Modern Materials Handling - April 2010

UPFRONTBREAKING NEWS YOU SHOULD KNOWMcNeil implements corrective action planIN THE WAKE OF A PRODUCTRECALL that included more than 50million units of Tylenol arthritis products,St. Joseph’s Aspirin, Motrin andother products, the McNeil ConsumerHealthcare unit of Johnson & Johnsonreported that it has taken steps toensure that similar situations do nothappen in the future. In a letter to theU.S. Food and Drug Administration,Peter Luther, McNeil president, wrote,“McNeil and Johnson & Johnsonmanagement are taking this issuevery seriously and are committed toensuring that McNeil implements allnecessary corrective and preventiveactions to improve the McNeil qualitysystems.” The letter also outlinedkey elements of the corrective actionplan that includes enhancements tothe quality system, organizationalchanges, and senior managementoversight. For more, go to Modern’sWeb site, mmh.com/recall.Logility acquires OptiantFURTHER STRENGTHENING Logility Voyager Solutionsas a comprehensive supply chain solution, Logility(www.logility.com) has acquired certain assets of privatelyheld Optiant, provider of multi-echelon supplychain optimization systems, for approximately $3.3million in cash. Optiant’s unique optimization technologyhelps manufacturing companies and distributionbusinesses free up millions of dollars in working capitaltrapped within their multi-echelon supply chains.Optiant improves strategic inventory policies andtactical inventory targetsto produce bottom-linesavings, achieve higherservice levels, and mitigatethe impact of supplyand demand variability.Logility will incorporatethe Optiant productsinto the Logility VoyagerSolutions suite brandedas Voyager InventoryOptimization.Intelligrated addssorters to portfolioA LEADING AUTOMATED materialshandling solutions provider,Intelligrated (www.intelligrated.com), has announced the additionof tilt-tray and cross-belt sortationsolutions to its product portfolio.Under an agreement resulting fromthe acquisition of FKI Logistex in2009, Intelligrated is now the exclusiveprovider of Crisplant technology in North andSouth America. Intelligrated now designs, sells, manufacturesand supports the complete line of Crisplanttilt-tray and cross-belt sorters,as well as associated software,controls, induction and chutesolutions. “Intelligrated ismeeting the material handlingmarket’s demand for fullycustomized and scalablehigh-throughput sortation solutions,”said Chris Cole, CEO ofIntelligrated.Pregis acquires IntelliPackADDING FOAM-IN-PLACE to its product portfolio, Pregis(www.pregis.com), a supplier of protective packaging solutions,has acquired IntelliPack. By integrating IntelliPack’speople, cutting-edge technology and service platform, Pregiswill be in a unique position to increase value to its customersthrough a more extensive offering. Theacquisition will become part of Pregis’protective packaging division, headquarteredin Deerfield, Ill. IntelliPack’s38 employees will be joining Pregis’4,000-member worldwide staff. Based on2009 revenues, the combined companiesachieved in excess of $900 million.mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 3

VOL. 65, NO. 4PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION,WAREHOUSING AND MANUFACTURING®John J. Ling and Crate and Barrel use green design to deliversustainable distribution and environmental benefits, page 20COVER PHOTO BY GARY LAUFMANCOVER STORYSYSTEM REPORT20 Crate&Barrel: Sustainable distributionCrate and Barrel’s Tracy, Calif., distribution center achieved Golddesignation from LEED and merged the retailer’s sustainability anddistribution initiatives.FEATURESBIG PICTURE26 Green materials handlingFrom conveyors to pallets, industry leaders make the case for howtheir products can make a difference to companies focused on thegreen supply chain.SPECIAL REPORT34 Industry outlook: Bouncing off the bottomExperts agree: The materials handling industry may bump along thebottom a little longer, but optimism is slowly replacing pessimism.EQUIPMENT REPORT40 Handling up highUsing the overhead space in your facility not only frees up floor space,but also leads to more efficient product movement.PRODUCTIVITY SOLUTION45 Do what you do bestLift truck equipment management program keeps Maines Paper &Food Service focused on delivering customer satisfaction.SPECIAL MODERN WEBCAST: NOW ON DEMANDIncreasing productivity through improvedwarehouse/DC management best practicesModern partnered with the Aberdeen Group to provide this speciallook at how leading warehouse and DC operators have applied warehousemanagement systems and automation to streamline distributionoperations—and maximized company profits along the way.60 seconds with... Allan Howie, page 58DEPARTMENTS & COLUMNS3/ Upfront7/ This month in Modern19/ Lift truck tips: Narrow aisle lift trucks46/ Product focus: AGVs48S/ Supplement: Crossdocking’s latestand greatest58/ 60 seconds with...NEWS9/ Toyota and Raymond solidify bond,protect brands13/ Overall RFID market to hit $5.35 billionthis year15/ February retail numbers up slightly fromJanuaryModern Materials Handling® (ISSN 0026-8038, (GST # 123397457), ispublished monthly by Reed Business Information, 8878 Barrons Blvd.,Highlands Ranch, CO 80129-2345. Reed Business Information, a divisionof Reed Elsevier, is located at 360 Park Avenue South, New York, NY10014. John Poulin, CEO. Circulation records are maintained at ReedBusiness Information, 8878 Barrons Blvd., Highlands Ranch, CO 80129-2345. Phone (303) 470-4445. Periodicals Postage Paid at Littleton, CO80126 and at additional mailing offices. POSTMASTER: Send addresschanges to Modern Materials Handling, P.O. Box 7500, HighlandsRanch, CO 80163-7500. Publications Mail Agreement No. 40685520.Return undeliverable Canadian addresses to: RCS International, Box 697STN A, Windsor Ontario N9A 6N4. E-mail: Subsmail@ReedBusiness.com. Please address all subscription mail to Modern Materials Handling,8878 Barrons Blvd., Highlands Ranch, CO 80129-2345. Rates fornon-qualified subscriptions including all issues: US, $119.99/yr, Canada,$159.99/yr (includes 7% GST, GST#123397457); Mexico, $159.99/yr;International air delivery, $249.99/yr. Printed in U.S.A. Modern MaterialsHandling® is a registered trademark of Reed Elsevier Properties Inc.used under license.mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 5

EDITORIAL OFFICES225 WYMAN STREETWaltham, MA 02451(781) 734-8000Michael LevansGroup Editorial Directormichael.levans@reedbusiness.com®THIS MONTH IN ModernMICHAEL LEVANSGROUP EDITORIALDIRECTORBob TrebilcockExecutive Editorrobert.trebilcock@myfairpoint.netNoël P. BodenburgExecutive Managing Editornoel.bodenburg@reedbusiness.comLorie King RogersAssociate Editorlorie.rogers@reedbusiness.comSara Pearson SpecterEditor at Largesara@moxiemarketingllc.comRoberto MichelEditor at Largerobertomichel@new.rr.comTom AndelColumnistJeff BermanGroup News EditorRobert EckhardtSenior Art DirectorDaniel GuideraSenior Art Director/IllustrationNorman GrafDirector ofCreative ServicesBrian CeraoloGroup PublisherEDITORIAL ADVISORY BOARDRon GiuntiniOEM Product-Services InstituteJohn HilleSyncSusan RiderRider & Assoc.Ken RuehrdanzDematicDr. John UsherUniversity of LouisvilleCol. Alan B. Will2d Marine Logistics GroupBrett WoodToyota Material Handling USAREED BUSINESS INFORMATIONJohn PoulinChief Executive OfficerJeff DeBalkoPresident, Business MediaJane VollandVice President of financeKarthik KrishnanVice President Interactive Media& Sales ManagementMAGAZINE SUBSCRIPTIONSFREE magazine subscriptionsavailable at:www.getFREEmag.com/MMHSend magazine subscriptioninquiries to:8878 Barrons BlvdHighlands Ranch, CO 80129-2345Phone: 303-470-4445Fax: 303-470-4280E-mail: subsmail@reedbusiness.comLong-term green strategyTHIS MONTH MODERN SHARES THEthird in a series of features we’recalling “Big Picture: Where materialshanding meets business.” The concept wascooked up by executive editor Bob Trebilcockover the past year as he began to noticethat more of his System Report subjects(Kroger, Canadian Tire, Fisher Nuts, Patagonia,etc.) were creating facilities, systemsand automation plans that were weavedinto a greater, long-term supply chain andbusiness strategy.“I thought it would be useful for readersto understand how these new strategiesare changing the face of materials handingoperations as well as how equipmentmanufacturers were gearing up to meet thechallenge,” says Trebilcock.Well, there may be no greater challengefacing readers than engineering a movetoward a more sustainable warehouse/DCoperation; and no greater feat for suppliersof materials handling systems, softwareand equipment than to give warehouse/DCmanagers the tools to meet today’s morealtruistic goals.And just where do we stand as anindustry on meeting these often hard todefine objectives? That’s just what Trebilcockset out to find when he created thismonth’s package of sustainability featuresthat start on page 20. First, we get to peerinside Crate and Barrel’s 1.2 million squarefeet of LEED Gold certified distributionspace in Tracy, Calif.—the largest industrialfacility in the country to achieve this loftydesignation.John Ling, vice president of supply chainand logistics for the trendsetting retailer,and his team are setting the standard fora concept we’re going to call “sustainabledistribution”—and they started from themoment they broke ground.By applying green initiatives, Crate andBarrel diverted 95% of the constructionwaste away from landfills and into a recyclingprogram; reduced water consumptionby 35% compared to a traditional warehousedesign; and has pledged that at least35% of the total energy usage will be fromrenewable sources. But that’s just the shortlist of green goals the company is meeting.And while sustainability may be theheadline it’s really only a part of the story.According to Ling, the operations inside thefour walls will play a critical role in keepingthe company out in front of a crowdedmarket.“It’s harder and harder to differentiateyourself as a retailer solely on merchandiseuniqueness,” Ling tells Trebilcock. “Successoften comes down to who can find the bestproduct and get it to market the quickestand at the best value…our supply chainhelps us accomplish that and the Tracy facilityis an important link.”Once you’ve been inspired by Crateand Barrel’s story you’re going to need toresearch the tools to do it yourself. On page26, Trebilcock offers what I would call themost comprehensive collection of systems,equipment, technology, and insight currentlyavailable to help your organization usherin its own sustainable distribution plan.Going green is already a priority in theboardroom, so it’s only a matter of timebefore sustainability initiatives like thosewe’re seeing from Crate and Barrel will filterdown to your own operations—that is if youhaven’t already started.ENEWSLETTER SUBSCRIPTIONSKeep up with the latest industrynews and resources—sign-up for ourFREE eNewsletters at:www.mmh.com/subscribe.aspMemberMember ofWinnerJesse H. Neal Certificatesof Merit for JournalisticExcellenceOfficial Publication ofm m h . c o m MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 7

Di@blogbest of Modern’s blogsCompany Briefings | Bob TrebilcockThe conveyor industry isgrowing again.www.mmh.com/blog/growingagainTakeaways | Tom AndelLift trucks: ensuring propane’s futurewww.mmh.com/blog/propanesfutureLIFT TRUCKSToyota and Raymond solidifybond, protect brandsTEN YEARS AFTER THE PURCHASE OF BT INDUSTRIES,RESTRUCTURING BRINGS TOYOTA AND RAYMOND EVEN CLOSER TOGETHER.BY TOM ANDEL, CONTRIBUTING EDITORMORE THAN 10 YEARS AGO,Toyota Industries Corporation (TICO,www.toyota-industries.com) purchasedBT Industries, making TheRaymond Corp. (www.raymondcorp.com) part of the Toyota MaterialHandling Group (TMHG).Last month, Toyota announcedthat the relationship betweenRaymond and Toyota would nowbe solidified into one managementorganization under Toyota MaterialHandling North America (TMHNA).According to Toyota, the formalizationof the management and operationsstructure of TMHNA will furtherstrengthen the Toyota and Raymondbrands in North America, allowingthe two organizations to better collaborateon business efficiencies andshare resources to improve levels ofquality, service and support.To make sure the two entitiesact as a united team, Raymond’spresident James Malvaso will now beTMHNA’s president and chief executiveofficer. Charles Pascarelli will beappointed president of the Raymondsales division, while Michael Fieldwill be appointed president of theRaymond operations division.TMHNA, comprised of ToyotaIndustrial Equipment Mfg. (TIEM),Toyota Material Handling, U.S.A.(TMHU), and The Raymond Corporation,will be headquartered atToyota’s facilities in Columbus, Ind.According to TMHNA, the new managementand operations structurewill work on strengthening NorthAmerican regional coordination,while continuing to grow the existingbrands and maintaining distributionchannels for Toyota and Raymond.m m h . c o m MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 9

This is all interesting news tothose of us who follow the comingsand goings of the lift truck industry.But the question remains: “Whynow, after all these years?” The onlyperson to answer that question withauthority is James Malvaso, TMHNA’snew president. So, we asked him toexplain the significance of this newsto customers and dealers.Modern Materials Handling: What’sthe significance of making thisannouncement on March 22, 2010—a decade after Toyota acquiredRaymond?James Malvaso: At that time, it wasacknowledged that the two companiesneeded to coordinate. Insteadof forcing things right away, we decidedto let things evolve. I see thisannouncement as the natural resultof that evolution. It’s the logical nextstep. You start acknowledging eachother’s existence, you work a little bittogether, you start to see benefits,and as you get more comfortableyou combine the visions of the organizationsinto one and operate asone great company.MMH: How will this affect productlinedevelopment?Malvaso: Given the economy and theamount of volume available in themarket, this is a very difficult time tospend significant resources on newproduct introductions. With that said,the electric truck side has gained alarger percentage of the market thanin the past. Motor and control technologieshave evolved nicely, andthere will be more dialog betweenour research and development organizationsto look for commonality in components and see if wecan reduce our manufacturing costsand design costs.There will be a continued emphasison the information side of thebusiness. Raymond’s iWarehouse isan example of customers’ desire toknow more about their operations. Idon’t think that will go away. But atthe industry level there can be lessemphasis on product and more onthe value that the manufacturer anddistributor can bring to the customersto help them reduce operatingcosts.MMH: Through this announcement,what’s the message to your dealersand what are their concerns, if any?Malvaso: The Raymond dealers areless concerned than the Toyota dealers.I’m a known entity in the Raymondworld; and although they knowme in the Toyota world, they don’tyet know how I operate. I’m telling10 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m

