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PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURINGmmh.comFebruary 2012®John Galiher, CEO andpresident, Preferred FreezerServicesPREFERRED FREEZER SERVICESVery coolautomation 16READER SURVEYTrends in conveyortechnology 24EQUIPMENT REPORTBest rack for anearthquake 28SPECIAL REPORTAnnual ProductivityAchievement Awardwinners 34

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Rexnord’s Roller UpgradeSystem (RUS) is designed toprovide the benefits of casehandling by utilizing MatTop ®and TableTop ® chain. Thisinnovative system improvespackage integrity, increasesplant throughput and deliverstotal cost of ownership savingswhile eliminating productdamage and transportingproducts smoothly andefficiently.And, you can find Rexnord’sRoller Upgrade System atyour local Motion Industrieslocation. Our local sales andservice specialists are expertsin application and technicalsupport, providing the parts andthe know-how you need to stayup and running.The brands you count on fromthe people you trust…that’sRexnord and Motion Industries.©2012 Motion Industries, Inc.Over 500 locations More than 4 million productsIndustrial maintenance training courses Call. Click. Visit.1-800-526-9328 for the location nearest youMotionIndustries.com

UP FRONT Breaking news you should knowNew equipment ordersgrow 15.2% in 2011Materials handling equipmentorders grew an estimated15.2% in 2011 and are forecastedto grow 8% in 2012 and 12%in 2013, according to the latestMaterial Handling EquipmentManufacturing Forecast (MHEM)released by Material HandlingIndustry of America (MHIA).“Consumers and investors areregaining confidence in economicconditions,” said Hal Vandiver,MHIA executive consultant. “Givenslow GDP growth for the next fewquarters, there are anticipatedimprovements in unemployment,industrial production activity andfactory operating rates (utilization)that will impact MHEM positively.Additionally, housing is making arebound that will contribute greatlyto sustained growth through 2014.”New equipmentorders projectionsMaterials handling equipment orders 2011-201315.2%12%8%2011 2012 2013Source: MHIAPregis completes sale of business,appoints CEOPregis, a leading international manufacturer,marketer and supplier of protective packaging solutions,recently announced that Kevin Baudhuin hasbeen appointed president and CEO,effective Jan. 1. Baudhuin replacesGlenn Fischer, who had served as theCEO since February 2011. Pregis alsoannounced that it has completed thesale of its Kobusch-Sengewald businessto an affiliate of Sun EuropeanPartners. Baudhuin said, “Pregis hasstrategically realigned its business byKevin Baudhuin divesting itself of certain operatingunits. This will enable the company tofocus on growing its core protectivepackaging business. Our objective is to provide valueaddedprotective packaging solutions and servicesthat continue to set new industry standards.”Nashville Wire Productsacquires AWPNashville Wire Products Mfg., a Nashvillebasedmanufacturer of steel and wire products,purchased all of the assets of leading competitor AWPIndustries of Frankfort, Ky. The acquisition, which wasfinalized on Dec. 30, establishes Nashville Wire as theleading manufacturer of wire decking for pallet rackand wire containers. Nashville Wire is a 78-year-oldfamily business now under its third generation ofmanagement. The company operates in three primarymarkets: materials handling, retail displays, and componentsfor the appliance industry. “The AWP acquisitionpresented us with a perfect opportunity to growthe material handling segment of our business byabsorbing a capable and well respected competitor,”said Steven Rollins, president and CEO.ANNIVERSARIESMFG Tray to celebrate 60th anniversaryMFG Tray, a manufacturer of fiber reinforcedcomposite products, is celebrating its 60thanniversary this year. Since its founding in 1952with 12 teammates, MFG Tray has expandedinto a world leader in composite products for thematerials handling, confectionery, bakery, foodservice, pharmaceutical and electronics industries.MFG Tray was one of the first manufacturers of mass-produced commercialproducts using polyester resins and fiber glass reinforcements.Goff’s Enterprises commemorates25th anniversaryGoff’s Enterprises is celebrating 25years of manufacturing high quality customindustrial space partitioning products.The Original Goff Curtain Wall was createdout of necessity in the collision repair stallsat Goff’s Autobody in Pewaukee, Wisc. Bob Goff, owner of Goff’sAuto Body and co-founder of Goff’s Enterprises created the curtainwall concept to help contain dust and debris within his own bodyshop. The idea spawned Goff’s Enterprises which helped to revolutionizethe process flow of many industries by offering flexiblespace containment with the custom, vinyl, rolling partitions.Tennsco marks 50th anniversaryTennsco marks its 50th year as a leadingmanufacturer and supplier of industrialand institutional storage and shelving systems,lockers and shop solutions. Headquartered inDickson, Tenn., Tennsco is an industry leaderwith more than 1.4 million square feet ofmanufacturing and warehouse space in sixfacilities. Tennsco offers a variety of filing and storage systems, steeloffice furniture, industrial and institutional shelving, lockers and shopequipment.mmh.com Modern Materials Handling / F e b r u a r y 2 0 1 2 3

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VOL. 67, NO. 2®Productivity Solutions for Distribution,Warehousing and MANUFACTURINGJohn Galiher, PFS’sCEO and presidentCOVER STORYCover photo: Ken Gabrielsen/Getty ImagesSystem Report16 Very cool automationPreferred Freezer Services takes materials handling automation toa new level in a New Jersey warehouse.20 Keeping coolPFS’s new facility maximizes throughput while minimizing laborand energy consumption.FEATURESReader Survey24 Reader survey: Conveyor technologyConveyor purchases may be preparing for a pause, according toModern’s annual survey of conveyor users.equipment report28 Secure rack against seismic eventsIn the wake of catastrophic earthquakes around the world, and in ourown backyard, Modern looks at how to keep your warehouses anddistribution centers standing tall in the event of a seismic episode.Productivity Achievement Awards34 Gold winners announcedModern’s annual Productivity Achievement Awards honor companiesthat have made outstanding strides in improving operations throughmaterials handling and related information systems.productivity solution40 Voice technology speaks to workersPet Supermarket installs a voice-directed picking solution to create abest in show distribution center.41 Green order pickingVermont’s Burlington Drug Company turned to a voice solution tocreate a greener picking process and save green on its bottom line.42 Voice technology improves pickingMexican supermarket chain installs voice technology to ensure timelyand accurate delivery of grocery orders.60 seconds withJim Malvasospecial Report44 Decoding fleet managementThese guidelines will help take the mystery outof implementing a comprehensive lift truck fleetmanagement program from start to finish.DEPARTMENTS & COLUMNS3/ Upfront7/ This month in Modern12/ Lift Truck Tips: Attachments14/ Packaging Corner: Containers50/ Focus On: AGVs54/ Product Showcase58/ 60 seconds with...NEWS9/ Manufacturing Leadership Councildefines need for a national strategy10/ Toyota’s Malvaso to retire; Woodnamed successorModern 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. © 2012 PeerlessMedia, LLC.mmh.com Modern Materials Handling / F e b r u a r y 2 0 1 2 5

www.hyundai-ce.comThe New Standardfor Forklift TrucksFORKLIFT LINE -UPLPG Forklift 1.5 - 5.0TonDiesel Forklift 1.5 - 25TonBattery Forklift (Counter Balanced)1.6 - 5.0TonElectric Order Picker10BOP-7/13BOP-7Reach Truck (Pantograph)1.5 - 2.3TonReach Truck (Standing) 1 - 2.5TonReach Truck (Seated) 1.4 - 2.5TonElectric Towing / Platform Truck40TA-7/15PA-7Head Office(Sales Office)14th FL., HYUNDAI BLDG. 140-2, KYE-DONG, JONGNO-GU, SEOUL, KOREA 110-793 Tel.: (82) (2) 746 4505, 4609 Fax: (82) (2) 746 7444~7445Americas Operation : Hyundai Construction Equipment Americas, Inc.6100 ATLANTIC BOULEVARD NORCROSS GA 30071 U.S.A Tel.: (1) 847 678 823 7802 Fax: (1) 847 678 823 7778Europe Operation : Hyundai Heavy Industries Europe N.V.VOSSENDAAL 11, 2440 GEEL, BELGIUM Tel.: (32) 14 56 2200 Fax: (32) 14 59 3405

®EDITORIAL OFFICES111 Speen Street, Suite 200Framingham, MA 01701-2000(800) 375-8015Michael LevansGroup Editorial Directormlevans@ehpub.comBob TrebilcockExecutive Editorrobert.trebilcock@myfairpoint.netNoël P. BodenburgExecutive Managing Editornbodenburg@ehpub.comProductivity Awards:Best of the bestThis month in modernMICHAEL LEVANSGROUP EditorIALDIRECTORLorie King RogersAssociate Editorlrogers@ehpub.comSara Pearson SpecterEditor at Largesara@moxiemarketingllc.comRoberto MichelEditor at Largerobertomichel@new.rr.comJosh BondEditor at Largeturbobond@gmail.comJeff BermanGroup News Editorjberman@ehpub.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: 1-800-598-6067Mail:Peerless MediaP.O. Box 1496Framingham, MA 01701eNEWSLETTER SUBSCRIPTIONSSign up or manage your FREEeNewsletter subscriptions atwww.mmh.com/enewsletters.The editorial staff of Modern MaterialsHandling and our esteemed panelof judges are proud to announce thewinners of our 2012 Productivity AchievementAwards, a program that I believeneatly encapsulates our editorial mission.For more than two decades, Modern haspresented these prestigious awards to companiesthat the publication believes havemade outstanding strides in improving theiroverall business operations through theapplication of materials handling equipmentand related information systems.Once again this year, we’ve pickedwinners in three categories: Manufacturing,Warehousing/Distribution, and Innovation.To make the cut in Manufacturingand Warehousing/Distribution, our judgeslooked for those operations that emphasizedcustomer service, were able to quicklyrespond to market changes, and improvedorder delivery to meet evolving customerrequirements.In choosing our Innovation winner, welook for a company that employed a solutionthat “defies convention” and saw terrificbenefits as a result. To see which operationswere honored this year and read thosecompanies’ success stories, see page 34.I’d be remiss if I didn’t thank this year’spanel of judges that worked hand-in-handwith Modern’s editorial team in choosingthis year’s winners.We were joined by Bryan Jensen, vicepresident with supply chain consultancy St.Onge; John Link, executive vice presidentMemberMember ofof global operations and supply chain managementfor Crate and Barrel; and GeorgePrest, chief executive officer for the MaterialHandling Industry of America (MHIA).Readers have asked me over the yearshow their operation can be considered fora Modern Productivity Achievement Award;and I’ve responded that the process hasmany layers.First and foremost, the nominee poolstarts with the 12 System Report subjectsthat have graced the cover of Modern overthe course of the previous publishing year.So, consider having your success story chosenfor coverage by Modern as the first stepin the screening process.From there, the Modern editorial staffsuggests a short list of winners in the eachcategory and then shares that list with ourpanel of judges. The judges then re-readthe System Reports, weigh in with theircomments, confer, and then agree on thefinal three winners.But it’s that first step that’s not only themost important to winning, but to helpingModern further its editorial mission ofspotlighting the most advanced materialshandling operations. So, if after readingthrough this year’s winning stories you feelyour operations improvement success hasrealized the level of benefit you’ve seenillustrated in these examples, we’d be eagerto hear your story.Your first step toward earning one ofModern’s Productivity Achievement Awardsmay only be a phone call away.WinnerJesse H. NealCertificates of Meritfor JournalisticExcellenceOfficial Publication ofmmh.com Modern Materials Handling / F e b r u a r y 2 0 1 2 7

FollowModern Onlinefacebook.com/mmhmagazineTwitter | @modernmhmagWeb | mmh.comMANUFACTURINGManufacturing Leadership Councildefines need for a national strategyGROUP REACHES OUT TO GOVERNORS, THE U.S. SENATE,HOUSE OF REPRESENTATIVES, AND THE WHITE HOUSE TOADVANCE STRATEGIC AGENDA.THE MANUFACTURING LEADERSHIPCouncil, an executive network designedto define and shape a betterfuture for manufacturers worldwide,announced last month that it isactively reaching out to U.S. electedofficials to address the need for acomprehensive national manufacturingstrategy.The effort is an outcome of arecent summit in Chicago, where thecouncil—composed of more than100 manufacturing industry leaders—reached a consensus that to createthe conditions for its manufacturersto compete in an increasinglycomplex global environment, the U.S.must have a comprehensive manufacturingstrategy that centers on acombination of education, advocacyand policy initiatives.“The council believes that it isimperative for the country to developand implement a national manufacturingstrategy that enhances thecompetitiveness of U.S. manufacturers,supports innovation, stimulatesexports, and enables economicgrowth through increased employmentand wealth creation amongmanufacturers and the enterprisesand institutions that benefit fromtheir success,” said David R. Brousell,vice president and editorial directorat Manufacturing Executive, the parentorganization of the ManufacturingLeadership Council. Specifically, thecouncil says that it is urgent that manufacturers,policy-makers, educators,and labor leaders partner to create anational manufacturing strategy that:• Provides education and skillsdevelopment solutions that help educatetomorrow’s workforce and createrelevant workers by using techniquessuch as experience-based learningmodels;• Advocates and promotes awarenessof the importance of manufacturingto national security, prosperity andinnovation; the opportunities and im-mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 2 9

pediments facing manufacturers; andthe use of new technologies to makemanufacturing more competitive;• Creates a manufacturing-friendlyenvironment by developing muchneededreforms in torts, as well as intax policy, regulatory policy, immigrationpolicy, energy policy and tradepolicy. It advocates for greater supportfor STEM (science, technologyand math) education.“This is an issue critical to thehealth of the American economyand the prospects of all Americans,”Brousell added. “As such, we areactively reaching out to elected officials,as well as spreading our agendato the media and public at large.We have begun receiving positiveresponses from governors, membersof the Senate, and Cabinet officials,and we’re calling upon manufacturingleaders to join us in advancing thisissue.”LIFT TRUCKSToyota’s Malvaso toretire; Wood namedsuccessorTOYOTA MATERIAL HANDLINGNORTH AMERICA (TMHNA), theleading lift truck supplier in NorthAmerica, recently announced theretirement of its president and CEOJames J. Malvaso, effective April 1,2012 (See page 58).“Jim has been a tremendous leaderfor The Raymond Corp., TMHNAand the entire material handling industry,”said Kazue Sasaki, presidentof Toyota Material Handling Group(TMHG). “His leadership capabilities,coupled with his strategic vision, havesignificantly contributed to the organization’ssuccess and market-leadingposition. Following his formal retirement,I look forward to his continuedcounsel and support in the capacityof a Toyota Material Handling Groupsenior advisor.”In 2010, Malvaso was appointedpresident and CEO of TMHNA, andmanaging officer of Toyota IndustriesCorporation (TICO). During thisperiod, he was instrumental in furtherstrengthening the two brands, Toyotaand Raymond, and aligning synergiesof their distribution channels, whichhelped lead to record-setting performanceby both companies.During his almost 15-year tenure,Malvaso successfully led the companythrough its sale to BT Industriesand then to TICO and improved the10 F E B R U A R Y 2 0 1 2 / MODERN MATERIALS HANDLING mmh.com

