Modern Materials Handling - December 2011

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURINGmmh.comDecember 2011®BIG PICTUREVoices of thesupply chain 24EQUIPMENT 101 SERIESOverhead equipmenthandling basics 30SPECIAL REPORTTop 20 3PLwarehouses 36Skecherstones up its DC 14SHOW PREVIEWGet ready forModex 2012 40Paul Galliher, seniorvice president of globaldistribution, Skechers

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65% Reduction in Pick ErrorsIntegrated into existing WMS12 month ROIDavid Reece-PinchinHead of Management InformationJD WilliamsAnother logistics result.JD Williams’ new 80 terminal pick to voice system has significantly improved pick accuracyat the UK’s leading customer direct retailer. When the internet and catalog giant put pickingmethodologies to the test in a quest to improve the quality of picked-to-customer orders, theDematic pick to voice system provided positive results.“Operating over 20 successful retail brands, we wanted to improve the quality of our pickedproduct to customers and, having market tested different alternatives, the Dematic pick to voicesystem came out as the clear winner.” The Dematic pick to voice system has delivered a 65%reduction in picking errors; this accuracy saving alone has paid for the system in 12 months.Now that’s what we call creating logistics results!Discover how Dematic can create a logistics result for your business challenges.Visit www.dematic.us or call 1-877-725-7500 today for more information.vISIt uS At bOOth 2300

UP FRONT Breaking news you should knowDatalogic to acquire Accu-SortDatalogic, which offers solutions for arange of applications in the manufacturing,transportation and logistics, and retailindustries, announced that it has enteredinto an agreement with Danaher Corp. toacquire Accu-Sort Systems, a leading supplierof automatic identification products in theUnited States.“This transaction doubles Datalogic Group’spresence in the industrial automation industryby positioning it in the high-end segment andby broadening the company’s competitiveposition in a highly fragmented market withgreat growth potential,” Mauro Sacchetto,Datalogic’s CEO said. “Accu-Sort is complementaryto the existing business of Datalogicand is a leading supplier with a widely recognizedbrand and long-term relationships withpreeminent customers.”Datalogic placed No. 3 on Modern’sannual ranking of Top 20 ADC suppliers byrevenue with $403.5 million in sales in 2010.RPA to host educationconference at Modex 2012As part of its ongoing effort to build strongerworking relationships with other key industry associations,the Reusable Packaging Association (RPA)will host a Reusables Conferencein February at the upcomingModex show in Atlanta.RPA will be one of the educationpartners participating in Modex.It will host a conference titled,“Reusable Packaging—Efficient,Cost Effective and SustainableSolutions for Today’s SupplyChains.” The three-hour programwill be Monday, Feb. 6, from 1p.m. to 4 p.m. It is designed to help those who arenew to reusable packaging, as well as those whohave already incorporated reusable strategies, tomake more informed decisions about the broadrange of transport packaging solutions available tohelp them improve their supply chain operations.Fast Company recognizesCrown Equipment for truck design“Sleek. Ergonomic. Innovative. User friendly.” Theseare the words Fast Company magazine uses in a recent issueto describe products such as the Apple iPod, a Whirlpoolwasher, a Black and Decker drill and a Crown Equipmentforklift. As part of a cover feature called “The United States ofDesign: 30 Companies That Get It,” Fast Company recognizedCrown by stating that the company is “proving forklifts can beas well designed as iPods.”“When most people think of excellent product design theytypically think of consumer products,” said Mike Gallagher,vice president of design for Crown.“Crown Equipment is honored andexcited to show everyone that designexcellence can also be found in commercialand industrial equipment.”Crown has been recognized for itsdesign since the 1960s and has earnedmore than 50 design awards.Retail: 2011 holiday shopping season off to a strong startIn what could possibly be viewed as a late-in-theyearjump-start for the economy, the National RetailFederation (NRF) said that Thanksgivingand Black Friday holiday spending—instores and on the Web—hit historic highs.In an NRF survey conducted byBIGresearch, there were many datapoints signaling that this year’s beginningto the holiday season was significantlyimproved compared to recentyears, with some notable findings,including:• total spending hitting $52.4 billion,• 226 million shoppers visited storesand Web sites over Black Friday weekendcompared to 212 million in 2010,• the average holiday shopper spent $398.62 over theweekend compared to $365.34 lastyear, and• shoppers spent an averageof $150.53 online, accountingfor 37.8% of their total weekendspending.NRF officials said that this strongperformance serves as a promisingsign for the economic recovery,but added that there are manyshopping days left and that theearly momentum needs to bemaintained.mmh.com Modern Materials Handling / D e c e m b e r 2 0 1 1 3