Productivity Solutions in Motion:The Intelligrated WayWith productivity solutionsfrom Intelligrated, you'll havemore time to spearhead yourcorporate green initiative.Why should your automatedmaterial handling solution bedesigned The Intelligrated Way?The Intelligrated Way means that your solution iscreated with only your needs in mind. The industry’smost experienced, passionate team of professionals iscommitted to designing, implementing and supporting yoursystem. Your solution is built from high performance technologiesand the latest system concepts.The Intelligrated Way means you can trust in the reliability anddependability of your systems. The Intelligrated Way provides productivity,which means you’ll have more time to focus on other areas, like going green.Visit us at NA 2010, booth #1000, to learn more about Productivity Solutions in Motionfrom Intelligrated.7901 Innovation Way, Mason, Ohio 45040 866.936.7300 www.intelligrated.com

them that we have a mutual interdependency.The manufacturer can’tsurvive without a dedicated distributionorganization, and distributioncan’t survive unless it has the productsand support from the factory.We have very similar objectives, soit’s more of a team than manufacturerand distributor. It’s an enterprisewe have to develop to best serve ourcustomers.MMH: Will there be changes orconsolidations at the manufacturinglevel?Malvaso: In North America, we’veSave Spaceand IncreaseThroughput.already done the major consolidationby moving reach truck manufacturingfrom Brantford, Ontario, to Greene,N.Y. We will assess the offerings wehave across the lines and make surewe’re manufacturing the right productsat the right places. I think wealready have it right.We can work better togetherin procurement and in inventorymanagement and in logistics. We willcontinue to emphasize continuousquality improvement throughout alloperations. Every month we get ourmanufacturing people together in aroom to talk quality and TPS [ToyotaProduction System] best practices.That will continue. In fact, that willbe amplified now that we’re oneorganization.Need to reduce operating cost? Ryson can help. Our SpiralConveyors need less fl oor space than conventional conveyors andare faster and more reliable than any elevator or lift.Quality and service come first at Ryson. We are the number onespiral manufacturer in the USA. For application assistance ormore information, give us a call or visit www.ryson.com.Visit us at NA2010 - Booth 2600300 Newsome Drive • Yorktown, VA 23692Phone: (757) 898-1530 • Fax: (757) 898-1580VERTICAL CONVEYING SOLUTIONSMMH: Where does TMHNA fit intothe whole Toyota organization?Malvaso: It fits under the ToyotaMaterial Handling Group, along withToyota Material Handling Europe,Toyota Material Handling International,Toyota Material Handling Australia,Toyota Material Handling China,and Toyota Material Handling Japan.What’s neat about this is we can cutthrough all these slices horizontally.Wherever our customers go as theyget more international and Chinaheats up, we’ll be able, with the clickof a mouse or the dial of a phone,to coordinate horizontally with anycountry in the world. We’ll be betterable to coordinate our production,engineering and product offerings.With national accounts demandingmore and more, I don’t know howanyone can rival us.MMH: What’s the impact on thedealer networks?Malvaso: We’re still committed toour two-brand, two-channel approach.If you look at Raymond andToyota’s market positions combined,nobody sells more units in NorthAmerica. We don’t have excessdistribution in our channels. We needeverything we have and we want to12 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m

capitalize on each other’s strengths inorder to keep advancing our positionin the North American market.MMH: How does this grow therelationship between Raymond andToyota?Malvaso: This has been an arm’slength family relationship. We’vedone a lot of work together in advancingTPS and quality principlesthrough our factories. We’ve workedsomewhat together on procurement,and we’ve shared best practices.We’re going to take that armaway and operate as true partners.We’ll identify synergy opportunitiesthroughout all aspects of ourbusiness.On the dealer side, we’ll coordinatebetter and we’ll workbackwards from there through thefactories all the way to the verybeginnings of the company. That’swhere we believe there’s goodpotential to improve our performanceand partnering, as well as theoperating metrics of our combinedcompanies. This is not a consolidation.It combines two solid organizationsso we have a single directionand a coordinated strategy.DATA CAPTUREOverall RFID market tohit $5.35 billion this yearA NEW MARKET DATA REPORTreleased by ABI Research (www.abiresearch.com) predicts the overallRFID market to reach $5.35 billionthis year, a glimmer of optimism afterNew! from Akro-MilsProtect & More!Clearly Redefi ned Storage Designthe economic slide required the firmto adjust its RFID forecasts downwardfor 2009 and 2010.“The outlook is good for steadygrowth through the next five years,”said ABI Research’s RFID practicedirector Michael Liard. “We expectthe overall RFID market to exceed$8.25 billion in 2014, representing aEnsure secure, dust-free storage of supplies with AkroDrawers. Available in 5 colors – featuring Crystal Clear so contents aremore visible – AkroDrawers can be stacked alone or organizedusing a wide array of bundled packages we’ve designed to helpyou create the perfect organization system, including:• Super Modular Cabinets• Louvered Carts• Stackable Cabinets• Quick-View Mini-CabinetMMH: How does this affect youpersonally?Malvaso: Although I’m presidentand CEO of Toyota Material HandlingNorth America, I will maintainchairmanship of The RaymondCorporation. My major function willbe to develop and set forth the strategicdirection for the four entitieswe’ll have under TMHNA, includingToyota Sales and Marketing, RaymondSales and Marketing, ToyotaManufacturing, and Raymond Manufacturing.These entities will operatein a highly coordinated fashion. I’mlooking to solidify the organizationso we have predictable performanceand we’re structured properly for thenew market size we’re in. We needto perform as a team and not fourseparate players.Call Akro-Mils at 800-253-2467 or visitwww.akro-mils.com/AkroDrawersto learn more.©2010 Akro-Mils/Myers Industries Inc. #09147See Us AtBooth 805OptionalDividersAvailablem m h . c o m MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 13

14% compound annual growth rate(CAGR) over the next five years.”Not all segments of the RFIDmarket are created equal, addedLiard. “To 2014, the greatest growthwill be found in real-time locationsystems (RTLS), baggage handling,animal ID, and item-level tagging inShip and StoreSAFE&fashion apparel and retail.”The report, Semi-Annual RFIDMarket Data, contains extensive dataon RFID revenues and unit shipmentssegmented by technology, applicationand vertical market.All four RFID technologies: lowfrequency(LF), high-frequency (HF),SECUREProtect Your Bulk IngredientsWith Buckhorn Intermediate Bulk ContainersBuckhorn reusable plastic IBCs, made from FDA-approved materials, are the ideal choiceto protect your bulk liquid or powder products. Perfect for a variety of industries toreduce transport costs, maintain quality and increase productivity, Buckhorn IBCs are:• Hygienic • Stackable & Collapsible • Durable • RFID Traceable • RecyclableCall Buckhorn at 1-800-543-4454 or visit www.buckhornibcs.comto get the facts and request a FREE on-site packaging assessment.See Us AtBooth 805©2010 Buckhorn, Inc./Myers Industries #09176active and passive ultra-high-frequency(UHF), and microwave are includedacross numerous applications.Because the entire RFID space is sofragmented, said Liard, data is brokendown into two application categories:traditional and modernizing.“Traditional applications includeuses such as access control, automobileimmobilization and electronic tollcollection that account for slightlymore than 61% of the total markettoday,” he explained. “Those applicationsare expected to grow 6%,compounded annually from 2010through 2014.”“In contrast, modernizing applicationssuch as asset management,cargo tracking and security, point-ofsale(POS) contactless payment, RTLSand supply chain management areforecast to grow roughly 19% in thesame time period,” Liard said.The growth, particularly in materialshandling applications, can beattributed to an increased awarenessof RFID’s capacity to solve commonbusiness challenges such as assetmanagement optimization and utilization,explained Liard.“There have also been a lot ofdevelopments in the technology,particularly in passive UHF tags dueto the Wal-Mart compliance initiativeof a few years ago,” he added. “Thatdrove the creation of standards andtechnological advancements, makingthe tags more accessible, more affordableand better performing thanthey were a few years ago.”In surveying users, he said, ABIfound that the increased affordabilityand better understanding of thevalue that RFID technology can bringare leading many enterprise and industrialusers to deploy pilot and trialprograms, which Liard predicts willlead to both limited and widespreaddeployments.“If there’s a value tied to a trackableasset or the goods that areinside it, more users are telling usthey see the value in making thatinvestment,” he said.14 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m

RECOVERYFebruary retail numbersup slightly from JanuaryA FULL ECONOMIC RECOVERY is not yet underway, butdata released recently by the United States Departmentof Commerce and the National Retail Federation (NRF)data indicate that consumers are slowly coming out oftheir bunkers, with both organizations reporting increasesin February retail sales.February retail sales, which include non-general merchandiselike automobiles, gasoline and restaurants, at$355.5 billion were up 0.3% from January and up 3.9%year-over-year, according to the Department of Commerce.And total retail sales from December 2009 throughFebruary 2010 were up 4.5% year over year.The NRF reported that February retail sales (whichexcluding automobiles, gas stations and restaurants)increased 1% seasonally adjusted over January and 1.7%unadjusted year-over-year.“February could be the direct result of cabin feverwith consumers eager to get some fresh air and enjoy aday of shopping,” said Rosalind Wells, chief economistfor NRF. “We expect sales increases to continue buthigh unemployment and other economic factors willrestrain consumers’ ability to splurge on discretionaryitems.”WMS Support offersworkshop for WMS usersDon Benson, one of the originators of the WMS industryand the founder of Warehouse ManagementSystems Support, will host a six-hour interactiveworkshop for WMS users who want to get the mostout of their investment in a WMS system. The workshopwill be held prior to the opening of WERC AnnualConference 2010 at the Anaheim Marriott from10 a.m. to 4 p.m. on Sunday, May 16.“The workshop is designed to help people usetheir WMS systems to do the work in their facilitiesmore effectively,” says Benson. “It’s geared for theperson in an organization or facility who is responsiblefor the WMS, anyone from a task supervisoror warehouse manager up to the president of asmaller distributor whose core competency is orderfulfillment.”The registration fee is $200. Limited seating isavailable on a first come/first serve basis. For moreinformation or to register for the workshop, contactDon Benson (503-296-7249, don@wmssupport.com)or visit www.wmssupport.com.

FROM THE BLOGSCEMA: The conveyor industry is growing againBY BOB TREBILCOCK, EXECUTIVE EDITORTHE CONVEYOR INDUSTRY ISBACK ON THE MEND, with membersof the Conveyor EquipmentManufacturers Association (CEMA,www.cemanet.org), expecting areturn to growth in 2010.“We’re expecting CEMA membersto report sales that are flat toup 2% for the year,” according toDan Fannin, vice president of marketingfor Emerson Power Transmission.Fannin expects the market toreach $6.2 billion this year, up from$6.06 billion in 2009. Sales will stillbe more than $1 billion below the$7.8 billion association membersracked up in 2007.Still, up is up, and that’s greatnews for the conveyor industry,which has fared the recession betterthan the overall materials handlingindustry.Fannin delivered his reportin Scottsdale, Ariz., whereI’ve traveled to attendCEMA’s annual meeting.The most importanttake away I’vegotten is that thingsseem to be gettingbetter. Don’t get mewrong;. No one told mebusiness is great. Fannin,for instance, said he was tryingto be conservative in his assessmentand added that getting that2% growth will depend on whetherthe anticipated orders come in withenough time for conveyor manufacturersto ramp up production andship before the year is out.But I heard from a number ofcompanies that end users are onceagain sending out requests for proposalsand asking for quotes.“It all starts with proposals,”one manufacturertold me, “and we’reseeing them again.”This is the secondyear in a row I’vebeen to CEMA, andI’ve really enjoyedspending time with thisgroup. I have two otherblogs from the event, includinga report on a panel discussionthat included the guys in charge ofbuying materials handling systemsfor Miller Coors and UPS and a lookat what conveyor users want. Lookfor them at www.mmh.com/blog/cemapanel and www.mmh.com/blog/conveyorusers.16 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m

www.mmh.com/criticaltopicswww.MMH.comintroduces the newCRITICALTOPICSPAGESFind news, features,case studies, whitepapers, etc., fromaround the web onthe most signi canttopics in materialshandling:» Lift Trucks» Automation» Conveyors/Sortation» Software» Storage Systems» Packaging» Data collection/Picking» Ergonomics» Dock Equipment» Containers/Totes» PalletsBOOKMARKTHESE PAGESas your “one-stop shop”for all information onthese critical topics.www.mmh.com/criticaltopics

FUTUREYOU CAN GET THERE FROM HEREThe world’s supply chain never stands still. That’s why iGPS created the world’s most advancedpallet, helping you keep pace today and well into tomorrow. Each all-plastic pallet weighs 30% less thanwood, reducing transport costs, fuel usage and carbon emissions. Its superior strength means lessproduct damage, and no broken boards, splinters or protruding nails. Embedded RFID tags maketracking and tracing a snap. And its non-porous material is setting new standards for food safety,without the bacterial contamination and toxic treatments associated with wood. Soon, every businesswill ship this way. Why wait? Learn what the future holds at www.igps.net©iGPS 2010