ange of product offerings, productquality, market share, revenues andprofits. Malvaso joined The RaymondCorp. as vice president of GreeneOperations in July 1993. Its board ofdirectors elected Malvaso presidentand COO in August 1995, and shortlyafter he was appointed presidentand CEO in 1997. Malvaso helpedbuild a strong and unified Raymonddistribution network that directly ledto Raymond’s leadership position inthe North American electric materialshandling market.He was the first North Americanto be appointed to a managing officerposition within TICO. In his role,he established TMHNA as a formalorganization leading to increasedcollaboration and integration withinNorth America. Active in the industry,Malvaso is a member of the boardof directors for the Industrial TruckAssociation (ITA) and served as itspresident from 2004 to 2007.TMHNA concurrently announcedthe planned appointment of BrettWood as its president and CEO.Wood will assume the responsibilitiesof Malvaso effective April 1, 2012.He also will continue to serve on theboards of TMHU and TIEM.Wood presently serves as executivevice president of TMHNA andchairman of TMHU. In this role, hehas led several strategic TMHNAassignments in sales and marketingand in operations that have acceleratedachievement of synergiesamong the Toyota and Raymondcompanies.“Brett’s extensive experience inthe material handling industry andknowledge of both the Toyota andRaymond companies, have preparedhim to be highly successful in his newrole,” said Malvaso. “I look forwardto working with Brett over the nextseveral months to ensure a continuedcommitment to the establishedTMHNA strategy and a seamlessleadership transition.”Before becoming executive vicepresident of TMHNA, Wood heldthe position of TMHU president nowheld by Jeff Rufener. Prior to that, heserved as vice president of marketing,dealer development, product, strategicplanning and training operations.He has also served as the chairman ofSave Spaceand IncreaseThroughput.Like to minimize the cost of ownership? Ryson can help. Our SpiralConveyors need less floor space than conventional conveyors and arefaster and more reliable than any elevator or lift. All our products aredesigned for low maintenance and long life and our proprietary modularconstruction makes future reconfiguration cost effective.Quality and service come first at Ryson. We are the number one spiralmanufacturer in the USA. For application assistance or more information,give us a call or visit www.ryson.com.See our Spirals run at MODEX 2012, Booth 4100300 Newsome Drive • Yorktown, VA 23692Phone: (757) 898-1530 • Fax: (757) 898-1580VERTICAL CONVEYING SOLUTIONSthe General Engineering Committeefor the ITA and is now a member ofITA’s executive committee and boardof directors. Additionally, Wood isa member of the Material HandlingIndustry of America Roundtable ofIndustry Leaders.mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 2 11

lift truck TIPSFrom tossing it outto raking it inSpecialized lift truck clamps help booming wastepaper industry reduce, reuse and reap profits.By Josh Bond, Editor at LargeRecycling on both a personal and commercial scalehas become so ubiquitous it can seem as thoughthe green revolution is more or less complete. Butaccording to Tim Wilson, national product manager forpulp and paper at forklift attachment maker Bolzoni-Auramo, there is still at least one sector where the shift toresource recovery is in an all-out boom: waste paper materialshandling solutions.The need for clampsand attachments purposebuiltfor this applicationis going nowhere butup, says Wilson. Citingthe American Forest andPaper Association (AFPA),Wilson says the rate ofrecovery of waste paperin the United States is updramatically in the lastseven years. In 2004, 48%of waste paper was recovered.After setting an initialgoal of 60% recoveryby 2013, the AFPA reported a rate of 63.5% in 2010, saysWilson. The new target is to recover 70% by 2020.“It’s good for the materials handling industry in general,”says Wilson.A number of attachment manufacturers have seenspikes in demand for clamps for lift trucks rated from3,000- to 40,000-pound loads. Wilson says the growingrange of clamp offerings aims to improve safety as theamount of material needing to be handled skyrockets.Too often, he says, forklifts are used to move paper balesonly as an afterthought.“You’d be amazed at how many people are still stabbingthese bales with forks, sometimes three at a time,”says Wilson. “It’s very unsafe. Putting paper bales onpallets is no safer, since the loads are unpredictablyweighted. Lifting under an unsecured bale is very unsafe.You really need to grab them from the side.”But the benefits of the paper recovery boom extendbeyond increased clampsales. Wilson adds thatwaste paper handling ismuch rougher on forkliftequipment than youmight think. Loose papertends to get caught inmoving parts or the exhaustsystem, and therecan be more exposureto the elements than atypical forklift endures.The wear and tear keepslocal dealers busy, saysWilson, and requires ruggedizedclamps.In addition, companies whose core competenciescouldn’t be further from waste handling find themselvesusing paper clamps to make a little cash on the side, saysWilson.“In some cases, instead of throwing it away or sendingit to the recycler, customers want to bale and sellwaste paper themselves,” he says. “People are seeingdollar signs.”Josh Bond is an editor at large to Modern and can bereached at josh.d.bond@gmail.com.12 F e b r u a r y 2 0 1 2 / Modern Materials Handling mmh.com

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packaging cornerThe container inquisitionAnswer these 10 questions to find thebest fit for your operation.By Sara Pearson Specter, Editor at LargeIt might appear that Ken Beckerman, president ofFlexcon Container, is in the business of selling reusableplastic totes and bins. But it turns out that he’s really adetective. That’s because when someone calls about buyinga box, he and his sales team ask questions: no fewerthan 10, in fact.“It’s important to ask a lot of questions to narrow theproblem into a solution. We try to get intimate knowledgeof the system that the container is going to berunning on and what the container needs to do so wecan offer options to fit an application perfectly,” Beckermansays. In addition to an option that meets the caller’sspecs, alternatives might be for containers that are lessexpensive, more durable, lighter weight (for more contentcapacity) or save space in the system.This question list includes:1. What will the container do on a typical day?2. Will the container leave your facility?3. How does the container move through the facility?4. If the container rides on a conveyor, what type?Which brand? Are there sensors or gates? Are thereinclines or declines?5. How much weight goes in the container?6. Will the containers go in a freezer or an autoclavesanitization process, or remain at room temperature?7. Is this a temporary solution or a long-terminvestment?8. What other reusable container systems have youseen that you like?9. When do you need the containers?10. What is your budget?Those last two questions are often the most important,Beckerman says. A rush delivery requirement may limitoptions to what’s in stock. Used or overstock containersmight fit tight budgets better than new. And, companieslooking to automate should consider the container inparallel with the system’s development.“As a container guy, I’m definitely the last thing theythink of, but I’ve worked through that,” he quips. “Thereare so many standard totes and containers today, it’s easierto supply the perfect size container than it was even10 years ago. There’s no such thing as a custom containeranymore; it’s very easy to pull standard size tooling fromthe warehouse and make the tote that fits a need, and ina low minimum quantity to make it affordable—just 250to 500 units.”Sara Pearson Specter is an editor at large with Modern andcan be reached at sara@moxiemarketingllc.com.14 F e b r u a r y 2 0 1 2 / Modern Materials Handling mmh.com

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modern system reportVery coolautomationPreferred Freezer Services takes materialshandling automation to a new level in aNew Jersey warehouse.By Bob Trebilcock, Executive EditorKenneth Gbarielsen/Getty Images16 F e b r u a r y 2 0 1 2 / Modern Materials Handling mmh.com

Preferred Freezer Services’ new 170,000-Psquare-foot warehouse in Elizabeth, N.J., isvery cool.That may sound too cute by half. After all,it’s a freezer warehouse: It’s more than cool.It’s downright bone chilling.But the design, which Preferred FreezerServices (PFS) calls their Generation IIIwarehouse, is also an excellent, and very cool,example of what automated materials handlingcan offer in the right environment. It’snot quite a lights-out facility, but it is close.PFS, a third-party logistics provider (3PL),operates the facility with a total of just 30associates in a 30,000-square-foot area setaside for receiving, palletizing and shipping.The remaining 140,000 square feet isdedicated to freezer storage. In that area, a72-foot-high automated storage and retrievalsystem (AS/RS) manages all of the putawayand order fulfillment processes in the dark. Ittruly is lights-out automation.“We think we’re perfecting the warehousesof the future,” says John Galiher, PFS’s CEOand president.The AS/RS (with cranes from LTWPreferred Freezer Services’CEO and president, JohnGaliher (center), believes the3PL is developing the freezerwarehouse of the future.Featuring a 72-foot-tallAS/RS, the facility relies onjust 30 associates to operate24 hours a day.mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 2 17

MODERN system reportThe AS/RS features 10 aisles, fivecranes and 25,000 pallet positionsand operates in an energy-saving,lights-out environment.Intralogistics, ltwusa.com, and rackfrom Frazier, frazier.com) features:• 25,000, eight-foot-tall pallet positions,• 10 aisles, and• five cranes. Three aisle-changingcranes service the rack system and twocranes deliver pallets to and from thedock and a buffer area in the freezer.The system manages more than2,000 stock keeping units (SKUs) frommultiple clients. It receives, palletizesand ships up to 1,020 pallets in and1,020 pallets out of the facility each day.It is the fifth automated warehousePFS has put up in recent years, withmore planned. However, that’s not tosay that all of the 3PL’s facilities arelights-out spaces. “We don’t automatejust to automate,” says Galiher. Hepoints out that PFS still operates conventionalfreezer warehouses and hasbuilt a hybrid facility that mixes automationwith semi-automation. “For us,the drivers are empirical data and flexibility,”he explains. “If we are handlingproducts that are challenging in anautomated environment, we’ll go at it inthe old fashioned way, with very narrowaisle storage as high as we can go.”Two decades of growthFounded by Galiher in 1989, PFS has provided3PL services for frozen food companiesfor 22 years. The company got itsstart in a 2.3-million-cubic-foot warehousein Perth Amboy, N.J., with 25 full-timeemployees and $3.6 million in revenues.It has since expanded to 27 facilities,more than 1,300 employees andover 200 million cubic feet of warehousespace located in nine regionsin North America. The company continuesto grow: With sales exceeding$200 million a year, PFS has sixadditional domestic facilities on thedrawing board and is now operatingtemperature-controlled warehouses inChina and Vietnam. “We’re growing atcompound growth rate of 15% to 16%a year in an industry that’s growing inthe low single digits,” Galiher says.“We believe it’s because we’re buildingstate-of-the-art warehouses in strategiclocations.”Changes in the food industry led toan evolution in the types of facilitiesthat PFS develops and operates. “Sevenor eight years ago, our biggest customersbegan looking to their supply chainsto reduce costs and drive operatingmargins as an alternative to developingand launching new products,” saysGaliher. “Warehousing and distributionwent from an expense that was largelyignored to a part of their businessmodel to improve profitability.”At the same time, he adds, operatingcosts for 3PLs continued to climb.The cost of land went up. Constructioncosts climbed. And, the overall cost oflabor rose, including the cost of benefits,worker compensation, benefitsand protective gear for those workingin harsh environments like refrigeratedand freezer spaces.Automation evolutionOver the last decade, PFS developednew warehouse designs. In 2000, the3PL developed the design for a 60-foottall,semi-automated, very narrow aisleDC. “The Generation II design wastaller and squarer than the 42-foot-tall18 F E B R U A R Y 2 0 1 2 / MODERN MATERIALS HANDLING mmh.com

slow them down and they have to takebreaks to warm up. They’re just not asproductive.” Similarly, since the freezerspace is behind a wall, associates areharder to supervise in a temperaturecontrolledenvironment.Finally, customers are more awarethan ever of how their 3PLs are performing.“Thanks to warehouse managementsystems, our customers arearmed with metrics and KPIs,” saysGaliher. “Our business is no longerpredicated on the belief that we’re performing.Our customers measure andbenchmark us. We have to prove we’redoing a good job.”Pallets are stretch-wrapped before loading (top). The shipping and receivingarea was designed with energy-saving features, including high-speed insulateddoors at the AS/RS and special dock equipment.warehouses we were building in the1990s,” says Galiher. The new designwas also 50% larger than the facilitiesbeing built by the rest of the industry,but 20% more efficient to operate thanthe Generation 1 style.The design and location of newwarehouses was driven by a numberof factors.One was a strategic approach towhere it located facilities. “Where thewarehouses used to be and where theywill be tomorrow is changing,” Galihersays. “Traffic patterns and the cost offuel are changing where we put ourfacilities.”Similarly, the challenges of findingand keeping labor willing to work in aharsh environment dictated changes.“Given the option, most people wouldrather work in a conventional warehousethan a freezer warehouse atminus 10 degrees,” says Galiher. “Theyhave to wear clothing and gloves thatGeneration IIIWith competitive pressures mounting,PFS improved on the provenGeneration II design with a new automatedwarehouse it calls GenerationIII. “When it comes to automation,we don’t think we have a choice,” saysGaliher. “If all you’re doing is movinga pallet from point A to point B, that’san opportunity to automate and reduceyour costs.”The first automated facilities werebuilt overseas. The Elizabeth warehouse,which was built on a 20-acreparcel that includes a Generation IIwarehouse, is the fifth facility of thedesign to go up. While the other facilityon the property primarily handles portbasedservices, the new warehouse willdeliver product to customers in NewYork and New Jersey.In the right application, automationaddresses labor concerns and new customerdemands.• Better utilization of space: TheAS/RS allows PFS to increase theheight of its DCs an additional 20% to72 feet. That delivers more cubic feetof storage in the same footprint.• Accurate and reliable: The repeatabilityof performance delivers a betterproduct. “Machines are very accountable,”says Galiher. “In the right application,you don’t have damage, themachine doesn’t take breaks, and yourorders and inventory are perfect.”mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 2 19