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VOL. 66, NO. 12®PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION,WAREHOUSING AND MANUFACTURINGPaul Galliher, senior vicepresident of global distribution,SkechersCOVER STORYSYSTEM REPORT14 Skechers tones up its DCAS/RS and cross-belt sortation are speeding cartons through Skechers’new 1.8-million-square-foot DC and setting the stage for growth.18 Optimized case handlingSkechers’ new facility brings together automated storage, cross-beltsortation and conveyor to handle multi-channel order fulfillmentfrom one system.FEATURESBIG PICTURE24 Voices of the supply chainMore than ever, what happens outside the four walls determines whathappens inside the four walls. Six supply chain experts look at themost important factors shaping the future of the supply chain.EQUIPMENT REPORT30 Overhead handling equipment basicsOverhead handling equipment like cranes, hoists and monorailscan increase productivity, enhance safety, improve ergonomics andmaximize floor space.SPECIAL REPORT36 Top 20 3PL warehousesVacant North American warehouse space has been filling up and theoverall outlook for the future of 3PLs remains bright.PRODUCTIVITY SOLUTION46 Automated system cures storage problemChildren’s Hospital Colorado installs horizontal carousels to easegrowing pain in its stockroom.47 Automated storage plugs intoproductivityOnline electronics retailer upgrades its DC with automated storagesystem to keep up with increase in sales.COVER PHOTO: DAN ESGRO/GETTY IMAGESWSPECIAL REPORT48 Wireless updateSupply chain professionals are certainly movingtoward mobile applications to improve overalloperations, but just how fast is it happening?DEPARTMENTS & COLUMNS3/ Upfront7/ This month in Modern12/ Lift Truck Tips: Safety40/ Special Report: Modex 2012 Preview51/ Focus On: Casters/tuggers/carts55/ Product Showcase58/ 60 seconds with...NEWS8/ Georgia Tech receives $1 million donationto advance robotics research9/ Intelligrated announces hundreds of newjobs and headquarters expansion in Ohio9/ Costco says a better pallet reallyis, well, better11/ ProMat 2013 Spacedraw breaksthe recordModern Materials Handling ® (ISSN 0026-8038) is published monthly byPeerless Media, LLC, a Division of EH Publishing, Inc., 111 Speen St, Suite200, Framingham, MA 01701. Annual subscription rates for non-qualifiedsubscribers: USA $119, Canada $159, Other International $249. Singlecopies are available for $20.00. Send all subscription inquiries to ModernMaterials Handling, 111 Speen Street, Suite 200, Framingham, MA 01701USA. Periodicals postage paid at Framingham, MA and additional mailingoffices. POSTMASTER: Send address changes to: ModernMaterials Handling, PO Box 1496 Framingham MA 01701-1496.Reproduction of this magazine inwhole or part without written permissionof the publisher is prohibited.All rights reserved. © 2011 PeerlessMedia, LLC.mmh.com MODERN MATERIALS HANDLING / D E C E M B E R 2 0 1 1 5