TOM ANDEL,COLUMNISTAvoid tight spots innarrow aislesSome users of narrow aisle lift trucksare getting themselves into tighterspots than they need to.As businesses make their way out of a dismaleconomy, they’re finding that they’ve lost a lot oftheir best lift truck operators either through layoffs,attrition or job transfers. So, who’s left to operate the lifttrucks? Anyone?That’s right: Anyone. And many of these anyones aren’tbeing trained. That’s bad enough when they’re operatingsit-down counterbalanced trucks, but when theseunschooled employees are told to maneuver a narrowaislelift truck down the corridors of a 25-foot-high rackingsystem, the employer is gambling—and the odds areagainst him.Ken Van Hook recently did an accident investigationon a company that replaced some of its standup narrowaisle trucks with those of another brand. As president ofSafe-T-Consultants in Humble, Texas, he often serves as anexpert witness in cases such as this. In this case, some ofthe newer models purchased by the company had reversesteeringcapability. The older trucks didn’t. The operator,not having been schooled under OSHA’s equipmentspecifictraining guidelines, suffered an accident.“It’s not that the controls have changed so much, it’sjust that narrow aisle is a unique application,” he says.“And when you tell a guy who’s used to driving a sit downcounterbalanced to raise a load 240 inches or more,whether a single reach or double reach, there could betrouble. I’m not saying they’re harder to operate, but youhave to be consistent in driving one of those all the time.”Adding to the problem is low staffing on the dealerside. Many lift truck service providers have laid off bothmechanics and training staff. That can work against themat a time when dealers should be building relationshipswith their customers and acting as information resources.However, there’s so much staffing flux on both sides of theselling process that whatever useful information is exchangedoften gets lost during the next staffing transition.Dealer vigilance is key to successful narrow aisle applications,Van Hook says.“The dealers should be getting in to see the purchasingpeople who don’t know anything about lift trucks andsuggesting they move their fleet around,” he suggests.Narrow aisle lift trucks provide a unique application that requiresspecial training.“Maybe they have a newer truck being used in a low-cycleapplication and a beater they keep putting money into.”The problem with this is staff politics. Senior operatorsoften get the privilege of using the new equipment andtheir work schedules might be different from everyoneelse’s. Maintenance across a fleet might become uneven.And maintenance is not only a productivity issue, but asafety issue. Bad casters and wheels on narrow aisle trucksare a bad combination with high-rise storage racks.Add bad or non-existent training to this mix and youcan set off a chain reaction: lift truck wobbles, operatorhits rack, rack sustains structural damage, time passes,rack weakens, rack fails, inventory is lost, people are hurt,time is lost—and so is business.Whatever the politics of your work site, keep trainingand maintenance non-partisan issues—especially wherenarrow-aisle lift trucks are concerned.Contact Tom Andel at tandel4315@aol.com.mmh.com MODERN MATERIALS HANDLING / A P R I L 2010 19

SYSTEM REPORTCrate&Barrel:SustainableCToday, Crate and Barrel is setting a newstandard for something we’ll call sustainabledistribution. Last June, the retailer openedthe largest industrial facility in the countryto achieve Gold designation from theU.S. Green Building Council’s Leadershipin Energy and Environmental Design—orLEED—certification program.The campus in Tracy, Calif., has 1.2 millionsquare feet of distribution space spreadacross two buildings: One is an 800,000-square-foot facility that handles big-ticketitems like furniture, while the other is a400,000-square-foot building set up to distributesmaller housewares items. There isroom to expand the distribution space toRATE AND BARREL HAS ALWAYS BEEN A TRENDSETTER.Founded in Chicago in the 1960s, the privately held home furnishingsretailer set a new standard for contemporary and affordablehousewares.2 million square feet on the current site ifbusiness dictates.The campus was also designed to beCrate and Barrel’s West Coast break-bulkoperation. “All of our imports from Asiacome through here and are then sent on toother distribution operations in Naperville,Ill., and Cranbury, N.J., based on customerdemand,” says John J. Ling, vice presidentof supply chain management and logisticsfor the Northbrook, Ill.,-based company.In addition to the store replenishmentand break-bulk processes that are up andrunning today, Crate and Barrel plans toimplement a direct-to-consumer fulfillmentoperation out of the smaller of thePHOTOGRAPHY BY GARY LAUFMAN

distributionCrate and Barrel’s Tracy, Calif.,distribution center achieved Golddesignation from LEED and mergedthe retailer’s sustainability anddistribution initiatives.By Bob Trebilcock, Executive EditorAt 1.2 million sq. ft. the new DC is thelargest to earn Gold certification in NorthAmerica, says John Ling, VP of supplychain management and logistics. (Right)two buildings later this year.That operation will use state-of-the-artautomated fulfillment technology fromKiva Systems (781-221-4640, www.kivasystems.com).But until that happens, thisis not so much a materials handling story:about 20% of the product received in Tracyis crossdocked upon receipt. The rest ispalletized, stored in racks and moved by lifttrucks. That is pretty conventional. Rather,the new facility illustrates how Crate andBarrel’s business and sustainability objectiveswere fused in the design of a greendistribution center.First, the DC was designed and constructedin a sustainable manner that minimizesCrate and Barrel’s impact on theenvironment. On that score, Ling believesthey have set the standard for sustainabledistribution. “Over the last five years, wehave taken on a mission to be a more sustainablecompany and a better corporatecitizen,” says Ling. “It is not only somethingwe believe in, but what our customersexpect from us.”While appealing to its customers andsupporting its broader sustainability goals,Crate and Barrel’s use of a green designdelivered a number of environmental benefits,including:• more than 95% of the waste from theconstruction process was diverted awayfrom landfills and recycled;• a reduced development footprint thatexceeded the local zoning board’s openspace requirement by 25%;• more than a 34% reduction in ongoing

SYSTEM REPORTSkylights and motion-controlledfluorescent fixtures (top left andcenter) reduce lighting costs inthe new facility. While most of thefacility utilizes conventional materialhandling (top right), automation iscoming.water consumption compared to atraditional warehouse design;• at least 35% of the total energy usagewill be from renewable sources, and• facility lighting uses motion-controlledflorescent fixtures and theuse of natural light from the extensiveaddition of skylights.The facility was also constructed fromenvironmentally sustainable materials:• more than 40% of the buildingmaterials were produced regionally,reducing the carbon footprintassociated with transporting thosebuilding materials;• building materials were manufacturedwith more than 45% recycledcontent, and• more than 50% of the wood productsused in construction werecertified sustainable by the ForestStewardship Council (FSC).Sustainability, however, is only halfthe equation in Tracy. The new campusalso enables Crate and Barrel’s broadersupply chain strategy.“It’s harder and harder to differentiateyourself as a retailer solely on merchandiseuniqueness because the worldis becoming so transparent,” says Ling.“Success often comes down to who canfind the best product and get it to marketthe quickest and at the best value.Our supply chain helps us accomplishthat and Tracy is an important link inour distribution network.”Optimizing the supply chainAccording to company history, Crate andBarrel was founded in 1962 by Gordonand Carole Segal after the Chicagocouple returned from a honeymoon inEurope where they were taken with thecontemporary, but affordable housewaresthey saw during their travels. Toset up shop, they leased an abandonedelevator factory in Chicagoand purchased productdirectly from glassblowers,ceramicists and fromfactories making Frenchcopper pots and simplewhite bistro dinnerware.The first store opened withone employee and no cashregister. With no money tobuy fixtures, they displayedthe merchandise on shippingcrates and barrels—hence the name.Nearly 50 years later, the companyhas grown to 7,500 employees and morethan 170 stores in 16 North Americanmarkets. Two franchise stores in Dubaiwill open in spring of 2010. In additionto its stores, the company manages adirect-to-consumer catalog and Internetbusiness that rings up more than $300million a year in sales—about 25% ofthe business.Ling joined the company in the late1990s. He and CIO Ed Rennemannwere given marching orders to createa distribution network and systemsinfrastructure to support the company’sgrowth. Crate and Barrel had alreadyoutgrown the capacity of an existingChicago warehouse and was storing22 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

SYSTEM REPORTGreen materials handlingWith the Tracy campus up and running, Crate and Barrel isfocusing on sustainable materials handling.WHILE CAREFUL ATTENTION WAS PAID to building materials,lighting and recycling, the facility’s materials handlingsystems were not part of the sustainability equation. Onereason, as Modern has pointed out in the past, is that atpresent, materials handling isn’t a factor in achieving LEEDcertification.Another, however, is that at the time the Tracy projectwas built, materials handling vendors were not promotingthe role they could play in a sustainable facility.“It’s not that we weren’t willing to try sustainable materialshandling,” says Ling. “We would have been open to listening,but it was not something we saw from the industrywhen we were putting this project together.”However, now that the facility is up and running, Crateand Barrel is readying a direct-to-consumer fulfillment systemfeaturing mobile drive units for the smaller of the twofacilities, a solution that Crate and Barrel also believes isboth efficient and sustainable.“The system is sustainable because the autonomousdrive units are energy efficient, are manufactured in partfrom materials with recycled content and the picking areacan be operated with minimal lighting,” says Ling. It’s alsoscalable, he adds, allowing Crate and Barrel to implementonly what it needs to run its business now and expand lateras the direct-to-consumer business grows. “We can scaleour investment and the use of materials to what we needfor our business,” says Ling. “That allows us to match oursystems with our need, and then scale the system up as theeconomy improves and our business grows.”Along with using recycled materialsin construction, Crate and Barrelrecycles industrial packagingmaterials.merchandise at several local 3PLs. Atthe same time, business was growingfaster on the East and West Coaststhan in other regions of the country.The first step was to build a new800,000-square-foot campus inNaperville, Ill., in 1998. It was designedwith one large facility to handle storereplenishment for the Midwest andbreak-bulk shipments from overseasand a smaller facility to handle largeticketitems and home delivery operations.This facility was expanded to 1.2million square feet when the directto-consumerfulfillment operation wasadded and became the model for futuredesigns.Six years ago, a similar campus wentup in Cranbury, N.J., with a large facilityto handle break-bulk shipmentsfrom Europe and store replenishmentfor the East Coast. This was followedby an adjoining smaller facility to handlebig-ticket merchandise and homedelivery operations. This campus wasexpanded to 950,000 total square feetin 2008 to support direct-to-consumersales on the East Coast.A third 400,000-square-foot facilityis located in the heart of the furnitureindustry in Lincolnton, N.C. From thatlocation, Crate and Barrel consolidatesupholstered furniture from nearbymanufacturers and feeds the rest of thedistribution network on a just-in-timebasis to fill customer orders.Crate and Barrel also receivesimported furniture from other sourcesand stores them in the DC for furtherdistribution based on demand. Crateand Barrel also maintains a networkof 20-plus smaller delivery hubs thatreceive and crossdock deluxe furniturefor home delivery. The network of hublocations also allows Crate and Barrelto determine the most cost effectiveand efficient way to make a delivery, nomatter where the sale is made.“If you live in Indiana, order furniturewhile you’re on vacation in Floridaand want it shipped to your summerhome in Michigan, we’ll figure out theshortest distance and the shortest ordercycle time to complete the delivery,”says Ling.As both imports from Asia and businesson the West Coast grew, Crate andBarrel began to look for a location for aWest Coast distribution campus similarto Naperville and Cranbury.“We had two older and smallerfacilities near Oakland where theleases were expiring,” Ling says. Whilethe company has more business inSouthern California, Crate and Barrelwas hesitant to open a facility in theLos Angeles region.mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 23

SYSTEM REPORT“We bring in about 7,000 containers a year, where some ofthe big box retailers can bring in more than 20,000 containersa month,” Ling says. “We didn’t want to be a small fish ina big pond and have our merchandise sit on a ship waiting tobe unloaded.”Instead, Crate and Barrel chose a site in Tracy, which isclose to the Port in Oakland, where it is a bigger player andcan also ship to the rest of the country.A GWS IPSustainable distributionIn addition to a strategic location, Tracy provided Crate andBarrel with the opportunity to combine its supply chainefforts with its sustainability initiatives.“Over the past five years, we have increased our focus onbecoming a more sustainable company and a better corporatecitizen,” says Ling. That mission has been driven by a combinationof altruism and customer demand. “We cater to avery sophisticated, educated and demanding customer,” Lingsays. “As an example, they are asking us important questionsabout where the wood in our furniture comes from and howthe furniture is made.”The company’s efforts began with the way it sources theraw materials that go into many of its products. For instance,Crate and Barrel was the first national U.S. retailer to partnerwith The Tropical Forest Trust (TFT), an internationalorganization that works with local tree farmers and harvestersto help them develop more sustainable practices with thegoal of achieving certification from the Forest StewardshipCouncil (FSC).As the company expanded its green initiatives, it realizedthat the supply chain plays a critical role. Crate and BarrelSpecial parking spaces are available for employees whodrive fuel efficient vehicles.LANDOLL CORPORATIONMATERIAL HANDLING PRODUCT DIVISION1900 North Street · Marysville, KS 66508785-562-5381 · Fax 785-562-4853mhpsales@landoll.com800-428-5655 · WWW.LANDOLL.COM/MHPNA2010 Booth #61424 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

Near the Port of Oakland, the facility handles about 7,000containers a year.looked for ways to reduce the packaging and dunnage usedin its inbound and outbound shipments and to incorporaterecycled content wherever possible. “Today, we strive toensure that everything we buy has some recycled content orFSC certification,” Ling says. “That includes the paper weuse for our catalogs.”Building a green distribution center was the next logicalstep. Working with ProLogis (800-566-2706, www.prologis.com) on a design for the Tracy facility, Crate and Barrel realizedthey could almost get basic LEED certification simply asa result of California’s strict environmental laws. So, to get tothe next level, achieving Gold certification became the goal.The two companies hired the M.E. Group (www.megroup.com), a green design consultant, to identify areas that couldmake a difference. “The M.E. Group was part of every designmeeting we had and they gave us ideas and direction for everyaspect of the building design,” Ling says. “That allowed us tobe thoughtful and smart about the design and constructionprocess without affecting the overall cost of the building.”One example: Crate and Barrel chose not to install solarpower until they see how the regulatory environment andtechnology develops. However, because one of their goalsis to get 35% of the building’s electricity from alternativesources of energy, they did strengthen the roof trusses so theycan implement solar at a later date.Other initiatives included recycling more than 95% of theconstruction site waste, and installing a sophisticated lightingsystem with motion detectors, timers and skylights tohelp achieve a 37% reduction in energy usage.But perhaps one of the most important lessons from theproject is that building a sustainable facility did not requireCrate and Barrel to alter its usual business objectives fora distribution center. “This is an $80 million facility,” Lingadds. “But we did not have to change our ROI or the impactthe new operation has on our distribution network to dothings that also support our core beliefs.”