MODERN system reportThe AS/RS allows PFS to increase theheight of its DCs an additional 20% to72 feet. That delivers more cubic feetof storage in the same footprint.• Labor and energy savings: A lightsoutoperating environment not onlysaves on labor, it controls the temperatureand humidity in the freezer. “Ina dry warehouse, you have the cost ofelectricity to light a work area,” saysGaliher. “In a freezer, the heat from thelights and the challenges of changing alight bulb 70 feet in the air in minus10 degrees create issues. The most efficientfreezer is one with no lights.”In addition to automated storageand retrieval, the Generation III designincorporates several other featuresdesigned to maintain the humidity andtemperature in the building.High-speed doors open and closequickly when a crane is retrieving ordelivering pallets to the dock area.The facility is one of the first touse a new style of dock designed forthe food industry. When the truck isbacked into the building, the dockdoors are still locked and sealed. Thedesign allows the doors to swing openinside the warehouse, never exposingthe building to the ambient temperaturesor the weather. “Once thetruck is in place, you open the doors,drop the dock plate and go to work,”says Galiher. “When you’re done, youclose the doors and pull the traileraway without ever exposing the truckor the loading dock to ambient temperatures.”With its fifth automated facility upand running, Galiher says PFS is lookingat other opportunities for automation.“We have looked at truck loadingautomatic guided vehicles (AGVs) toload and unload trucks,” Galiher says.“The dock is still a highly dynamicenvironment and we don’t think AGVtechnology is there yet. But those arethe kinds of movements that should beautomated.” Keeping coolPreferred Freezer Services’s new facilitymaximizes throughput while minimizing laborand energy consumption.Receiving: When trailers are backedinto a loading dock (1), the back portionof the trailer extends into the facility.This allows PFS to open the trailerdoors inside the warehouse, minimizingthe exchange of air with the outside.Trailers are unloaded by lift trucks orpallet jacks and staged in the receivingand shipping area (2). Pallets receivea license plate bar code that identifiesthe product and the customer. The barcode is then wirelessly scanned and thepallet is staged for induction into theautomated storage and retrieval system(AS/RS).Putaway: The automated systemoperates without conveyor. Instead,cranes can reach pick up and drop offstaging and palletizing locations (3) nearPreferred FreezerServicesElizabeth, N.J.SIZE: 170,000 square feet, including140,000 square feet of AS/RSPRODUCTS HANDLED: frozen foodproductsSTOCK KEEPING UNITS: 2,000 acrossmultiple clientsTHROUGHPUT: 1,020 pallets per day inand out of the facilityEMPLOYEES: 30SHIFTS/DAYS: 3 shifts/5.5 daysthe freezer entrance. The system is adual-cycle system. That means that thecrane retrieves a pallet for picking eachtime it exits the freezer to pick up a palletfor storage. When pallets are ready20 F E B R U A R Y 2 0 1 2 / MODERN MATERIALS HANDLING mmh.com

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MODERN system reportLoadingdocks1Pallet stagingand palletizing32 Receivingand shipping4 Freezer buffer zoneFreezerAS/RS5System suppliersAS/RS CRANES: LTW Intralogistics,ltwusa.comWMS: Accellos, accellos.comWAREHOUSE CONTROL SYSTEM:Preferred Freezer ServicesPALLET RACK: Frazier, frazier.comLIFT TRUCKS: Crown, crown.comHIGH-SPEED DOORS: Rytec,rytecdoors.comINSULATED PANELS: Metl-Span,metl-span.comDOCK EQUIPMENT: Kelley (4FrontEngineered Solutions), kelley.4frontes.comBAR CODE SCANNING: LXE/Honeywell, honeywellaidc.com.STRETCH WRAPPING: Lantech,lantech.comPut a Pencil to UsReduce your operating costs withwheels that last longer than thecompetition. Thombert is the mostrequested brand by warehousemanagers nationwide.Guaranteed life and lower costs!Test our polyurethane wheels andtires against your current brand.Calculate your total cost per hour,and if Thombert is not lower, youget your money back.It’s that simple.The Lowest CostTHOMBERT.com800-433-3572 • adam@thombert.comfor putaway, the warehouse control systemsends a signal that opens a highspeeddoor and directs a crane to a pickup location. The crane drops off pallets(3) retrieved from storage, and picksup two pallets for putaway. The palletsare dropped off at one of several hundredfreezer buffer locations (4) insidethe 140,000-square-foot freezer AS/RS(5). Later, the crane will pick up a palletfrom a buffer location and deliver itto a storage location inside the freezerAS/RS (5) based on throughput metricsfor that stock keeping unit (SKU) andthe customer. Pallets are now availablefor orders.Picking and shipping: Order fulfillmenttakes place in the receivingand shipping area (2) on the dock. Fullpallets are delivered from the dropoff location directly to a trailer (1) fordelivery. Mixed pallets are manuallypalletized in the receiving and shippingarea (2). When the picks from apallet are completed, the crane willremove the partial pallet and return itto the freezer buffer area (4) for putaway(5) later. The completed palletis stretch-wrapped and loaded into atrailer (1) for delivery. 22 F E B R U A R Y 2 0 1 2 / MODERN MATERIALS HANDLING mmh.com

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Reader survey:Which of the following types of conveyorsdo you expect to be purchasing within thenext 18 months?Belt50%60%RollerMotor-driven roller32%40%38%41%Accumulation27%39%Gravity flowChain22%30%31%30%December 2010December 2011PalletSpiral16%15%19%Medium-speed sortation16%12%27%How important are each of the following factorsin your conveyor purchase considerations?Rated highly important ( 5, 4 on a 5-point scale)97%96%High-speed sortation16%9%Slat10%7%78%71%77%78%77%77%79% 77%59% 61%50%40%Low-speed sortation16%10%Power-and-free10%10%ReliabilityPriceDesignflexibilityEquipmentavailabilitySupplierreputationLead timesLeading edgetechnologyNote: Low-speed sortation: up to 50 cpmMedium-speed sortation: 50-150 cpmHigh-speed sortation: 150 cpm and upSource: Peerless Research Group (PRG)December 2010Source: Peerless Research Group (PRG)December 201124 F e b r u a r y 2 0 1 2 / Modern Materials Handling mmh.com

modern reader surveyConveyor technologyConveyor purchases may be preparingfor a pause, according to Modern’sannual survey of conveyor users.By Bob Treblicock, Executive EditorAre new conveyor implementations poised for ahiatus? That’s just one of the questions raisedby Modern’s 2011 annual reader survey onconveyors.In 2009 and 2010, readers had big plans forthe purchase of conveyors and sortation systemsin warehouses, DCs and manufacturingapplications. In those years, our readers spentan average of about $300,000 on conveyors,parts and accessories during the last 12months and planned to spend $261,000 in thenext 18 months.This year, readers tell us they spent$164,000 during the last 12 months and planto spend $193,700 in the next 18 months.The good news: Those who are increasingtheir conveyor budgets in the coming 18months, plan to spend 35% more than theydid in 2011.The responses could indicate that many ofthe facility expansions, renovations and consolidationsthat have been taking place overthe last two years are wrapping up and the enduser community is catching its breath beforelaunching its next round of improvements.It could also be a reflection of uncertaintyover the health of consumer spending,demand in emerging markets and the strengthof the bounce back in manufacturing. In fact,26% of respondents said they were taking await-and-see approach and have no plans toinvest at present. That compares to 22% whosaid they were taking a wait-and-see approachin last year’s survey.Reader plans for conveyor spending wasonly one of the questions we asked in ourannual survey. We also looked at how Modernreaders plan to deploy conveyor technologiesin the future and how they plan to purchasetheir conveyor technology. To answerthose questions, we surveyed subscribers ofModern as well as a sample of recipients ofour e-newsletters. We received 351 qualifiedresponses, defined as a reader who buys oruses conveyor. The respondents representeda range of company sizes, with 26% reportingrevenues of more than $500 million, 15%reporting revenues of more than $100 millionand the remainder less than $100 million.Average annual revenues of $411 million wasconsistent with last year’s survey.How important is energy efficiencyas it relates to your conveyor system?10%9%40% 39%50%December201052%December2011Source: Peerless Research Group (PRG)Not very/Not at all importantSomewhat importantExtremely/Very importantmmh.com Modern Materials Handling / F e b r u a r y 2 0 1 2 25

modern reader surveyHow is the economy impacting on your spending onconveyors and/or conveyor parts and accessories?Will be spending about the sameas in 2010 on conveyor in 2011Will be spending more on conveyors in 2011We are taking a wait-and-see approachand not planning to invest at presentOverall materials handlingbudget has been cut in 2011Will be allocating more to maintenanceWill be spending less on conveyors in 2011December 2010Source: Peerless Research Group (PRG)They also represent a mix of manufacturers,distributors and warehousesassociated with manufacturing:• 66% of those planning to purchasenew conveyor will use it in a manufacturingplant,• 35% will use it in a distributioncenter, and• 26% will use it in a warehouse.Here are the most important results.10%8%8%8%14%15%17%33%23%22%26%AveragedecreaseDecember 201130%28%35%AverageincreaseFrom belt to towlineFrom belt to towline conveyors, theconveyor industry offers a diversemix of products. Modern’s readers areemploying them all (see chart on p. 24for a complete listing):• 67% are using belt conveyor,• 58% are using roller conveyor,• 50% are using gravity flow conveyor,• 49% are using motor-driven rollerconveyor, and• 35% are using accumulation conveyor.While fewer readers have installedsortation systems, the mix among thosewho have is fairly evenly divided amongthe different speed offerings:• 19% are using medium-speed sortation(50-150 cpm),• 12% are using high-speed sortation(150 cpm & up), and• 12% are using slow-speed sortation(up to 50 cpm).When it comes to future conveyorpurchases, the picture remains muchthe same for the next 18 months:• 50% plan to purchase belt conveyor,• 38% plan to purchase roller conveyor,• 32% plan to purchase motor-drivenroller conveyor,• 31% plan to purchase gravity flow,and• 27% plan to purchase accumulationconveyor.Planning for the futureOnce again, caution seems to be thewatchword when it comes to futureinvestments in conveyor and sortationsystems: 26% of respondentssaid they were taking a wait-and-seeapproach, having no present plans toinvest. That compares to 22% in lastyear’s survey.Meanwhile, only 14% of respondentsplan to spend more on conveyorsin 2011, compared to 23% in 2010.Another 17% said their overall materialshandling budget had been cut in2011, compared to 15% in 2010.Just how large will those investmentsbe? Well, 67% of respondentsreport that they will spend $100,000or less. Only 8% expect to spend morethan $1 million on conveyor technologiesover the next 18 months.On a positive note, those planningto spend more than in the previousyear will increase their spend by 35%.And while roughly 50% of respondentsplanning to buy say they are currentlyevaluating suppliers, between 20% and25% are currently purchasing theirsystems.What’s more, a majority of conveyorpurchases appear to be part of an integratedsystem. Only 37% said they werepurchasing conveyor equipment only.And, 69% indicated their systems arepart of a facility expansion rather thana new facility. That is up from 61% in2010.The majority of those purchases comedirectly from a conveyor manufacturer(54%) or conveyor distributor (45%).The same holds true when it comesto replacement or spare parts, with43% purchasing directly from a manufactureror a manufacturer’s Web site(25%), while 43% purchase from theirdistributor or use their distributor’sWeb site (19%).Reliability countsIn an era where customer service isparamount, it will come as no surprisethat reliability was considered themost important factor in a conveyorpurchase (96%) by more readers thanany other attribute. Price and designflexibility were the second most importantfeatures (78% for each), followedby equipment availability and the reputationof the supplier (77% for each).Conveyor users also appear to stickwith the tried and true: Just 40% of ourreaders said they were interested inleading edge technology.When it comes to features,Modern’s readers valued design flexibility(57%), low noise emission(43%), low energy/power consumption(42%), individually poweredzones (40%); design flexibility (55%);and clean roller technologies (29%) intheir systems.26 F e b r u a r y 2 0 1 2 / Modern Materials Handling mmh.com

Readers also identified the featuresor functions they would most like tohave that are missing from their currentconveyor systems:1. greater design flexibility; ease ofchanging the hardware and controllingsoftware; modularity,2. intelligent conveying features,3. easy to clean,4. batch feeding, and5. speed/variable speed.Up and runningConveyor manufacturers, like lift truckproviders, have been developing newmaintenance programs for their customers.Still, Modern’s readers aremostly taking care of business when itcomes to keeping their conveyor systemsup and running:• 78% use their own crew for maintenance,• 11% have a service contract with athird party, and• 6% have a service contract with asupplier.Only 10% reported that they are outsourcingthe repair and maintenanceof their conveyor equipment, the samepercentage as in 2010.Sustainability in the balanceFor the first time in three years, amajority of respondents (52%) said thatenergy efficiency was extremely or veryimportant as it relates to their conveyorsystem while another 39% ranked it assomewhat important. Only 9% reportedthat it was not very important.Still, as with the last two surveys,only a handful of companies havereported receiving tax credits for suchan installation:• 49% report that they plan to investigatetax incentives for energy efficientsystems,• 39% say they have no plans toinvestigate tax incentives for energy efficiency,and• 12% say they have already done so. MApproximately how muchdid you spend on conveyorsand/or conveyor partsand accessories duringthe “last” 12 months?Average$Median$$300,000 $164,000$75,000 $46,545How much do you estimateyou will spend on conveyorsand/or conveyor parts andaccessories in the “next”18 months?$261,000 $193,700$55,000 $56,95014%7%18%61%6%5%17%71%$1 million+$500K-$999K$100K-$499K11%7%18%64%8%5%21%67%