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EDITORIAL OFFICES111 Speen Street, Suite 200Framingham, MA 01701-2000(800) 375-8015Michael LevansGROUP EDITORIAL DIRECTORmlevans@ehpub.comBob TrebilcockEXECUTIVE EDITORrobert.trebilcock@myfairpoint.netNoël P. BodenburgEXECUTIVE MANAGING EDITORnbodenburg@ehpub.comLorie King RogersASSOCIATE EDITORlrogers@ehpub.comSara Pearson SpecterEDITOR AT LARGEsara@moxiemarketingllc.comRoberto MichelEDITOR AT LARGErobertomichel@new.rr.comJeff BermanGROUP NEWS EDITORjberman@ehpub.comJosh BondCONTRIBUTING EDITORturbobond@gmail.comMike RoachCREATIVE DIRECTORmroach@ehpub.comWendy DelCampoART DIRECTORwdelcampo@ehpub.comDaniel GuideraILLUSTRATIONdaniel@danielguidera.comBrian CeraoloGROUP PUBLISHERbceraolo@ehpub.comPEERLESS MEDIA, LLCA DIVISION OF EH PUBLISHING, INC.Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING, INC.Brian CeraoloPUBLISHER ANDEXECUTIVE VICE PRESIDENTPEERLESS MEDIA, LLCMAGAZINE SUBSCRIPTIONSStart, renew or update your FREEmagazine subscription atwww.mmh.com/subscribe.Contact customer service at:Web: www.mmh.com/subscribeEmail: mmhsubs@ehpub.comPhone: 1-800-598-6067Mail: Peerless MediaP.O. Box 1496Framingham, MA 01701ENEWSLETTER SUBSCRIPTIONSSign up or manage your FREEeNewsletter subscriptions atwww.mmh.com/enewsletters.®Four walls, two windowsTHIS MONTH IN MODERNMICHAEL LEVANSGROUP EDITORIALDIRECTORLast year, executive editor Bob Trebilcocklaunched a series of featurearticles that we titled “The Big Picture:Where business meets materials handling.”This series has allowed us to break out ofthe traditional “how-to” and “case study”mold to offer an objective, broad-sweepinglook at how materials handling technologiesand best practices are affecting overall businessstrategy.To date, Trebilcock has taken us deeperinto how and why robotics are being appliedinside the warehouse and DC; he’sre-examined the RFID market and explainedhow the technology continues to evolve atbreak-neck speed even though it’s out ofthe headlines; and he’s produced one of themost comprehensive surveys of the materialshandling automation market—a reportthat several readers told us helped thembuild a stronger ROI case when pitching aproject to management.These features—nine in total so far—have been some of our best-read editorialon mmh.com, and they also serve as thefoundation for our recent virtual conferencethat’s now available on-demand (supplychainvirtualevents.com).I strongly suggest thatyou carve out an hour over the next week toattend the five sessions—more than 600 ofyour colleagues already have.But what I find most intriguing is that itreally forces you to sit back and take a morestrategic perspective. They’re designed totake you out of the day-to-day grind, if justfor a bit, to help materials handling professionalsreassess current operations, or rethinklegacy distribution strategies that maybe on the verge of extinction.In his latest Big Picture (page 24), Treblicocktakes us outside the four walls to offerus the most comprehensive survey of someof the possible game-changing factors thatwill be re-shaping supply chain strategyover the coming years—most notably, theexpansion of the Panama Canal.With the help of Panama Canal AuthorityCEO Alberto Aleman Zubieta, Trebilcockexplains what the expansion will mean notonly for warehouse/DC site selection but forthe design of the materials handling systemsinside those facilities. He also examines thepossibility of Panama becoming one of themost important distribution hubs in NorthAmerica post expansion and how that couldalter current distribution strategies.“There’s a new way of thinking aboutthe warehouse and distribution center,and we’re hearing that from vendors, themanagers responsible for their operationsand experts across the supply chain,” saysTrebilcock. “The concept has been called‘four walls and two windows,’ with the ideabeing that while materials handling happensinside the four walls, a system needsvisibility—the two windows—into what’shappening downstream and upstream to betruly efficient.”In fact, three of the six supply chainexperts that he’s pulled together for thismonth’s Big Picture will be presenting keynoteaddresses at Modex 2012 in Atlanta(Feb. 6-9)—an event that’s designed muchalong the same lines as Treblicock’s BigPicture series.So, if you feel as if your organizationneeds to take some time to grasp the biggerpicture and open the blinds of thosetwo windows, the resources cited aboveshould be on your required to do list.MemberMember ofWinnerJesse H. NealCertificates of Meritfor JournalisticExcellenceOfficial Publication ofmmh.com MODERN MATERIALS HANDLING / D E C E M B E R 2 0 1 1 7

FollowModern Onlinefacebook.com/mmhmagazineTwitter | @modernmhmagWeb | mmh.comMANUFACTURINGGeorgia Tech receives $1 milliondonation to advance robotics researchCOCA-COLA BOTTLING CO. CONSOLIDATED PROVIDES GIFTTO CREATE MANUFACTURING LOGISTICS LABORATORY.BY BOB TREBILCOCK, EXECUTIVE EDITORTHE GEORGIA TECH COLLEGE ofComputing’s Robotics and IntelligentMachines (RIM) Center will use agift of nearly $1 million of roboticsequipment from Coca-Cola BottlingCo. Consolidated (CCBCC) to createa Manufacturing Robotics LogisticsLaboratory on the Georgia Tech campus.The new laboratory will allowRIM faculty and students—who comefrom across Georgia Tech, includingthe Georgia Tech Research Institute—tostudy the use of robotics insupply chain and fleet management.“Automation has madepossible a vast numberof efficiencies in moderncommercial logistics andmanufacturing,” said HenrikChristensen, RIM directorand KUKA professorof robotics. “Using supplychains as an example, if wecan use robots to optimizethe entire process fromstart to finish, we can makeimprovements on a wholerange of measures, such asend costs to consumers andenvironmental impact fromtransportation.”The new 3,400-square-foot logisticslab initially will be outfitted with$944,000 in hardware from a CCBCCprototype bottling plant. Built byKUKA, a leader in manufacturingrobotics and system integration, theequipment includes robots, automaticguided vehicles (AGVs), conveyortechnology, safety components andother system technology. KUKA hasprovided the resources and manpowerfor delivery and set-up of the robots.Also providing resources tomove the automation equipment toGeorgia Tech and start-up the AGVsis Efacec USA, a leading supplierof automated materials handlingand storage systems located in thegreater Atlanta area.“We are happy to partner withKUKA to bring Georgia Tech studentsthe opportunity for hands-onlearning with sophisticated roboticsequipment,” said Lauren Steele,vice president of corporate affairsat CCBCC. “Using this technology,these students will be able to developcommercial applicationsin manufacturing that willstrengthen our economyand create American jobs.”Specifically, Christensensaid Georgia Tech will usethe laboratory for threepurposes:• creating optimizationalgorithms for logistics,• testing sensing equipmentsuch as automatedcameras and laser sensors,• and supporting the annualVirtual Manufacturingand Automation Challenge8 D E C E M B E R 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com