BIG PICTURE... WHERE MATERIALS HANDLINGFrom conveyors to pallets, industry leaders make thecase for how their products can make a difference tocompanies focused on the green supply chain.By Bob Trebilcock, Executive Editorow green are your materials handling systems?That may not be a question you’re currentlyasking your materials handling suppliersor one that your customers are asking you today.After all, most certification groups don’t yet factor inmaterials handling systems when they’re looking atthe impact of a distribution center or manufacturingplant on the environment.That, however, may soon change. Ninety-twopercent of the respondents to our annual IndustryOutlook Survey said they expect environmental sustainabilityto be very (48%) or somewhat (44%) importantin the next two years. It is already a priority inthe board rooms at Fortune 500 corporations and arequirement for doing business with state and federalgovernments.Most companies launch their sustainability initiativesin those areas of their business where they canhave the most impact, like fuel consumption for atransportation company. But just as lean initiativesstarted in the factory and migrated to the warehouseand the office, it’s only a matter of time before sustainabilityefforts filter down to the warehouse.“I think most of our clients already have sustainabilityon their radar,” says Paul Evanko, a seniorvice president for St. Onge (717-804-8181, www.stonge.com), a design and consulting company. “Itmay not be No. 1 on their list, but it’s become acorporate priority.”What’s more, Evanko adds, there are plenty of areasin a facility—from efficient storage and picking to cartoncubing to smart controls on equipment—wherematerials handling can enable a sustainable operationonce someone starts asking the question: Howgreen are your materials handling systems? (For thoseattending NA 2010 this month in Cleveland, Evankowill be one of the presenters on sustainability.)To get a snapshot of where the industry is today,Modern asked more than 20 suppliers of materials handlingproducts and systems how they are going greenin their manufacturing processes and products, andhow they can enable sustainable materials handling.ILLUSTRATION BY DAVE CUTLER26 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

MEETS BUSINESS

BIG PICTUREretrieval systems (AS/RS) to better understand power usage.The system can then formulate a demand management planthat spreads out power usage and reduce peak usage of conveyors,sorters and other technology. This tactic reduces spikesin power usage and keeps the user in a lower price range.Conveyor,sortation andstorageEngineered for efficiencyOne way to reduce the consumption of energy in an automatedmaterials handling system is to operate in the mostefficient manner while still meeting throughput requirements,says Jerry Koch, Intelligrated’s (866-936-7300, www.intelligrated.com) product director of software and controls.Intelligrated recently implemented a system that allows thecustomer to enter in the demand for the day. With that information,the control system can calculate the least amountof energy usage required to run the system and meet thatdemand. Although it has not been implemented, Intelligratedalso designed a system that integrates with a building’s infrastructure.“If we no longer have product flowing in an area ofthe building, we can put the conveyor in sleep mode and tellthe building to turn off the lighting in that area,” Koch says.“As the cost of energy rises, we believe the technology willbecome viable.”Making the most of every kilowattWith power companies calculating rates based on peak usage,how you manage your energy usage is important, says KenRuehrdanz, Dematic’s (877-725-7500, www.dematic.com)warehousing and distribution market manager. Using an energymonitoringaudit, Dematic collects and analyzes power consumptiondata of conveyors, sorters and automatic storage andReducing your footprint with automated storageFor a company focused on minimizing its impact on the landand on saving energy, AS/RS has a green story to tell, saysDan Labell, president of Westfalia Technologies (717-764-115, www.westfaliausa.com). “One of our customers producesorganic dairy and meat products,” says Labell. “Theychose AS/RS to conserve land use. But, they were also able toreduce their energy consumption because they could reduceinterior lighting; they could use the rail supports to reducethe amount of stretch wrap on a pallet that might end up inthe landfill; and restrict the size of the openings required togo into refrigerated and freezer areas to minimize heat loss.”In freezer applications, an AS/RS allows for a smaller areaaround the ceiling. “In cooled areas, the ceiling is the secondplace you lose heat,” Labell says.Maximizing space, minimizing impact“When it comes to green, AS/RS has a lot of benefits,” saysJohn Clark, director of marketing for TGW-Ermanco (231-798-4547, www.tgw-ermanco.com). “Any time you can take anexisting facility and double or triple your storage footprint in anexisting building without having to heat, cool or light that storagearea, you’re going to see savings.” In a new facility, Clarkadds, AS/RS technology allows for a footprint that’s a thirdor more smaller than a traditional environment. Meanwhile,TGW-Ermanco’s conveyor technology uses electronic sensorsto operate on-demand features. “You can interface with existingline shaft conveyor to change a portion of your system withthe new technology without ripping out your existing systemand starting over,” says Clark.The economic triple bottom lineCorporate sustainability advocates like to talk about the economictriple bottom line. The idea is that done right, environmentalstewardship and social responsibility lead to economicprosperity. Those concepts can be adapted to vertical andhorizontal carousel solutions, says Ed Romaine, vice presidentof marketing for KardexRemstar (800-639-5805, www.kardexremstar.com). Automated storage provides an environmentalbenefit because dense storage allows for a smallerbuilding, reduced construction costs, and less maintenanceand heating costs in the future. The product is sociallyresponsible because it delivers assets to a workstation at anergonomic height, providing access to work to the disabledand a graying workforce. Economic prosperity results from amore productive workforce. “By putting the right equipmentin the right applications and for the right reasons, you’ll see areturn on your investment,” Romaine says.28 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

BIG PICTUREDoing more with lessEven in these difficult times, companies are asking about sustainability,says Tom Coyne, CEO of System Logistics (207-784-1381, www.systemlogistics.com). “We have been askedrecently to quantify the energy consumption of our systems,to quantify the savings from high efficiency motors and tosuggest ways to drive energy savings with our systems,” saysCoyne. High density, automated storage systems deliver sustainablesavings because they use space efficiently. “But, weare also using software and controls to make our equipmentmore efficient,” says Coyne. “That allows us to use a smallerconveyor system and fewer motors and still meet throughputobjectives.” System Logistics recently cut out a mile of conveyorover a traditional design for one customer that incorporatedelectricity generated from solar panels in the system.“We believe we can drive more sustainable benefits throughsoftware and design than by simply making the equipmentmore green,” Coyne says.Calculate the savingsAutomated materials handling delivers sustainable benefitsthat aren’t yet credited by certification organizations,contends Bob Gorman, business development lead for HKSystems (800-457-9783, www.hksystems.com). “AGVs aremore efficient than lift trucks, which means you’re consumingless electricity,” says Gorman. ”An automated storage systemallows you to get by with a smaller building. That meansless concrete and less water runoff that might disturb thesurrounding habitat.” For companies weighing the tradeoffsbetween energy efficient technologies, like AGVs and conventionalmaterials handling solutions, HK offers an energycalculator on their website. Systems designers can performwhat-if scenarios to compare various solutions, using variableslike motor consumption rates for AGVs, cranes and lift trucks,to find the most economical and energy efficient solutions.Reuse and regenerateViastore Systems (616-977-3950, www.us.viastore.com) isworking on the next generation of automation technologyto deliver even more savings over conventional automatedequipment, says company director Ken Lewis. Automatedstorage and retrieval systems (AS/RS) are now equippedwith an energy reuse or recovery unit that captures the energygenerated by a braking unit when a load is lowered andsends that energy back into a drive motor. “Depending onthe level of use, you can realize up to 30% energy savingsover a conventional AS/RS,” says Lewis. In Europe, Viastoreis installing energy re-feed units on its machines that put thatpower back into the energy company’s electrical grid. Finally,Viastore is analyzing and redesigning its customers’ materialshandling systems and throughput requirements to operatewith smaller, energy-saving motors or to run at slower speedsto conserve energy.Sustainable designThere are a number of ways an end user can reduce the carbonfootprint of their operations, says Joe O’Connor, directorof marketing for Wynright (847-595-9400, www.wynright.com). One is to design a system with sustainability in mind.That starts with a working understanding of the availability ofrebates and incentives to adopt alternative energy as well asthe energy costs in different areas in the country. In addition,the systems integrator offers an after market service to analyzehow effectively active and reactive electric power is being usedwithin a facility. “If the two are out of balance, we can correctthat with capacitors that allow you to rely less on your utility,”says O’Connor.Lift trucksSustainable manufacturing“Sustainability has been a way of life for Crown for over 20years,” says Brian Duffy, director of environmental health andsafety for Crown (419-629-2311, www.crown.com). “Whenwe design our products, we choose materials and technologythat have a long material life and that have another use at theend of their usable life.” At the end of the first life of a truck,Crown uses the materials to remanufacture lift trucks underthe Encore brand. “We will reuse, rebuild and remanufactureas much of the content of our trucks as we can,” says Duffy. “Ifa component can’t be reused, we will break it down and reusethe component parts. What we can’t reuse, we dispose of in anappropriate manner.” Remanufacturing and reusing parts haskept 7,000 tons of parts out of landfills. What’s more, the companyhas added over 1 million square feet of industrial spaceby using abandoned or under utilized buildings.Reducing energy usageRaymond (800-235-7200, www.raymondcorp.com) is helpingits customers be more energy efficient by designing its productsto operate with as little battery power as possible. “OurACR system relies on a motor technology and controls thatallows the truck to be more energy efficient while driving andlifting,” says Joe LaFergola, manager of business and informationsystems. The system combines an AC-powered motorwith a traction control system that is tuned to the motor to getthe most efficiency out of the system. “If you have a multipleshift operation, you can use two batteries instead of three,”says LaFergola. “Spread that over a fleet of 150 trucks, andthat represents a significant number of kilowatt hours over thecourse of a year.”Reducing a carbon footprintLast year, Toyota Material Handling, U.S.A. (800-226-0009,www.toyotaforklift.com) was awarded the Governor’s Awardfor Environmental Standards in Indiana for an initiative thatreduced energy consumption by 2.2 million kilowatt hours andmmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 29

BIG PICTUREa reduction in carbon dioxide output of 3,611 tons. “That’simportant because our customers are asking not just aboutour products, but also what we as a company are doing aboutsustainability,” says Melinda Beckett-Maines, Toyota’s nationalmarketing manager. But Toyota’s efforts don’t stop with energyconsumption. The company has converted 60% of its paintingprocesses over to dry coat and reduced the volatile organiccompounds (VOCs) produced by the paint process in half.A Toyota plant in Columbus, Ind., is a zero landfill facility.And, Toyota is working to ensure that its suppliers share itscommitment to environmentally sustainable manufacturing.“Companies are not only looking for environmentally friendlyproducts, they are interested in doing business with environmentally-friendlycompanies,” says Beckett-Maines.Developing fuel cellsOver the last year, NACCO Materials Handling Group(NMHG), maker of Yale and Hyster brand lift trucks, (503-721-6000, www.nmhg.com) has been working with Plug Powerand Central Grocers to develop a fleet of 236 fuel-cell poweredYale lift trucks. When the entire project is complete laterthis year, hydrogen fuel to re-power the cells will be deliveredand dispensed on-site, allowing for quick refueling, increasedproductivity and zero emissions. For end users that aren’t readyfor the leap to hydrogen fuel cells, NMHG has introduced anew line of industrial combustion engine trucks that reducesfuel consumption by at least 8%. It is also partnering withenvironmental agencies and technology companies to developthe next generation of battery-powered lift trucks. “Some ofour largest customers are already planning facility enhancementsto accommodate new types of equipment to chargetheir trucks in an efficient, productive and safe manner,” saysJonathan Dawley, vice president of marketing.Automatic GuidedVehicles andmobile robotsSmooth and efficient robotsIndustrial robotic technologies bring two components to thetable, contends Brad Wyland, director of product strategyat Seegrid (412-621-4305, www.seegrid.com). First, theyCOVERYOUR ASSETS!Free Sampleswith RackGuard Containment Netting1-800-328-8456 www.industrialnetting.comSee Us at NA 2010 #184630 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