MODERN equipment reportSecure rack againstIn the wake of catastrophic earthquakes around the world, and herein our own backyard, Modern looks at how to keep warehouses anddistribution centers standing tall in the event of a seismic episode.By Lorie King Rogers, Associate EditorHigh-risk seismic areasHigh-risk seismic areas across the country are identified basedon the frequency and intensity of ground motion.Source: U.S. Geological Survey (USGS)%g64+ (Highest hazard)48-6432-4816-328-164-80-4 (Lowest hazard)Seismic areas across the United States pose varying degrees of risk, from lowto extreme. Current technology can dissect these areas by zip code and caneven pinpoint the risk of a specific street address.Terra firma isn’t all that firm.Every minute of every daythere’s an earthquake rumblingbeneath the surface of the earth.In fact, the United States GeologicalSurvey (USGS) locates about 50earthquakes daily, or 20,000 annually.However, it estimates that millions ofearthquakes go undetected each yearbecause they happen in remote areas ofthe world or measure such a small magnitudeon the Richter scale.Those earthquakes aren’t the onesthat worry us. Here in the United States,in 2011 alone, we experienced 22 earthquakesmeasuring between 2.9 and 7.3in magnitude. And they happen in allstates, not just California. From Alaskato Alabama, Oregon to Ohio, an earthquakecan hit anywhere at anytime.“The earth is always shakingand moving,” explains Sal Fateen,a structural engineer and the presidentof Seizmic Material HandlingEngineering. “It’s actually a good thingfor the earth to release tension, but theproblem is that nobody knows exactlywhen the earth will decide to misbehave.”That erratic behavior can wreak28 F E B R U A R Y 2 0 1 2 / MODERN MATERIALS HANDLING mmh.com

se eismicven t shavoc with our warehouses and distributioncenters if we aren’t prepared.Rack systems that support the materialshandling industry are particularlyvulnerable to damage caused by seismicevents. But, there are strategies andsolutions that can protect people, propertyand products.Identifying high-risk seismic areas,conducting inspections, and keepingrack equipment in good repair can helpminimize the damage caused by anearthquake.At this testing facility, the goal of seismically engineered rack is to make itable to absorb the shock caused by a seismic event.Seismic areasOver the years, high- and low-risk seismiczones have been identified based onhistory and testing. Being in a low-riskarea, however, doesn’t guarantee you’llbe spared. For example, in October of2011, low-risk southern Texas experienceda 4.8 magnitude quake.Still, the zones are a valuable guide.“When we consider seismic forces, wereference the zip code of where therack will be built, and, depending uponthe area, significant upgrades may berequired to comply with the seismicforces,” explains Bob Novak, area marketmanager for Interlake Mecalux.But because every rack installationis unique, there are no hard and fastrules for specific upgrades in any particulararea. According to Dave Olson,national sales and marketing managerfor Ridg-U-Rak and president of theRack Manufacturers Institute (RMI),highly refined values for specific locations,which are publicly available,weigh heavily into rack designs. And,along with the rack structure height,depth of the frame, load weight, application,and type of rack, these valuesplay a vital roll in seismic consideration.The purpose of the identifying highriskareas and establishing buildingrequirements within those areas, however,is not to “earthquake-proof.”According to Fateen, that’s not possible.The purpose is to minimize thedamage that may occur from an earthquake.“It all boils down to developinga force that gets applied to a structure.Once you get that force, you have todevelop equipment that can stand up tothe test,” he says.The force is calculated using a formulathat includes a number of factors.While the calculations are extremelycomplex, Fateen explains, the force is apercentage of the weight of the structureand the load it carries. The rackmmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 2 29

modern equipment reportstructure has to be designed to resistthe forces applied to it, including seismicones.Seismic solutionsThe goal of seismically engineered rackis to make it able to absorb the shockcaused by a seismic event, but engineerscan’t make blanket statementsabout achieving that goal because everyjob is different. “We look at all thespecifics of a project and compile thedata that leads to the most economicset of components to meet the structuralrequirements of the job,” says JimCourtwright, Ridg-U-Rak’s director ofengineering.One component in the equation isthe metal used to construct the racksystem. Either rolled form or structuralsteel can be used to construct seismicallydesigned rack systems. “It’s simplyAt rest, the yellow marks on this racksupport structure are in alignment.During an actual test on a seismicshake table, the marks show how farthe upright frame can travel during aseismic event.a customer decision based on the application,”says Olson, “but both types canbe effectively designed for most applications.Depending on the height andload of the rack, a heavier gauge steelmay be required.”Seismic upgrades to the rack framecan be done in a number of areas. Forexample, the beam can require additionalweld at one or all elevations,explains Interlake Mecalux’s Novak.Additionally, large beam connectorscan be added for additional connectionpoints to the frame and to provideadditional lateral support. “Frame reinforcement,heavy or special strut panelsare generally associated with capacity,and can be used for seismic conditionswhen the load requires additional lateralsupport than was intended for thestandard capacity frame,” Novak adds.In some seismic rack applications, amore substantial footplate may be usedto support the rack uprights. “The larger,thicker footplates not only spread theload across a larger floor area, but theyIron Mountain: Still standing in the wake of a quakeOn Feb. 27, 2010, an earthquakemeasuring 8.8 on the Richter scalerocked the South American countryof Chile. It was the world’s sixth mostpowerful quake ever recorded andlasted about 2 minutes—long enoughto claim hundreds of lives and causean estimated $30 billion in damage toresidential property and commercialbusinesses, including Iron Mountain.For more than 60 years, IronMountain has protected the vitalrecords of more than 1,200 businessesaround the world. Its dual-campus inLampa, Santiago, includes high-heightrecord management facilities with largeselective rack systems used to storemassive quantities of paper documents.Damage from the earthquake resultedin Iron Mountain razing seven buildingsand the racking systems in each.But one of its buildings, a 1.4 million-boxwarehouse with a multi-level,high-density rack installation (InterlakeMecalux, interlakemecalux.com) stillunder construction, stood tall. Becauseit wasn’t yet complete, it wasn’t carryingany loads. However, subsequentinspections concluded that it wouldhave remained undamaged had itbeen completed and loaded.While the company suffered damage,Iron Mountain was one of fewbusinesses able to remain productivein the earthquake’s aftermath; literallya port in the storm for clients lookingto relocate their important documentsto secure facilities.Faced with the urgent job of simultaneouslyrebuilding and growing itsbusiness, Iron Mountain turned to thesupplier to build two maximum-capacitywarehouses because, according toDoug Berry, Iron Mountain’s directorof construction and facilities, its provenseismic designs that have stood the testof time and the test of an earthquake.Seismically designed rack that stood up to the recent Chilean earthquake isbeing using to rebuild document storage facilities on Iron Mountain’s Lampa,Santiago, campus.30 F e b r u a r y 2 0 1 2 / Modern Materials Handling mmh.com

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modern equipment reportwill resist tearing or bending to a muchgreater extent, and offer a larger area inwhich to place required floor anchors,”says Weiker Kline, senior product managerfor Penco Products.Another solution used to secure theframe to the floor is a housing called abase isolator that is anchored down usingbolts that meet the area’s requirements.The upright rack frame is mounted to aplate within the base isolator. During anearthquake, the plate allows the frameto slide back and forth to mitigate theenergy of the seismic wave. In this case,the bottom of the rack moves to preventthe top from swaying.The floor anchors, or bolts, used tosecure the footplates or the base isolatorcomponents to the floor are not specificallydesigned for high-risk seismicareas. The bolts are available in differentsizes and capacities.Proceed with cautionThe ability of any rack component towithstand the force and tremors ofan earthquake can only be discoveredthrough testing. Whether you’re buyingnew or used rack or transferring yourrack from one facility to another, a rigoroustesting process should be appliedto the rack structures to ensure it isperforming properly.Testing is also important when connectingcomponents manufactured bydifferent suppliers. “The beam-to-columnconnections on pallet rack systemsfrom manufacturer to manufacturer areusually proprietary,” says Courtwright.“That doesn’t mean they won’t fittogether, it means the only way to knowhow the beam-to-column connectionwill react to applied seismic forces isthrough testing.”Being able to mix and match rackcomponents manufactured by differentsuppliers creates rack options for endusers and adds to functionality and versatilitywithin the four walls, says KevinCurry, national accounts manager forSteel King Industries. It can work forrack shelving for storage, as a mezzanineto create a second floor, and tosupport picking operations.Versatility is especially beneficial ifyour operation has seasonal product.But you can’t move rack around andassume you will maintain the same seismicintegrity. “Be very careful that anyrack installation is compliant with currentcode,” says Don Derewecki, seniorbusiness consultant at TranSystems.“Many firms get into trouble with codecompliance when they try to relocate ormodify rack. They may violate the grandfatheringthey have with existing code.”Prevention and repairSurviving an earthquake with minimaldamage not only depends on the rackdesign and materials, it depends onregularly scheduled inspections andmaintenance. “Preventative measuresare always a good idea,” says InterlakeMecalux’s Novak. “Column protection,end of row protection, and guide railsare all good safety features. However,the customer should consult with aqualified supplier first to determinewhether or not additional equipmentwill infringe on the aisles and createissues with lift equipment, traffic orthroughput.”Even with the most diligent preventivemeasures, accidents and damagehappen. Any rack damage that is significantenough to create a crease shouldThere are a number of ways to repair and replacedamaged columns—doing so without having tounload the rack is key to maintaining productivity.be repaired or replaced. A weakenedsegment is susceptible to breakageand could snap during an earthquake.Damaged frames should always berepaired or replaced.Novak also suggests inspectingbeams regularly to confirm the originallocking mechanism is in place. Thisprevents accidental lift-out from theframe. If the lock is not in place, thebeam should be bolted in or replaced.RMI suggests that facilities withrack structures have a comprehensiveinspection plan in place. The detailsof that plan will vary from company tocompany depending on the needs ofthe environment, including the volumeof traffic and throughput, but safety isalways the bottom line concern. MCompanies mentionedin this articleInterlake Mecalux:interlakemecalux.comPenco Products: pencoproducts.comRack Manufacturers Institute (RMI):www.mhia.org/industrygroups/rmiRidg-U-Rak: ridgurak.comSeizmic Material HandlingEngineering: seizmic.netSteel King: steelking.comTranSystems: transystems.com32 F e b r u a r y 2 0 1 2 / Modern Materials Handling mmh.com

TWO YEAR PAYBACKFROM WINTER OPERATION!The Problem: Gas bills were going through the roof at Federated Co-op’s 300,000 sq ftdistribution center in Saskatoon, Canada.The Solution: Five Powerfoil®X Big Ass Fans were installed to put the heat where the peopleare – on the floor – reducing gas bills by $19,800 in one winter alone.“WE EXPERIENCED A SIGNIFICANT DECREASE INNATURAL GAS CONSUMPTION. BIG ASS FANSIMMEDIATELY PROVIDED A COMFORTABLE WORKINGENVIRONMENT WHILE REDUCING OUR COSTS.”Trevor CarlsonEnvironmental and Technical Services ManagerFederated Co-operative Ltd.The patent-pending SmartSense365 fancontroller is an automated system with threeuser modes: winter, summer and manual. It’sengineered to modulate fan speed accordingto ceiling- and fl oor-level temperature readings,maximizing year-round energy savings andcomfort with just the push of a button.Want to know your payback number? Call now todiscuss your savings with an applications engineer!WWW.BIGASSFANS.COM | (877) BIG FANSCovered by one or more of the following U.S. Patents: 6,244,821; 6,589,016; 6,817,835; 6,939,108; 7,252,478; 7,284,960; D587,799; D607,988; 7,654,798 and other patents pending.©2011 Delta T Corporation dba the Big Ass Fan Company. All rights reserved.

2012 ProductivityAchievementAwardsEach year, Modern’s Productivity Achievement Awards honorcompanies that have been featured as system reports onModern’s cover in the previous year. These companies havemade outstanding strides in improving operations through materialshandling and related information systems.The categories of Manufacturing and Warehousing/Distribution recognize companies for their ability to provideoutstanding customer service, quickly respond tochanging business conditions, deliver orders that meetcustomer requirements, and improve operations. TheInnovation category honors a company that successfullyemployed a solution that defies convention.This year’s panel of Productivity Achievement Awardsjudges includes: Bryan Jensen, vice president with supplychain consultancy St. Onge; John Ling, executive vice presidentof global operations and supply chain management forCrate and Barrel; and George Prest, chief executive officerfor the Material Handling Industry of America (MHIA).Feedback on our winners from this year’s panel of judges...MANUFACTURINGOtis Technology“Otis Technology pursued the pathless traveled in a small manufacturingconcern, drove a fiscal and competitiveadvantage from it, and more importantly,redirected the labor savings into furtherprocess improvement energy.”Page 35WAREHOUSING/DISTRIBUTIONOriental TradingCompany“Oriental Trading achieved extraordinaryimprovements in its operation throughthoughtful and substantive materialshandling equipment investment in highvolume, cycle-time-sensitive environments.Its volume, almost exclusively allin broken case volume, warrants particularnotice.”Page 36INNOVATIONCoca-ColaRefreshments U.S.A.“Coke brought very high levels of innovationto its applications that providedvalue across a massive supply chain andinside the four walls of more than 100locations, with the potential for movementto applications outside those walls.That elevated and enhanced the impactof their innovation dramatically.”Page 3834 F E B R U A R Y 2 0 1 2 / MODERN MATERIALS HANDLING mmh.com

modern productivity awardsMANUFACTURING WINNEROtis Technology:Manufacturer goes lean withmaterials handlingMobile robots, an AS/RS and supply chain softwaretransformed this manufacturer’s processes.Conventional wisdom holds thatrobotics and automated materialshandling systems are for theindustry’s big guns, not for the little guys.In the case of Otis Technology, conventionalwisdom is wrong. A manufacturerof firearms cleaning systems inupstate New York, Otis Technology hasinstalled three mobile robots (ADAMRobots, adamrobot.com) in a manufacturingand distribution facility thatmeasures just 80,000 square feet.The company began to install automationin 2008 with two primarypurposes in mind—to enable OtisTechnology’s implementation of leanmanufacturing processes and further aphilosophy that employees matter.But its automated materials handlingwasn’t limited to mobile robots. OtisTechnology has also installed a warehousemanagement system (WMS) andenterprise resource planning (ERP)system, automated data collection,a wireless voice over Internet protocol(VoIP) communications system,and a two-aisle automated storage andretrieval system (AS/RS). One aisle features512 pallet positions for unit loadstorage while the other aisle includes3,240 positions for mini-load storage.Since going live, the results havebeen impressive:• On-time deliveries increased from85% to 99.92%.• Otis Technology has saved $2 millionin inventory.• Mobile robots are saving the companyan estimated 94.2 hours a day intime employees used to spend walkingback and forth in the operation. That’sroughly 1 hour per day per employee.Growing a businessOtis Technology is unique in a numberof ways. For one, the 26-year-oldcompany is female-owned and operated,with Doreen Garrett, founder andCEO, at the helm and her siblings alsoinvolved in the business.Early orders were produced at thefamily’s kitchen table. In 1996, the companymoved into its current offices, andin 2004 it broke ground on the manufacturingplant. Otis Technology is now thelargest employer in its part of the county.The company is also unique in that itremains a vertically integrated company,with some 31 work centers on the floor.“We produce 90% of what we kit,” saysMike York, director of operations. “As aresult, we have multiple work centers goinginto work-in-process, followed by work-inprocessgoing to other work centers.”Getting leanThe seeds leading to lean manufacturingwere planted in 2008, when thecompany added 22,000 square feet forthe unit and mini-load AS/RS. Prior tothat, raw materials, work-in-process andfinished goods were stored on the floorin the manufacturing area, in traditionalwarehouse racking or in an off-site warehouse,which was inefficient and costly.In 2009, a group of Otis Technology’smanufacturing operations employeesattended a White Belt class in leanMobile robots are saving Otis Technologyan estimated 94.2 hours a day in timeemployees spent walking back and forth.mmh.com Modern Materials Handling / F e b r u a r y 2 0 1 2 35