organized in conjunction with theNational Institute for Standards andTechnology.In addition to the specific usesChristensen envisions, he said thelab will open up new possibilities forrobotics students and faculty.“As Georgia Tech continues to advanceits robotics research in industrialsystems, this major donation willgive our students unparalleled accessto a professional, industry-qualityfacility,” Christensen said. “No otheruniversity has a similar facility.””KUKA is very excited aboutthe opportunity to collaborate withGeorgia Tech in the field of manufacturingand logistics,” said ChristianWurll, technical director for logisticsof KUKA Systems North America.“The lab will be used to intensify theresearch and development in mixedcase palletizing, mobile roboticsand new manufacturing processes.In addition, KUKA is glad to set upand support a state-of-the-art labenvironment that will inspire theyoung generation and will get themin touch with real world applicationsand equipment.”“While Efacec has already beeninvolved with Georgia Tech for thepast few years in helping to developengineering curriculum for the powertransmission industry, we are pleased tocontinue our relationship in being a partof the creation of this new ManufacturingRobotics Logistics Laboratory,”said Jorge Guerra, executive directorfor business and operations of Efacec.“This new lab will give engineeringstudents access to high-tech equipmentwith which they can increase their exposureto robotics and logistics.”Manufacturing—along with healthcare and service robotics—is oneof the three main robotics areasto which the United States shoulddevote the bulk of its research focusand support in the future, accordingto a 2009 report by the ComputingResearch Association.AUTOMATIONIntelligrated announces hundreds of newjobs and headquarters expansion in OhioINTELLIGRATED plans to add 200new jobs and double the size of itsMason, Ohio, headquarters. Intelligratedexecutives made the announcementwith Ohio GovernorJohn R. Kasich last month.The company’s expansion is madepossible by an incentive packagefrom the state ofOhio and the cityof Mason, valuedat approximately$15 million.Final approval ofthose packagesis pending andIntelligrated’s expansionplans arecontingent upontheir approval.The incentivesare likely to include an extension ofIntelligrated’s existing Job CreationTax Credit, state and local loans,property tax abatement and a Stateof Ohio Grant.Intelligrated said it will add 200new technical and engineering positionsin research and development,system design and customer service.The company will also construct a60,000 to 90,000-square-foot facilityin Mason to support the company’splans for strategic growth in the materialshandling industry. Constructionplans are still being finalized.“Intelligrated appreciates thegenerous efforts of Ohio and thecity of Mason to support our growthand create new jobs for Ohioans,”said Chris Cole, CEO of Intelligrated.“We aim to be the most technologicallyadvanced player in the materialshandling industry. To achieve this,we need an operation that housesthe best mechanical, software andsystems talent in the world. Theseincentives will directly support theseefforts, help us create and keep morehigh-quality technical jobs in Ohio,and advance Mason as a strategic hubof our nation’s logistics network.”PALLETSCostco says abetter pallet reallyis, well, betterLASZLO HORVATH, the new directorof the Center For Unit Load Designat Virginia Tech, has an interestingobservation about pallet users.Most end users pay attention tothe design of their pallet after theyhave problems. Earlier this year,Costco Wholesale turned that modelon its head, revamping its pallet specto improve operations and avoidproblems. Since January 11, Costcohas only received merchandise fromsuppliers on block pallets—and mostof those are rental pallets from CHEP,PECO or iGPS.How’s it working out? To findout, Modern talked to John Thelan,Costco’s senior vice president fordepots and traffic.The catalyst for the new specwas in part driven by the quality ofsome pallets Costco was receivingmmh.com MODERN MATERIALS HANDLING / D E C E M B E R 2 0 1 1 9

