “In addition, the growth andsuccess of ProMat and the developmentof the newly launched Modexexpo are in large part due to John’sstrategic vision. The developmentof the R-Mark rack certification,globalization of membershipand MHIA’s role withALAN all came about underJohn’s leadership. MHIAand the industry owe John,and his wife Patti, a hugedebt of gratitude for hisservice.”Prest brings more than30 years of experienceto MHIA, both in managingand owning materialhandling manufacturingcompanies. Over the years,mmh.com MODERN MATERIALS HANDLING / O C T O B E R 2 0 1 1 9

Prest has been recognized for hisvolunteer leadership of industrymanufacturers and distributor associations,local government andcharitable foundations. This leadershipincludes serving as presidentof RMI and MHEFI, as executivechairman of MHI, and as a memberof the Manufacturers Board ofAdvisors of the Material HandlingEquipment Distributors Association(MHEDA).“George’s previous experience asthe CEO of a major material handlingmanufacturing enterprise gives him aunique perspective on the needs ofboth MHIA members and end usersand will serve him well in his newrole,” Wilson said. “I am convincedhe has the experience and the abilityto lead MHIA toward even greatersuccess.”“George has served this industryfor many years as a volunteer leaderin a variety of organizations,” saidNofsinger. “His strategic vision hasbeen a key contributor to advancingMHIA’s efforts to increasing notonly member value but awarenessWHEN THE INDUSTRY’S NEW expofor manufacturing, distribution andthe supply chain, Modex 2012,opens on Feb. 6 in Atlanta, it will includemore than 500 exhibits and anexpansive educational conference.The Material Handling Industryof America (MHIA), sponsor ofthe event, recently announced thekeynote speakers. They will be: RickBlasgen, chief executive officer ofthe Council of Supply Chain ManagementProfessionals (CSCMP);Alberto Alemán Zubieta, chief executiveofficer of the Panama Canalof the value of material handing andlogistics solutions to the manufacturingand supply chain end usercommunity.”TRADESHOWSModex 2012: Keynote speakers,conference details announcedAuthority; and Donald Ratliff, executivedirector of The Supply Chain& Logistics Institute at the GeorgiaInstitute of Technology.Monday’s keynote will be “TheState of Logistics and Supply ChainManagement” with Blasgen. Hewill discuss the importance of supplychain management as a criticalbusiness success factor, the trendsCSCMP is seeing around the world,and how global supply chains drivechange. Blasgen will also discuss talentwithin the supply chain field.Tuesday’s keynote will be “TheAigner. Look to the Leader in Label Holders.Aigner has the solution for most everylabeling need: Famed Hol•Dex ® onshelves, bins, drawers. Hi-Lo onshelving above or below sight-lines.Wire•Rac on wire shelving.Magnetic Cardholders for instantadhesion on metal. SuperScan forscanable display on pallet racks.Open•Edge for easy labelinsertion on industrial shelving.Write-On magnetic tags foruse with wet-erase markers. Thesequality products assure you easy-readidentity with long-life durability. Allpaper inserts are now laser ink-jetcompatible. Call for ourcatalogand nearest dealer.AIGNERINDEXFREESamples!Aigner Index Inc.218 MacArthur AvenueNew Windsor, NY 12553Tel:1.800.242.3919Email: info@aignerindex.comFax: 845.562.2638www.aignerindex.comWrite-OnSuperScanOpen•EdgeWire•RacMagneticCardholdersHi-LoHol•Dex

Expansion of the Panama Canal andits Impact on Supply Chains andGlobal Trade” by Zubieta. Scheduledfor completion in 2014, the expansionof the Panama Canal is certainto change global freight movementand open up new opportunities, butprecisely how is yet to be determined.Zubieta will detail how theseinfrastructure improvements willbenefit importers and exporters andexplain how you can prepare for itsimpact on your operations.Wednesday’s keynote will be“How Supply Chain and LogisticsPerformance Impacts Trade” byRatliff. He will detail how your supplychain and logistics performanceimpacts trade and is critical forcompanies that want to increaseexports. This keynote will provideinsight into what elements of supplychain and logistics performance needimprovement and how to make theseimprovements to boost exports.Modex will also include 70 educationalsessions outlining leadingtrends, best practices, and state-ofthe-artequipment and technologysolutions. Modex is partnering with17 industry organizations that willco-locate.“Co-locating these events withModex 2012 will allow manufacturing,distribution and supply chainprofessionals unparalleled educationand networking opportunitiesas well as exposure to the broadestmaterial handling, logisticsand supply chain equipment andtechnology display of any expo ofits kind in North America,” saidJohn Nofsinger, chief executive officerfor MHIA. “For our members,attendees and exhibitors, the colocationswill add even more valueto the event; the largest being theGeorgia Logistics Summit which lastyear hosted 1,300 attendees from21 states and expects to draw evenmore in conjunction with Modex2012.”“These co-located events will

complement the existing conferenceat Modex, which providesvaluable insight into the trendsand innovations impacting supplychains,” added George Prest, chiefoperating officer for MHIA. “TheModex 2012 conference will featureleading-edge topics in manufacturing,distribution and thesupply chain, exploring subjects assuch as the impact of the PanamaCanal expansion to sustainability,security, visibility over four days ofsessions led by industry experts.”ECONOMYManufacturersare becoming lessoptimistic abouteconomy, saysGrant ThorntonWHILE MANUFACTURING has beenconsidered a bright spot for theU.S. economy during the economicdownturn, recent data from consultancyGrant Thornton LLP indicatesthat manufacturers are losing faithin the growth prospects for theeconomy.A survey of nearly 70 U.S. manufacturingleaders conducted by thefirm, entitled the “Business OptimismIndex,” found that a mere 13%of surveyed manufacturers think theeconomy will improve over the nextsix months, down from 40% in Mayand 60% in February.What’s more, Grant Thorntonfound that 40% of surveyed manufacturersmaintain the U.S. economywill get worse compared to 26% and3%, respectively, in May and February.Another 53% are very or somewhatoptimistic about their ownbusiness, which is down from 80% inMay and 91% in February, while 47%are pessimistic about their own businesscompared to 20% in May and9% in February.“Directionally, it is not a surprisehow COOs and CEOs are feelingabout the direction of the economy,”said Wally Gruenes, manufacturingpractice leader at GrantThornton and a member of theboard of directors of the NationalAssociation of Manufacturers.“Although manufacturing has heldup well since 2008, the sector lostabout 3,000 jobs in August, andproductivity is down about 1.5%.”Gruenes said these numbers arein direct correlation to the fact thatthere is less business occurring and12 O C T O B E R 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com

volumes are trending down. He alsosaid that this data does not fully explainwhat is happening with exportson a real-time basis.While July exports were up 11%annually according to Departmentof Commerce data, Gruenes saidit does appear that the economicweakness in Europe and the mildslowdown in Asia are impactingthe United States’ ability to exportproduct.“ The combination ofthe two is somewhattoxic. While 40% saidthey think the economywill get worse, 53% feelpretty good about theirown business.”—Wally Gruenes, manufacturingpractice leader, Grant Thornton“It does appear to be driven bythe morass in Washington and theEurozone and less volume,” he said.“The combination of the two is somewhattoxic. While 40% said they thinkthe economy will get worse, 53% feelpretty good about their own business.So the environment is not great,but some feel better about their ownbusiness rather than the economy ingeneral, which is consistent in thisdata going back to February.”Along with the declines reportedin the Grant Thornton data areconcurrent declines in the Institutefor Supply Management’s monthlyManufacturing Report on Business.Another thing to note is that the U.S.manufacturing base is significantlysmaller than it was in the 1980s andhas been in a three-decade span ofdecline, and has seen 2 million to 3million jobs lost—and not regained—since the recession began in 2008.But even with the loss of jobs andshrinking domestic manufacturingbase, Gruenes said that according toNAM data, the U.S. manufacturingeconomy still does account for 21%of the value of manufactured materialsthat are produced compared toJapan and China, which are at 14%and 13%, respectively.“There is still a significant levelof manufacturing performed in thiscountry, but some of the challengeswe have seen, with the concept ofnear-shoring to Mexico and pointssouth, as well as China and Vietnam,we think the long-term trend is goingto be bringing production backcloser to home,” said Gruenes. “Andthe megatrend is that supply chainsare going to be shortened from aphysical perspective.”This approach brings manufacturerscloser to their customers andsuppliers closer to manufacturers,raising the question of manufacturersasking if the costs of transportingthe product from the other side ofthe world—as fuel and transportationcosts increase—are offset by laborcosts, he said.In certain parts of the world, hesaid, this is evident, with manufacturersnot being able to find personnelwith the right amount of skill to bringin-house to work in their factories.Part of this is a broader social issue,with fewer young people interestedin that career path.Looking at public policy initiatives,survey respondents cited the reductionin effective corporate tax rateas the one they are least optimisticabout at 54%, followed by 25% and21%, respectively citing job creationand deficit reduction as the initiativesthey are least optimistic about.Results of Modern’s 2011Pallet Usage StudyThursday, October 27, 2011at 2:00 p.m. ETwww.mmh.com/2011pallet• Sorter Supervisorrealtime monitoring• InControlWare ® sorterand system control• IN-24X7 NorthAmerican-based support• OnTimeParts whenyou need themIntegrity. Committed.Innovative. Smart.The Intelligrated Way.866.936.7300www.intelligrated.com/sortation

lift truck TIPSThe long view on operator trainingIn the face of automation, operators should strive for safety andignore “Old Fred.”By Josh Bond, Contributing EditorEffective lift truck operator training canproduce efficiencies and safety, whereaspoor training can significantly compromiseboth. According to Spencer Ecklund, director ofsafety services for Toyota Forklift in Atlanta, Ga.,too many companies get comfortable with thelatter.“People don’t take it seriously,” says Ecklund.“They think, ‘But that’s the way we’vealways done it. If it hasn’t happened yet, it’snot going to. We’re not going to tear up anyproduct, nobody’s going to get hurt, and thetrucks are going to run forever.’ Sadly, they aremistaken.”In the absence of proper training, mostoperators learn by watching an experiencedbut otherwise unqualified instructor of the typeEcklund calls “Old Fred.”“You know Old Fred. The guy who knowseverything about everything but knows nothingabout anything,” Ecklund says. He adds that it’s instructorslike Old Fred who have helped perpetuate the mostcommon safety violation: Driving, turning and movingwith a load in the air.OSHA is cracking down on Old Fred, says Ecklund,who pointed to requirements that instructors be “knowledgeable,experienced and trained.” He says failing totrain or re-train is a usual suspect on OSHA’s Top 10 list ofcommon violations.But Ecklund says he appreciates that the art of operatortraining is filled with gray areas. It can be hard totranslate good habits from videos, workbooks and lapsaround road cones to the warehouse floor, where coworkers’practices, inadequate oversight, and the pressures ofincentive picking can quickly corrode those habits. Unfortunately,bad habits aren’t found only in the aisles.“Managers call me up looking to get training done inan hour or so,” laughs Ecklund. “It blows my mind. They’llhave operators tearing up product and say, ‘Well, 1% lossis acceptable.’ There is no such thing as an acceptableloss for me.”GraphicCaptionEcklund says about 10% of managers stay in the roomduring training. The rest claim they are too busy. ButEcklund emphasizes that managers are accountable notonly to OSHA, but to an employee who might file suit fornegligent oversight.It’s also important to remember OSHA standard1910.178 states that training must include not only formalinstruction and practical training, but also an “evaluationof the operator’s performance in the workplace.”“Training is the most important aid for preventingaccidents and as an operator, it’s important to be as welltrained as possible,” says Ecklund. With the emergenceof automated vehicle technology competing for jobs, hesays, human operators are on notice to perform at optimallevels of safety and efficiency.“The technology is knocking on the door,” says Ecklund.“You’re working for your job. You gotta fight forwhat you want.” MJosh Bond is a contributing editor to Modern and can bereached at josh.d.bond@gmail.com.14 O c t o b e r 2 0 1 1 / Modern Materials Handling mmh.com

In this business, it’s ship or beshipped.LET US MAKE LIFE EASIER.Add a valuable savings tool to your fulfillment process. Use ourhigh-performance software to streamline shipping and integrateUSPS discounted pricing.• Easy software integration• Batch processing• Bulk acceptance SCAN• Simplified international shipping• Prepaid shipping labels• Detailed statistics and reports“We would not have been ableto meet our growing demand orgenerate these significant costsavings without DYMO Endicia.”– Andrew S. Atlantic Coast Media GroupSHARE YOUR SUCCESS STORY.We want to know how you move your business forward.Share your story, and be entered to win an iPad product.Find out more at: dymoendiciaforward.comMoving your business forward© 2011, DYMO Endicia, a Newell Rubbermaid Brand. All rights reserved. All other trademarks are trademarks or registered trademarks of their respective owners.The Eagle logo, U.S. Postal Service®, Post Office, PC Postage® and the PC Postage logo are among the many trademarks of the United States Postal Service.