modern productivity awardsmanufacturing where they examinedthe non-value-added steps in their processes.That led to discussions aboutchanging the plant layout to set upprocesses closer to one another andimprove the flow through the facility.While these discussions were happening,an Otis Technology executivediscovered a system for mobile robotsthat could transport totes and containersand the laser-based guidance systemused to direct the mobile robots.Going live with roboticsMobile robotics was also an ideal technologyfor Otis Technology’s new leanmanufacturing strategy.In the old strategy, materials for aday’s production were stored in a workcenter and associates would retrievethe material as needed.Now, to eliminate wasted steps, themobile robots shuttle containers andtotes through the facility delivering kanbantotes and containers from the AS/RS to work centers in the manufacturingarea. When an item runs out, an associatepresses a call button for a mobile robot.When it arrives, the empty container, anywaste cardboard and a kanban card areplaced on one of the robots. The robotautomatically delivers these back to theAS/RS system.There, an associate scans a bar codeon a kanban card. That signals the AS/RS to retrieve and deliver the replenishmentitems. Meanwhile, the robotgets an opportunity charge. Once theproduct is delivered to the operator,it’s loaded onto the mobile robot anddelivered to a workstation.In addition, the robots are also usedto deliver work-in-process from workcenters to the AS/RS for temporarystorage; to deliver finished goods fromthe packing area to the AS/RS for temporarystorage; or from the line or theAS/RS to the shipping area.Down the road, if products or processeschange, there is an infrastructurein place to adapt. “All I have to dois add another robot,” says York. “I haveflexibility that I didn’t have before.”System suppliersMobile robots: ADAM Robots, adamrobot.comAS/RS: Daifuku, daifuku.comWMS: Accellos, accellos.comERP: Sage, sageproerp.com/productsLift trucks: Linde Material Handling, lmh-na.comBar code scanning: Motorola Solutions, motorolasolutions.comStretch/shrink wrap equipment: Belco Packaging Systems, belcopackaging.comWireless/IP phones: Cisco, cisco.comAppeared in the April 2010 issue. Read the complete article:mmh.com/article/otis_technologies_goes_lean_with_materials_handlingWarehousing/distribution winnerOriental Trading Company:A warehouse under controlThe large, direct-to-consumer retailer’s new warehouserelies on a sophisticated warehouse control system to pickup to 400,000 items a day.As the nation’s largest directto-consumerretailer of valuepricedparty supplies, toys andnovelties, Oriental Trading Company(OTC) is best known for products associatedwith fun and games. Perennialbestsellers like whoopee cushionsreflect the play. The company’s new750,000-square-foot distribution centerin LaVista, Neb., reflects the hardwork. When the facility went live in2007, OTC transitioned from a conventional,paper-driven DC to a highlyautomated facility that manages morethan 30,000 SKUs. In 2010, the facilitypicked and packed 78 million unitsa year.To hit those numbers, OTC implemented:• a 250,000-square-foot fulfillmentarea featuring a three-level mezzanine,• voice recognition technology toautomate picking,• a sophisticated double-density tilttray sorter and conveyor system thatfeeds 600 packout stations, and• a secondary sortation system todeliver packages to carrier trailers.The engine behind those improvementsis a warehouse control system(W&H Systems, whsystems.com) thathas taken on many of the functionsmore typically associated with a warehousemanagement system (WMS).In addition to controlling conveyorand sortation systems, the warehousecontrol system (WCS) optimizes pickingand packing waves, sends pickinformation to voice picking, anddirects the packout operations. TheWMS, meanwhile, is primarily incharge of inventory management andcommunication with the host system.The result has been an impressive45% increase in productivity and a 60%reduction in pick errors. Accuracy hasimproved from 99.25% to 99.9%.Party onFounded in Omaha in 1932, OrientalTrading continues to grow, employing3,000 associates, mailing nearly 300million catalogs a year and handlingmore orders for out of season productsoffered on the Web compared to catalogcustomers who ordered from whateveritems were offered in the book.A typical order consists of six to36 F e b r u a r y 2 0 1 2 / Modern Materials Handling mmh.com

modern productivity awardsseven line items and 14 units that werebeing picked across 24,000 possibleSKUs. With those order profiles, thepaper-driven, pick-to-cart fulfillmentprocesses in the old facility were manualand physically taxing.“In our old facility, we had a capacityfor about 24,000 SKUs,” says DeonWagner, director of warehouse operations.“We simply didn’t have the roomto add the new SKUs that our merchandisingteam wanted to bring in tocontinue to grow our business.”The combination of physical constraintsand the physicality of the job led tothe design of the new facility. “We wantedto support SKU proliferation with a pickzone that could hold up to 50,000 SKUs,”Wagner says. “And we wanted to drivepick density in our picking processes tominimize travel distances and pick times.”Explode and assembleThe solution was a highly integratedand flexible picking methodology thatbrings together an order managementsystem, WMS, WCS, conveyor andsortation system, and voice recognitiontechnology to find the optimal way topick and assemble a wave of orders.With this new ‘explode and assemble’methodology, orders still begin at theWMS, but the system creates a wave of8,000 to 10,000 orders and 100,000 unitsto be picked. That wave is passed to theWCS which determines the best wayexecution based on the order profile, itemlocations and the sorter workload.The WCS creates four picking andpacking subwaves; picking assignmentsare assigned to an induction location onthe double-density tilt tray sorter, andorders are assigned to a chute leadingto one of 600 packout locations.The WCS plans the work based onseveral criteria. It looks at which itemswill consume the entire contents ofa case. Those tasks are sent to a casebreak area. The idea is that associateswill pick by location rather than fill allthe items of an individual order. Thatway, a location is only visited once foreach wave.While picking, associates aredirected by the voice system to pickto up to 16 different totes until a caseis consumed. Filled totes are held in apick module until the sorter is ready forItems are picked to totes from a number of different picking zones and thenconveyed to one of the sorter induction areas, where they are placed on thetilt tray sortation system.a subwave. Then the associate releasesa tote to the takeaway conveyor, whichsends it to an induction point.That’s the explosion piece. For theassemble part, the tilt tray sorter identifiesthe items for a single order andsends them to a packout chute. After anorder is packed into a shipping container,it is conveyed to an automatic tape andsealing sorter and scanned again. If thecarton is 100% complete, it is sorted toan automated tape-sealing machine andcontinues to the shipping sorter.Smooth transitionThe transition to automation was smooth.Associates have gone from walking manymiles a day to less than one, which hassignificantly reduced staff turnover.What’s more, associates are cross trainedto ensure execution of the wave plan.But the most important benefit maybe for OTC’s DC to support 50,000SKUs in the future.System suppliersSystem design, integration andwarehouse control system:W&H Systems, whsystems.comWMS: Interlink Technologies,interlinktech.comConveyor/tilt tray sortation:Beumer, beumer.comConveyor/sortation: Intelligrated,intelligrated.comVoice recognition technology:Lucas Systems, lucasware.comPicking rack and mezzanine: UnarcoMaterial Handling, unarcorack.comPallet racking: Interlake Mecalux,interlakemecalux.comLift trucks: Crown Equipment Corp.,crown.comBar code scanning: MotorolaSolutions, motorolasolutions.comRadio frequency system: Psion,psion.comAppeared in the September 2010issue. Read the complete article:mmh.com/article/oriental_trading_company_gets_its_warehouse_under_controlmmh.com Modern Materials Handling / F e b r u a r y 2 0 1 2 37

modern productivity awardsinnovation winnerCoca-Cola Refreshments U.S.A.New take on voice technologyTo revitalize its distribution processes, Coca-ColaRefreshments U.S.A. implemented a VoIP-based voicetechnology that enables 3,000 warehouse associates in100 facilities.Everything about Coca-ColaRefreshments U.S.A. (CCR),the subsidiary that manufacturesand distributes Coca-Colaproducts in North America, is big.The company is the largest manufacturerand distribution point in the worldfor the largest soft drink producer in theworld. CCR manages some 600 Coca-Cola brands and thousands of differentbeverages, producing 5.3 billion casesa year. It has some 65,000 employeesworking in 630 facilities around thecountry and makes more than50,000 deliveries a day with afleet of 30,000 vehicles.And some 3,000 of thoseemployees, working in 100facilities that each handlesmore than 7.5 million cases ayear, are directed by a voiceover Internet protocol (VoIP)voice recognition system(Datria, datria.com) whenthey are picking orders.Yes, one voice system.And CCR intends to enablemore workers across theenterprise and more tasksdown the road. “Basically,anything you can do on akeyboard in our SAP enterpriseresource planning(ERP) system can be donein voice, including pickingand putaway, shipping, anddirecting our drivers and servicetechs in the field,” saysRick Gross, director of supplychain development.The results are big: “Weare maintaining the 99.8%shipping accuracy that manyof our large customers require, andwe are 100% accurate in a number ofour facilities,” says Mike Jacks, CCR’ssenior manager of logistics systems.Here’s how CCR decided on a VoIPsolution and why this unique approachmeets its needs.Driven by accuracyFor more than 100 years, the Coca-Cola bottling system in North Americarelied on a manual pick operation.Order selectors swiped an ID card atCCR’s voice system uses VoIP phones.a kiosk to receive a paper printout oftheir work assignments. Filling ordersmeant pulling full pallets from a storagelocation and delivering them to theshipping dock.But, full pallets are no longerCCR’s operating environment. Overthe last decade, beverage producershave added more products in morepackaging configurations. At the sametime, retailers want mixed pallets withenough of each product to satisfydemand in the short run. And, theyincreasingly demand accuracy rates ofup to 99.8%, as shippers pay dearly fororder mistakes.With 80% of its volume being mixedcase pallet loads, CCR’s warehouseshad manual handling and throughputissues. Additionally, complex orderrequirements made it more costly tomaintain the accuracy rates required byCCR’s biggest customers.Selecting voiceIn 2007, CCR began to investigatetechnologies to improveaccuracy without sacrificingefficiency. Since they wanteda solution that allowed headsup,hands-free operation by theorder selectors, voice seemed tomake the most sense.The company’s initial investigationled it to the leadingproviders of traditional voicesolutions for the warehouse aswell as tours of food warehousesusing traditional voice solutions.At the same time, CCR hadmade a corporate commitmentto a VoIP infrastructure for itsbusiness. Then, CCR’s strategicpartners for its voice infrastructuredecided to create their ownsolution.In the spring of 2007, severalCCR team members attendedSAP’s user conference wherethey learned about Datria’s VoIPvoice solution. That was followedby a challenge to the voiceprovider to develop a server-38 F e b r u a r y 2 0 1 2 / Modern Materials Handling mmh.com

modern productivity awardsbased solution that would integratewith SAP, deliver instructions to workerswithin CCR’s workflow structure,use off-the-shelf hardware and leverageCCR’s existing VoIP infrastructure. Sixweeks later, Datria came up with anapplication.Going live with voiceThe primary difference between CCR’ssolution and a traditional voice solutionis where it resides. In a traditional voiceapplication, an instance of the softwareresides on every operator’s mobile computer,which is typically worn on a belt.In a VoIP solution, one instance of thesoftware is loaded onto a central server.Instead of a mobile computer, a mobileworker dials into the solution with aVoIP handset—in essence, an industrializedcell phone.Where many voice solutions useproprietary mobile computing devicesand headsets, a VoIP solution workswith off-the-shelf handsets. These areless expensive, but there is a tradeoff.A company may need to build out aWiFi infrastructure to accommodatethe VoIP solution. Indeed, CCR realizedit would have to provide additionalaccess points in each facility to workwith the new system. However, sinceCCR had already committed to VoIPon a corporate-wide basis, most of theinfrastructure was already in place andpaid for.Despite Datria’s quick turnaround,CCR wanted to prove the solutionbefore committing to an approach thathadn’t ever been done on this scale.The bottler launched two 60-day pilotsand had enough data to commit evenbefore the second concluded. CCRidentified 23 sites for the initial roll outand organized four deployment teams.The actual deployments got underwayin September and by the end ofDecember, 25 sites were up and running.By the end of 2008, it was up andrunning in 100 facilities.Now that picking operations havebeen enabled, CCR is developing astrategic roadmap for extending voice toother processes in its distribution andlogistics operations, like route deliveryand field service. MSystem suppliersVoice recognition technology:Datria, datria.comERP: SAP, sap.comVoice mobile devices: Cisco,cisco.comElectric pallet jacks: Cat Lift Trucks,cat-lift.comAppeared in the March 2010 issue:Read the complete article: mmh.com/article/cokes_new_take_on_voice_technology/D1Now from Aigner: Slip•Strip, theMost Versatile Label-Holding SystemIdeal for all rack and shelvingapplications, self-adhesiveSlip•Strip adheres to anyclean surface.Slip•Strip features a uniquebottom-loading design. Barcodes, price displays, signs andmessages slip easily through theopen edge and are held snuglyin place. Repeated label changingwithout messy adhesivebuildup is simple! Slip•Strip hasa clear face for easy reading orscanning. The white backgroundprovides a neat, clean appearance.It can be used in its full36” or 48” length or easilyscissor-cut to size. Six standardwidths accommodate labels from¾” to 3” high, with 6 per package.Magnetic, hook/loop backings,and custom-cut lengths availableon special order.Call for a FREE Catalog or Samples!Aigner Index, Inc.218 MacArthur AvenueNew Windsor, NY 12553Tel: 1.800.242.3919Fax: 845.562.2638info@aignerindex.comwww.aignerindex.com

modern productivity solutionBy Lorie King Rogers,Associate EditorVoice technologyspeaks to workersPet Supermarket installs a voice-directed picking solutionto create a best in show distribution center.Pet Supermarket is a growing pet retailer with120 stores across the southeastern UnitedStates. With new store openings and increasedsales at existing locations, the company’s distributioncenter in Sunrise, Fla., was facing rising shippingvolumes and workloads.The DC was growing beyond the capacity ofa paper-based picking process that restricted efficiencyand generated more than 1,500 sheets ofpaper a day. The process also generated clericalwork for three full-time associates, and made it difficultfor supervisors to manage daily production.“We couldn’t keep producing this mountain ofpaper, and using paper and clipboards slowed usdown,” says Mac Whetsel, vice president of operations.“In the ‘dog pound’ (a pallet rack sectionwhere large sacks of dog food and similar productsare picked), guys are slinging 40-pound bagsof dog food, so they’d have to put their clipboarddown every time they needed to grab something.”Growth also caused financial challenges. If theDC’s picking volume exceeded 45,000 a day, overtimepay kicked in. Pet Supermarket wanted a solution tohandle its growing demands without paper and withoutadding to staff and payroll.The company selected a hands-free, voicedirectedpicking solution (Lucas Systems, lucasware.com)that includes productivity, managementand speech recognition platforms. Thespeech platform was particularly important, sincePet Supermarket’s DC employs people from morethan 30 countries. The productivity module gives40 F e b r u a r y 2 0 1 2 / Modern Materials Handling mmh.com