from suppliers. For the most part,Costco does not store products inpallet racks in warehouses: instead, itcrossdocks merchandise directly fromdepots to its stores, where palletsare stored in pallet racks. It’s badenough if a pallet fails and comescrashing down in a warehouse. It’sanother thing entirely if a pallet failsin the middle of a crowded aisle in awarehouse store. Costco wanted toavoid that issue.“When you’re walking through aCostco store, and all our product isVisitKnapp atMODEX 2012BOOth #2214Laszlo Horvath, the new directorof the Center For Unit LoadDesign at Virginia Tech.up on steel racks, you want a safepallet,” Thelan said. “We felt thatthe stringer pallet world had deterioratedand we were concerned witha less than perfect board finding itsway through our system. In our opinion,block pallets are more durablethan a stringer board.”There was another reason for goingto a block pallet design similarto the pallets used by the big threepool providers: “We have a longstandinghistory with CHEP, PECOand iGPS and they work,” Thelansaid. “But we did include the abilityfor someone to give us a non-rentalpool pallet if they provide a blockpallet.” He added that some manufacturersprefer to ship their ownpallets rather than participate in apool, although they are a minority ofCostco suppliers.But isn’t a block pallet more expensive?“It’s less expensive,” Thelanargued. “The supplier is only payingthe rental fee. They’re not buying thepallet.” In fact, Costco expects tonegotiate lower costs with supplierswho are no longer paying for GMAstylepallets.Beyond the increased safetythat comes from standardizing ona heavier duty pallet, there are10 D E C E M B E R 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com

operational benefits to a block pallet.“We off-load a million trucks ayear at our depots,” Thelan said.“We do a lot of that with electricpallet jacks. If the pallet is loadedso that the stringer side is facingthe opening of the truck, you can’tget under the pallet with an electricpallet jack.”Instead, associates had to “pinwheel”the pallet—maneuvering itaround until the forks could get intothe 40-inch opening. That not onlytakes time, it can potentially lead toproduct damage.“We believe we’ll see benefits bybeing able to off load all of our palletswith electric pallet jacks,” Thelansaid. “And, there are benefits tomoving the product across the floorto get to shipping lanes.”Approaching the one-year anniversaryof the change, Thelansaid issues related to conversion tothe new spec have been few. “Atour annual supplier day in Seattle,I thanked everyone for making thisswitch,” Thelan said. “It was veryseamless.”TRADESHOWSProMat 2013Spacedraw breaksthe recordTHE PROMAT 2013 exhibit spacedraw,held November 10 in Chicago,attracted 388 exhibitors who reserveda first-day record of 230,000 netsquare feet of show floor space atthe industry’s premier U.S. event. Thisrecord amount of space reserved is aclear message that the materials handlingand logistics industry is healthyand growing. Hyster and Yale selectedthe first booths of the draw.“The success of the ProMat exhibitspacedraw is a clear indicatorthat materials handling, supply chainand logistics solution providers areseeing positive economic changeand bodes very well for both ProMat2013 and our industry,” accordingto George W. Prest, chief operatingofficer of Material Handling Industryof America (MHIA).ProMat 2013, sponsored by MHIA,300 Newsome Drive • Yorktown, VA 23692Phone: (757) 898-1530 • Fax: (757) 898-1580VERTICAL CONVEYING SOLUTIONSwill be the most comprehensive internationalmaterials handling, supplychain and logistics show and conferenceheld in the U.S. in 2013. ProMat2013 will showcase the solutions of800 exhibitors that will fill ProMat’s300,000-square-foot show floor.Save Spaceand IncreaseThroughput.Like to minimize the cost ofownership? Ryson can help. OurSpiral Conveyors need less floorspace than conventional conveyorsand are faster and more reliable thanany elevator or lift. All our productsare designed for low maintenance andlong life and our proprietary modularconstruction makes future reconfiguringcost effective.High Capacity Spirals The newRyson High Capacity Spirals are inresponse to our customers need togo higher and handle more weight.The load capacity is 75 lbs. per linearfoot of conveyor for speeds up to 200FPM. The total weight capacity in thespiral at any one time is 3600 lbs.Multiple Entry Spirals The Multiple Entry Spirals allow loads to enter thespirals from several different elevations. A new high speed induction conveyorprovides controlled spiral entry. The conveyor belts are individually adjustable tomatch the spiral pitch.Quality and service come first at Ryson. We are the number one spiralmanufacturer in the USA. For application assistance or more information, giveus a call or visit www.ryson.com.See our Spirals run at MODEX 2012, Booth 4100mmh.com MODERN MATERIALS HANDLING / D E C E M B E R 2 0 1 1 11