BIG PICTUREare unmanned and run on electric power rather than fossilfuels. And because a robot is computer controlled, it is moresmooth and efficient in how it uses power. “That not onlyleads to better energy consumption, we believe you’ll also seea reduction in wear and tear on wheels and other parts,” saysWyland. “That will reduce the total cost of ownership andreduce your overall footprint.” In the future, Wyland adds,Seegrid plans to investigate alternative sources of energy topower the robots. Second, robots enable the move toward“lights out” automation. “When you’re using robotic technology,you can reduce your HVAC costs and the amountof lighting you need in certain areas of the facility,” Wylandsays.Controlled efficiency with AGVsLike industrial robots, automatic guided vehicles use electricbatteries and computer controls to operate more efficientlythan lift trucks. “We do the same tasks as a lift truck, butwe can more precisely control the acceleration and decelerationrates,” says Mark Longacre, JBT’s (215-822-4489, www.jbtc-agv.com) marketing manager. “Because we can controlthe battery cycles, you’ll see longer battery life.” JBT is alsoresearching alternative power sources for its vehicles. Forinstance, the company implemented a nine-vehicle systemthat uses hydrogen fuel cells for a tire manufacturer. “Thevehicle creates a little bit of water vapor that evaporates,”says Longacre. “So far, it has worked well and provides aneven source of power that is rock solid.” The company istesting a methanol fuel cell to recharge a traditional batteryduring operation. “Methanol doesn’t have the energy densitywe need to power the vehicle directly,” he says. “But it doesgive us some efficiency gains, and methanol is considered acleaner and more sustainable fuel.”Green equals lean“For Jervis B. Webb, sustainability is about enabling a leanoperation that reduces waste,” says Sarah Carlson, marketingdirector for Jervis B. Webb (248-553-1000, www.jervisbwebb.com).For the last year, Webb has replaced the standardabsorbed glass mat batteries (AGM) that it used with fastcharging, thin plate pure lead batteries (TPPL). “TPPL batterieslast up to 50% longer than AGM batteries, and they are90%-plus recyclable,” says Carlson. “And, because they chargefaster, you can operate your facility with fewer batteries.” Thattranslates into less energy, less parts and less maintenance. “Tous, that’s part of green in the bigger picture,” says Carlson.Insight that Pushes Creative Boundaries in Plastic©2010 Rehrig Pacific CompanyMaterial HandlingWhen you have a material handlingchallenge, we’re listening with overnine decades of industry experience.Today’s global demands require innovativeboundary-pushing products and person-topersonconsultation from design conceptall the way to commissioning. Our historyof creative, sustainable plastic solutions thatdeliver outstanding value to our customersis unparalleled. Discover the world-classexpertise we can bring to your storage,AS/RS or supply chain needs atwww.rehrigpacific.com.Phone: (800) 546-4993Email: info@rehrigpacific.comWeb: www.rehrigpacific.comCome see usat NA 2010Booth #2211A FAMILY TRADITION OF GROWTH, SERVICE AND INNOVATIONmmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 31

BIG PICTUREPallets, totes andcontainersRecycling packagingReduce, reuse and recycle. That is the value proposition ofusing reusable packaging products, like plastic pallets, containersand totes, says Pete Budney, vice president of marketingand product development for ORBIS (888-217-0965, www.orbiscorporation.com). “You’re reducing the amount of wastethat’s going into the landfill because you’re not manufacturingadditional product,” says Budney. A lifecycle analysis done fora major soft drink company found that a reusable plastic shellrequired 43% less energy over its life, created 80% to 90%less solid waste, and generated 30% to 60% fewer greenhousegases compared to a single-use corrugated shell.Lighter, recyclable pallets“Companies looking for ways to improve their environmentalperformance find all-plastic pallets a compelling solution,”says Bob Moore, chairman and CEO of iGPS (800-884-0225,www.igps.net). In the case of iGPS, users can augment theirsustainability efforts in several ways. For one, the pallets arepart of a pool that is used over and over. In addition, theyare 30% lighter than a typical multi-use wood pallet, whichreduces fuel consumption and greenhouse gas emissionsassociated with transportation. Finally, they are 100% recyclableand do not contribute to deforestation. That results infewer pallets going to the landfill. Last but not least, plasticpallets are never painted as are some wooden pallets, eliminatingthe release of volatile organic compounds (VOCs) thatare found in some paints.Cradle-to-cradle sustainabilityWhile traditional wooden pallets often end up in the landfill,presswood pallets have received Cradle-to-CradleCertification at the silver tier from McDonough BraungartDesign Chemistry (MBDC) for their ingredients, recyclabilityand design principles. The pallets are manufactured fromwood waste products, molded under high heat and are freeof bugs, bark and mold, which makes them appropriate forexport. The wood for presswood pallets comes from lowgradetimber stands that are uneconomical for other purposes;93% of the biomass of the tree is used in the productionof the pallet. The unused 7% is often used to provideenergy in the factory’s boiler system. Unusable presswoodpallets are also being used in waste-to-energy and biofuelplants. “In the future, we hope to develop new products withold Inca pallets,” says Gary Sharon, vice president of LitcoInternational (330-539-5433, www.litco.com).Software andergonomicsLEED-certified heating/coolingWhile LEED may not recognize most warehouse and distributioncenter technologies, Big Ass Fans (877-244-3267, www.bigassfans.com) is one of the exceptions. “We have helpedcustomers document energy savings and thermal comfort inabout 20 LEED-certified buildings,” says Christian Taber, anapplications engineer. “I’d say at least 80% of our customersare now asking us about the impact of our technology on thebottom line of their operations and the environmental benefitsas well.” The fans use relatively small motors—0.5 to 2horsepower—to turn large blades at low speeds. In cold climates,the fans circulate the warm air that accumulates atthe ceiling, reducing heating costs by 20% to 40%. In warmclimates, the air velocity coming off the blades makes a workarea feel 5 degrees to 10 degrees cooler than it is. “If you don’thave air conditioning, your worker will feel comfortable with aminimal use of energy,” says Taber.Designing a sustainable supply chainThink green, and software may not be the first thing thatcomes to mind. But supply chain network optimization anddesign solutions are emerging as a front-line tool for companiesconcerned about sustainable supply chains, says KellyThomas, JDA Software’s (800-438-5301, www.jda.com) seniorvice president of manufacturing. “Network design tools havealways used constraints to create the most efficient supplychain, and now we can also take sustainability factors intoconsideration,” says Thomas. Last year, JDA began to includecarbon emission data elements along with water consumptionand production as part of its data model.32 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

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Industry outlookBouncing offthe bottomExperts agree: The materials handlingindustry may bump along the bottoma little longer, but optimism isslowly replacing pessimism.By Lorie King Rogers, Associate Editor34 M O N T H 2 0 0 6 / MODERN MATERIALS HANDLING mmh.com

SPECIAL REPORTILLUSTRATION BY DANIEL GUIDERAAcross the industry, across the country and across the globe, it was unanimous: Every segmentof the materials handling industry took a hit in 2009. Experts predicted a contraction last year,but underestimated the breadth of the economic decline.That was then, and this is now. Once again, industry experts are in agreement: The worst isbehind us and the signs are pointing to a better 2010 and beyond.“We can clearly say, that we have seen the turn from thematerials handling industry being in free fall to it starting tofeel as if there is a floor under us again,” says John Nofsinger,CEO of the Material Handling Industry of America (MHIA,704-676-1190, www.mhia.org), the trade organization thatHow is the present state of the economyaffecting your spending on materialshandling equipment technologies servicesand solutions?We are taking a "wait-and-see" approach/ moving slowly with our decisions48%We are holding off on investing21%We are proceeding with our investments18%The economy is having little/no impact on our materials handling spending13%Modern Materials Handling’s 2010 State of the Industry Studyrepresents the industry. “We started to see hints of a recoveryin the second quarter of 2009, and we’re now seeing renewedoptimism.”MHIA’s optimism is backed up by recent economic data.The Gross Domestic Product increased by 2.7% in the threequarters through winter 2010 and will keep growing at abouta 2.5% to 3.0% annual pace through 2011, according to JimHaughey, chief economist with Reed Business Information’sConstruction Data Group. Much of that growth is being drivenby a surge in equipment exports and an expansion of manufacturingproduction, which increased by nearly 6% in thesix months through January 2010 and willincrease 9% more by the end of 2011.Still, while the industry is gentlybouncing off the bottom, this is a subparrecovery after a deep recession, Haugheycautions.Modern’s Survey says…Modern’s Readers share Haughey’s cautiousoptimism, according to our recent2010 State of the Industry study conductedfor Modern Materials Handling byHow does your company'sspending on materialshandling solutions in 2010compare with 2009?Increasing 16%Decreasing 17%Staying the sameas 2009 67%Modern Materials Handling’s2010 State of the Industry Studythe research department of parent company Reed BusinessInformation. The annual survey, which was e-mailed toModern readers in February and yielded 353 respondents,tracks market changes during the last year and aims to understandthe current state, trends and practices in manufacturing,warehousing and distribution.Last year was a mixed bag, according to our respondents.Spend levels on materials handling solutions for 67% of theresponding companies remained steady. The remaining wereevenly split: 16% say spending on materials handling equipmentincreased, while 17% say spending fell.The industry outlook for 2010 and beyond is encouraging.Nine out of 10 companies say that spending on materialshandling will either increase or remain the same during thenext year. Only 8% say spending will drop.Still, that optimism is tempered. While nearly 31% ofrespondents say they are moving forward with intendedplans, 48% say they are taking a wait-and-see approach.MHIA’s viewThe Material Handling Equipment Manufacturing (MHEM)forecast, conducted by MHIA, provides a solid foundation forpredicting the market outlook. What do those numbers say?Last year, MHEM numbers led MHIA to predict a relativelymodest contraction for the industry of 18% to 20%.The actual decline was closer to 37%.For 2010, MHEM numbers are predicting a relativelypositive forecast, with growth in orders in the 6% to 8.5%range. “Material handling suppliers are starting with a smallerorder book going into 2010, but order books will be up bythe end of the year,” Nofsinger says.Although shipments of materials handling products contractedby 34% in 2009, Nofsinger says the contraction isdone and shipments are expected togrow 1% to 2% this year. While the globaleconomy has yet to rebound from theeconomic downturn, exports of materialshandling equipment, which droppedfrom $5.8 billion to $3.7 billion in 2009,are expected to increase in 2010 to about$3.8 billion. Imports of materials handlingequipment are forecasted to see a similarslight uptick from $3.7 billion in 2009 to$3.8 billion this year.Still, shipments and exports have a waymmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 35

SPECIAL REPORTIn which areas will you be investing overthe next 18 months?New equipment/equipment upgrades (ie. automated retrieval lift trucks bins/ totes, etc.)69%Information technology hardware/ software37%Staffing/ laborMaintenance servicesEnterprise applications (ERP, CRM, WMS, WCM, etc)24%Outsourcing/ 3PL services8%Outside services (3PLs)8%25%31%Other6% Modern Materials Handling’s2010 State of the Industry Studyto go before they return to pre-recession levels.“Going into 2010, I anticipate progressive, continued,gradual growth,” says Nofsinger. “But I don’t expect to see areturn to 2007 levels until 2012 or beyond.”Automatic identification and data captureThe automatic identification and data capture (AIDC) marketalso expected a contraction in 2009, according to a reportreleased by Venture Development Corporation (VDC, 508-653-9000, www.vdccorp.com). However, last year the datacapture market was considered “a speck of brightness for thenext 12 months.”“Our prediction that the market would contract cametrue,” says Tom Wimmer, director of auto ID and transactionautomation practice at VDC. “Unfortunately, we missed theseverity of the contraction.”So what will get the attention of CIOs in 2010? Wimmercontinues to see near-term growth opportunities in emerginggeographic and vertical markets, especially in Asia andLatin America where demand for AIDC technology is rapidlyincreasing. Additionally, Wimmer believes compelling growthopportunities can be found in health care, commercial service,government and segments within retail.“The rubber meets the road when you start thinking aboutapplications because that’s what generates sales,” Wimmersays. “We think there are a lot of promising applications withinhealth care around patient safety. Concern about patient safetyhas driven interest in asset management within hospitals toensure patients have what they need when they need it.”More effectively managing assets and people, and trackingthem throughout an enterprise or supply chain has becomeHow important are these issues today?Cost containmentThroughputLabor availabilityCompany growthFacility consolidationOutsourcing (3PL)12%1%67%31%2%39%48%12%62%35%3%27%46%27%12%39%50%Trading partner collaboration29%46%25%Environmentally sustainable36%50%14%Having a presence in global marketsTrainingErgonomics43%33%23%62%34%5%45%48%7%SafetyCapital availabilitySmaller, more frequent ordersHours of serviceCycle times11%1%58%37%5%31%50%19%36%51%13%53%39%8%88%88%Very important Somewhat important Not at all importantModern Materials Handling’s 2010 State of the Industry Studyincreasingly important, Wimmer says. This ties back to post-9/11 security interests and these safety and security issuesare supported by our survey findings (see table above).The trend in warehousing operations, according toWimmer, is toward multi-modal data capture that takes themany AIDC technologies—bar code, RFID and voice—andcombines them to provide benefits across the enterprise.Soft market for softwareSupply chain management software, which is comprised ofsolutions such as supply chain planning and network design(SCP), manufacturing execution (MES), warehouse man-36 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

SPECIAL REPORTTwo years from now, how important do youexpect these issues to be?Cost containmentThroughputLabor availabilityCompany growthFacility consolidationOutsourcing (3PL)Trading partner collaborationEnvironmentally sustainableHaving a presence in global marketsTrainingErgonomicsSafetyCapital availabilitySmaller, more frequent ordersHours of serviceCycle times12%1%73%25%2%48%46%87%agement (WMS) and transportation management (TMS),was not immune to the downturn either.Last year, Steve Banker, service director of supply chainmanagement at ARC Advisory Group (781-471-1000, www.arcweb.com) predicted that the market would contract about5%. Unfortunately, Banker says, things were a lot tougher thanexpected and the market took a bigger hit. In the WMS market,even the big players were down significantly, he adds.Although the annual results from its annual WMS studyare not yet available, Banker is optimistic about 2010. Hesays, “I think we’ll gradually come out of it in the coming year7%26%3%31%45%24%16%8%20%24%20%24%2%4%40%44%36%44%48%44%40%55%56%9%1%60%5%16%12%35%33%6%40%45%45%43%61%71%74%90%Very important Somewhat important Not at all importantModern Materials Handling’s 2010 State of the Industry StudyWhich of the following green initiativeshave been implemented? Of those, whichwere not in use 12 months ago? Which willbe evaluated over the next 12 months?Lighting fixtures and/or controlsFans to circulate cool or warm airSolar panelsMetal and/ or plastic palletsLEED certification for new buildingsUpgraded insulationWater run-off controlsReusable shipping containersPackaging and/ or packing materialsRecyclingOtherNone39%31%32%26%9%4%53%11%14%25%22%41%40%22%19%30%29%17%27%45%17%59%24%32%58%4%6%5%5%28%29%36%UseUse but not used 12 months agoWill evaluate over the next 12 monthsModern Materials Handling’s 2010 State of the Industry Study66%74%and spending will start to increase. If the market could growby 1% the suppliers would be thrilled.”Lift truck marketThe slide in the lift truck market was also steeper thanexpected. The hope was that 2009 would be a year of adjustmentrather than recession. Jeff Rufener, president of theIndustrial Truck Association (ITA, 202-296-9880, www.indtrk.org) and vice president of marketing for MitsubishiCaterpillar Forklift America, tells us that he was surprised bythe pace and depth of the downturn.“Our industry is cyclical,” says Rufener, “and we’ve hadrecessions in the past, but I didn’t think it would be possibleto fluctuate more than 35%. Last year surpassed thatfigure, and we ended up being down about 40% from wherewe were in 2008.”mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 37