modern productivity solutionmanagers a handle on individual and area-by-area productivityrates in real time. The systems also provideimmediate picking status so workers can be movedfrom one pick area to another to ensure picking efficiencyin all areas.The dog pound, which was the first area to start productionpicking with voice, was up and running flawlesslywithin days. “In less than two weeks we had thewhole warehouse running on voice,” says Whetsel.Since moving to voice, the same number of pickerscan pick one-third more pieces, more than 60,000 piecesper day without overtime.Green orderpickingin the GreenMountainstateVermont’s Burlington Drug Companyturned to a voice solution to createa greener picking process and savesome green on its bottom line.The Green Mountain State takes its “green” statemotto very seriously, and so does the BurlingtonDrug Company. Based in Milton, Vt., Burlington Drugwas founded in the late 1800s and has evolved from asmall manufacturer to a wholesale pharmaceutical businessthat ships pharmaceuticals and convenience storegoods to more than 1,000 locations in eight states.The company had been using a paper-based pickingprocess to fill orders, but that was expensive and createdan excessive amount of documents each year. Theprocess was also inefficient because it took about two tothree hours to sort through paperwork before productscould be moved out of its 170,000-square-foot warehouse.So, the company wanted to find a system thatwould improve pick accuracy and productivity whilealso honoring the company’s commitment to eco-friendlyenvironmental practices.It chose a voice-directed picking solution (Voxware,voxware.com) that provides all of the features thatBurlington Drug required, including environmentalbenefits that shrink its carbon footprint and efficienciesthat cut its operational expenses.“We decided to go with voice not only for theincreased order accuracy and production that wewould get out of it, but for the cost savings on paperas well,” says Jay Mitiguy, Burlington Drug’s assistantvice president.The company has saved more than one million pageseach year, savings about $100,000. The new system hasalso reduced costs and created productivity-driven laborsavings. Burlington Drug’s productivity is up 20% andit’s picking at 99.95% accuracy.Mitiguy says the company knew quickly that this wasa good decision. Not only has the company has experiencedincreased order accuracy and increased productionlevels, the system’s software allows the companyto implement internal business process changes quicklyand efficiently.mmh.com Modern Materials Handling / F e b r u a r y 2 0 1 2 41

modern productivity solutionVoice technologyimproves pickingsouth of the borderMexican supermarket chain installs voice technology toensure timely and accurate delivery of grocery orders.By Author Name, Author TitleText MTiendas Comercial Mexicana is the third-largestsupermarket chain in Mexico, with stores inmore than 50 cities. Founded in 1930, the companyhas built a strong public reputation for communitysupport, quality stores and product selection.Inside its four distribution centers, however,Tiendas Comcerial Mexicana was struggling withinefficient picking operations. A paper picking systemin its dry goods DC and a RF scanning pickingsystem in its perishables DC were contributingto incomplete and inaccurate orders. While pickingorders, operators often fumbled with the RFdevice or paper, which made it difficult to followestablished picking processes.When the company established a new perishablesfacility in 2009, it also took a fresh lookat technology for its existing DCs. The companychose a voice-directed, hands-free solution(Vocollect, vocollect.com) to help the performanceof its picking operations across the board.“The most important goal for us is to continuouslyimprove our service levels to our 200 stores.So we needed to become as efficient as possiblein throughput, velocity and product cost,” saysCarlos Ramos, corporate logistics director.The solution helps associates ensure timely,correct orders by eliminating paper and scanningdevices. The voice system also proved effective inrecording the weight of items like meat and frozenproducts. Rather than reading and typing inthe weight, workers dictate the information directlyinto the system. The simplified catchweightcapture process has realized more than 50% inimprovements over manual processes.Workers reached full operational capacity injust two days and helped the company exceed itsproductivity and accuracy goals. Picking productivityis up by 25% over RF scanning in the perishablesDC and by more than 50% over paper in thedry goods DC. And, order accuracy has increasedfrom 98% in the dry goods facility to 99.6%“The customers have definitely noticed ourfaster and more accurate response times to meettheir needs,” says Ramos, “which has helped usgrow and maintain our competitiveness duringchallenging economic times.” M42 F e b r u a r y 2 0 1 2 / Modern Materials Handling mmh.com

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MODERN special reportDecoding the mysteriesof fleet managementLift truck owners want it and are ready to spend money on it—but they’re not sure exactly what it means. These guidelines willhelp take the mystery out of implementing a comprehensive fleetmanagement program from start to finish.By Josh Bond, Editor at LargeV“Visibility” is the buzzword these daysamong supply chain circles, whileinside the four walls the concept of “lifttruck fleet management” has quicklybecome the Holy Grail for savvy managerslooking to get a better handleon costs. Amid the scramble for both,traditions are being challenged, businessrelationships are becoming morenuanced, and new products, servicesand technologies are emerging at arapid rate.And while establishing a comprehensivelift truck fleet managementprogram can seem like a surefire sourceof savings and transparency, fleet mangershave encountered a few misconceptionsand miscommunications alongthe way. To help overcome the earlymissteps, industry experts and manufacturersare now working to ensurethat fleet managers are aware of theopportunities and pitfalls associatedwith a more structured—or more flexible—approachto fleet management.According to Scott McLeod, presidentof independent lift truck fleetmanagement company FleetmanConsulting, the heart of fleet managementis identifying and managing eachlift truck’s operating cost per hour.McLeod says that there are more than40 separate costs associated with a lifttruck, including fuel, depreciation,operator costs, and even the impact ofaisle design and warehouse layout on alift truck’s operation.“Once you figure out those costs,you can determine if there are betteroptions available,” says McLeod.“Customers might feel that there’s onlyso much time in a day, and lift trucksare at the bottom of their to-do list. Butif they have to do it, they just might findthat there are thousands—if not hundredsof thousands—of dollars to save.”But where do you start? Who shouldbe involved? How should it be implemented?“It’s about peeling back theonion,” says McLeod. “If you do thebasics well then you’re ahead of 80% of44 F E B R U A R Y 2 0 1 2 / MODERN MATERIALS HANDLING mmh.com

Daniel Guiderathe companies out there.”To help readers gain some ground,we’ve created a set of guidelines fornavigating the adoption of an effectivefleet management program with thehelp of a panel of consultants, suppliersand end users. No off-the-shelf solutionwill work for everyone, but thesepractices will help fleet managers avoidwasting time and money as they reconnectto their fleet’s true costs.1) Understand what it isAccording to Nick Adams, businessdevelopment manager for theMitshubishi Caterpillar Forklift America(MCFA) fleet services group, fleet managersshould not fixate on assuming fleetmanagement has a single definition. “Alot of people will tell you that fleet managementmeans a full maintenance contract.That’s not necessarily true. Theyalso say fleet management will alwaysproduce cost savings. That’s also not true.Like any product, it’s a set of tools thatyou have to use correctly to get savings.”Michael McKean, fleet managementsales and marketing manager for ToyotaMaterial Handling, says it’s imperativethat fleet management not be confusedwith other capital expenses. “The companymight have five projects on theagenda, like a new roof or a new dock,”says McKean. “But those are just projects.Materials handling equipment isnot a project, it’s an essential part of awell-run business.”2) Know your needsA well-run business will pay attentionboth to its customers and to its statusas a customer, according to Adams.“You have to understand your requirementsrelative to your assets,” he says.“Two people may order different thingsfrom the same menu based on budgetand tastes, and both are good meals.”Before pursuing a third-party maintenanceagreement or new equipment,McLeod advises customers take stockof what they have and what it’s cost-mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 2 45

MODERN special reporting them. “I’ve seen operations with15-year-old trucks so well maintainedthat it makes sense not to upgrade,” hesays. “Other places have trucks that arethree years old and are a disaster.”Jason Bratton is vice presidentof business development for BEBIndustrial Asset Management, a thirdpartyforklift fleet management company.Bratton says that each customermight have its own preferences for howto do business. “Third-party invoiceconsolidation works for some but notfor others,” says Bratton. “End userseither find they need that service orwould rather keep control over it forother reasons.”According to Patrick DeSutter,director of fleet management forNAACO Materials Handling Group,customers need to understand theirasset mix—especially short-term rentalsthat have overstayed their welcome.“You need an enterprise-wide mindset,”says DeSutter. “A series of separate programsmight not be working toward thecommon good.”3) Communicate, communicate,communicateCommunication is often the single bestway to ensure progress toward the commongood. And it’s important to communicatenot just with your fleet managementpartner, says Bratton, but alsowithin your organization. “It’s criticalfor the success of a rollout,” he says. “Ifwe’re calling a site to begin a preliminaryfleet assessment and the first timethey’ve heard about us is from us, that’sa problem.”Effective communication is aboutmore than memos. A discussion ofmotives and objectives with a fleetmanagement partner will help a customerlater evaluate the service. Andcommunication within a companygenerates enterprise-wide buy-in thatcan be essential for the success of theprogram. A new fleet managementprogram is unlikely to succeed if it’sas fractured and disconnected as theproblem.4) Don’t change too quicklyInitial communications can brace anorganization for change. But as fleetmanagers work to identify costs, it’sessential to collect data at a manageablepace and to react to the data with incrementalsteps, not sweeping change.“In fact, some clients should notchange anything in the first threemonths,” says Bratton. “It allows yourfleet management partner to establisha baseline. Let’s not go in guns blazing,saying we need to change this, firethem, buy these trucks.”Depending on how well-capitalizeda customer is, rapid change might notbe a problem, says McLeod. A customermight instead plan to evolve overfive or more years if it doesn’t have thecapital to swap an entire or partial fleet.“Take things in bites, with a methodicalapproach and frequent pauses to reviewgoals and progress,” says DeSutter.Once a customer has established abaseline it can then address things likeavoidable damage caused by either theoperator or the facility design. “Thesecan be significant costs,” says DeSutter,“as high as 25% to 35% of the lift truckmaintenance spend.”5) Put a maintenanceprogram in placeToyota’s McKean says that he understandswhy lift truck retirements,replacements and rotations often getshuffled to the bottom of the prioritylist. “For facility managers, their priorityis not managing lift trucks—it’s movingproduct,” he says. “So, as long as the lifttrucks are getting that done, that’s goodenough for many people.”However, this can lead to a reactiveinstead of proactive approach to thingslike maintenance costs. “The problemis that many people only recognize adowntime problem if they happen tohave a half dozen lift trucks in the shopat one time,” says Jim Gaskell, directorof Global Insite products for CrownEquipment. “All trucks need maintenance,all of which must be managed,not just when it becomes a big enoughproblem to be visible.”By that time, the negative impactwill become visible elsewhere as well, asproductivity and throughput suffer. “Anyimprovement in maintenance efficiencywill also improve the main goal of productmovement,” says McKean. “Fleetmanagement should be employed at alllocations, but it’s not. More customersneed to rely upon a fleet managementtool to manage their fleet.”6) Control costsTo budget effectively you need to lookat maintenance costs and lock them in,says Fleetman’s McLeod. “The worstsituation any lift truck user can get intois a pay-as-you-go maintenance program.As soon as you do, you can beheld hostage by the dealer.”McLeod also recommends thatcustomers negotiate fuel contractsand lock in those costs as well, eitherat a fixed rate or by tying costs to a46 F E B R U A R Y 2 0 1 2 / MODERN MATERIALS HANDLING mmh.com

commodity. “So many customersseem happy enough to get chargedby the batch, and three or four outof five will say that they don’t evenknow what they pay per pound or literfor fuel,” says McLeod. “Get threeor four propane suppliers bidding onyour business and you’d be amazed atthe savings.”7) Take out the emotionEmotion-based decision-making cantake many forms, says BEB’s Bratton.When a customer buys a lift truckbecause that’s what their predecessorsdid in the past, he adds, that’s an emotionaldecision.“An employee’s under-performancemight be about data and it might havemeasurable solutions,” says Bratton.“But firing that person is an emotionaldecision. You might be able to use thedata and fix, not fire.”Making decisions with data ratherthan emotions can mitigate the apprehensionmany facility managers may feelat the idea of involving a third party, addsMcLeod. “The people tasked with fleetmanagement are usually the ones wholeast want to do it,” he adds. “They thinka third party will prove they’ve beenwasting resources, or that they had noreal grasp on their costs to begin with.”Facility managers often worry aboutan outside company finding somethingthey should have found, says Bratton.A good fleet management partner, addsBratton, is not a whistle-blower, but ateam member who can shine a light onproblems and best practices for all to see.8) Lift trucks can’t be maintainedforeverWhether by design or by accident, toomany facilities maintain old lift trucksOwens & Minor finds partner for relocationChris Wroblewski, general managerof the Dallas division of medical productsgiant Owens & Minor, says thestressful moments of early 2010 arenow just a fading memory. The transitionof a new customer required acompletely new 238,000-square-footdistribution center by May 2010.“And we were informed of thetransition in January of 2010,” saysWroblewski. “Put yourself in myshoes and you can imagine I wasconcerned.”After a 48-hour move requiring190 people, 300 truckloads of material,and a double-sized fleet of 80 lifttrucks, the facility went live in May2010—just 78 days from conceptto completion. “We finished operationson Friday and moved the entirebuilding over the weekend,” saysWroblewski. “We were operationalon Monday.”After the move, Owens & Minorwanted to take the opportunity toimprove its lift truck fleet. With the helpof Malin, an integrator of materials handlingequipment, systems and services,Owens & Minor improved visibility byinstalling a fleet optimization solutionfor its lift equipment. Among otherefficiencies, the new technology helpedright-size their fleet (The RaymondCorp.) for a reduction of $12,000 peryear in lift truck optimization.Wroblewski says the solution isworking remarkably well, especiallyconsidering the initial concerns ofsome of his internal teammates.“They were skeptical of disruptingoperations or including costs thataren’t needed,” says Wroblewski,who adds that a pilot programhelped allay those concerns.“Suddenly they had hard data thatshowed that there were gaps of idletime in our operations. What wasperceived to be a painful process wasseamless and painless and has helpedus improve our productivity.”After moving into a bigger location, this Owens & Minor facility reducedannual lift truck fleet spending by $12,000.mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 2 47