lift truck TIPSOver capacity andunder-enforcedLift truck capacity ratings are often misunderstoodby owners, operators and even salespeople.By Josh Bond, Editor at LargeIn too many instances, managersand operators treat a lift truck’s loadcapacity like many drivers treat thespeed limit—as a general guideline.According to Scott McLeod, presidentof Fleetman Consulting (604-614-3530, www.fleetmanconsulting.com),an independent lift truck consultingcompany, exceeding a lift truck’sload capacity can be both dangerousand easy, especially since ratingsare poorly understood by buyers andinexperienced salespeople.There are two types of capacityratings, says McLeod. The first isthe gross chassis capacity rating, thehighest possible capacity under idealconditions. “Ideal conditions” mightinclude the absence of attachmentslike a side shift, an unelevated load,a two-stage mast instead of the morecommon three-stage mast, solid rubber tires instead ofair-filled tires, and so on.“Since lift trucks are rarely configured this way, thistype of rating should only be used to compare lift truckbrands,” says McLeod.The second and more important rating is the net chassiscapacity rating, or payload capacity. The net chassiscapacity rating accounts for all of the options and specificationson a particular lift, and will reflect the payloadcapacity of the lift truck at full mast extension.When asking a lift truck dealer for a quote on, say,a 5,000-pound capacity lift truck, it is important tospecify whether that refers to net or gross capacity, saysMcLeod. It’s also important to describe the type, weight,evenness, and height of the truck’s current or anticipatedloads.Additionally, a 5,000-pound gross chassis capacity lifttruck manufactured today will likely handle less payloadweight than a 5,000-pound rated lift truck manufactured25 years ago, says McLeod. Older lift trucks tend tohave been built with greater safety margins, he says, andoperators accustomed to older trucks often learn the hardway when they use newer equipment, even if the truckshave identical gross capacity ratings.McLeod recommends mandatory lift truck scales, andongoing education and discussions at safety meetingsabout loads and lift truck capacity.“Unless you spend the time to better understand theweights and sizes of the loads you are handling and howthey are to be handled,” says McLeod, “you can expect adegree of risk that an operator will have an accident withhis lift truck because he made too many assumptions,either about the weights he was handling or the lift truck’sability to handle the weight.”Josh Bond is an editor at large with Modern and can bereached at josh.d.bond@gmail.com.12 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

Visit bit.ly/Modex2012 andModex booth #2900 to seeIntelligrated’s softwaredrivensolutions in action.IntelliSort ® Cross-Beltand Tilt-Tray SortationMore Throughput, More Uptime,More Solutions.Keeping Your Business Moving.IntelliSort cross-belt and tilt-tray sorter solutions deliver gentle, accurate, high-speed sortation, whateverthe product. With Intelligrated InControlWare ® for seamless integration of system flow, Intelligrated sortersget the right product to the right place at the right time. And every Intelligrated sortation solution comeswith North American manufacturing and support. Smart sortation solutions. That’s the Intelligrated way.Find out more at www.Intelligrated.com/sortation.Innovative Material Handling. The Intelligrated Way.866.936.7300 www.intelligrated.com

Skechers tones up its dmodern system reportPaul Galliher, senior vice president ofglobal distribution, stands in front ofpacking chutes serviced by a cross-beltunit sorter.14 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

istribution centerAS/RS and cross-belt sortation are speeding cartonsthrough Skechers’ new 1.8-million-square-foot DCand setting the stage for growth.By Bob Trebilcock, Executive EditorDan Esgro/Getty ImagesSkechers USA, the No. 2 footwearcompany, is known forits Shape-ups line of fitnessshoes that are designed to“change your life by changingthe way you walk.” Theidea is that a good designcan make us more efficient and effective inthe things we do every day.Skechers took a similar approach in thedesign of its new 1.82-million-square-foot,$225 million distribution center in RanchoBelago, an inland community about 80miles west of the port in Long Beach,Calif., where Skechers imports all of itsfootwear and athletic gear.The DC consists of three distinct areas ofwork, each measuring about 600,000 squarefeet. Two areas are devoted to receiving withabout 400,000 square feet of reserve storagein each; the space in the middle is dedicatedto order fulfillment and shipping.The new facility shapes up distributionprocesses by consolidating activities thatwere once spread across 1.7 million squarefeet and five leased facilities in southernCalifornia into one highly automated DCto handle all of the footwear company’sNorth American distribution.“Each of those buildings had differentequipment and each handled a differentpiece of the order fulfillment process,” saysPaul Galliher, senior vice president of globaldistribution. “We spent a lot of money dueto the additional handling required to moveproduct between buildings for the order fulfillmentprocesses.”The new facility is not only one of thelargest distribution centers in California, itwas designed to be one of the most efficient.Although the facility is just now going live,Skechers worked with a systems integrator(Wynright, wynright.com) to design anautomated materials handling system thatnot only minimizes the number of timesa pair of shoes is handled between receivingand shipping, but is capable of managingan inventory of 70,000 stock keepingunits (SKUs) and processing approximately17,000 pairs of shoes per hour. That’s morethan double the 7,000 pairs per hour handledin its old buildings.The number of times a product istouched between receiving and shipping hasbeen reduced by at least 50%. Similarly, thenew facility requires about 300 employeesfor average volumes and an estimated 500during peak periods. That is less than half ofthe 1,200 associates used during peak periodswhen Skechers was operating five DCs.At the heart of the system are twomini-load automated storage and retrievalsystems (AS/RS; Daifuku Webb, daifukuamerica.com):• One is a 12-aisle system with 58,000square feet of storage space and nearly106,000 storage positions. This system wasimplemented to store partially filled mastercartons, known as loose picks in theSkechers facility.mmh.com Modern Materials Handling / D e c e m b e r 2 0 1 1 15