SPECIAL REPORTBy what percentage doesyour company's spendingon materials handlingsolutions in 2010 comparewith 2009?1%-10%11%-20%21%-30%31%-40% 3%6%19%15%16%13%11%41%-50% 5% 10%51%-60% 1%61%-70% 3%71%-80% 1%3%81%-90%91%-99% 1% 5%100%5%5%IncreaseDecreaseModern Materials Handling’s 2010 State of the Industry StudyOver the next 18 months,approximately how muchdo you expect to spend onmaterials handlingequipment and informationsystems?Less than $25,000$25,000 - $49,999$50,000 - $99,999$100,000 - $249,999$250,000 - $499,9999%$500,000 - $999,9996%$1 million - $2.49 million6%$2.5 million or more5%15%17%20%23%Modern Materials Handling’s 2010 State of the Industry StudyFor each of the following,will you be selecting anew supplier or usingan existing one?Information technology solutions29%Outside services (3PLs)40%70%78%Systems equipment (ie. automated retrieval,lift trucks, bins/ totes, conveyors, etc.)80%36%Use existing supplierNew supplierModern Materials Handling’s 2010 State of the Industry Study“We started to seehints of a recovery inthe second quarterof 2009, and we’renow seeing renewedoptimism.”— John Nofsinger, CEO of MHIAThe bright side: History tells us that the lift truck industryalways recovers and even comes back to top previous recordlevels. Still, Rufener is characterizing 2010 as a recoveryyear. “We bottomed out and will grow modestly by about 7%over 2009,” he says. “Still, single-digit growth is not going toprovide a lot of relief for the financial strain that the industryis under.”One strain is that the tight credit market will likely continueto be an issue in 2010. That could affect how muchinventory distributors are willing to carry in light of the pressuresthey are facing. “Is it a game changer?” Rufener asks.“We have to contemplate that and how it will affect relationshipswith end users.”Other events have resulted in profound and lasting changesin the lift truck market, including government regulationsregarding fuel and noise emissions, the cost of fossil fuel,and advances in electric truck technology that enable performanceto be closer to internal combustion engine trucks.Internal combustion products are shrinking in the overallmarket. In 2005, 55% of the materials handling equipmentin Classes 1 through 5 were electric; in 2009, electric trucksaccounted for 68% of the market. He also reports that ITAmembers are predicting 2010 will be another big year forelectrics, as they strive to meet regulations and keep fuelcosts down. “We do think that sales of internal combustionengine trucks will improve as the economy improves,” saysRufener.What CEMA seesAnother report shedding a positive light comes from theConveyor Equipment Manufacturers Association (CEMA).CEMA executive vice president Bob Reinfried says theorganization’s latest report shows that conveyor ordersincreased 19% over December 2008 and booked ordersare up 1% from November 2009. CEMA also reported thatDecember 2009 shipments were up 12% over November2009, but down 24% from December 2008.“From what I’m hearing throughout the industry, everyoneis optimistic that we’ve bottomed out,” Reinfried says.“Quotes are picking up and it looks like things are looseningup a bit. As a result, we’re expecting new orders to pick up.But it will take a while for shipments to start to increase.It will be a slow recovery and I wouldn’t expect much morethan a 2% to 3% increase in 2010.”38 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

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HANDLINGUP HIGH

EQUIPMENT REPORTUsing the overhead space in your facility not only frees up floorspace, but also leads to more efficient product movement.By Sara Pearson Specter, Editor at LargeManufacturing and distribution facilities have longemployed a variety of overhead materials handlingsystems—including track-based conveyance suchas chain and power-and-free conveyors, electrified monorail,and overhead and workstation cranes.Using space overhead frees up the floor for safer, moreefficient movement of products, work-in-process and associatedtooling. In addition to decluttering the work zone, thesesystems offer enhanced ergonomics, plus a means to moveitems too large to be transported with a fork-based vehicle.Track-based conveyanceFor moving products weighing 5 pounds to 1,500 pounds,overhead chain systems are the most common type of overheadhanding. Evenly spaced pendants hanging along a singlechain are pulled through a single enclosed track, or I-beamtrack, to carry the loads.The next level of conveyance is dual-track power-and-freesystems. These systems are comprised of a chain track on top,which provides the power, and the free track below, whichcontains the trolleys that move loads through the system.Capable of carrying 25 pounds to 25,000 pound loads,power-and-free conveyors are used extensively in conveyingmaterials to and from automation, manual workcells, and hostileenvironments like industrial washers, paint equipmentand ovens, according to Brent Brosch, director of productsales for Jervis B. Webb (248-553-1000, www.jervisbwebb.com). “Power-and-free conveyors are extremely flexible, versatileand can be programmed to service a few work cells or anentire plant with proven reliability,” he says.“From a new development perspective, lately there’s beenmore emphasis put on noise reduction in chain and powerand-freeconveyors, with use of non-metallic wheels to reducethe noise in a workplace,” says Brosch. And, to further reducenoise, other components are also being made of non-metallicmaterials, he adds.Ideal for carrying a load from Point A to Point B, electrifiedmonorail systems are best suited for moving high-value productsacross long distances with fewer stops. The system consists of asingle rail or I-beam from which a hook or hoist hangs, providinglateral and vertical movements of loads weighing up to 30,000pounds.“Monorails have remained very similar in appearance overthe past 30 years, but a lot of subtle improvements have beenmade,” Brosch says. “Previously, most I-beam systems werebuilt for very heavy-duty cycle use, particularly in automotivemanufacturing. Today, other industries with light- to mediumdutymanufacturing applications, like appliances and warehousing,are installing lighter duty monorail systems appropriatefor their needs.”Workstation and overhead cranesOffered in multiple types and load capacities, cranes arecomprised of three components:• a stationary or mobile bridge made of rails and carryingone or more trolleys,• the unit that travels side to side and carries the hoist, and• a lifting device that hooks onto and manipulates a load.Power and free conveyors for overhead handling areideal for feeding materials to and from automation andworkcells.(Left) Workstation cranes allow operators to safelymanipulate relatively light loads in a limited area.mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 41

EQUIPMENT REPORTCranes can be manual or power driven, depending on theapplication and the size of the load that has to be moved.On the smaller scale, workstation cranes enable operatorsin a work cell to safely manipulate relatively light loads. Thesefree-standing units handle product in a relatively limited area,like in production environments.More workstation cranes are being installed as part of leandrivenmanufacturing process changes, says Jeff McNeil, marketingmanager for Gorbel (800-821-0086, www.gorbel.com).“To enhance the ability to produce multiple products in a singleassembly area, companies are turning to flexible systemsthat maximize the productivity of their operators—installingmore ergonomic workstation cranes and lifting devices to helpusers work smarter,” he says.Some of the newest workstation cranes are intelligentdevices that combine manual and servo-driven operations,McNeil says. The manual function allows workers to move attheir own pace as they walk to a bin, select a part and guidethe crane to a machining center process. The servo-drivenfunction controls the positioning of the part on the machine,preventing damage to either, by slowing down for part placementand release.Massive overhead cranes move heavy loads that are notpractical to transport with a lift truck over long distances.Ceiling-mounted bridge cranes are often part of the buildingstructure. Top-running, double-girder cranes mount the bridgeon top of the runway and have two girders for the bridge.Always powered, these bridge cranes offer capacities up toToday’s overhead cranes offer smoother accelerationand deceleration of the hoist and step-less control forimproved spotting and positioning.Power-and-free conveyor supportspowder coat lineFOR GRADALL INDUSTRIES, manufacturer of excavatingequipment for highway, industrial, railroad and miningindustries, a small part can weigh as much as 2,500pounds—and large parts range up to 9,000 pounds. Thissize and mass presented a challenge for handling throughtheir paint system.To shepherd the small parts through their powdercoating line, the company selected an enclosed trackpower-and-free conveyor system (Jervis B. Webb, 248-553-1000, www.jervisbwebb.com) with two-speed transportconveyors in the line that process up to six carriersper hour.The three-trolley carrier system uses a lowerator toimprove ergonomics in the load/unload process. Carrierstravel on the slower (3 feet per minute) process linethrough washer, dry-off and powder booths. The 40-feetper-minutetransport conveyor delivers the carriers to thedry-off oven, cure oven and cooling tunnel. Oven and tunneltimes are adjusted at a control panel, opening when acarrier’s time is up. Control logic ensures that only one setof doors is opened at a time to prevent heat loss.The system permits Gradall to powder coat all of theparts necessary for three shifts of assembly in a singleshift of powder-coating, while improving product flowand reducing the level of rework significantly.600 tons. Alternately, under-hung cranes have a trolley thatruns on the bottom of the support I-beams. They’re ideal forloads of 15 tons or less.Gantry cranes look similar to overhead bridge cranes butare not part of the structure of a building. Instead, a gantryconsists of two uprights connected by an I-beam that servesas a bridge for the trolley. They can be either powered or manuallymanipulated and handle capacities up to 5 tons.Speed control continues to be refined in overhead cranesfor better load handling, says John Paxton, president of DemagCranes & Components North America (440-248-2400, www.demagcranes.us).“The enhancements include smooth acceleration and42 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

Free-standing workstation cranegives machine shop flexibilityAFTER RELOCATING TO A NEW FACILITY, Just In TimeCNC Machining (JIT) needed a flexible lifting system tomeet growing production needs. The company handlesparts in a range of sizes and weights, from large productionruns to smaller runs or prototypes.The facility, which the company leased, provided multiplechallenges: high ceilings, multiple columns, CNCmachines and loading bays. Due to the layout of the facility,the goal was to install one crane system to serviceseveral CNC machines.Ultimately the company purchased a free-standingworkstation crane with three, 23-foot long, 1,000 poundaluminum bridges (Gorbel, 800-821-0086, www.gorbel.com). System supports were staggered to allow 124-footrunways to cover the length of the building and remaincentered over each of the machines and work bays. Extralong headers help the positioning of the support columns.“It’s great having the multiple bridges, because if oneis busy, we’ve still got two available, and you’re not waitingon someone to finish,” says Jim Alexander, owner ofJIT. “The workers really liked the system since day one.Productivity is very good, and we haven’t had any liftinginjuries.”deceleration of the hoist and even step-less control, similarto the gas pedal on a car,” Paxton says. “The more you pushon the button, the faster you go, and as you let up, the sloweryou go. That gives the operator improved control for spottingand positioning.” This functionality results in improvedproductivity.A bigger trend in 5-ton and above cranes, says Paxton, isthe integration of smart controls to enhance safety and reducedowntime. “These controls monitor the hoist, store informationincluding warnings and error codes, and allow the datato be retrieved. By monitoring the load spectrum, users knowhow the hoist is being used and can schedule maintenance asneeded, both predictive and preventive.” This also improves

EQUIPMENT REPORTBFL SERIES“BIG FRIGGINLIFT”BFL lifts are designedto move large loads ormultiple pallets betweenfloors. These lifts willtravel from 8 feet to 18feet and platform sizesranging from 6’ x 8’ upto 8’ x 12’. They are idealfor moving large loads1-2 floors or up to highstages and mezzanines.1-800-843-3625www.advancelifts.comFlexible workstation cranes are often installed to enhancelean manufacturing through better ergonomics.safety and reduces downtime due to unexpected repairs,Paxton adds.Crane controlsDriven by safety concerns, more and more overhead systemsare being controlled by wireless radio remotes instead of wiredpendant control. The wireless method permits the operator torun the crane from a safe distance, while pendants requirethe operator to be near the load as it moves.Wireless systems include a radio receiver mounted onthe crane and wired into the programmable logic controller(PLC) and motors that are turned on and off by the system.They also include a handheld transmitter that the operatoruses to send a signal to the receiver.“One of the emerging trends we see in crane controls isremote diagnostics,” says Haroon Inam, vice president ofglobal engineering for Cattron Group International (724-962-3571, www.cattrongroup.com). “This and a multitude of otherreports—including productivity monitoring and safety conformance—canbe custom-created to examine crane behavior, aswell as operator behavior.”Reports are generated from the data collected by themachine control unit. “The information can be conveyed to aglobal help desk not only for condition-based monitoring, butalso to enable remote upgrades of software without the needfor a technician to visit each site individually,” says Inam.44 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