MODERN system reportRandom House cutsturnaround in halfBy Bob Trebilcock,Executive EditorEdwin Remsberg/Getty ImagesAnnette Danek, vicepresident of fulfillment forRandom HouseBig-box retailers, the Internet and e-books haveupended the way books are purchased by consumers.Many of those same dynamics arealtering the way books are distributed as well.Not so long ago, Random House Inc.—theworld’s largest English-language trade bookpublisher—distributed only its own newly publishedand backlist hardcovers, trade and mass-market paperbacks,and audio books issued by its nearly 100 imprints inNorth America. What’s more, a significant portion of thosebooks were likely to be shipped as full-pallet orders.Today, Random House still distributes its own titles.BlishedBut, it also has a growing third-party distribution business,shipping titles for 30 other publishers to thousands of brickand mortar retailers, distributors, wholesalers and libraries,as well as direct-to-consumer Web orders. In addition to16 O C T O B E R 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com

Thanks to a new tilt-tray sortation system, RandomHouse is beating the competition to market andimproving turnaround times by nearly 50%.warehousing and shipping,Random House also handlescustomer service and backofficesupport functions forits third-party customers.The profile of those ordershas also changed. Accordingto Annette Danek, vicepresident of fulfillment, whoruns the company’s distributionand fulfillment centers,“As people are buyingmore electronic books, youdon’t need as many physicalbooks in the supply chain.”As a result, full pallets comprisefewer than 10% of theunits shipped from RandomHouse’s 1.3-million-squarefootdistribution center inWestminster, Md. About60% of the units are full cartons and 30% are loose picks—individual titles picked to a mixed carton.To address those changes and to support its growing thirdpartylogistics (3PL) business, Random House added a single-traytilt-tray sorter (Intelligrated, www.intelligrated.com)to the Westminster facility in the fall of 2009.The 712-foot-long sorter features:• Two induction locations with six stations each and fourinduction belts per station, for a total of 12 high-capacity singulatedautomatic inductions.• Overhead scanning after each array of induction stations.The scanners read a UPC bar code on the exterior ofeach item on the sorter.• And, 250 double-level chutes for a total of 500 potentialsort/pack-out destinations. Packers are responsible for morethan one-sort destination.The sorter allows Random House to efficiently handle themixed-case and direct-to-consumer orders that now comprisea larger share of its business. Order turnaround timehas been improved by 50% since the sorter went live even asthe company increased its overall title volume with its non-Random House clientele.The change was a calculated strategic decision madetogether by company CEO Markus Dohle; Madeline McIntosh,the president of sales, operations and digital; and the senior distributionleadership that has paid off despite an economic slowdown.“We decided to invest in our physical infrastructure at atime when most publishers have put on the brakes with theirs,”says Danek. “We’re now able to get our books delivered fasterthan our competition, and we have become a more effective andprofitable partner for our booksellers with our advanced supplychain productivity and efficiency.”The payoff: Random House has reduced lead times andincreased throughput since the sorter went live, adding 10new outside publishers as Random House Publisher Servicesclients. And, there is room to grow. “We could double or tripleour SKUs and keep the same turnaround times becauseof the sorter,” Danek says.Hitting the distribution wallIn addition to choosing great authors and publishing hundredsof bestsellers and many Pulitzer and other prize winnersamong its more than 8,000 new titles a year, RandomHouse considers distribution one of its core competencies.The company prides itself on having the finest distributionsystem in the book publishing industry. It was recentlynamed Amazon.com’s “Distributor of the Year” for its effortson behalf of the third-party publishing clients that are overseenby the Random House Publisher Services group.At present, Random House operates two national distributioncenters. In addition to the Maryland facility, whichis the largest DC in the publishing industry, it operates asecond facility in Indiana. The facilities differ by the productsthey ship: Indiana primarily ships children’s books whileWestminster ships titles for adult readers.Prior to the tilt-tray sorter going live in October 2009, theWestminster facility was up against a distribution wall that washindering its growth. “We put in our first conveyor system forpiece picking in 2000, before we entered the third-party dis-mmh.com MODERN MATERIALS HANDLING / O C T O B E R 2 0 1 1 17

modern system reporttribution business,” says Danek. “Thesystem was designed with fewer than 20pick modules to handle 16,000 SKUs.”That system was also installed before thee-book phenomenon took off.Once Random House began takingon distribution for other publishers,that picking system proved inadequatefor two important reasons.• The shelving and pick moduleswere added on an as-needed basis toaccommodate new customers and notin an integrated fashion. “We were tearingout carton flow rack and replacing itwith shelving in our picking areas,” saysDanek. “We got more density, but wehad to replenish those locations morefrequently.”• With additional pick modules,cartons visited more modules to completean order using a pick-and-passpicking method. “When we only had20 modules, a typical carton wouldvisit three or four modules to completean order,” Danek says. “Once wegot up to about 35 modules, a cartonwould go to nine or 10 modules beforean order was complete.” Approximately66% of orders were shippingin three business days orless.During this same period,e-books became a potentforce in the consumer marketplace.This explosive-growth,reading and distribution formatfurther altered a businessmodel that was already underpressure. Random House’scustomers were returningmore excess titles than in thepast. All those returns had tobe processed and returnedto inventory, which furtherslowed down processes.“One of our strategic initiativeswas to reduce ourreturns by speeding up oursupply chain,” says Danek.The idea was to encouragelarge customers to becomedemand-driven: Instead ofordering once a week or oncea month and then returningunsold titles, Random Houseurged its largest customersto carry less inventoryand order daily,based on the titles thatwere selling. That way,fewer unsold bookswould be returned.From a distribution pointof view, that meant customerswould be ordering fewer fullcarton or multiple carton ordersand more mixed carton or looseitems. “To do this successfully,we had to reduce our lead timesbecause our customers wouldbe placing an order once a dayand we would be doing morewith each picking,” says Danek.Once orders have beenpicked and packed, cartonsare delivered to a qualityassurance area for a weightcheck. From there, cartons aresealed, labeled and sorted toa shipping lane.Narrow-aisle wire-guided turret trucks areused for putaway and picking in the full-palletstorage area.“Since we already had a bottleneck inthe each picking area, we had to devisenew picking and handling processes.”Sorting through bottlenecksA tilt-tray sorter proved to be the mosteffective solution for the Westminsterfacility. One of Random House’s prioritieswas to replace the pick-and-passpicking with a new methodology thatwould allow it to send a book from apick module to the shipping dock withoutrouting it through nine or 10 pickmodules.With a tilt-tray sorter, RandomHouse could aggregate the picking process.Instead of sending a shipping containerfrom one module to the next, allof the items from a single-pick module18 O c t o b e r 2 0 1 1 / Modern Materials Handling mmh.com

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modern system reportare sent to a sorter induction point. Thesorter then routes all of the items foran order to one of 500 packing destinations.Once all of the books for a cartonhave accumulated, a light flashes tonotify a packer that an order is ready tobe packed.In this system, one packer can handleseveral packing locations at a time.Once a carton is packed, it’s placed ona takeaway conveyor, and then automaticallyscanned and conveyed to afinal pack. There, it’s weight-checked,bubble-wrapped, sealed, labeled forshipping, and sent to shipping, where itis loaded for delivery.By aggregating orders, approximately98% of orders ship in three businessdays or less. The system is flexibleenough to maintain that level of productivitythrough the inevitable ordercyclepeaks and valleys.Once Random House settled on atechnology, there were logistical problemsto address. One was a matter oflayout. “We already had a mezzanineand we knew we needed certain operatingspeeds,” says Danek. “But we didn’thave a lot of space and we had issueslike I-beams in the way.”The system integrator came up witha way to fit the sorter on the mezzaninewithin the architectural constraints ofthe building.A second concern was whether theprocess of moving books from the sorterto a packout station would cause damage.“The pitch of the chute is prettyimportant to prevent damage,” saysDanek. A team from Random Housespent a day at the integrator’s facility inFrederick, Md., testing more than 100sample books that varied from large andheavy coffee table books to textured children’sbooks. “We looked at a number ofsorter designs, and this one handled ourbooks in the gentlest way,” Danek says.Danek adds that the picking processesin the loose pick area remainedthe same. “We were already using voicetechnology to direct our picks,” shesays. “By creating a denser picking area,we picked up a 15% gain in productivityAssociates are directed by voice in the piece picking area. Once all the itemshave been picked, a tote is conveyed to an induction point for the tilt-traysortation system.and the sorter improved our accuracy.But the change with the most impactwas improving our throughput rate byalmost 50%.”As Random House approaches itssecond anniversary with the sorter,returns are on the decline. More importantly,with the increasing shift toe-books, the speed to market enabledby the sorter has kept Random House abig step ahead of the competition.“By putting in this system, we canaccommodate our growth and we canget our physical books to our customersfaster than other publishers,” shesays. “We have a mandate to have thebest supply chain in book publishing,and with it we will grow both the profitabilityof our customers with RandomHouse titles, as well as our own.”Speed to marketRandom House’s new picking methodology aggregatesorders for faster turnaround times and speedier deliveryto the market.By Bob Trebilcock, Executive EditorReceiving: Random House receives(1) full trailer load shipments on full,half or mixed pallets from the binderies.Pallets are unloaded to a staging areain the receiving area (2) where they arechecked in against a production orderin the warehouse management system(WMS). As product is checked in, theWMS creates a license plate bar codelabel for the pallet and assigns a putawaylocation in one of the reserve storageareas (3).Putaway: Once a pallet has beenreceived in the WMS, a lift truck operatorscans the license plate bar codelabel and is then directed to a drop off20 S e p t e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