AutomatedVerticalStorage SystemsIt All Adds UpTo VALUEMODERN special reportuntil they no longer provide any value.“Set realistic life cycle goals for yourfleet, like seven years instead of 20,”says Gaskell. “Draw a line in the sand.Anything older than 10 years will getreplaced.”Otherwise, says Gaskell, companiescan get stuck pumping lots of moneyinto aging equipment. “A 10-year-oldtruck might not have cost much up tothat point, but if it should suddenlyneed $3,000 in repairs, then the customersays, ‘Well, I just put all thismoney into it. Maybe I should keep it.’”Gaskell refers to a program Crowncreated for a specific customer called“No Truck Left Behind.” The programrequires that when a delivery driverdrops off a new lift truck at one of thecustomer’s facilities he must pick upthe old truck before he can leave.“Fleet managers used to say thatthey’ll keep it as a spare,” says Gaskell.“Then they’d have a change of heartwhen a report showed that they werepaying maintenance costs for the newone on top of the old one.”9) Not one size fits allOn the small scale, this tip is bestexemplified by what MCFA’s Adamscalls a “captive application,” when alift truck is required only for periodictasks, but is absolutely essential whenMBM seeks an inch, finds a mileThe quest for efficiencies turns up huge savings and increasedproductivity for food distributor.Small parts are expensive. Traditionalshelving eats up valuable fl oor spaceand exposes parts. What’s more, partscan be tough to fi 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 VALUEEight years ago, MBM Corporation, aleader in food distribution, partneredwith Crown Equipment and set outto find some answers. There was nocrisis, simply a notion that some efficienciescould be squeezed from afleet that MBM thought it was alreadyhandling rather well. Today, at thecompany’s 34 distribution centersacross the country, fleets are as muchas 22% smaller, and the companyhas cut equipment and maintenancecosts by 10%.Sean Bennett, director of financialoperations for MBM, says, “The mostsurprising element of fleet managementimplementation was learning allthe things we didn’t know we neededto know.”Before implementing a suite offleet tracking software, Bennett sayslift truck usage, cost and quantity wasunclear, with inconsistent or nonexistentinventory listings from one DC toanother.“Our idea of fleet managementwas simply looking at the generalledger for maintenance costs,” saysBennett, adding that MBM onceprocessed 15,000 fleet maintenanceinvoices annually.“Today we have just one invoiceper month,” says Bennett. “We knowso much more about what we spend,by DC, by truck type, by make andmodel, by parts and labor. We trackeach piece of equipment at the serialnumber level.”By taking a holistic approach,Bennett says MBM has lengthenedthe life cycle of its equipment by twoto three times, while enjoying lesscost, more productivity and morecompliance. For instance, when lifttruck inspections required pens andpaper, the form had to be legible,hand-delivered, photocopied, andfiled.“That’s kind of exhausting,” saysBennett. “Now, you log in, the formis stored electronically, and if theinspection reveals that the lift isn’tsafe, it automatically locks out andpings both management and maintenance.I would say the system easilycuts our time in half.”Lauyans & Company, Inc.1-866-LAUYANS (528-9267)USA Manufacturedmmh.com

its time comes. Utilization will be downby definition, and a fixed maintenanceprogram would clearly be excessive forsuch a lift truck.On the larger scale, decentralizedcompanies can get into trouble whenthey assume that there are quick fixesto a fleet’s needs. One-size-fits-all trucksmight work for some centralized companies,says Adams. Lift truck usage in aretail chain store in Kansas, for instance,is going to look much the same as onein Minnesota. A similar business mightbundle its locations and negotiate directlyfor an initial equipment purchase.“The fallacy is that decentralizedcustomers can round up volume andnegotiate, so they must be able to dothat on the aftermarket as well,” saysAdams. “It’s understandable. They’vegot a lot to do and they want an easywin so they can move on.”The problem is that maintenance programtemplates can be disastrous whenforced onto facilities with vastly differentusage and applications. But a fleet managementpartner can help a decentralizedcompany get some leverage with localservice providers. In fact, according toDeSutter, one of the most valuable thingsa fleet management partnercan provide is a thirdpartyaudit of service providerwork orders.10) Know whenenough is enoughAvoid a hunt for efficienciesfor its ownsake. Every companycan benefit from a better-runfleet, however,says McLeod, “There’sa point when it doesn’tmake sense to go furtherdown the path offleet cost control.” Thatpoint will become clearto anyone paying attention, he says. “Ifyou understand your entire business’scosts, then when you stop the bleedingin your fleet you might find that yourpostage costs, for instance, are whereyour attention can produce the bestreturns.”By opening windows into the tiniestcorners of a facility’s expenses,technology often encourages overcomplicationor excessive detail, saysMcLeod. “You don’t need to be comparinglight bulbs to save a fraction of akilowatt hour,” he says. “Nobody needsthat kind of detail to run their business.You just need the lift truck’s costper hour and to ask whether there arebetter options.”The chances are good that there arealternatives to the status quo that canimprove productivity, increase visibility,and save money now and later. Withclearly defined objectives and a deliberateapproach, any organization cantackle its fleet with confidence.“At the end of the day,” adds Adams,“fleet management shouldn’t interferewith what a facility is trying to get done.But, if designed well, it can be a valuabletool in creating cost savings.” BOOTH #3314...the name to trust!For more than 65 years, RIDG-U-RAKhas been the innovative leader instorage rack design and production.Whether you need replacementbeams or a storage system covering30 acres of warehouse space,RIDG-U-RAK is the name to trust.Trust RIDG-U-RAK with yournext project• One of the largest rackmanufacturers• Capacity in excess of 60,000 tonsper year• Project management andinstallation services• Full array of storagesystem solutions• Unparalleled innovation, designand application experienceFull LineSelection Guide& MoreToll Free: 866-479-7225www.ridgurak.comREG.#5150mmh.comSelective Pallet Rack • Drive-In • Push BackFlow • Pick Modules • Cantilever • Stacker CranesRoll-Out Shelving • Seismic Base Isolation

FOCUS ON AGVsCompact laserguidedvehiclehandles loads upto 2,640 poundsThe compact CB08 laserguided vehicle is offeredas an extension to thesupplier’s line of largervehicles to perform simpleoperations. Measuring 33.5inches wide, the unit handlesa single pallet or twohalf pallets with loads upto 2,460 pounds. Capableof supporting case pickingoperations, the vehiclepositions the pallet to the operator and directs goods requestson a standard mobile display. The pallet height adjusts automaticallyto provide the optimum level for placement of goodsby the operator. Completely electric, the system employs anavigation system that guides it throughout a facility. Elettric80, 847-329-7717, www.elettric80.com.Convert pallet trucks to AGVsCombining laser guided pallet trucks with a voice-directed system,LaserTrucks+ increases productivity by eliminating the nonvalueadded tasks associated with a typical case picking operation.The system upgrades pallet trucks to driverless operationsusing industrial grade laser guidance. At the start of an order, thevehicle delivers a new pallet directly to the picker, automaticallymoves with the voice-equipped picker as they verbally confirmpicks, and transports the completed pallet to shipping while thenext truck brings a new pallet to the picker. Case picking efficiencyincreases as operators can focus solely on picking. Dematic,877-725-7500, www.dematic.us.Automatically store, retrieve pallets inlights-out, narrow aisle applicationsFor storage and retrieval of pallets 46 inches wide and 54 inchestall, an automatic guided vehicle works in 70-inch narrow aislepallet handling applications. Thevehicle carries loads up to 2,500pounds in a fully automated, lightsoutwarehousing environmentby using several forms of guidanceincluding laser triangulation,inertial, spot and wire. Reachingmaximum storage heights of 303inches, the AGV includes a trilateralfork attachment so pallets canbe handled on either side of thevehicle. When combined in a system,vehicles communicate electronicallywith warehouse managementsystem software to acceptnew tasks and report completedtasks. JBT Corp., 215-822-4600,www.jbtc-agv.com.50 F e b r u a r y 2 0 1 2 / Modern Materials Handling mmh.com

Avoid AGV collisions with safety laser scannerTo avoid collisions in AGV applications, the OS32C type 3 safetylaser scanner is compact, with a 4-inch profile and weighing 2.9pounds, the device is easy to handle and install. It draws 5 wattsof power (3.75 watts in standby mode)for minimal battery load. The deviceremembers up to 70 zone set combinationsto support complex AGV paths indiverse layouts. Each zone set combinationprovides two warning zones of up to 32.8 feet that can beset to either make a warning sound or reduce AGV speed, andone safety zone of up to 10 feet that, if breached, will result inan emergency stop. A single unit provides 270-degree monitoring,or two units can be installed for front/rear monitoring or360-degree monitoring. Integrated Ethernet-based managementallows continuous monitoring of operating state. OmronScientific, 800-479-3658, www.sti.com.Lean manufacturingenhanced by mobile robotsEnhancing lean manufacturing practices,the ADAM autonomous delivery andmanipulation AGV is an intelligent mobilerobot that transports work-in-processand finished goods between locations.The system navigates in a complex, randomorigin to random destination productionenvironment, connecting islandsof automation with automated transportbetween random production cells. Thismakes it ideal for just-in-time deliveryapplications, while seamlessly adjustingto layout and facility changes. Theunit navigates around fixed and movingobjects without guide wires, reflectorsor transponders. A programmable soundsystem feature includes interactive voicemessages and a mobile vehicle in motionjukebox. RMT Robotics, 905-643-9700,www.adamrobot.com.We’re taking productivity to a wholenew level...By delivering the right products, to the right place, at the right time, ourautomatic guided vehicle systems (AGVs) will keep your operationsmoving at peak efficiency. Whether it’s...» Delivering raw materials or moving work-in-process in themanufacturing plant» Moving finished goods, packing supplies or waste materials, at theend of the line» Storing and retrieving raw materials, work-in-process, or finishedgoods in the warehouse» Or loading/unloading standard trailers at the dock doors...we generate productivity gains that flow directly to your bottom line.And with the world’s largest, most experienced team of AGV expertsworking for you, your productivity will soar.www.jbtc-agv.com215-822-4600Formerlymmh.com Modern Materials Handling / F e b r u a r y 2 0 1 2 51

FOCUS ON AGVsMotorized Storage &Retrieval SolutionsSpace Saving Vertical Storage• Bar Stock • Spooled Products • Tire Storage• Print Cylinders • Rolled Goods • Parts Storage“Storage & Retrieval Solutions Since 1986”Contact Us Toll Free at 1-800-210-0141or visit us online at www.vidir.comAGV integrates voiceorder selection systemIntegrating a voice orderselection system, AGVPickconsists of an automatic guidedvehicle built on a standardpallet truck platform anddirected by laser navigation.The system isoffered as an automaticsolution fororder picking, orderputting and transportationthat improves accuracy and productivityby eliminating non-productive pre- andpost-pick tasks. To eliminate batteryreplacement after every shift, the systemincorporates opportunity charging.Vehicles dock with the charger, absorbthe necessary charge at a high rate, andautomatically return to tasks. Versatile,the vehicle can work autonomously orcan also be driven as a manual truck.Single, double or triple pallet truck configurationsmay be specified. Swisslog,757-820-3467, www.swisslog.com.SAVETIMEWITH CREFORM AGVs.WITH CREFORM AGVs.Get lean by eliminating labor-intensive manned tuggers, forklifts or carts.Creform can help you automate your in-plant warehouse and production floormaterial handling. Our bolt-on AGV drives automate pipe & joint built carts andheavy-duty welded frame carts or just a few BST undercarriage AGV tuggerscan mobilize an entire fleet of carts. From simple back-and-forth operations toplant-wide systems, Creform can do it all.On time. Just in time. All the time. Saving time. Take a minute to give us a call.www.creform.com • 800-839-8823Create, alter AGV pathlayout with softwareQ-CANDesigner quick-configurable automationsoftware for a line of automaticguided vehicles and cart systems allowsindependent creation and modification ofAGV pathsand routingwithouttech supportfromthe supplier.Offered asa Windows-based PC program, the softwarecreates a model of a non-wire AGVsystem. To aid in the creation of a layout,the system includes graphical tools inan easy-to-learn format with integratedmanuals, training ware and help menus.Program features include automaticplant layout drawing file import function,CAD drawing tools, layout verificationand testing, system demonstration andfile export of vehicle software. SavantAutomation, 616-791-8540, www.agvsystems.com.52 F e b r u a r y 2 0 1 2 / Modern Materials Handling mmh.comCRE-392 4.5x4.625.indd 11/18/12 3:12 PM

Narrow aisleAGV equippedwith opportunitychargingFor delivering kitted partsto its assembly lines in amixed assembly productionfacility, an unmannedautomatic guided vehiclesystem incorporates aseries of carts towed by the Tite-Space BST AGV. With aminimum turning radius of 17.5 inches, the AGVs easily navigatetight turns and narrow aisles while following a magnetictape path. Equipped with an opportunity charging modulethat interfaces with a charging station through an opticalcommunication device and charging probes, the AGV runs24/7 without end-of-shift battery changes. The carts featuremodular pipe and joint construction, and have cantedshelves for loading ergonomics and proper presentation atthe point of use. Each shelf cart holds several boxes of kittedparts and can be easily modified. Creform, 800-839-8823,www.creform.com.Device automates standardforklifts, improves AGV controlFor automating standard forklifts or improvingvehicle control on AGVs, the compact CVC600vehicle controller is offered. Based on industrystandardtechnology that can handle anyvehicle type, wheel configuration and navigationtechnology—including laser, spot, range, EyeWay, magnetictape or inductive wire—the controller measures 49.2 x 19.7 x77.6 inches. It supports WLAN, LAN, CAN and RS232/422/485communication for flexible customization and implementation.The system works with 24- to 48-volt battery-powered vehiclesand features built-in under voltage, over voltage and reversepolarity protection. Energy efficient, the controller consumes amaximum of 5 watts of power and is rated for use in temperaturesranging from -4 to 131 degrees Fahrenheit. Kollmorgen,540-467-3086, www.kollmorgen.com/agv.AGV follows self-adhesive magnetic pathTo reduce operating costs and increase efficiency with automation,a low-cost automatic guided vehicle is capable of maneuveringand towing loads throughout a production space. Thesystems can be controlled with traffic control navigation software.The line includes AGVs with capacities ranging from 500to 4,000 pounds. Features include multiple path programming,retractable towing pin, remote communication, and optical sensorsthat can be programmed for different zones to allow safeoperation near pedestrians and in confined spaces. For simplesetup with no floor modifications, the AGVs follow a self-adhesivemagnetic tape. Toyota Material Handling USA, 800-226-0009, www.toyotaforklift.com.SustainableDesign-Build SolutionsFLEXIBLE FINANCE SOLUTIONSON FABRIC STRUCTURES *TERMS UP TO 7 YEARS RATES AS LOW AS 4.99%AS LITTLE AS 10% DOWN *Subject to credit approval.fabric structures Buildingsavailable up to300' wide.Low in cost persquare foot.Natural daytimelighting.Easy to relocate.Expandable.Little or noproperty taxes.Call one of our ClearSpan specialists at 1.866.643.1010or visit us at www.ClearSpan.com/ADMMH. mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 2 53

ivek.u-y-wsFors,yx-contents from dirt and damage. Molded Fiber GlassTray Co., 800-458-6050, www.mfgtray.com.POWER TRANSMISSION-PART CONVEYINGPYRATHANE ® BELTSWith Lifetime Warranty Against Manufacturing DefectsSamples available at little or no cost • Colors AvailableVery Clean in Operation • Eliminates Tensioning DevicesExceptional Abrasion ResistanceCUSTOM MADE IN INCH, METRIC & O-RING SIZESRound, Flat and Connectable Polyurethane BeltsAN ISO 9001CERTIFIED COMPANYLINE SHAFTCONVEYOR BELTSORIGINAL EQUIPMENT & CONNECTABLETry ourPYRATHANE ® BELTSon your conveyor; they havebecome the standard of the industry.www.pyramidbelts.com(P) 641.792.2405 • E-mail: sales@pyramidbelts.com522 North Ninth Avenue East, Newton, IA 502082/9/2010 1:05:37 PMProduct ShowcaseMobile printers deliver fastprint speeds, versatilityDelivering print speeds of up to 5inches per second, the RuggedJetprinter uses efficient mobile technology,allowing fast throughput to boostproductivity. Versatile, the system canbe used for a range of printing applicationswith output sizes from 2 to 4inches, making it ideal for warehousesand manufacturing. Labels can be printed anywhere withoutneed of a centralized printer, increasing efficiency and reducingerrors caused by misidentification and mislabeling. The devicefeatures IP54-certified construction to remain impervious towater or dust and survive 6-foot drops, easy-to-load media,intuitive interface controls, direct thermal printing withoutuse of ink or toner, and wireless connectivity. Brother MobileSolutions, 800-543-6144, www.brothermobilesolutions.com.Rider pallettruck sportspowered rollerconveyorA powered roller conveyortransport riderpallet truck offers fastdelivery and/or pickup of containers on powered or gravityflow conveyor lines. The modified truck accommodates poweredroller decks measuring up to 50 x 48 inches on 60-inchforks. Capable of handling on-the-fly vertical travel and 5,000pounds maximum load capacity, the device’s conveyor unitincludes 24-volt DC power. Additionally, the conveyor featuressolid state motor speed control with over-current protection,continuous load stop bars (right-left) with heavy-duty actuatorsand proximity switches, an enclosed chain drive, and 2.5-inchdiameter rollers. Kinetic Technologies, 440-943-4111, www.ktecinc.com.Sustainability quotient programUL Environment, a business unit of Underwriters Laboratories,has launched a sustainability quotient program to provide a comprehensivesystem of assessing, rating and certifying the sustainabilityinitiatives of corporations at an enterprise level. Based ona series of auditable standards, including “UL 880: Sustainabilityfor Manufacturing Organizations,” the program encouragesthe adoption of a common language and rating platform forcorporate sustainability that may also be used in risk mitigation,streamlining operations, and early action in anticipation of futureregulation. UL Environment, 888-485-4733, www.ulenvironment.com,www.sustainabilityquotient.com.54 F e b r u a r y 2 0 1 2 / Modern Materials Handling mmh.com