PRODUCTIVITY SOLUTIONDO WHAT YOU DO BESTLift truck equipment managementprogram keeps company focused ondelivering customer satisfaction.By Lorie King Rogers, Associate EditorWith nine distribution centers throughout theEast and Midwest, Maines Paper & FoodService in Conklin, N.Y., stocks everything a foodservicebusiness needs—supplies, fresh and frozenfood, dry goods and beverages.The company’s main 400,000-square-foot facilityhas 72 docks that experience heavy traffic, shippingout 550,000 cases of product in a typical week duringits three-shift operations. To keep distribution operatingsmoothly, Maines employs a fleet of 174 pallettrucks, reach trucks and orderpickers (RaymondCorp., 607-656-2311, www.raymondcorp.com) tomove product from dock to stock.Without automated equipment or conveyors, it’sespecially important that the fleet operates reliablyin Maines’ ambient and cold-temperature environmentsfor product selection, loading and unloadingtrailers, order picking, replenishment of stock andreceiving. If a piece of equipment is down, activitycould be down.“Our lift trucks are one of the most importanttools we have in distribution,” says Patrick DeOrdio,vice president of operations for Maines. “Withoutthe reliability of the trucks, we would never be ableto take care of our customers and meet all of ourmaterial handling needs in the various environmentswithin our facility.”Maines partnered with a fleet maintenance providerto help achieve higher service levels, profitabilityand safety while reducing time-consuming lifttruck equipment management at all of its locations.Through a comprehensive maintenance agreement,two dedicated service technicians are on site atMaines’ headquarters to cover routine and preventivemaintenance. Additionally, their partner makesit easy to rent extra equipment during busy seasonsand change out older equipment for newer models.“By working with [a fleet maintenance partner],we can focus on what we are good at, and they canfocus on what they are good at,” says DeOrdio.mmh.com MODERN MATERIALS HANDLING / A p r i l 2 0 1 0 45

AGVsDriverless trucks with voice directed pickingVoice+Laser driverless vehicles haveindustrial grade laser guidance andincorporate voice-directed picking,leaving operators with their handsfree to maximize case picking productivity.At the start of an order,the truck delivers a new pallet to thepicker. Then, it automatically moveswith the voice-equipped picker asthey verbally confirm picks, andtransports the completed pallet toshipping while the next truck bringsa new pallet to the picker. Duringpeak periods, pickers with manualpallet trucks can work in conjunctionwith the system to handle additionalthroughput. As requirements change,routing plans can be updated andadditional vehicles can be added ortransferred between sites. Dematic,877-725-7500, www.dematic.us.Low-cost AGVs handle up to4,000 poundsCapable of maneuvering and towingloads throughout a productionspace, a series of low-cost automaticguided vehicle systems can be controlledwith traffic control navigationsoftware. The vehicles come incapacities ranging from 500 poundsto 4,000 pounds, making themideal for handling smaller loads andincreased volumes without additionalstaff. Features include multiple pathprogramming, a retractable towingpin, remote communication, and46 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

AGVsprogrammable optical sensors for safe operation nearpedestrians and in confined spaces. The AGVs follow aself-adhesive magnetic tape for simple setup with no floormodifications. Toyota Material Handling, 800-226-0009,www.toyotaforklift.com.Robotic pallet truck handles 8,000 poundsThe vision-guided GP8 robotic pallet truck frees skilledemployees by performing non-value-added work by automatingpallet transport. Afteran operator positions thevehicle’s 96-inch long forksunder the pallet, the industrialmobile robot transports palletsto an assigned location,automatically positions them,and returns to the originalstarting point—or other preassignedlocation—for morework. The vehicle handles upto 8,000 pounds and stores25 miles of learned routes.Powered by a 24-volt DC battery, thevehicle travels at a maximum speedof 3.5 miles per hour. Seegrid, 877-733-4753, www.seegrid.com.SAMShown with Optional Pedestal MountYour Complete LiftingSolutionReactionArmShown with Optional Pedestal MountTransfer ArmLodeArmShown with Optional Trolley MountTaurusShown with Optional Pedestal MountVisit www.positech.comRoller forks handlepalletless loadsUsing a patented roller fork mechanism,the pallet-free automaticguided vehicle eliminates the needfor pallets within a facility. The vehiclehandles loads on slip sheets andoffers stacking and push back rackcapability. It may also be used for pallethandling. The automated systemreduces labor costs, product damageand operational costs. HK Systems,262-860-6715, www.hksystems.com.mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 47

A SPECIAL SUPPLEMENT TOCrossdocking:The latestand greatestBy Maida Napolitano, Contributing EditorRetailers continue to emerge astrailblazers when it comes tocrossdocking. Just think aboutthe type of distribution facilities thatthey’ve been building—more dynamicflow-through rather than static storage.And it’s all based on retailing’s basicpremise: You can’t make money untilthe product is sold at your stores.And getting product rapidly to thosestores is exactly what cross dockingaims to execute to perfection. By dispatchinginbound merchandise directlyto outbound shipping, crossdockingminimizes the amount of time goodsspend in non-value-added DCs andthus maximizes their speed to market.Companies that crossdock not onlyeliminate wasted time moving product toand from storage, but they also cut downon capital-intensive inventory by shippingimmediately to fulfill customer demands.Some degree of automation is typicallyneeded from both the software andthe equipment perspective. Here are thelatest developments, innovations, andbreakthroughs that have made crossdockingeasier and faster.Here are the latest developments, innovations, and breakthroughsthat are making crossdocking easier and faster than ever.Smarter softwareRecent developments in informationsystems and software solutions havecreated more opportunities for crossdocking,allowing for more visibility inthe supply chain and improved datasharing between trading partners. Hereare three new software capabilities:1. More opportunities. Older systemswere only able to do simple, “pure”crossdocking. Only if it was a perfectmatch of the entire license plate goingdirectly to an outbound shipping doorwould that product be considered as anopportunity to crossdock.Software provider Manhattan Associateshas taken it to the next level byallowing orders, and even order lines, tobe split. “To avoid starving inventory atstore shelves, most retailers prefer shippinghalf of that order line immediatelyrather than shipping none,” explainsEric Lamphier, Manhattan’s seniordirector of product management. If onlyone, instead of two cartons, of a popularelectronic hamster toy is received, thesystem automatically splits the orderand allocates that one carton immediatelyfor crossdocking.2. Sending electronic noticesfrom around the world. Conductingcomputer-to-computer business transactionsover the Internet has becomecommonplace. By allowing access toWeb-based portals, software providershave enabled suppliers to create andtransmit Advance Shipment Notification(ASN) information to their retailcustomers.An ASN is an electronic file transmittedfrom suppliers to retail customers,providing advance notice of whatproducts are being shipped to theretailer’s DC and their estimated timeof arrival. It facilitates crossdocking byautomating the receiving process, allowingfor allocation of a product even whilein-transit, and by providing DC managerswith a heads-up when planning resourcesfor inbound receipts.Managers are realizing greater visibilityin their supply chains and are now48S A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m

able to make better decisions—especiallyin the case of the unexpected. “Whena shipment is held up at the port,” saysPrashant Bhatia, director of solutionsmanagement at SAP, “it can trigger logicback to say that I’ve got a problem. I canno longer allocate that inventory on thatparticular shipment as I thought I could.”3. One database, one system, onesupply chain. In the last few years, softwareproviders have been pulling all oftheir products onto a single supply chainprocess platform. “It’s fairly new,” saysLamphier. “Various components havebeen integrated into that supply chainprocess platform longer than others, butactually moving our WMS onto it hasbeen a more recent development—justwithin the last quarter or two.”SAP uses its enterprise resourceplanning (ERP) system as the centralrepository of information of supply anddemand, as well as inventory, for theentire supply chain. And the modules alltalk to each other. Transportation managementsystems (TMS) in conjunctionwith the event management moduleshelp optimize freight, determine pick-upwindows, determine carriers, keep trackof in-transit times and create ASNs.That ASN not only gets sent backto the ERP for visibility, but it alsogets sent to the WMS where the systemuses the information to plan labor,equipment and resources at the receivingdock. When the physical productarrives, logic within the WMS, basedon the receipt of goods, determinesmatches against actual demand.Smarter, speedier equipmentWith more retailers crossdockingover 50% of their items at the case levelto their stores, equipment innovationshave centered on conveyor sortationsystems, print and apply mechanisms,and automatic identification technologies.Here are three new equipmentadvances:1. Smaller gaps and self-regulatingconveyors. In the last year, thesliding shoe sorter has undergone noteworthytransformations. “By doing a paralleldivert, we can now run the packagescloser together and get a higher throughputon the same system,” reports KenRuehrdanz, manager for Dematic’s distributionand warehousing markets.The sliding shoes that used to physicallypush the cartons off the sorter atan angle can now run those shoes inparallel, enabling smaller gaps betweencartons—which were previously from 6inches to 8 inches—down to 3 inches.With more dense traffic on conveyors,crossdock operators can run their conveyorsat a lower speed while still achievingthe same throughput. Slower speedsequal less wear and tear, decreased energyusage and less maintenance.Another conveyor breakthrough isautomatic speed control. “The wholeVERSATILITY MATTERSQuality Wildeck construction and versatility make theV-lift the ultimate lifting solution.In today’s ‘green’ building designs, floor space is at a premiumand moving up, not out, is definitely preferred. Look no furtherthan the V-Lift from Wildeck – the industry leader in spaceoptimization. The single cylinder hydraulic system eliminatesall moving hoses, cables, and chains. Fewer components meanseasy installation, reduced maintenance and longer servicelife. To get more value out of your operation, contact a Wildeckrepresentative today.MEZZANINESCapacity MattersLIFT SYSTEMSEfficiency MattersGUARDING PRODUCTSSafety Matters800-325-6939 | WWW.WILDECK.COM©Wildeck, Inc 2010Required safety gates and guarding removed for clarity.m m h . c o mMODERN MATERIALS HANDLING / A P R I L 2 0 1 0 49S

» A Special Supplement to MODERN MATERIALS HANDLINGsystem can now self-regulate its speeddepending on the volume that’s inboundon the system,” says Ruehrdanz. Thewarehouse control systems (WCS) softwaremakes that decision using electronicsensors that’s constantly monitoringwhere all the cartons are andhow they’re flowing.A sliding shoe sorter diverts cartonsusing a parallel diverting method.2. Print and apply on the fly.When your supplier is a fancy designerfrom Italy who can’t be bothered withlabeling, you’ve got to be ready withPlan B. The use of print and apply systemsallow crossdock operators the flexibilityto deal with inadequately labeledcartons so that proper labels can beprinted and applied on cartons as theytravel along conveyors allowing them tobe immediately cross docked.“When they first started out, thesesystems could process 10 cartonsper minute (cpm) maybe,” says SteveHaskell, vice president for L.A.-basedSDI Industries, a designer, integratorand manufacturer of materials handlingsystems. “Now you can get 30 cpm reliablywith a tremendous range of printingand software capabilities.”3. Crossdocking with voice andRFID. With a scan of the pallet licenseplate, voice-directed operators on thereceiving dock can be instructed toquickly move their crossdock pallets toThis gapping conveyor creates minimumgaps between cartons. Minimumcarton gaps allow the conveying andsorting systems to accommodate morethroughput at a slower operating speed.the correct shipping doors without havingto look at a terminal.By attaching an RFID tag on a pallet,the simple act of moving the pallet froma tractor trailer through a receiving portalnot only acknowledges receipt, butallows the automatic download of criticalinformation so automatic crossdockallocations can be made.The next generation of RFIDenabledlift trucks go a step furtherby combining RFID data collectionwith optical real-time location systems(RTLS) to precisely record palletmovement without any operator typingor scanning. As adoption increases,users are investigating the feasibility ofusing RFID-based technology to eliminatethe need for some EDI communicationsby encoding the advance shippinginformation onto the RFID tag toreduce the number of EDI messages.Vision for the futureWith more trading partners sharingdata in real time along withgreater levels of systems integration,Manhattan’s Lamphier envisions more“dynamic crossdocks” that constantlylook for opportunities to flow-throughproduct, even while still in transit.SDI’s Haskell sees equipment improvingand becoming more affordable.Soon, you’ll simply be running out ofexcuses not to crossdock.50S A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m

ADVERTISEMENTGREENING THE INDUSTRYWelcome toGreening the Industry,a special sponsored section ofModern Materials Handling.Keeping with the theme of the cover story, companies fromthroughout the materials handling industry, listed here alphabetically,tell you about how they’re helping their customersbeat a bad economy.This section is designed to provide you with information andinsight into companies that can help you meet your materialshandling challenges.100% Recycled EarthSaver BinsAkro-Mils, a North American leader in storage, organization and transport products, introduces anew family of products — the EarthSaver Series — which features its popular AkroBins ® andShelf Bins made from 100 percentrecycled plastic.The EarthSaver Series offers aneco-friendly choice in plastic storage andorganization products, while boostingproductivity in the workplace.OTHER BENEFITS INCLUDE:• The same great Akro-Mils products — now made from 100% recycled material.• Three color options — Hunter Green, Sandstone and Terra Cotta.• Easy to label for quick inventory identifi cation.• A positive impact on the environment.Designed for use in virtually any setting — including manufacturing, healthcare, retail anddistribution — bins in the EarthSaver Series can be used alone or with bundled Akro-Milssteel shelving, wire shelving and pick racks to create a complete storage and organizationsystem supporting 5S Lean and other initiatives.For more information on the EarthSaver Series or to request a complete catalog, contact Akro-Milsat (800) 253-2467, fax (330) 761-6348, or visit the company’s Web site at www.akro-mils.comAkro-Mils1293 S. Main St.Akron, OH 44301800-253-2467www.akro-mils.commmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 51