modern system reportSkechers’ new facility features twomini-load AS/RS systems (left) and anarrow-belt shipping sorter (right).• The other is a 44-aisle system with150,000 square feet of space and morethan 257,000 storage positions. Thissystem holds packed orders until theyare ready to ship.Both mini-load AS/RS units are ableto accommodate a random range of cartonand box sizes, from 34 x 24 inchesto 10 x 10 inches. Both also use motordriven roller conveyor and transfer stationsto sort cartons rather than conventionalsortation technology.In addition to the two mini-loads,Skechers installed a cross-belt sortationsystem to feed the facility’s packing stations;energy-saving motor driven rollerconveyor; a narrow-belt shipping sorterservicing 26 shipping door accumulationlanes; an estimated 800,000 square feet ofvery narrow aisle reserve storage area; anda 135,000-square-foot mezzanine that wasthe winner of the 2011 design award fromthe Steel Joist Institute. The mezzanine isused for value-added services, print andapply, and taping prior to shipping.The facility allows Skechers to meettwo important strategic goals: It consolidatesoperations, and it sets the stagefor continued growth.“This is the first time since 1995that we have had all of our NorthAmerican distribution underone roof, and back then wewere a much smaller company,”Galliher says. “We alsohave options on the adjacentproperty. That will allow us toexpand in the same area if weoutgrow this facility.”And while it is one of the largestdistribution centers in California andthe largest LEED-certified building inNorth America, 1.82 million squarefeet under-represents just how big thefacility really is. “We have 45-foot ceilingsand use all very narrow aisle rackingfor reserve storage in addition to thetwo AS/RS,” says Galliher. “If this were atraditional DC with 30-foot ceilings andconventional pallet rack, we would needsignificantly more space.”Running at full speedSkechers was founded in California in1992 to import Doc Martens into theUnited States. Today, the company isnow the No. 2 footwear company inNorth America with just more than $2billion in sales in 2010. The companyfocuses on designing and marketing itsline of shoes while working with contractorsin China and other emergingmarkets to manufacture its lines.The Skechers story is about morethan just sales growth. Over the past19 years, Skechers has broadened itsproduct line to encompass nearly all ofthe categories of footwear, from athleticshoes to casual shoes to sandals to kidsshoes—a total of some 70,000 SKUs.The company is also a multi-channelmarketer. In addition to 300 retail andoutlet stores around the world, Skecherssells to wholesalers, to other retailers anddirectly to consumers. “One of the thingsthat makes us unique is that we don’thave a direct competitor,” says Galliher.“We compete with every other shoe companyand on a different level with each.”Growth across those different linesand channels was a key factor in thedecision to build a new DC. Between1997 and 2007, Skechers added DCsto its network like adding charms toa bracelet. “We were growing quicklyand gobbling up additional space to getproduct out the door,” Galliher says.For instance, after outgrowing itsoriginal DC in Compton, the companytook over a facility when LA Gear wentout of business, then took over a secondnearby building with a tilt tray sorterwhen it outgrew the first building. Other16 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