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modern system reportRandom HouseWestminster, Md.Size: 1.3 million square feetProducts handled: BooksSKUs: 45,000+Throughput: 500,000 units per dayEmployees: 450 with seasonaladjustmentsShifts/Days: 3 shifts/5 dayslocation for one of the storage areas (3).There, the load will be retrieved by anarrow-aisle, wire-guided turret truck.The turret truck operator scans and isdirected by the WMS to a storage location.The operator confirms the putawayby scanning the storage locationlabel.Picking: Orders are received inthe WMS and batched into waves.Depending on what has to be pickedand shipped during that shift, a wavemay be created based on a variety ofcriteria including a customer, a carrier,carrier pick-up times and internationalorders. Picks are also grouped by fullpallet picks, full carton picks and eachpicks.• Pallet picks: Pallet labels aredistributed to the turret truck operatorsin the storage area (3). Once they scana pallet label, the WMS directs them toa pick location. After the pallet is deliveredto a staging station, it is picked upby another lift truck operator and deliveredto the stretch wrapper if necessaryand then to the shipping dock (4),where it is staged for loading.• Carton picks: A full carton contains12 copies of one book title. Forfull carton picks, labels are printed inadvance and divided into clusters of 60cartons, the equivalent of a full pallet.Whenever possible, all 60 cartons willbe picked from one aisle in the warehouse.Working from a pallet truck, theorder selector is directed to a storagelocation after scanning a carton label.The selector then applies the label tothe carton, places it on the pallet andthen repeats that process until thepallet is complete. The pallet is thendelivered to an induction point whereanother associate loads the cartons ontothe shipping conveyor (5). Once on theconveyor, the cartons are diverted toone of 16 shipping lanes by a slidingshoe sorter (6). At the end of the shippinglane (4), the cartons are palletizedfor delivery.• Piece picking: Individual itemsare selected from pick locations in theloose pick area (7). Associates in thisarea are directed by a voice-pickingsolution. To start the process, an orderselector scans a label on a tote containerand is directed to a pick location. Thepick is confirmed by voice or by scanninga bar code. Once all the items forthat tote have been picked, the order isclosed by scanning the label on the toteand placing it on a conveyor (8). Thereit is transported to an induction pointfor the tilt-tray sortation system (9) onthe mezzanine.Packing: Just as orders are batchedTilt-tray sorter9Packing1010PackingStorage3Loose pick78ConveyorStorage3Storage32StagingShippingsorter65Shippingconveyor4 Shipping1 Receiving22 O c t o b e r 2 0 1 1 / Modern Materials Handling mmh.com

modern system reportinto waves for picking, tote containersaccumulate at one of two inductionpoints for the tilt-tray sorter (9) untilthe pack out stations (10) are readyfor a wave. An associate empties thebooks in the totes onto an automaticfeed conveyor. They are scanned asthey are automatically placed on oneof the tilt trays and then sorted to thecorrect pack out chute. Books accumulateuntil there are enough itemsfor a carton. At that point, a blinkinglight alerts the packer to begin to packthe order. When the packer scans alocation label at the chute, the WMSidentifies the right size carton for thatorder, depending on the size of thebooks. Once the carton is complete,the packer scans the bar code label onthe carton and places it on a take awayconveyor. At that point, the packer isdirected to the next chute ready forpacking.Shipping: From the packing station,the takeaway conveyor deliverscartons to a quality assurance weightSystem suppliersTilt tray sortation and conveyorsystem and system integration:Intelligrated, www.intelligrated.comConveyor system: Automotion, www.automotionconveyors.comIntegrator: TransTech Consulting, www.transtechconsulting.comWMS: RedPrairie, www.redprairie.comVoice recognition technology:Dematic, www.dematic.comLift trucks: Raymond, www.raymondcorp.comBar code scanning: MotorolaSolutions, www.motorolasolutions.comOverhead scanning: SICK, www.sick.comFull case rack: Ridg-U-Rak, www.ridgurak.comCarton flow rack: Unarco, www.unarcorack.com/cartonflow/main.htmlStretch-wrapper: Lantech, www.lantech.comMezzanine: Unarco, www.unarcorack.com/Mezzanines/Mezzanine-Main.htmlcheck. After the scale, cartons aresealed and labeled and then conveyedby the shipping sorter (6) to the correctshipping lane (4). There, they will bemarried with any other cartons associatedwith that order. About 80% of allunits will be palletized and shippedNeed a Single SourceSolutions Provider forYour Conveyor Needs?Many conveyor manufacturers typicallyonly make certain types of conveyors.At Capitol Conveyors, Inc. we knowone size doesn’t fit all, that’s why we’rea full service, custom manufacturerof many different types of conveyors,including specials.We also offer complete solutions thatinclude systems engineering, equipment,installation and commissioning – allwith fast, flexible and efficientresponse times.• Motorized DriveRoller• Lineshaft• Belt Conveyors• Belt Driven Live Roller• Chain Driven Live Roller• Gravity• Towers• In Motion Weighing• Automated Print & Applyas either a full truckload or less-thantruckloadshipment. The other 20% willship as parcel shipments. Most of thosewill go directly from the conveyor intoa parcel shipper’s truck. Some may bepalletized and sent to a parcel shippinghub. MFor More Information, Call:877-532-9070Talk to one ofour Sales Engineersand request a frEE quotefor your next project!mmh.com Modern Materials Handling / O c t o b e r 2 0 1 1 23

MODERN special reportPALLET READER SURVEY+ WEBCAST: RESULTS OF MODERN’S 2011 PALLET USAGESTUDY, THURSDAY OCTOBER 27, 2011 AT 2:00 P.M. ETWWW.MMH.COM/2011PALLETUsage on thePallets are the foundation of the materialshandling industry. Here’s why they are importantto our readers.By Lorie King Rogers, Associate EditorAt any given moment in time, there are nearly 2 billionpallets on the move across the United States.New, used, metal, plastic, corrugated, wood orwood composite, pallets are, quite literally, thefoundation of the materials handling industry.For those outside of the materials handling industry, palletsmight seem like a just basic commodity. But for those ofus on the inside, pallets are an essential component that canhave a major impact on an operation’s process and ultimatelyits bottom line.“In most cases, a pallet is the platform that serves as alynch pin for entire unit load,” says Bruce Scholnick, presidentof the National Wood Pallet & Container Association(NWPCA), the Washington, D.C.-based trade associationthat represents the wooden pallet industry. “And that platformallows you to move more in less time with less labor.”Pallets have the power to affect major cost savings formanufacturers and any operation moving product. They alsoprotect the product during transit and allow it to arrive atits destination in good, usable, salable condition. Without apallet, a product’s packaging would have to be more durable,which could also translate into higher costs.So, since almost every product moving through ournation’s supply chain moves on a pallet, the question is:What type of pallet and why?Actually, there are a lot more questions in our annual palletsurvey, which was resurrected last year after eight yearsand a lot of industry evolution. Modern’s goal in conductingthe pallet survey is to better understand current and futureusage of pallets as well as any trends that may be occurringin the pallet market.In August, Modern’s 2011 Pallet Survey was sent out tosubscribers of our magazine as well as a sample of recipientsor our e-newsletters. The e-mail invitation also included aURL linked to a dedicated Web site that contained the questionnaire.We received 594 qualified responses from readersemployed at a facility that actually uses pallets. The surveyhas a margin of error of ±5.6%.Here’s what the readers told us.People purchasing palletsThe readers who responded to Modern’s pallet survey onceagain represent a broad spectrum of industry verticals, withfood and beverage (16%), consumer goods (12%), wholesaletrade (10%), and transportation and warehousing (8%)accounting for nearly half (46%) of the qualified responses.We also received responses from a number of other sectors,including paper and allied products, medical and healthcareproducts, electronics, automotive, building materials, metalsand aerospace, to name a few.The average reader is purchasing an estimated 9,020 palletsat their location, or roughly 18 truckloads a year, slightlybelow 20 truckloads a year reported in 2010. However, 14%of users are purchasing more than 30,000 or more pallets ayear, or about five truckloads per month or more. Another16% are purchasing between 10,000 and 29,000 pallets per24 O C T O B E R 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com

iseWhat types of pallets do you use?Wood95%During the past two years, how hasthe number of pallets purchased atthis location changed?IncreasedStayed the same39%37%40%45%PlasticWood compositeCardboard/CorrugatedMetalOther39%14%8%7%2%DecreasedBy what percent?25% 20%Average % increase15%Source: Peerless Media Research Group24%2010 201127% 29%Average % decreaseyear at their location.While there is a lot of talk about the stagnant economy,pallets are generally an indication of the amount of productbeing palletized for inventory or shipping purposes. Yet, 45%Source: Peerless Media Research Groupof respondents indicated that their pallet usage has increasedover the last two years by an average of 20%, and another40% indicated their pallet usage had remained the same.Only 15% of respondents indicated their usage had gonedown, by an average of 29%.We found similar results looking forward. Asked how theybelieve the number of pallets they purchase will change overthe next two years, 48% expect to increase their pallet purchases,by an average of 17% and 43% expect their purchasesto remain the same. Only 9% expect their pallet purchases todecrease, by an average of 31%.According to this year’s survey, 60% of the pallet purchasingdecisions continue to be made by purchasing managers,warehouse managers, shipping and warehouse managers,and dedicated buyers. And, as was also the case last year, themmh.com Modern Materials Handling / O c t o b e r 2 0 1 1 25

MODERN special reportmajority of pallets (52%) arebeing purchased at the locallevel, meaning people at thatlocation are buying palletsfor that location only. Fifteenpercent of respondents saythat pallets are purchasedat the local level for that siteplus others, and 18% say thattheir pallets are purchased atthe division-level for one or anumber of locations.A pallet’s purposeSo, once purchased, what’s thepurpose of these pallets? Forthe most part (83%), palletsare being used in both warehousingand shipping applications.Only 8% of our readersreport using pallets solely forwarehousing and 9% solely forshipping.Of the pallets being usedin a shipping capacity, 40%say that their pallets are usedto export product; 59% sendtheir pallets on a one-wayjourney out to trading partners;and 20% circulate palletsin a closed-loop betweentrading partners.Seventy-one percent of readers saythat their pallets move in a closed-looptransporting product and materialswithin their facility, and 52% say palletsmove between a number of facilitylocations with their organization.One example of the latter is theChicago Transit Authority. It ownsthousands of wooden pallets that areused to move materials from its centralwarehouse out to 20 maintenancelocations. Pallets are on the job aroundthe clock moving materials needed torepair buses and trains and support itsstations. “We have about 60,000 SKUsin stock,” explains Mark Ehmig, generalmanager of warehouse operations.“Everything from plumbing and electricalsupplies is moved internally on ourown pallets.”How has the number of used wood palletsyou use/have acquired changed duringthe last 2 years?Use/acquiremore used palletsUse/acquire usedpallets on same levelUse/acquire fewerused palletsRely more ona pallet poolNot asked7%Source: Peerless Media Research Group20%20%31%32%Pallets can live a long, useful life inthis closed-loop, even those that getpretty grimy. “There’s a small number,about 5%, that we use to handle itemsthat don’t need to be moved on clean,pristine pallets,” says Ehmig. “Some ofthese pallets have seen better days, butthey’re still useful.”That’s not true in all cases. Forexample, the White Castle facilityin Covington, Ky., which makes frozenfood for the White Castle burgerchain, has to address a number ofstrict requirements when handlingfood, including those issued by theGrocery Manufacturers Association(GMA).As a result, the White Castle facilityincorporates a number of pallet solutions.For example, warehouse supervisorGordon Skaggs explains that since41%49%How do you expect the number of usedwood pallets to change in the next 2 years?Use/acquiremore used palletsUse/acquire usedpallets on same levelUse/acquire fewerused palletsRely more ona pallet poolNot asked7%16%17%32%41%43%44%20102011products cannot be placeddirectly on a floor, theyuse their own woodenpallets to store and holdproducts. Plastic palletsserve a role in carryingonions through the preparationprocess because,as Skaggs says, onions getsticky and plastic palletsare washable.When it comes time toship the frozen food outto restaurants, distributorsshow up at White Castle’sshipping dock equippedwith their own pallets.“We use different carriersand they all come forthe product with theirown pallets,” says Skaggs.“They come with about30 pallets, and it’s an evenpallet exchange.”Stable businessHow respondents areusing pallets this yeartracks closely with lastyear’s findings. In fact,according to Modern’sresearch team, the differences are notstatistically significant. Meaning, theoverall numbers in this year’s pallet surveytell us that the pallet industry hasbeen stable. There is little change fromlast to this year.However, our survey did uncover aslight variation in the average numberof times a pallet is used. Last year, theaverage number of times a pallet wasused was 7.5. This year, the averagedropped to 5.6.There could be a number of factorsresponsible for the decline, explainsNWPCA’s Scholnick. For example,business could have fallen off for somerespondents, or some respondentsmight be storing product on “slave”pallets in a warehouse. But Scholnickalso says this slight adjustment is not ared flag. There are a host of reasons the26 O C T O B E R 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com