PROFILESGREENING THE INDUSTRYADVERTISEMENTBuckhorn IBCs Offer ‘Green’ Alternativefor Liquid, Bulk Ingredient HandlingBuckhorn’s Caliber ® and Citadel Intermediate Bulk Containers offer revolutionary, environmentallyfriendly packaging solutions for material handling — they are injection and structuralfoam molded, compact, collapsible, and designed to handle both fl uid and dry products.Reusable container systems from Buckhorn eliminatethe need for large quantities of disposable packaging materialand the associated costs for disposal. Collapsible bulkcontainer systems save on return transport compared toa rigid system, and reusable plastic container systems inclosed-loop supply chains dramatically reduce environmentalimpact compared to other common systems for liquidhandling.The design features of Caliber ® and Citadel IBCsguarantee a long service life and safe delivery of yourproducts in an environmentally conscious way.For more information on IBCs or to request a complete catalog,contact Buckhorn at (800) 543-4454, fax (513) 831-4402,or visit the company’s Web site at www.buckhorninc.com.Buckhorn55 W. TechneCenter Dr.Milford, OH 45150800-543-4454www.buckhorninc.comCHEP Offers the Greenest Pallet SolutionsCHEP, the global leader in pallet andcontainer pooling, continues to show itscommitment to environmental stewardshipby confirming the sustainability credentialsof its equipment pooling solution.A life cycle inventory (LCI) analysisconducted in 2009 shows the CHEPsystem creates significantly less solidwaste, requires less total energy andreduces more greenhouse gas emissionsthan other common shipping platformsolutions, including pooled plastic palletsand limited use white wood pallets.According to the study, the CHEPsystem generates 48% less solid waste,consumes 23% less total energy andgenerates 14% less greenhouse gas thanpooled plastic pallets. Compared withlimited use white wood pallets, the CHEPsystem generates 50% less solid waste,consumes 19% less total energy andgenerates 5% less greenhouse gas.Calculate for yourself atwww.chep.com/knowthefacts/MMH2CHEP8517 South Park Circle / Orlando, FL 328191.888.CHEP.11152 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

ADVERTISEMENTGREENING THE INDUSTRYPROFILESGreen Solution:Demand Response Active and Passive SystemsFor those with battery rooms, EnerSys ® is participating in a current study with Southern California Edison tomeasure the merits of a new “elegant controlled” battery management system. This system will allowcustomers to participate in Utility Demand Response programs - some of which are paying $300 per kW. Thereturn on investment is almost immediate in DR programs.EnerSys hopes to have this study published and product available shortly. Demand Response is expected tobe a large Utility Program into 2010 and beyond.To the right is an electrical usage triangle developed byPacific Gas & Electric, with a focus on conservation andefficiency the base components.EnerSys is your expert resource for operational costsavings, greenhouse gas reduction methods, fossil fuel toelectric conversion options, and energy managementstrategies. Our nationwide sales and service networkincludes a dedicated staff with expertise in energymanagement to help you achieve your goals.www.enersysmp.com1-800-ENERSYSmmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 53

PROFILESGREENING THE INDUSTRYADVERTISEMENTLeading Edge GREEN Power SolutionsAt HAWKER, green is not a color, it is a culture. Since the introduction of energy-saving LifePlus ® smartcharging technology over 25 years ago, HAWKER has led the materials handling industry with clean, innovative products andprocesses that maximize productivity and minimize environmental impact.High-frequency smart chargers deliver the greatest efficiency and highest power factor available –reducing utility consumption and demand while prolonging battery life and reducing water usage. HAWKER’s LifePlus ®TC3 and LifeSpeed 3000 high-frequency smart chargers offer the operational flexibility of opportunity and fast chargingwith least-cost electrical efficiencies.Resource-friendly batteries. HAWKER, winner of the American Environmental Review award, is a modelfor controlling environmental integrity at the point of manufacture. Our Ooltewah, TN plant is the industry leaderin environmental compliance, and was the first to introduce Water Less ® technology which utilizes 20% less waterthan standard batteries. Of course, HAWKER offers a recycling program that meets all EPA standards and guidelines.Single-source green solutions. HAWKER manufactures both batteries and chargers. This allows HAWKER todesign complete power systems that can optimize productivity and minimize cost. HAWKER’s exclusive “Harness the Power”on-site assessments analyze operations and provide specific recommendations for improving material handling productivity.Call 1-877-7HAWKER to learn more about these Leading Edge GREEN Power Solutions.1-877-7HAWKERLEADING EDGE POWER SOLUTIONSwww.hawkerpowersource.comCompanies that simultaneously work to cut their carbon footprint andstreamline their supply chains can realize substantial economic andenvironmental benefits.HK Systems, the leading automated material handling and supplychain software total solutions provider, understands the greeningof the supply chain can be a difficult and complex process. HK hasdeveloped and designed “green” facilities that resulted in loweroperational costs, waste and environmental impact.Discover how HK Systems can and your “green” facility today.Visit www.hksystems.com or call 1-800-HKSYSTEMS to learn howautomation and software will empower your green initiatives.W W W . H K S Y S T E M S . C O M54 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

ADVERTISEMENTGREENING THE INDUSTRYPROFILESiGPS was formed in 2006 to bring to market the firstadvance in pallet rental in over six decades: highly engineeredall-plastic rental pallets that are “lighter, stronger,safer and greener” than pallets made of wood. In just 3years of operation, iGPS’ service has been adopted bymany of the most respected and environmentally responsiblecompanies in the world.iGPS’ state-of-the-art pallets are 30 percent lighter thanwood, which saves on transport costs and fuel usage whilereducing green house gas emissions. iGPS is also setting anew standard for pallet hygiene and food safety. Its palletsdo not absorb liquids that can lead to bacterial contaminationand, unlike wood, never need treatment with toxic pesticidesor other chemicals. iGPS pallets are 100% recyclable,easier to handle and, because they eliminate protrudingnails and splinters, reduce workplace injuries and damagedequipment. Embedded RFID tags provide unprecedentedsupply chain visibility, enabling tracking and tracing of shipmentsand facilitating product recalls. In short, it’s tomorrow’ssupply chain technology—today. www.igps.netIntelligent Global Pooling Systems225 E. Robinson Street, Suite 200Orlando, FL 32801Phone: 800-884-0225www.igps.netThe NEW SLT30ACBe More Efficient with AC PowerLonger Run Times, Less ChargesSave on Land Use, Save Space, Save MoneyELECTRIC AC POWERED SWINGMAST3 WHEEL, REAR WHEEL DRIVENVERY NARROW AISLE FORKLIFTTwo capacities -3,000 lbs. (1,363 kg) at 24” (600mm) Load Center3,500 lbs. (1,590 kg) at 24” (600mm) Load Center• Triple and Quad Masts with Lift Heights to 26’ (7.92M)• AC Traction Motor and Controller• AC Hydraulic Motor and Controller• AC Electronic Steering• 110 FPM Lift Speed and 7 MPH Travel Speed• 90º Rotating Mast and 20” (500mm) ShiftFor Easy Load Insertion and Retrieval• 56” (1.42M) Stacking Aisle with 48” x 40” (1.2M x 1M) Load• Wire Guidance Available for “Steer Free” Very Narrow Aisle PerformanceLANDOLL CORPORATIONMATERIAL HANDLING PRODUCT DIVISION1900 North Street · Marysville, KS 66508 . 785-562-5381 · Fax 785-562-4853mhpsales@landoll.com . 800-428-5655 · WWW.LANDOLL.COM/MHPmmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 55

PROFILESGREENING THE INDUSTRYADVERTISEMENTReusable Plastic Packaging DrivesSustainability for World-Class Companies1055 Corporate Center DriveOconomowoc, WI 53066 USAToll Free: 888-217-0965www.orbiscorporation.comAs leading companies continue to drive sustainabilityin their business, they scrutinize every point of theirsupply chain, including the packaging used to movetheir product.Reusable plastic containers, pallets, dunnage andbulk systems improve the flow of product all along thesupply chain to reduce costs, enhance profitabilityand add sustainability.ORBIS Corporation, North America’s leader inreusable plastic packaging, helps world-classcompanies move their product faster, safer and morecost-effectively. Using a proven approach, ORBISexperts analyze their customers’ system, design asolution and execute a reusable packaging programfor long-term cost savings and sustainability.Using life-cycle assessments to comparereusable and single-use packaging, ORBIS helpscompanies reduce their overall environmentalimpact. By design, reusable containers andpallets are used over and over during the courseof their service life. At the end of their life, theycan be recovered, recycled and reprocessed intonew packaging products.ORBIS is a part of Menasha Corporation, the 3rdoldest family owned business in the UnitedStates. As a steward of sustainability, ORBIS iscommitted to a better world for future generations.ORBIS tracks and measures its ownresource utilization to continuously conservenatural resources and reduce waste. To learnmore, please contact ORBIS today. •Sustainable Material Handling©2010 Rehrig Pacific CompanyFrom our beginning in 1913 as amaker of wooden crates, RehrigPacific Company has produced acontinuous stream of sustainabletransport packaging productsfor industry.Today, Rehrig is a world leading manufacturerof reusable and recyclable plastic palletsand containers. Our various product linesfrom milk crates to distribution pallets savemillions of tons of packaging waste fromreaching landfills every year.A typical Rehrig customer is looking forreusable storage and transport containers orplatforms to handle their products efficientlythrough the supply chain. Driving out costsand reducing their carbon footprint are vitalfactors. Depending on customer requirements,our products can contain post-consumerrecycled materials (PCR) including HDPE frommilk jugs or detergent bottles. Post-industrialrecycled materials such as PP and HDPE fromold crates, trays and pallets can be reusedup to100%.Rehrig Pacific roll-out carts and collectioncontainers are extensively used in recyclingand waste collection programs throughoutNorth America. Rehrig directly closes theloop in many programs by buying the PCRcollected which helps cities expand theirrecycling programs and dramatically reducesplastic packaging waste. Rehrig now offersprograms to major retailers to collect andreuse their cardboard boxes instead ofsending perfectly good packaging to landfillsor recycling, before its time.For almost 100 years, Rehrig Pacific Companyhas been a leader in sustainability andenvironmentally-friendly business practices.For more information contact:Steve Harrison, Sales DirectorMaterial Handling Business GroupRehrig Pacific Company1000 Raco CourtLawrenceville, GA 30045Phone: 770-339-9888Toll-Free: 800-241-9693Email: info@rehrigpacific.comWeb: www.rehrigpacific.comA FAMILY TRADITION OF GROWTH, SERVICE AND INNOVATION56 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

ADVERTISEMENTGREENING THE INDUSTRYPROFILESSave space and increase throughput withRyson Spiral Conveyors.We are the number one manufacturer of spiralconveyors in the USA. Our products include SpiralConveyors, Spiral curves, Mass Flow Spirals, ContinuousLifts, Vertical Accumulation Buffers, Bucket Elevators,Incline and Decline slat Conveyors. All products can bedelivered in powder coated carbon steel, stainless steel,wash down or freezer versions.Our products are crafted with great care in our modernYorktown, Virginia manufacturing plant. Our full inventoryof spare parts enables us to provide the high level of serviceour customers have come to expect from Ryson.Our professional staff is always available to assiston how to best apply, integrate, install and service ourproducts. Many of our customers visit our plant forhands- on training and to witness their equipment beingfactory tested. Some customers also take advantage ofour modern test facility to make sure their particularproducts will convey satisfactorily.We also think green at Ryson and our productssupport sustainability in many ways. They consume lessenergy and need less floor space than conventionalmethods. Ryson products require little maintenance andhave a very low noise level. All bearings are sealed forlife and do not need further lubrication. Our Mass FlowSpirals do not need water lubricants for proper flow.All Ryson products are modular in design and are easilyconvertible in the field to meet emerging needs.VERTICAL CONVEYING SOLUTIONSRyson International, Inc.300 Newsome DriveYorktown, VA 23692www.ryson.comPhone: (757) 898-1530Fax: (757) 898-1580Charging Ahead: Toyota Looking Forward mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 57

Allan HowieMaterial HandlingIndustry ofAmerica (MHIA)TITLE: Director of ContinuingEducation and ProfessionalDevelopmentLOCATION: Charlotte, N.C.EXPERIENCE: 11 years at MHIAFOCUS: Developing materials andsupport for high schools, technicaland community colleges, military,governmental agencies andcorrections education in the areaof warehousing and distributionModern: Allan, what will behappening around educationat NA 2010 in Cleveland thismonth?Howie: We have a number of events.On Monday, we’re sponsoring a“workforce of the future” keynoteaddress by three speakers who areheavily involved in material handlingeducation. At MHIA, we’re veryfocused on working with technicalhigh schools and community collegesto provide the skill sets required for ajob in distribution. We’ll have a classroomday, where we invite studentsand instructors from those agenciesto attend the show and meet with ourmembers. And, we’re inviting instructorsand program directors who arecontemplating a program in materialshandling. To use a well-worn word,we’re going to “network.“Modern: Why should educationat this level be important toour readers?Howie: Our industry is going to bein desperate need of a skilled laborforce to operate distribution centersand warehouses in the very nearfuture. Our leadership needs to recognizethis. They also need to communicatewith their local schools andcommunity colleges the skill sets theyneed at the entry level in their facilities.Those folks are educators. If youtell them what you need, they canteach it.Modern: How long has thisprogram been going on andwhere does it stand today?Howie: We started about five yearsago, working to assist in outplacementtraining for the U.S. Marines. It’smushroomed from there. We developeda career cluster known as TDL,which stands for transportation, distributionand logistics. It’s now beingemphasized as a career path foryoung people in community collegesand high schools. We’ve adapted ourinstructional materials for the Marinesfor them. At the last count, we had25 to 30 high schools and communitycolleges on board, and in some cases,they’re starting at the 9th grade level.It’s growing every day.PHOTOGRAPHY BY ROGER BALL58 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

classified/recruitmentLabel HoldersLoad Transfer SystemsLabelHoldersDon’t Cost - They Pay!800-242-3919www.aignerindex.comholdex@frontiernet.netCareer OpportunitiesAuction•VP/Distribution•Systems Sales Engineers•Engineering Manager•VP/Logistics•VP/Sales•Dir/MarketingTo advertise, or formore informationplease contact:Jennifer Drevline847-223-5225 ext. 11jenniferd@caseyreps.com