Print UV-resistant adhesive labels fromdesktop printerPrintable from a standard laser or thermal-transfer printer,CILS-9100HD high-performance durable labels areUV-resistant. Ideal for demanding outdoor industrial environments,the material eliminates the risk of labels fading,discoloring, cracking or detachingunder long-term UV exposure, whilesafe guarding equipment’s uniquedata. Variable data can be added inminutes, making the labels perfectfor on-demand or mass-batch printing.A high-tech, computer-printable coating ensures dataremains legible during exposure to extreme temperatures,abrasion or severe weathering. The material’s heavy-dutyadhesive provides a permanent bond to all smooth, textured,powder-coated and oily surfaces. CILS International,877-512-8763, www.cils-international.com/usa.Packaging innovationsenhance wire and cableshipping, stock keepingTo make reels of copper electricalbuilding wire and cable easier to handleand safer to ship—while improvinginventory and stock keeping—theycome labeled with large tape indicating the wire size for easierviewing from a distance. Wire size is also printed directly onthe wire in a large format to improve identification. Itemsplaced on a pallet of mixed goods are organized with sameproducts grouped together. Marked with an itemized label,which includes a piece count for that pallet, verifying inventorywith shipping manifests is more efficient. Bar code scannersensure a high rate of accuracy in the picking process. CerroWire, 256-773-2522, www.cerrowire.com.Telescopic roller conveyor amplyshielded to prevent injuryThe RollerTrack telescopicroller conveyor offers optionalfeatures to meet uniqueapplication requirements.Using the natural force ofgravity, parcels travel overthe ABS or PVC rollers along the length of the conveyor. Rollers,fitted with ball bearings and a dual chain system, supply thetelescopic movement and enable the loader to extend andretract for safety. To further protect employees and packages,a front safety impact detection device stops the conveyor if itcomes into contact with an object. The frame is constructed ofhigh strength steel and all moving parts are protected. CaljanRite-Hite, 800-338-1751, www.caljanritehiteus.com.12’ and 16’ box trucks:• Model year 2008 Ford and GMC• Warranty included• Maintenance history reports• Financing availableGet the truck you needAnd save $1,500Call now for details and mention promo codeHC1011. Offer expires 3/31/12*Offer valid only on new purchases of Penske used 12’ and 16’ box trucks, cannot beapplied to previous sales.gopenske.com/ad/mmh888-432-8451ECONOMIC • STRONG-SPACE SAVINGEXPORT PALLETSAS LOW AS US$5.00 EACH(24″x40″ in quantities, FOB origin)COMMITTED TO EXCELLENCE SINCE 1962LITCO INTERNATIONAL INC.855-296-2891 •info@litco.comwww.litco.com/IOPPTESTED PER ASTMSTRONG AND DURABLEIPPC-ISPM 15EXPORT READYUSE IN PLACE OFPLASTIC AND HT WOODSUSTAINABLECRADLE TO CRADLECERTIFIED cm SILVERMANY STANDARDSIZES AVAILABLEPRESSWOODPALLETSMULTI ORIGIN SHIPPINGLOCATIONSmmh.com Modern Materials Handling / F e b r u a r y 2 0 1 2 55

Rolling your wayto a cleaner, safer,more productiveworkplacewww.powerpusher.com | 800-800-9274client: NuStar | designer: kitty@catsaway.net | project: “C-GENERATOR” ad forNUS_MMH3.375x4.625_Cv1GENRTR.indd MMH 2011 | size: 3.375 x 4.625 1 10/26/11 10:22:36RIDER LIFTS FOR MEZZANINES &AUTOMATED MATERIAL LIFTS FOR MEZZANINESProduct ShowcaseOpen-framecombination scalesPrimoWeigher open-frame combinationscales are equipped with severaltimesaving functions to simplify setupand operation. A large, easy-toread15-inch color touchscreen displayis operator-friendly and easily seen from a distance. To entera new recipe, a Wizard function walks the operator throughthe step-by-step on-screen procedure. An unlimited number ofrecipes can be entered in the system and easily retrieved usingflip-through images of each recipe; recipes also include a photographof the actual product for quick identification. Languagescan be changed or added without loss of data or set-up parameters.To eliminate back-and-forth travel between scale andcontrol panel, a handheld pocket control is offered. CombiScale,305-895-8909, www.combiscale.com.Enhanced features in electric chain hoistNew features have been added to the Lodestar electric chainhoist. Offering quiet operation, the hoist’s capacity rangesfrom 1/8 to 3 tons. It is encased in a lightweight,durable cast aluminum housing withRIDER MEZZ 1/4 PAGE 2012_MMH - Advance Lifts 1/19/12 8:52 AMaPagepowder1coated finish for high visibility.Featuring finger-safe wiring and plug-andplayconnectors, the control panel allowseasy entry for quick voltage change, accessto terminal strips and simple fuse installation.The lifetime grease-lubricated gearbox means no changing and disposing of oil.To prevent over-travel, an adjustable limitswitch is included. Built-in overload protectionprevents lifting of overloads. The overload clutch is nowlocated outside the transmission for easy maintenance, while itsout-of-the-load path gives the operator complete control. Chainwear is minimized through a five-pocket liftwheel. ColumbusMcKinnon, 800-888-0985, www.cmworks.com/lodestar.4INCREASE MEZZANINE UTILITY4SAFER LOADING & UNLOADING4FASTER LOADING & UNLOADING4COST EFFECTIVE1-800-843-3625www.advancelifts.comTeachable optical label sensorsCombining a small spot size with fast response, the LabelX sensorachieves high-speed label detection. The sensor can detecta variety of adhesive labels on assorted web backings withdifferentiation between the gap and the label. An integratedteach key makes the sensor fast and easy to use. The LBX-50model is ideal for standard and low contrast labels: in standardmode, pressing the teach key once sets the switching point forstandard labels, while in teach-thin mode, two presses set theswitching point for low contrast labels. With higher sensitivityfor nearly-clear labels, the LBX-100 model includes teachstandardand teach-thin modes, as well as a custom mode torecord a separate measurement on the gap and on the labelfor optimal detection. EMX Industries, 800-426-9912, www.emxinc.com.56 F e b r u a r y 2 0 1 2 / Modern Materials Handling mmh.com

Stainless steel castersstand up to toughprocessing environmentsFor use in the most challenging environments,the 2 series of stainlesssteel casters are ideal for laboratories,food processing and manufacturing sites. Thecaster and its component parts are made from polished304-grade stainless steel with fork assembliesthat have a double ball bearing raceway for greaterdurability. Offered in swivel, rigid, and three differentbrake models, the casters hold loads up to 325pounds. To accommodate custom mounting options,the Total Lock brake and swivel models include a0.5-inch hollow rivet. Casters may be specified in3-, 3.5-, 4- and 5-inch sizes for immediate shipment.Colson Caster, 870-919-7235, www.colsoncaster.com.Rugged tablet with 7-inchtouchscreenFor applications that need a rugged portable tabletwith a smaller display, the T507K features a 7-inchscreen that displays more information than a phone,but less information than a notebook computer. Idealfor a mobile workforce, the computer includes gripand-gohandles as well as desktop and vehicle cradles.The tablet offers a sunlight-readable touchscreen, droptested 6 feet to concrete. Data collection functionsinclude a camera, RFID and 2D bar code scanner. Forcommunication, the device is outfitted with 802.11b/g/n and a GOBI 3000 3G module. Powered by anIntel Atom processor, the tablet comes standard withWindows XP or Win 7. Glacier Computer, 603-882-1560, www.glaciercomputer.com.classifiedThe best low-costalternative to buildingpermanent walls.Folding Guard’s Saf-T-Fence partitions.They deliver security and an unobstructedview of your property – with no change toyour lighting or heating systems. Modularsystem can be easily installed, expandedor relocated in any space. In Stock.Download FREE guide at FoldingGuard.com/kitNEWFlip-top batterywatering cap has newfeaturesThe battery watering flip-topcap, Water Wise, has beenupdated with new features,including recombinant tips underneath the lid.These tips reduce water consumption by promotingand directing condensation back into the cell. Theaddition of vent holes on the lid better diffuses noxiousfumes. For easier cap removal, a new grip hasbeen included. The device also comes in two lengthsto accommodate a range of battery cell depths. Bylimiting an automatic watering gun’s nozzle depth—without the aid of an O-ring or mechanical stop thatrequires tools to adjust—the device prohibits interferencewith the mosh shield and provides reliableelectrolyte levels every time. Flow-Rite Controls,616-583-1700, www.flow-rite.com.To advertise, or formore informationPlease contact:Jennifer Drevline,847-223-5225, ext. 11,jenniferd@caseyreps.comLABEL HOLDERSSmall InvestmentBIG RETURN!800.242.3919www.aignerindex.cominfo@aignerindex.commmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 2 57

modern 60 Seconds with...Jim MalvasoTitle: Outgoing president &CEO, Toyota Material HandlingNorth AmericaLocation: Columbus, Ind.Experience: 19 years in the lifttruck industryPrimary Focus: Advance thequality and service levels of theorganization to bring value tocustomers each and every dayModern: When you look back atyour career, what have been themost significant changes or developmentsin the lift truck industry?Malvaso: The first thing that comesto mind is the use of electronics andsoftware and what that’s allowed usto do with our equipment in terms ofsafety, performance, productivity andoperator ergonomics. Those reallyhave changed the expectation of whata lift truck can do. The second is theglobalization of our market. First, ourcustomer base reaches well out ofNorth America.And, not so long ago the majormanufacturers were in Europeand North America. You’ve hadconsolidations that came together toform larger operations, like Toyota andRaymond, and Mitsubishi Caterpillar.But, we also have the Chinese andKoreans playing in the market.Modern: Last year, there wereseveral announcements regardinglift trucks and automation, includingannouncements from Raymond.How do you see the lift truckevolving in the coming years?Malvaso: I am not a strongproponent of automation. I thinka highly efficient lift truck withknowledgeable, well-trainedoperators delivers maximumproductivity and maximum flexibility.That said, the driver is the biggestexpense in the operation of a lifttruck. If you can reduce that expenseby increasing the utilization of thetruck or the productivity of theoperator, that’s an advantage. Forthat reason, I think using the brains inthe lift truck for data acquisition andmanagement will be at the forefrontof the industry for years to come.Wouldn’t it be nice to know thatthe lift truck is traveling 80% of thetime and only lifting 20% of the time?Tie that into your WMS, and it mighttell you something about how yourwarehouse is slotted. Wouldn’t it benice to know about battery chargingon the fly so you can do somethingon a predictive basis rather than waituntil the battery is dead?I think you’re going to see moreand better uses of the data beingcollected by lift trucks in the future.Modern: After so many yearsworking in the industry, what’s next?Malvaso: I feel strongly that ourindustry needs to push for fair tradepolicies and not just free tradepolicies. If we want to sell a lift truckin China, there is a 9% tariff, thetruck has to go through extensivecertifications and their currency isundervalued by 25% to 30%. If theChinese want to sell a lift truck here,there are no certifications.I want us to be a strong manufacturingcountry again and our free trade policiesare not conducive to that. I have spokento many Senators about this in recentmonths and want to continue to pushthat issue. I’m also concerned that the lifttruck has become a commodity.As an industry, we need topromote the value we bring to ourcustomers because of our experiencewith manufacturing and warehousingcustomers. We need to continue toestablish the pride of who we are andwhat we do. We are a valuable cog inthis industrial machine, and we needto maintain pride in who we are andwhat we do. M58 F e b r u a r y 2 0 1 2 / Modern Materials Handling mmh.com

Modern Materials Handling Exclusive WebcastWednesday, March 28 @ 2:00 p.m. ET2012 Materials Handling Industry Outlook:Time to push for approvalEven though better economic news continues to trickle into the headlines, the results of Modern’s2012 State of Warehouse/DC Equipment and Technology Survey reveals that materials handlingequipment and solutions spending has flattened. In fact, many warehouse/DC decision makerswith pre-approved budgets are seeing their spending amounts dwindle—an indication, say ouranalysts, that spending may be done on more of an ad hoc basis in the future.How has the economy shaped materials handling spending and best practices in the U.S. andwhat steps are your peers now taking to get approval for new projects?Join Group Editorial Director Michael Levans, Executive Editor Bob Trebilcock, and materialshandling equipment consultant Don Derewecki as they attempt to answer these questions bydigging deeper into the data gleaned from Modern’s 2012 State of Warehouse/DC Equipmentand Technology Survey.In this special webcast, our panel will take a closer look into:• The economic impact on materials handlingbuying decisions• Current warehouse/DC best practices• Usage of and investments in technologyand materials handling solutions• Methods for evaluating manufacturing andwarehousing operations• Tips for getting approval for planned projectsModerator:Michael LevansGroup Editorial DirectorSupply Chain GroupSpeakers:Bob TrebilcockExecutive EditorModern Materials HandlingDon DereweckiSenior Business ConsultantTranSystemsRegister at:MMH.COM/2012outlook

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