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MODERN special reportnumber has gone down, but thepallet industry is cyclical andthat number is going to fluctuate,he says.Pallet rentalAnother interesting point thatcame to light in this year’s palletsurvey is the increase in thoseconsidering certain pallet rentalsystems.Last year, 48% of our respondentsusing pooled pallets weremanaging their own pools. Thisyear, that number is down to35%, and respondents say theyare considering a helping hand.(Interestingly enough, readerstell us that the top reasons foroutsourcing pallet handling andrepair are the same reasons forkeeping it in house—cost effectivenessand convenience.)Modern’s survey included anumber of companies that lease, repairor manage pallet pools, including CHEP,IFCO, PECO, iGPS and Ongweoweh.Among them, CHEP saw interest and/or participation in their business jumpfrom 22% last year to 43% this year.While the increase wasn’t as dramaticfor the others, up is up.One reason for the increased interestcould be due in part to new guidelinesissued by big box retailer Costco.Last year, the company mandatedthat all by the end of2010, all deliveries must arriveon a four-way entry block stylepallet. This style of pallet has atrue four-way entry that makesit easier to unload and handlethe unit load, which ultimatelyenhances efficiencies.However, it’s more challengingto manufacture than the basicstringer style pallet and alsomore expensive.So, rather than buy moreexpensive pallets, end usersare considering the jump intoa pallet rental pool with palletslike those offered by CHEP,What type(s) of pallets are you not usingbut may consider for future use?Cardboard/CorrugatedMetalPlasticWood (new)Wood (used)WoodcompositeNo change11%9%7%4%9%3%7%4%12%12%23%21%Source: Peerless Media Research GroupPECO and iGPS. This option couldprovide cost savings for some operationsand ease the constant pressureto lower expenses by collaboratingwith vendors who can become partnersand focus on part of the operationthat is not directly connected with itscore competency. Simply put, as onerespondent said, “We are not in thepallet repair business.”But some companies are in the pallet2010201159%62%What do you believe will be the primaryreasons for future changes regardingyour pallet usage?#1 Cost/Price#2 Durability/Better quality#3 Customer requirements/Demands#4 Increase in exporting and regulations#5 Increased sales/Business/SKU growth#6 Green/Eco-friendly#7 Availability by type of palletSource: Peerless Media Research Grouprepair business, which isgood news to nearly twothirdsof survey respondents.Of the readersusing wooden pallets,60% use a third party orpallet recycler to maintaintheir pallets, while28% sort and repair theirpallets internally.Wood wins, plasticplacesRegardless of who ismaintaining the pallets,it’s clear that wood continuesto be the overwhelminglydominantmaterial of choice inthe market, with 95%of respondents reportingthat they use woodenpallets at their facility.And within that figure,according to Scholnick, about80% of the wooden pallets in circulationtoday are reused. Over the pasttwo years, 32% of respondents say theyhave acquired more used wooden pallets,and that same number has plansto acquire more used wooden palletsfor their operation. Only 17% reportan expectation of using fewer usedwooden pallets in the next two years.While wood is the winner, plastic isgaining some traction.Thirty-nine percent ofour readers say that theyuse some plastic palletsat their location, comparedto last year’s 33%who said they use someplastic pallets. And, ofthose not currently usingplastic, 21% say theywould consider usingplastic pallets in thefuture.When consideringwood pallets, readerstold us the most importantconsiderations continueinclude the follow-28 O C T O B E R 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com

ing: purchase price (95%),strength (95%), availability(93%), and durability (92%).However, when consideringplastic, prioritieshave shifted. Lastyear, strength and durabilitywere the top priorities(92% each). Thistime around those factorsare still the top considerations,but they are lessimportant (83% and 82%,respectively) to end users.Weighing into a location’spallet choice can be anumber of factors, includingsanitary issues, durability and quality.“We would only change to reduce costbut probably would not change fromplastic,” explains one respondent. “Wehave found the plastic pallets give usthe highest number of turns, literallymeasured in years of service with asWhat is your company’s potential forparticipating in a pallet retrieval/recoverysystem or in a third-party pallet rental system?Would stronglyconsider/Would considerSource: Peerless Media Research Group22%23%Might consider 37%33%Would not consider 34%38%Don’t know what aretrieval/recovery system or3rd party rental system is7%7%many as five or six trips per week.”Among the other materials highlightedin the survey, 14% of respondentsindicate they use some woodcomposite pallets, 8% say they usesome cardboard/corrugated, and7% say they use some metal pallets.20102011Respondents, however, didnot indicate in what quantitiesalternative pallets arepurchased.But, of course, everypallet has a unique purpose.For example, corrugatedor transport palletsare designed for one-timeuse, often going from amanufacturing operation toa distribution center whereproduct is repalletized andstored. .And, althoughmore expensive, aluminumpallets are lightweightand strong which makesthem ideal for transport in the airlineindustry.Every operation is different and palletusage depends on what and whereproduct is moving. But according toScholnick, “All pallets have place in themarket.” MRIDER LIFTS FOR MEZZANINES &AUTOMATED MATERIAL LIFTS FOR MEZZANINESINCREASE MEZZANINE UTILITYSAFER LOADING & UNLOADINGFASTER LOADING & UNLOADINGCOST EFFECTIVE1-800-843-3625www.advancelifts.commmh.com Modern Materials Handling / O c t o b e r 2 0 1 1 29

modern information managementTopautomaticdatacapturesuppliersAfter a challenging 2009, the ADC marketbounced back in 2010 and looks strongmoving forward.By Bob Trebilcock, Executive EditorIn 2010, the automatic data capture (ADC) businessbounced back from the recession.The total market for industrial ADC solutions,those solutions used in factories, warehouses andlogistics applications, came in at roughly $10.6billion in 2010, according to Massachusetts-basedVDC Research Group. That’s up about 17% from the$8.8 billion spent on industrial ADC in 2009.At least for now, 2011 is expected to be another goodyear, according to Drew Nathanson, VDC’s vice presidentof AutoID. VDC projects the industry to approach$12 billion in 2011 and grow at a compound annualgrowth rate (CAGR) of 16.6% through 2015, when it isexpected to reach $22.867 billion.The ADC market includes handheld and stationarybar code scanning and imaging devices, bar code printers,consumables like bar code labels and RFID tags,RFID solutions for the supply chain and ruggedizedmobile computing solutions for the factory and warehouse.VDC’s figures above do not include consumablesassociated with automatic data collection, such asbar code labels.Driving that growth is a combination of geographyand technology adoption. “We’re seeing growth in emergingmarkets like Brazil and Mexico, Eastern Europe andAsia,” Nathanson says, pointing out that the market inChina grew 20% off a decent-sized install base. Therehas also been significant growth in the adoption of imagingtechnology for 2D bar codes and RFID.VDC’s projections are supported by surveys thefirm has done on ADC budgets from end users. “Whileend user budgets for bar code systems declined by 53%in 2009 as a result of the recession, we’re now seeingincreased ADC budget allocation in every primary verticalmarket,” says Tom Wimmer, VDC’s practice director forAIDC and RFID. The data suggested an 8.5% increase inbudget allocations for 2010—and real results were evenbetter—and an approximately 30% increase in 2011.The 2010 market leaders included familiar faces:Once again, Motorola led with an estimated $1.228billion in revenue, a 12.5% increase over 2009. ZebraTechnologies placed second with $526 million. The topfive spots were rounded out by Datalogic with $403.5million, Honeywell with $380 million, and Intermec30 O c t o b e r 2 0 1 1 / Modern Materials Handling mmh.com

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modern information managementTop 20 ADC suppliers by revenue ($ millions)Total 2010revenuesNorth AmericanHeadquartersBarcodeprintersHandheldscannersStationaryscannersRank CompanyWeb siteRFIDwww.1 Motorola $1,227.9 Schaumburg, Ill. motorolasolutions.com x x x x2 Zebra $526.5 Vernon Hills, Ill. www.zebra.com x x3 Datalogic $403.5 Hebron, Ky. www.datalogic.com x x x x4 Honeywell $380 Morris Township, N.J. www.honeywell.com x x x5 Intermec $377.5 Everett, Wash. www.intermec.com x x x x6 SATO $234.7 Charlotte, N.C. www.satoamerica.com x x7 TEC $181.4 Atlanta, Ga. www.tecamerica.com x x8 Avery Dennison $151.2 Pasadena, Calif. www.averydennison.com x x9 Psion $143.7 Hebron, Ky. www.psion.com/us x x x10Hewlett-Packard $136.4 Palo Alto, Calif. www.hp.com x x11 Denso $125.7 Long Beach, Calif. www.denso-adc.com x12 LXE* $123.1 Norcross, Ga www.lxe.com x x x x13 SAVI $118.9 Sunnyvale, Calif. www.savi.com x x14 Printronix $98.8 Irvine, Calif. www.printronix.com x15 Vocollect* $97.7 Pittsburgh, Pa. www.vocollect.com x16 Datamax-O’Neil $83 Orlando, Fla. www.datamaxcorp.com x17 SICK $80.4 Minneapolis, Minn. www.sick.com x x18 Opticon $75.4 Renton, Wash. www.opticon.com x x19 Casio Computer $71 Dover, N.J. www.casio4business.com x x20 Talla-Tech $70.9 Tallahassee, Fla. www.elbitsystems.com x x*Acquired in 2011Source: VDC ResearchMobilecomputers(which dropped from the No. 3 spot toNo. 5) with $377.5 million. Intermecdidn’t have a bad year: Revenues wereup from $365 million in 2009. Rather,Datalogic and Honeywell performedbetter.With business on the ropes, mostmajor players focused on maintainingthe status quo; there were no majormergers or acquisitions in 2010, andno real departures from technologiesor markets. There have been two significantacquisitions in 2011 that willimpact next year’s numbers and standings:Intermec acquired Vocollect, theleader in voice recognition technologyin March 2011, and Honeywelladded EMS Technologies, the parentcompany of LXE, to its portfolio inJune. Depending on how Intermec andHoneywell absorb the new companies,those acquisitions could alter the leaderboard next year.Collecting the dataThis is Modern’s 10th-annual look atthe leading manufacturers of ADChardware and solutions. Because theindustry includes public and privatecompanies, this is the third year ina row that we asked VDC ResearchGroup to compile the data: Since theyare covering this technology every day,they are closer to the market.To make our list, companies mustsell in North America, though the chartincludes worldwide revenues. Moderndoes not include resellers, systems integratorsor other companies that do notmanufacture ADC hardware. Since ourreaders are primarily focused on supplychain solutions, we do not includecompanies whose primary focus is theretail checkout counter or non-industrialsettings, like hospitals, libraries orresorts. Nor do we include companiesthat only manufacture consumableslike bar code labels and RFID tags.While the overall market for ADCsolutions totaled $10.6 billion, eachof the industry segments experiencedtheir own dynamics last year that mayhave been different from the overallmarket.Mobile computingThe market for ruggedized mobile computersreached $2.655 billion in 2010,a 14.5% increase over 2009, says DavidKrebs, vice president of VDC’s mobileand wireless computing practice. Thosefigures include handheld/PDA devices,wearable mobile computers, and lifttruck-mounted devices used on theplant or DC shop floor or in port andyard applications.Krebs estimates the overall marketfor mobile computing devices will growby a compound annual growth rate of9.4%, reaching 4.16 billion by 2015.The primary driver in 2010 was pentup demand. Warehousing, transpor-32 O c t o b e r 2 0 1 1 / Modern Materials Handling mmh.com

modern information managementtation and logistics projects were animportant part of that story. “There wassome growth from new facilities andinvestments and the retail sector saw abig rebound,” says Krebs. “But the mostimportant factor was projects that hadbeen postponed and got the green light.”Trends Krebs is watching include:• The extension of the warehouseinto the transportation managementspace and the retail store as companiesfocus on a closer tie between inventorylevels in the store and the warehouse.• The emergence of new form factors,especially outside the four wallsof the plant and warehouse. “The classicbrick is still the preferred device forthe plant and warehouse,” Krebs says.When you look at the transportationspace, there is a desire to be more portable,ergonomic and lighter weight.”• While enterprises are extendingmobile solutions to more workers,Krebs is not seeing a big migration tosmart phones or tablets or operatingsystems from Android, at least in industrialsettings. “At the end of the day,these are slow-moving markets,” Krebssays.As for acquisitions, Honeywell’s purchaseof EMS gives it more access tothe warehousing and distribution market,an area where it lagged the competition,according to Krebs. “Honeywellis strongest in retail, transportation andhealth care,” he points out. “LXE is along-standing provider of wireless computingwith a strong customer base andpartner channel.”Scanning and printingBar code-related hardware, includingprinters and scanners, is possibly themost mature of the ADC technologysegments. After a disappointing 2009,those markets posted impressive gainslast year. Handheld scanners jumped18.1% to $770.3 million, while themarket for industrial fixed scannersincreased by 18.3% to $809.1 million,according to Wimmer.Meanwhile, the market for industrialprinters, which includes bar code printersand the RFID printer/encoder market,improved by 13.8% to $1.863 billion.Wimmer sees growth continuing,with five-year compound annual growthrates of between 6.7% (printers) to9.1% (handheld scanners).“Talk to customers, andauthentication andanti-counterfeitingare two of the mostdesired applicationsfor RFID.”—Drew Nathanson, VDCSimilar to last year, the brightestspot is in the 2D and camerabasedimaging space, which Wimmersees nearly doubling by 2015. “Thedemand for 2D imaging is expected tooutpace all other bar code technologiesthrough 2015,” Wimmer says. It’sbeing driven by a number of factorsincluding:• increased requirements to encodemore information,• rising demand to embed scanningfunctionality into other devices, such assmart phones, tablet PCs, lottery andgaming systems, kiosks and even electronicvoting machines,• the desire to extend data captureplatforms and their value propositions,and• a need to support linear and 2Dcodes as a means to have a more robustsolution and a future-proofed system.As for mergers in the space,Wimmer says the acquisition ofVocollect should reinforce Intermec’sgo-to-market strategy. “Intermec’svalue proposition has always beenthat they are the one-stop-shop foryour ADC needs, covering everythingfrom printers to networking gear. Theone technology they did not have wasvoice,” says Wimmer.RFIDRFID remains the fastest growing of theADC segments, expanding by 19.6%to $4.523 billion in 2010. The market isexpected to post compound annual growthrates of 25%, topping out at $13.838 billionby 2015, according to Nathanson.The most important RFID storymay not be the growth in numbers, butwhere and how RFID is now being usedin an industrial setting. Instead of taggingcartons and pallets to track goodsthrough the warehouse, the action hasshifted in several key ways.“In the retail market, about 80% ofthe activity is in the retail store,” saysNathanson. Major retailers, he adds,are tagging items in the store to get amore precise handle on inventory onthe shelves than they get tracking pointof sale information. That may explainwhy Wal-Mart ordered nearly 19,000handheld RFID units. In the future,Nathanson expects to see taggingmoved to the point of manufacture,similar to bar code labeling.In addition, RFID is being used toauthenticate products. In Korea, forinstance, there is a mandate to have50% of pharmaceuticals tagged withRFID by the end of 2012. But RFID isalso being used to authenticate Chileansea bass, liquor and cigarettes in somecountries. “Talk to customers, andauthentication and anti-counterfeitingare two of the most desired applicationsfor RFID,” says Nathanson.Finally, RFID technology is beingembedded into other scanning enginesas well as tools, parts and componentsfor tracking purposes. That includesproducts as diverse as a scalpel or othermedical device in a surgical kit to workin process on the manufacturing floorto the 3,000+ tags Boeing expects toput on a commercial aircraft. “RFID isbecoming part of a broader overall solutionpackage and not just tracking cartonsand pallets,” says Nathanson. “Thesupplier community is doing a great jobof providing solutions to help them getthere.” Mmmh.com Modern Materials Handling / O C t o b e r 2 0 1 1 33

modern Equipment 101: Data captureA primer for warehouse/DC managersData capturebasicsData capture technology can helpan operation see its products in realtime and take proactive steps to keepmaterials moving smoothly through thesupply chain. Here’s a look at severalbasic data capture technologies.By Lorie King Rogers, Associate EditorAt every point in thesupply chain—fromreceiving raw materialsin a manufacturingfacility todelivering the finished productto the retail shelves—the moreinformation you have about yourproduct and the process, thebetter. That’s why data capturetechnology is a key componentto an operation’s success.A number of technologies are includedin the data capture market. Mobile computing,RFID, voice technology, and barcodes and bar code scanning are the solutionsmost often employed to capture,share and manage data.Having real-time, accurate dataenables today’s warehouses, distributioncenters and manufacturing plantsto keep pace with the constant, continuedpressures to increase efficiencies.While data capture systems onceworked independently, today’s technologyworks together. This equipmentreport will take a look at:• mobile computing,• bar codes and bar code scanning,• radio frequency identification, orRFID, and• voice technology.MOBILE COMPUTINGWorkstation computers are ideal forsharing instructions with operators whoremain in one place during a shift, butthat’s an unlikely scenario inside thefour walls of most faclities. In theseenvironments, workers and productsare in constant motion.“Product is not staying still, eventhough a warehouse seems static,”says Bruce Stubbs, Intermec’s directorof industry marketing for warehouses.“Product is constantly moving andgoing through the supply chain.”Mobile computers that communicatewirelessly with a host computerover a facility’s Wi-Fi network enableoperators, order pickers and other personnelto receive work instructions andcapture information in real time whereverthey are. In addition to receivingcommunications, workers can key datainto a mobile computing device.Mobile computing is the foundationof any automated data capture solution,regardless of whether the systems scansbar codes, reads RFID tags or uses voicetechnology to communicate.There are two main types of mobilecomputing devices:• Vehicle-mounted computers aredesigned to work with lift trucks andwalkies. A vehicle-mounted computerwill usually have a bar code scannertethered to it. Both devices communicatewirelessly to the network. Not onlydoes this provide real-time data andcapability, it creates efficiency. “Workersdon’t have to get off and on the truck tocount or handle cases,” explains Stubbs.This saves time and gives an operationthe best of both worlds. In addition,Stubbs says, “Vehicle-mounted computerscan be run off the power source ofthe forklift, so you don’t have to worryabout a battery.”Today’s vehicle-mounted computersprovide workers with better technologylike enhanced graphics and largescreens. “Some now have touch pads,the resolution is much better, and theergonomics of the key pads are better,34 O c t o b e r 2 0 1 1 / Modern Materials Handling mmh.com

modern Equipment 101: Data captureA primer for warehouse/DC managersLeft: Vehicle-mounted computers that communicate wirelessly to the networkprovide real-time data and create efficiencies since workers don’t have to geton and off lift trucks to count and handles cases. Above: Voice technologyis often applied to labor-intensive activities, like piece picking, putaway,replenishment and cycle counting.too,” says Stubbs.• Ruggedized handheld devices areavailable in a variety of form factors,depending on the job. Order pickerscarry an integrated handheld device thatincludes a scanning engine for bar codesor a reader for RFID tags. Supervisorswho are not scanning as often as anorder selector may carry mobile computersthat are similar to a PDA.Today’s mobile computers arenearly as powerful as a desktop, andthe graphics have improved over time.These machines are able to run theapplications you need on an Intel-basedplatform running an open system likeWindows.“These mobile computers are reallythe driving force behind productivityand accuracy in a facility,” says Stubbs.“These are the devices needed to besuccessful and competitive.”BAR CODE SCANNINGBar code scanning is the most commonway to collect data at every link in thesupply chain. There are two major componentsand considerations in any barcode solution:• choosing the right type of bar codeor bar code label for the right type ofapplication, and• choosing the best scanning devicefor the application.Bar codesBar codes are everywhere and oneverything. In fact, according to MartyJohnson, product marketing managerfor Zebra Technologies, if somethingdoesn’t have a bar code, it may not existin an automated system. That may bea bit of an exaggeration, as RFID andother technologies gather steam. But,bar codes are certainly pervasive. And,he adds, the ramifications of not havingsome method of identification are hugeand costly.Bar codes can have different appearancesand can have different levels ofdata storage capabilities. In today’sindustrial settings, there are at leastthree types of labels.1. 1D, or linear, bar codes are themost familiar arrangement of black andwhite lines and spaces used to createthe Universal Product Code (UPC).This is the bar code that people think offirst, says Johnson. It’s the linear stylestyle —a classic UPC with stripes ofvarying degrees of width.2. 2D bar codes come in a variety offorms, but consistent across the boardis that all information is encoded verticallyand horizontally. “A 2D bar codehas a different look to it,” explainsJohnson. “It’s basically two dimensionaland looks like a series of blocks and trimmh.comModern Materials Handling / O c t o b e r 2 0 1 1 35

modern Equipment 101: Data captureA primer for warehouse/DC managersangle and squares in varying patterns.”The 2D type can be used whenthere’s a need to store more informationthan the 1D UPC style can handle. A2D bar code can hold a different levelof detail, and according to Johnson “ismore in tune with mobile applications.”Rather using a traditional scanner tocollect data, a smart phone can takea physical image of it and capture theinformation that way.3. Direct part marking is used toapply a unique identifier directly to apart that can be used in the future fortracking and tracing. The importanceof direct part marking for tracking andtracing comes into play in an open-loopsupply chain in many ways, includingsafety as it relates to a food or pharmaceuticalproduct recall or in the caseof a part being part of a larger finishedproduct, like an airplane or a car. In theretail apparel setting, direct part markingis being applied to clothing labels.Suppliers are tagging individual items,which enables better inventory controland helps avoid stock out situations forretailers at the consumer level.Techniques used to apply the identifyingdata include ink spraying or etchingdirectly into a part.Bar codes can also be printed onpaper and a variety of materials, dependingon the product and its environment.For example, polyester can resist damagecaused by contact or exposure tochemicals and can be stored outdoorsfor about two years; polyimide can toleratetemperatures up to 500 degrees;polypropylene can also tolerate hightemperatures and be stored outdoorsfor between one and two years.The cost of a label depends on itssize, material and volume needed.Data capture equipment manufacturersAfter choosing the right type of barcode, the next step is to choose theright type of scanner for capturing thedata stored on the bar code.ScannersLaser scanners, which read 1D barcodes, are the most common type.These devices read bar codes in conjunctionwith an oscillating mirror thatautomatically moves the beam backand forth across the bar code.Imaging technology can also read2D bar codes and direct part markings.These systems capture the image of thebar code all at once, much like a digitalcamera. The imaging technology automaticallyframes the information onthe bar code and pulls it in. The datacapture is extremely fast, with imagingtechnology response time measuredin sub-seconds. “This technology canCompanyWeb siteMobilecomputersBar codescanners/readersRFIDreadersRFIDtagsVoicetechnologyAccu-Sort Systems accusort.com x xAlien Technology alientechnology.com x xAvery Dennison averydennison.com xAWID awid.com x xCipherLab cipherlab.com x x xDatalogic datalogic.com x x x x xDatria Systems datria.com xDenso ADC denso-adc.com x xHoneywell honeywell.com x xImpinj impinj.com x xIntermec intermec.com x x x x xLucas Systems lucasware.com xLXE (now part of Honeywell)* lxe.com x x x xMotorola Solutions motorolasolutions.com x x x xOATSystems oatsystems.com xPsion psion.com x x xSATO satoamerica.com xSavi Technology savi.com x x xSICK sick.com xSirit Technologies sirit.com x xTexas Instruments ti.com/rfid x xThingMagic thingmagic.com xVocollect (now part of Intermec)* vocollect.com x xVoxware voxware.com xWavetrend wavetrend.net x xZebra Technologies zebra.com x x*Acquired in 2011This table represents a sampling of leading data capture equipment manufacturers.36 O c t o b e r 2 0 1 1 / Modern Materials Handling mmh.com

push information out to the workforceand gather it back in real time,” saysIntermec’s Stubbs.One benefit of imaging technology,Stubbs explains, is that because acamera can capture the image of anyproduct or process and upload it in realtime, it can “see” problems like the conditionof a load, for example.Regardless of the scanning technology,bar code scanning equipment optionsinclude handheld and fixed devices.Fixed scanning devices, which are100% automated and scan withouthuman intervention, are commonlyused as part of a conveyor system.These scanners read the bar codes oncartons as they are inducted into theconveyor or sortation system or beforethey are stored in an automated storageand retrieval system (AS/RS).Fixed scanners can also be mountedat choke points in a facility, includingdock doors. “Fixed scanners mountedat portals track everything that goesthrough a critical point,” explains ChrisWarner, senior product marketing managerfor Motorola Solutions.In some operations, on-demandhandheld readers are used to go outand do manual tracking, Warner says.Today’s handheld readers are lighter thantheir predecessors and include a litanyof ergonomic improvements includinghands-free features.In some styles, handheld technologyliterally puts the information at an operator’sfingertips. Wearable devices likering scanners, for example, enable truehands-free activity and leave a worker’shands free to perform a task. Today’swearable devices have increased processingpower and more memory so inaddition to reading bar codes, some canactually display full color images on thescreen. This feature visually can ensureaccuracy during the picking process oreven while building a pallet.There are two types of handheldreaders—one industrial type and asmaller, lighter type that’s more appropriatein a commercial setting for salesforce applications. “You wouldn’t wantto put a heavy device on thesales floor for an associate whohad to use it for a long time,”Warner says.In all cases, once the barcode is scanned or the image iscaptured, software is then usedto decode the data.RFIDRadio frequency (RF) technologyhas been around fordecades. During World War II,it was used to identify friendlyaircraft; in current times thistechnology is used for suchthings as animal tracking, tollcollection and keyless entry. Italso has many industrial uses,including several in materialshandling.Radio frequency identification,or RFID, is a form ofautomatic identification used to carrydata about an object and transfer it to acomputer, reducing the time and laborneeded for manual data entry.A basic RFID system includes anRFID tag, a reader and a host computer.When a reader energizes a tag, the datastored on in the tag’s memory is transmittedto the reader using radio waves.The reader then communicates the necessarydata to the host computer so thecomputer’s software can act on the data.RFID tagsMost RFID tags have at least two parts:• a silicon chip for storing information,and• an antenna for receiving and transmittinga signal.Tags can come in a variety of sizesand shapes, depending on the application.Those used in shipping labelscombine a tiny square chip (smallerthan the head of a pin) with a 3- to4-inch-wide antenna. Two of the mostcommon antenna shapes for shippinglabels are squiggle and double crossdesigns.RFID tags can have high or lowmemory capacity. High-memory tagsHandheld bar code scanners and ruggedmobile computing devices enable thereal-time exchange of data.can cost tens of dollars, while lowmemorytags can cost tens of cents.RFID tags can be active, passive orsemi-passive.• Active tags include a batteryand use its power to transmit the signal.The battery gives an active tag anespecially long read range, about 100meters, according to Alan Sherman,director of marketing for OATSystems.It also increases the price of the tag, soactive tags are used to track very highvalueassets or in closed-loop applicationswhere the same tag might be usedhundreds of times.• Passive tags have no batteriesand instead use energy from an RFIDreader to power their transmissions.Passive tags are less expensive, buthave a limited read range, about 30 feetusing fixed readers, says Sherman.• Semi-passive tags, also called battery-assistedtags, use batteries to boostthe response of a passive tag. Thesetags have about a 100-foot read range.RFID readersAs with bar codes, RFID readers areavailable in a number of form factors.Fixed readers can be mountedmmh.com Modern Materials Handling / O c t o b e r 2 0 1 1 37

modern Equipment 101: Data captureA primer for warehouse/DC managersat portals, like dock doors, or integratedas part of a conveyor system.Handheld devices can be carried orworn by an operator, and vehiclemountedreaders can be mountedon a lift truck. Some RFID readingdevices can be mounted on a vehiclethen lifted off and carried by anoperator.RFID offers some advantagesover bar codes.• No human intervention isneeded to read an RFID tag, whichbroadcasts the information on thetag to an RFID reader. RFID readerscan be mounted throughout afacility, including the ceiling. This“eye-in-the-sky” position providesvisibility of movement at a basiclevel and can track and note thelocation of an item at any momentin time, explains Sherman.• RFID can work in hostile or hazardousenvironments, like a paint linein a manufacturing facility. Paint overthe RFID tag and it will still broadcastits signal; paint over a bar code and it’sunreadable.• RFID tags can carry a lot moreinformation than bar codes.Over the years, RFID technologyhas improved. As far as tags are concerned,Motorola’s Warner says, “Themarket has seen a lower cost per tagwith an increased read range.”On the antenna front, there’s alsogood news. “Modern antennas are more‘tunable’ to help integrators create theappropriate capture window and helpeliminate spurious reads,” says BertMoore, director of communications forAIM Global, a trade association representingmakers of automatic identificationequipment.Since there are many different typesof RFID systems all with differentcapabilities, ranges and data capacities,Moore recommends seeking professionalguidance from a knowledgeableintegrator who is familiar with industrystandards and is able to set up a systemthat works in your environment and withyour products and business processes.Fixed scanning devices, which are 100%automated, can be part of a conveyor systemor mounted at choke points in a facility.VOICE TECHNOLOGYVoice technology is a hands-free,eyes-free technology that operates inconjunction with an operator. Voiceapplications are most often found inlabor-intensive activities in warehouses,like piece picking, putaway, replenishmentand cycle counting.“Workers can pickup a desk phone, cellphone, smart phoneor any industrialhandheld device andconnect to the systemwith a phone call.”—Brad Wyland, Datria SystemsVoice technology turns computercommands into spoken instructions.Commands from the system and anoperator’s feedback create two-waydialogue that navigates through thetask at hand, explains John Schriefer,marketing communication managerfor Lucas Systems.A typical voice system includesa mobile computer and a headset.The mobile computer communicateswirelessly with a managementsystem of records, like a warehousemanagement system (WMS), manufacturingexecution system (MES),or an enterprise resource planning(ERP) system. The operator wearsa headset with a microphone to talkback to the mobile computer.According to Schriefer, thereare a number of styles of headsetsthat are rugged, lightweightand comfortable for an operatorto wear, but one of the mostimportant features is the industrialnoise-canceling feature onthe microphone. “There is nothingworse for a voice system than badrecognition. This feature filters outbackground noise so the system canclearly understand when the operatoris speaking and what’s being said,” hesays.Today’s voice systems are smart.In addition to distinguishing betweenfeedback and background noise, somesystems are diverse enough to understandthree dozen languages and specificenough to actually recognize eachworker’s unique voice patterns, accentsand speech idiosyncrasies.Another way for voice technology towork is a software solution that worksover a dial tone. While this strategy issuccessful in the mobile field serviceenvironment, it can also work insidethe four walls, explains Brad Wyland,vice president of strategic marketing forDatria Systems. “Workers can pick upa desk phone, cell phone, smart phoneor any industrial handheld device andconnect to the system with a phonecall,” he says.Regardless of the delivery method,voice communication between theworker and the system can result in anumber of improvement gains, includingincreased picking accuracy and efficiency,reduced picking and replenishmentlabor, reduced employee trainingtime, and enhanced safety. M38 O c t o b e r 2 0 1 1 / Modern Materials Handling mmh.com

modern productivity solutionPick-to-light solutionresults in improvedpicking performanceand morereliable sensingfor automotivecomponentssupplier.Driving efficienciesand qualityBy Lorie King Rogers, Associate EditorIn today’s competitive industrial manufacturingmarkets, success is about getting it right as soonas possible. This is especially true in automotive:Suppliers of automotive components require 100%accuracy, high quality, documentation, proper packagingand low cost.Orscheln Products, located in Moberly, Mo.,has built a reputation as a leading global supplierof motion control systems, which representativessay comes from a continual commitment to manufacturingquality, leading-edge products and exceptionalservice. The company’s product line includesparking brake systems, control cables, fluid-levelindicators, throttle controls and shifters.Many of the assemblies are complex and changeconstantly, and the company understands that thebasis for a competitive product is the ability toassemble it in the correct sequence and keep thelabor and any rework to a minimum.So, when the company went looking to improveproductivity and replace an older, unreliable andcumbersome system with a new one, it insisted ona solution that would simplify the process withoutputting additional constraints or hardships on itsassemblers. Choosing a proven assembly methodthat provides answers to all of the industry’s strictrequirements, Orscheln installed a unique pick-tolight(Banner Engineering, www.bannerengineering.com)solution.The pick-to-light system gives the operation totalflexibility to control and adjust the pick sequence asrequirements change. With a built-in sensor for ano-touch, simple and fast way to acknowledge thepick, the embedded photoelectric sensor allows thelight to operate without touch.The system’s indicator lights are positioned overthe bins. The sensor is triggered when the operatorreaches into the bin for a part. When it’s removed,the sensor registers the pick. It’s the in/out action ofthe operator that triggers the sensor and acknowl-40 O c t o b e r 2 0 1 1 / Modern Materials Handling mmh.com

modern productivity solutionedges the completion of the task.Orscheln has achieved improved productivity fromenhanced picking performance and more reliablesensing. The pick-to-light solution has reduced errorsand improved overall machine operations and flow.Orscheln also benefited from the ability to scale thesystem for different parts and bin sizes and number ofparts at each station to allow each station to be uniqueto the application.As a result of the significant improvement in productivity,Orscheln plans to implement additional pick-tolightsystems in the future.picking the light solutionLight-directed put stations aredesigned to help an apparelretailer optimize split casefulfillment and account for a300% improvement in pick rates.British apparel retailer, Next, markets homeproducts, clothing, footwear and accessoriesin its 500 stores throughout the United Kingdomand Ireland, and in 50 franchise branches inEurope, Asia and the Middle East.To keep up with demand and its changingbusiness requirements, Next installed a newgoods-to-person order fulfillment solution thathas enabled the company to achieve a dramaticincrease in distribution productivity and capacity.The high-rate order fulfillment system (Dematic,www.dematic.com) delivered a threefold increasein order picking rates, along with far greater peakcapacity.The fulfillment system, which is dedicated tothe company’s fast moving product lines, has 20stations that fill orders for up to 24 stores each. Ateach high-rate put station, an operator is directedby put-to-light displays to fulfill a series of orders, fed bya seamless, sequenced supply of products. The productsare automatically delivered to the station’s central pickingpoint from the automated storage and retrieval system.Each station holds up to 24 order totes destined forone of the retail outlets. The light displays at each locationindicate how many items must be put into each ofthe totes, allowing a single operator to work on up to 24store orders at the same time. When an order tote is full,the display instructs the operator to push it onto a takeawayconveyor for transfer to shipping.The high-rate put stations minimize the time anemployee must travel in the warehouse to access eachpick face. Instead, they are fed with a continual supplyof products, and the ergonomic design of the stationsensures that high productivity is combined with minimalphysical demands. The innovative design enablesoperators to achieve pick rates up to 1,000 items perhour depending on the order profile. An additional benefitof supplying stock to pickers is that errors are substantiallyreduced, improving accuracy and customerservice levels. Mmmh.com Modern Materials Handling / O c t o b e r 2 0 1 1 41

The missing link inyour supply chain.S e p t e m b e r / O c t o b e r 2 0 1 1 Volume 15, Number 5FEATURES8 The Supply Chain Top 25:Leadership in ActionThe 2011 rankings of the Top 25 supplychains from Gartner Inc. are in. They includerepeat winners and some new entrants.Perhaps even more important than the actualrankings, says Gartner Research DirectorDebra Hofman, are the lessons that can belearned from analyzing the leaders. This year,six specific qualities stand out.16 The Greening of Walmart’sSupply Chain…RevisitedIn 2007, SCMR ran an article on Walmart’ssustainability program, focusing on eightspecific initiatives being pursued. Four yearslater, the author of that original article, EricaPlambeck of Stanford, and colleague LynDenend revisit those initiatives to assess justhow Walmart is doing on the sustainabilityfront.Sumantra Sengupta of EVM Partners saysthe first step in answering these questions isto carefully determine your “Mobility Index.”This article tells how it’s done.40 The Case for InfrastructureInvestment: Lessons fromMedco and StaplesSmart investment in supply chain infrastructure—andin particular automated materialshandling and distribution systems—can paybig dividends. Medco and Staples have proventhat convincingly, as these case studies demonstrate.Their stories point to seven key takeawaysthat supply chains professionals in anybusiness sector can learn from.SPECIAL SUPPLEMENTS50 EU Logistics:Meeting the New ChallengesEditorialAdvisory Boardn Jack T. ampuJaNiagara Universityn Joseph c. andraskiVICS Associationn James r. BryonIBM Consultingn John a. calTagironeThe Revere Groupn Brian cargilleHewlett Packardn roBerT B. handfieldNorth Carolina StateUniversityn nicholas J. lahowchicTompkins Associates24 Achieving Flexibility in aVolatile WorldA new global survey from PRTM confirms theimportance of operational flexibility in supplychain success and identifies five levers thatleaders employ to make it happen. The consultantsreport that the financial and performanceadvantages of improved flexibility canbe profound. They outline five basic steps thatcompanies can take to start realizing thosebenefits.32 What’s Your Mobility Index?Mobile devices are everywhere these days. Butwhat’s the real potential of mobility in the keysupply chain processes. And what’s the bestway to identify and tap into that potential?COMMENTARY4 InsightsBowersox and Goldratt Leave TwoGreat LegaciesBy Larry Lapide6 Talent StrategiesAsia: The New Talent ManagementModel?By Mahender Singh48 Spotlight on Supply ManagementThe Evolution of Supply ManagementBy Carrie Ericson and Simon Rycraft62 BenchmarksGlobal Sourcing Calls for Due DiligenceBy Becky Partidan hau l. leeStanford Universityn roBerT c. lieBNortheastern Universityn clifford f. lynchC.F. Lynch & Associatesn eric pelTzRAND Supply Chain PolicyCentern James B. rice, Jr.Massachusetts Institute ofTechnologyn larry smiThWest MarineKeep your supply chain strong with a subscription to Supply Chain Management Review.Get the full story behind each of these headlines and all the other issues in our digital archives—included FREE with your new subscription.Subscribe and save up to 40% off basic rates at www.scmr.com/subscribe.

FOCUS ON Automated storageStaging bufferaccommodates multipleload sizesThe Multishuttle Flex staging bufferfeatures an enhanced configurationthat accommodates multiple load sizesand totes, trays and cartons. The unitexpands and contracts to accommodatethe size of the load, automatically adjustingon the fly as it travels to a storagelocation so that the extractor device isset to accept the load upon arrival. Witha load width range of 8 to 24 inches and6 to 34 inches, the system can providesingle- or double-deep loading in therack structure. The device works withthe supplier’s Multishuttle storage/stagingengine, which provides precise loadsequencing at high rates in a compactfootprint. The system is ideal for supplyingitems to piece pick fulfillment modules(goods-to-person picking) or mixedcase pallet building operations. Dematic,877-725-7500, www.dematic.us.Stacker cranetransfers loadstress to guiderails for greaterefficiencyThe MT0 stacker craneAS/RS has been reconfiguredto place the stressof the load on guide rails,rather than a track. Byrunning across two guiderails, the crane does notneed a top rail system,saving space and preventingthe unit from derailing.For fast installation, most of the componentsarrive pre-assembled. Units rangein height from 15 to 50 feet and can becustomized to fit any single-deep rackenvironment. Features include the abilityto pick products from as low as 4 inchesabove ground level and 180-degreesswivel for effortless pallet movementfrom one side of an aisle to the other,or for pallet extraction from a racksystem into a loading or picking area.Interlake Mecalux, 708-344-9999,www.interlakemecalux.com.Customize vertical carouselwith interchangeablecarriersFeaturing interchangeable carriersoffered in multiple configurations, theMegamat RS vertical carousel allowsoperations to mix, match and changestorage arrangements at any time.Options include partitions, dividers, intermediateshelves and rollout drawers witha variety of front lip height and depthclips. To change configurations, currentlystored goods are first removed, thenthe carrier insert is added and goodsare returned to the unit. Each carriercomes standard with a 0.3-inch front lipto prevent stored goods from migratingout. Depth or height clips secure taller ordeeper sized totes or boxes, preventingthem from migrating out of the carrier.To prevent overloading, each carrier hasa partial top. Kardex Remstar, 800-639-5805, www.kardexremstar.com.Mini-load cranes lift660 pounds up to 78 feetTwo new mini-load cranes, the SMC 2and SMC 2 XL, offer an automated shelfsolution for containers, boxes and trays.The systems use a closed lifting trolleyto hold two standard, or one large, pieceof load-carrying equipment. Capable ofaccessing heights up to 39 or 78 feetrespectively, the units feature modularconstruction for customization with liftingtrolleys that integrate combined telescopes,grippers, and pulling fixtures forcontainers or trays, plus box and packagegrippers. Other highlights includeextremely stable masts, low clearancefor space optimization, lifting capacitiesup to 660 pounds, integrated on-boardcontrol cabinet and low vibration mast.To save energy, the system employs a DCnetwork of drive controllers or energyoptimizedoverlapping of motion to useand recover braking energy. SSI Schaefer,704-944-4500, www.ssi-schaefer.us.Vertical liftmodule risesup to 40 feetIdeal for small partsstorage, a line ofvertical lift modulesare constructedwith a welded lowerbase module andbolted upper frame,enabling shorterinstallation time, configuration flexibility,and easier relocation to accommodatechanging facility layouts and storageneeds. Features include a patented,mmh.com Modern Materials Handling / O c t o b e r 2 0 1 1 43

AutomatedVerticalStorage SystemsIt All Adds UpTo VALUEFOCUS ON Automated storagefull-width extractor bar that provides apositive method of storing and retrievingtrays (holding a maximum capacity of500 pounds each). With a footprint measuring69 x 99 inches, the machine canrange in height from 12.5 to 40 feet in6-inch increments. Lauyans & Company,502-774-2200, www.lauyans.com.Small parts are expensive. Traditionalshelving eats up valuable ß oor spaceand exposes parts. WhatÕs more, partscan be tough to Þ nd and reach; keepingaccurate inventories a challenge.The Lauyans Small Parts StorageSystem (SPSS) is a USA manufacturedsolution offering high density storageutilizing vertical space for greaterfootprint capacity, worker safety,security, labor savings and the mostcompetitive pricing available.Before you decide to buy anyAutomated Storage System, go onlineand check out our pricing.www.SPSSonline.comIt All Adds Up To VALUELauyans & Company, Inc.1-866-LAUYANS (528-9267)USA ManufacturedGoods-to-person shuttlesystem uses pick-to-light/put-to-light technologyThe OSR shuttle system providesautomated storage for small parts andincorporates pick-to-light/put-to-lighttechnology based on the goods-topersonprinciple. Developed to providehigh product density for a large rangeof products, the system can handle highquantities of small, discrete orders.Depending on system configuration,picking performance rates of up to1,000 order lines per man-hour can bereached. The system groups requiredorders together for batch picking andtransports them to a workstation. Brightdisplays indicate to the operator boththe position and the quantity of the productto be picked, as well as the positionof the container to which the product(s)should be transferred. Knapp LogisticsAutomation, 678-388-2880, www.knapp.com/usHigh-speed AS/RS handlesup to 3,000 cases per hourThe Uni-Shuttle HP automated storageand retrieval system offers flexiblestorage functionality with high-capacitytransport and sorting capabilities. Able tohandle as many as 3,000 cases per hour,independent high-speed shuttles run oneach level at speeds up to 1,312 feet perminute. The efficient system can be flexiblyconfigured to handle a variety of loadsizes, shapes or types. Highlights includeautomatic sequencing of loads prior to orduring retrieval, and just-in-time continuousretrieval. Murata Machinery, 704-394-6900, www.muratec-usa.com.VLM savesup to 90% offloor spaceThe Modula verticallift module enhancespicking and storagewhile savingup to 90% of floorspace. Ideal forsmall items such astools and electronicand pharmaceuticalcomponents, products are stored withinmetal trays which are automaticallystored and retrieved as needed. Theunit features a vertical lifting platform todeliver trays, adjustable tray heights on1-inch increments, and a low energy usevertical lifting motor. Overall unit heightsare offered in 3.94-inch to maximizefacility ceiling height. Each tray’s standardnet load capacity is 440 pounds.

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FOCUS ON Automated storageFor organization, the trays may be specifiedwith plain perimeter walls or withslotting for use with partitions and dividers.System Logistics, 888-233-6796,www.systemlogistics.com.Robotic gantry systempicks cases, cratesA line of robotic gantry-based case andcrate picking systems require a smallerfootprint than standard pick modulesand pick in exact customer sequences.The units also provide complete producttraceability and offer multiple layoutoptions to accommodate SKU proliferationand labor constraints. Operating intemperatures down to –4°F, the systemspick individual or multiple cases out ofactive storage using advanced automatedcontrols. This enables cases or crates tobe delivered in exactly the desired palletbuildsequence for automated mixedpalletizing at the dock. It also providesinformation on all product locations andisolates SKUs in the event of a problemor recall. RMT Robotics, 919-945-0548,www.rmtrobotics.com.Lightweight, energyefficientshuttle for highlydynamic storageIdeal for highly dynamic storage and bufferapplications, and as a supplementto mini-load AS/RS, the Stingray shuttlemakes up to 1,000 picks per hour, peraisle. Travel and lift axes are functionallyseparated, producing higher throughputthan stacker cranes for more accuratescalability of capacity and performance.It works with any of the supplier’s loadhandling devices, interfacing with totes,cartons and similar loads in single ormulti-deep racks. Lightweight constructionenhances fast acceleration and travelspeeds while promoting energy efficiencyand reducing power use. Features includetool-free entry into to the shuttle withquick-release fasteners, and maintenanceplatforms spaced every 8 feet within therack for easy access without disruptionof the rest of the system. TGW, 231-798-4547, www.tgw-group.com.Motorized Storage &Retrieval SolutionsSpace Saving Vertical Storage• Bar Stock • Spooled Products • Tire Storage• Print Cylinders • Rolled Goods • Parts StorageLoad-handling device allowsAS/RS to store containersizes for greater flexibilityTo accommodate the proliferation ofSKUs and smaller storage containersizes, the 2/4-deep storage load handlingdevice handles containers measuring23.6 x 15.6 and 11.8 x 15.8 inches,in any combination. The system incorporatesa conveyor system in the frontzone, to eliminate sorting tasks andunproductive container movements,enabling the storage and retrievalmachine to work at full capacity. Goodscan be stored without presorting to“Storage & Retrieval Solutions Since 1986”Contact Us Toll Free at 1-800-210-0141or visit us online at www.vidir.com46 O c t o b e r 2 0 1 1 / Modern Materials Handling mmh.com

FOCUS ON Automated storagestorage unit size, while the machinehas flexible access to each load unit,enabling series formations to be builtduring retrieval. Because of the handlingdevice’s capacity, fewer movements arerequired, which reduces wear, extendsmaintenance intervals and enhancesenergy efficiency. viastore systems,616-977-3950, www.us.viastore.com.Independent operatorcabin facilitates storageand retrieval maintenanceTo enhance the safety, comfort and flexibilityof automated warehousing staffduring preventive and periodic maintenance,a storage and retrieval machineoffers an optional employee lift cabin.The separate cabin operates independentlyfrom the vertical pallet lift and itsload carrying device. Capable of transportingone person in the cabin up themast of the crane, the add-on eliminatesthe need to climb a service ladder. Thecabin provides additional safety andcomfort for personnel, particularly thosewearing thermal clothing while servicingfreezer storage units at temperaturesas low as –18°F. It may be specified withthe controls put in dead man’s mode, orwith operation on a mobile control panel.Westfalia Technologies, 800-673-2522,www.westfaliausa.com.Automatic power-downsystem in vertical carouselsaves energyFor enhanced energy savings, a line ofvertical storage carousels is equippedwith the EcoMode intelligent energymanagement system. The system appliesan incremental power reduction processthat automatically switches stoppedRotomat vertical carousels to four differentlevels of standby mode at freely configurabletime intervals. All systems thatconsume energy, even when the carouselis still, are systematically closed downby the control system. The final stepturns the carousel off at the main powerswitch, ideal for end-of-shifts because itprevents the machine from consumingelectricity overnight or over a weekend.Hänel Storage Systems, 412-787-3444,www.hanel.us.mmh.com MODERN MATERIALS HANDLING / O C T O B E R 2 0 1 1 47

FOCUS ON Automated storageRack-supported AS/RSA rack-supported AS/RS features rackincorporated into the building, servingas its basic structure while seamlesslyintegrating with the materials handlingsystem. In addition to creating maximumstorage density—at heights up to 100feet—the system never interferes with thestructure and can operate in a lights-outand/or non-climate controlled environment.Configurations include doubledeeparrangements as well as integrationwith transportation systems, conveyorsor fork trucks. The cranes are directed bythe supplier’s WarehouseRX warehousecontrol system to pick and put away inthe most efficient order. Daifuku Webb,248-553-1000, www.diafukuwebb.com.Horizontal carouselself-monitors, reportsperformanceEquipped with on-board intelligentmachine health monitoring, the Hornethorizontal carousel reports any variancesin performance to the service technicianand the supplier’s central monitoringcenter, 24/7. Pro-active servicing deliversincreased system up time, longer lifespanand faster return on investment. The systemis included with the carousel, whichimproves productivity and reduces laborby bringing items to the operator andeliminating wasted walking and searchingactivities. Ideal for storage and retrievalof small parts, items and case handling,SUPPORTCubic Designs makes iteasy to integrate a singleormulti-level platforminto your valuable project.We offer professionalengineering, manufacturing,and installation to supportyou at every level.© 2011 Cubic Designsat every level.SAFE • NESTABLE • ECONOMICALWORRY FREE PALLETSNo bag damage from wooden deckboards and nails+ EXPORT EASYIPPC-ISPM 15. No Mold and Bugs. Meets New Canadian Rules+ ECO-EFFICIENTCradle to Cradle Certified CM Silver+ BUDGET SOOTHINGNestability saves 60% of touches and travel time= PEACE OF MINDpresswoodBAG pAlletsINCA presswoodBAG pAlletthe perfect fit855.241.0258 www.cubicdesigns.comCommitted to excellence since 1962LITCO INTERNATIONAL INC.877-687-4975 • info@litco.comWood waste problems?CONTACT US!www.litco.com/BagPallet48 O C T O B E R 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com

Compact scannersread dirty, damagedbar codesCLV650 and CLV640 compact barcode scanners use proprietary codereconstruction algorithms andhigh-performance microprocessorsto read damaged and dirtybar codes. The CLV650 featuresrequired. The scanners’ data handlingcapabilities execute a varietyof configurable logic, outputdata filtering and sorting functions.SICK, 800-325-7425,www.sickusa.com.Wireless remote controlfor stretch wrappersThe Clickn-Gowirelessremotecontrol forthe supplier’sSimpleAutomationstretch wrappersenablesfork truckdrivers toplace a palletload on themachine, back a few feet away andpress a button to initiate wrapping.auto-focus and distance measurementtechnologies, the carousel can with be equipped optics with a variety of binideal for sizes, applications lengths and where heights. space Sapient Automation,is limited 888-451-9711, and large depth www.getsapient.com.of field By eliminating the need to stopis required. For cost-effectively within reach of a lanyard, the systemgives operators increased pro-reading high density codes, theCLV640 provides increased depth ductivity and flexibility in approachof field when an external input and placement. The system usesto change the focus position is line-of-sight transmission and aSTATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION1. Publication title: Modern Materials Handling. 2. Publication No. USPS 911-680. 3. Filing date: September 14, 2011. 4. Issuefrequency: Monthly. 5. No. of issues published annually: 12. 6. Annual subscription price:US $119; CAN $149;MEX $149; FOR $259 7. Complete mailing address of known office of publication: Peerless Media, LLC , 111 Speen Street Ste 200,Framingham, MA 01701. 8. Complete mailing address of headquarters or general business office of publisher: Peerless Media LLC,a division of EH Publishing, 111 Speen Street Ste 200, Framingham, MA 01701. 9. Full names and complete address of thePublisher, Editor and Managing Editor: Publisher, Brian Ceraolo, Editor, Michael Levans, Managing Editor, Noel Bodenburg, PeerlessMedia, LLC , 111 Speen Street Ste 200, Framingham, MA 01701. 10. Owner: Peerless Media, LLC , Division of EH Publishing, 111Speen Street Ste 200, Framingham, MA 01701. 11. Known bondholders, mortgagees and other security holders owning or holding 1percent or more of total amount of bonds, mortgages or other securities: None. 12. Tax Status: Has not changed during preceding12 months. 13. Publication title: Modern Materials Handling. 14. Issue date for circulation data: September 201115. Extent and nature of circulation: Average No. Copies Actual No. CopiesEach Issue During of Single IssuePreceding 12 Months Nearest Filing DateA. Total no. copies (net press run) 60,839 60,730B. Legitimate paid and/or requested distribution (by mail or outside the mail)1. Outside County paid/requested mail subscriptions stated on PS Form 3541 56,254 56,1822. In-County paid/requested mail subscriptions stated on PS Form 3541 None None3. Sales through dealers and carriers, street vendors, counter sales andother paid or requested distribution outside USPS 27 244. Requested copies distributed by other mail classes through the USPS None NoneC. Total paid and/or requested circulation 56,281 56,206D. Nonrequested distribution (by mail and outside the mail)1. Outside County nonrequested copies stated on PS Form 3541 4,117 4,2372. In-County nonrequested copies stated on PS Form 3541 None None3. Nonrequested copies distributed through the USPS by other classes of mail None None4. Nonrequested copies distributed outside the mail 167 NoneE. Total nonrequested distribution (sum of 15D 1, 2, and 3) 4,284 4,237F. Total distribution (sum of 15C and E) 60,565 60,443G. Copies not distributed 274 287H. Total (sum of 15F and G) 60,839 60,730I. Percent paid and/or requested circulation (15C divided by F times 100) 92.93% 92.99%16. Publication of Statement of Ownership: Publication required and will be printed in the October 2011 issue of this publication.17. I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false ormisleading information on this form or who omits material or information requested on the form may be subject to criminalsanctions (including fines and imprisonment) and/or civil sanctions (including civil penalties).Charles Tanner (signed), Director of Audience Marketing , 9/14/11Peerless Media Statement of Digital Circulation1. Publication Title: Modern Materials HandlingAverage No. Digital Copies No. Copies of SingleEach Issue During Issue PublishedPreceding 12 Months Nearest to Filing DatePrinted Circulation as reported on PS Form 3526, Line 15A 60,839 60,693Digital Circulation 21,283 21,286Total Circulation 82,122 81,979Charles Tanner (signed), Director of Audience Marketing , 9/14/11classified/recruitmentForklift Monitoring Devicetwo-step activation process, requiringtwo buttons to be depressed insequence for machine activationto ensure operator and bystandersafety. One remote can control multiplemachines. Lantech, 800-866-0322, www.lantech.com.Hybrid robot palletizerIntegrating a Fanuc M-710 robot,RoboTier palletizers enable pick andplace operations to incorporate theunit into a standard layer conditioningapron. The system supportsbags, cases or trays from the bottomfor high speed robot motion andLabel HoldersLABEL HOLDERSto ensure handling security. Loosespread placement on the apronincreases production speed andSmall InvestmentBIG RETURN!800.242.3919www.aignerindex.comaccommodates grability. Once a lafour-sided clamplayer on the palleload for optionalwrapping. For easpatterns, load bupre-installed. Top7388, www.topProtect overrails from imResistant to forklihand truck or heaimpacts, Trackguatrack protectors pdamage to overherails. Ideal for higloading areas, thetors feature a vivisafety stripe on abright yellow polthane paint finishreduce wear and ivisibility. The proare made of strucoffered from stocheights. Wildeckwww.wildeck.cinfo@aignerindex.comOpen Area Corrugated RacTo advertise, or for more informationplease contact: Jennifer Drevline,847-223-5225, ext. 11,jenniferd@caseyreps.comPOWER TRANSMISSION STRETCH BELTSPyramid Inc. has manufactured round and flatPyrathane ® belts for over 40 years.Pyrathane ® belts are used in a wide variety oflow and fractional horsepower driveapplications such as live-roller conveyorsystems, as well as transport devices for paper,currency and small parts. Pyrathane ® belts aremanufactured to our customers’ specificationsand are of the highest quality with exceptionalabrasion resistance and durability.Pyramid Inc.522 N. 9th Ave. E. • Newton, IA 50208Phone: 641-792-2405 • Fax: 641-792-2478E-mail: sales@pyramidbelts.comWebsite: www.pyramidbelts.commmh.com Modern Materials Handling / O c t o b e r 2 0 1 1 49Fire ProteLarge opearea for callow sprthroughUniform SHigh capdeflectionNo WaterFlush deslabeling oHi-Tech LBright, gProduct/BSmooth sproduct dpossible hthat caninjuriespunchDACS inc. toll-free: 866

modern 60 Seconds with...David KrebsVDC ResearchTitle: Vice president of mobile & wireless divisionLocation: Natick, Mass.Experience: 12 years at VDCPrimary Focus: Enterprise and governmentmobilityModern: We’ve heard a lot about mobility over thelast year, especially in the consumer world, thanksto tablets, smart phones and solutions like mobilebanking. What does mobility mean in the supplychain world?Krebs: Fundamentally, I don’t think mobility in the supplychain has changed. It’s still the right information at theright point to support the right decision. For years, we’vetalked about mobile computing as a critical access andentry mechanism to the data that supports businessprocesses. That remains unchanged. Mobility is aboutfreedom. It’s about fluidity. And it’s about untetheringpeople from workstations. It’s not yet about your latestand greatest smart phone on the shop floor becausethose devices can’t support the rigors of an industrialenvironment. We still see purpose-built devices tosupport workflows on the shop floor.Modern: Is mobility growing and, if so, what’s drivingthe growth?Krebs: Yes, it’s growing. There is an acute focus onmobility, and I think in part that’s a result of consumerstories, like Apple-inspired smart phone and tablettechnologies. The growth is also a reflection of the factthat mobile technology has played a role in enabling thereal-time business. We want to make a decision whereverwe might be, whether that’s at work, in an airport or at thebeach. I think the big realization is that mobile computingcan free us to spend more time on the areas where weshould be spending more time, like being in front ofcustomers or managing assets instead of doing the moreChris Lewismundane things like looking for assets. The other changeis that mobility was once viewed as a point solution,such as picking in the warehouse. Now, organizations arelooking at mobility more strategically. They are lookingat all of their workflows and asking whether mobility canaddress operational pain points and efficiencies.Modern: Is business adopting smart phones and tabletson the floor or in logistics?Krebs: In the warehouse and on the shop floor,ruggedized tablets may have a role to play, but it willbe as a mounted solution and not a handheld solution.Where these devices are seeing an uptake is in very highlycustomer-centric situations. The interface and sleeknessof the devices makes them appealing candidates forthose applications. They’re not great for daylight visibility;they’re not great in a hot environment; and they’renot great in an industrial environment. Organizationsare asking questions about them, but I think there areelements of a rugged mobile computer that you can’treplicate in a tablet or smart phone. M50 O c t o b e r 2 0 1 1 / Modern Materials Handling mmh.com

New Viper VLMSmall Parts, Items and Inventory Vertical Lift ModuleAS/RS Technology Taken To The Next Level…• Reduces Labor by up to 2/3• Saves up to 85% of Floor Space• 100% Ergonomic Access• 99.9% Accuracy LevelsImagine being able to dramatically improve overallefficiencies and profitability while reducing labor andspace costs. Take your Lean and Sustainable programsto the next level by incorporating the Viper VLMsimple automated solutions...over a weekend.Fewer MovingParts Help AssureGreater MTBFHeavy DutyRack ConstructionOne TouchDatabaseController & Suiteof SoftwareThe Viper VLM Difference:• Rack & Pinion drive delivers the highest levelof performance and reliability• ViperTilt patented ergonomic tray tiltingand accessibility system• One-touch database controls for simple pointand click usage• Full suite of inventory management software• LaserViper item pick to light pointing system• Rugged rack construction• Up to 5 year warranty on the drive train availableViperTiltAvailableHeight15’25’35’Typical Floor Space SavingsElimated Baysof Shelving30-3658-6686-95SpaceSavings76%85%89%LaserViperRack & PinionDriveSAPIENTA U T O M A T I O NThe Intelligent Material Handling CompanyCall or Email For A FREE Space & Productivity Analysis Today!888-451-9711 | www.GetSapient.com | info@getsapie nt.com