modern system reportIn the receiving department, cartonsare palletized for putaway in a verynarrow aisle reserve storage area.facilities were added on an as-neededbasis. Those buildings varied in ceilingheight and in equipment, with somebuildings sporting conventional aislestorage, some with narrow aisle storageand some with very narrow aisle storage.What’s more, product was receivedfrom the ports in one building, pickedand packed in another and potentiallypicked up in a third. “We were constantlyshipping product from onebuilding to the next until it got to theright place,” Galliher explains. “Wewere our best transportation customer.”Growth-driven designSkechers began the design process forthe new facility just ahead of the financialmeltdown, signing a lease for thebuilding in 2007. After an extendedpermitting process, Skechers brokeground in June of 2010.According to Galliher, there wereseveral key goals that resulted in thefinal design of the system.One roof: Yes, Skechers wanted toconsolidate a hodge-podge of operationsunder one roof, but it also wantedto maintain one central point for NorthAmerican distribution rather thandevelop a distribution network. “Ourbelief is that when you have regionalDCs, you end up with inventory on theEast Coast that you need on the WestCoast and vice versa,” Galliher says.“There are challenges to positioning theright inventory in the right places.”Just as important, he adds, Skechersstill operates a close-knit operation.“We’re a public corporation, but westill think of our associates as family,”Galliher says. “That would have beenlost if we developed a regional model.”Skechers does work with two 3PLs todistribute to Canada.Keep it scalable: The buildings andthe automation systems were designedso that Skechers could put in a pieceof equipment and generate savings nowand still add on to those systems at alater point as the business grows. Forinstance, both AS/RS units are expandable.Moreover, Skechers purchased anadjacent lot big enough for another facilityshould it outgrow this one.Keep it green: To earn LEED certification,the facility features solar panelsthat generate electricity; a reflective roofand a natural ventilation system thatrelies on prevailing winds maintain acomfortable working environment evenin desert heat; native plants and plumbingfixtures that conserve water; andplug-in stations for electric vehicles.Rationalize labor: Like most retailersand manufacturers of consumer products,Skechers distribution processeshave to accommodate seasonal swingsin demand and labor. “During our peakseason, we would have as many as 1,200employees, most of whom were temporaryemployees,” Galliher says. “Trainingand managing that many people for seasonalspikes is always a challenge.”What’s more, bringing on seasonallabor in conventional systems has animpact on throughput and order accuracy.One of the goals then was to developa system that could handle the day-todayorder activity with a core group ofassociates—in this case about 300—andaccommodate seasonal spikes with aminimum amount of temporary help.Automate with a purposeAutomation, including the two miniloadAS/RS units and the cross-beltsorter, were central to controlling laborin the new facility.For instance, packing and shippingwere two areas that required a large laborcomponent under the old model. Shoesare shipped to Skechers in master packsof six pairs of adult shoes or 12 pairs ofchildren’s shoes in a solid color. Mostcustomers, however, order an assortmentof styles, sizes and colors. To fill thoseorders required breaking down the prepacks,picking and re-packing the numberof “loose pairs” required for an order, andreturning the partially depleted carton tostorage. All that processing required a lotof hands and touches.Similarly, Skechers often packedorders and staged them on the shippingdock for customers who did their ownpick ups. The process not only requiredlabor, it consumed valuable real estatein the shipping area.The mini-loads addressed both ofthose issues. One system is designatedto store and deliver partially depletedloose pick cartons to an induction platformfor the cross-belt sorter. “It tooka lot of people to pull those pairs fromthe shelves and repack them,” saysGalliher. “Now, the mini-load deliversa carton to the induction station, anassociate picks the pairs needed for anmmh.com Modern Materials Handling / D e c e m b e r 2 0 1 1 17

modern system reportorder, and the carton is automaticallyreturned to storage.”Similarly, items for a pack-and-holdorder are prepared for the customerand then automatically delivered to theother mini-load, where they are held invery dense storage until a customer isready to pick them up.While this is a highly automatedfacility, it was automated with a purpose.The idea was to get the benefitfrom automation without being boundby automation. “We were very sensitiveto cost,” Galliher says. “Every time weadded a component, we weighed whatwe were trying to achieve against thereturn on investment to decide wherewe could get value from automationcompared to a conventional solution.”For example, the mini-load in theloose pick area is designed to handlethe facility’s normal capacity. A conventionalprocess was designed for thespikes in demand that occur on one ortwo days at the end of each quarter. Atthose times, the system diverts someof the loose-pick cartons to a conventionalpalletizing station early in theshift. The pallets are then staged inlanes until the items are required atthe induction area for an order wave.Yes, it’s manual, but it was a more costeffectivesolution than sizing the automationto handle volumes that mightonly occur four to eight days a year.Skechers also relies on conventionalprocesses in the value-added servicesarea located on the mezzanine. “We havecustomers who do pre-orders and giveus their packaging and labeling requirements,”says Galliher. “Those used to beprocessed in a different building fromour other orders. Now, we do everythingout of one facility. That means that thelook of the packaging, the paperworkand the product will be the same.”The new facility has only recentlygone live, so hard metrics on the performanceof the new facility are not yetavailable. But, Skechers is optimistic.“We designed the facility to deliver afive-year ROI,” says Galliher. “If we dothat, we will have achieved what we setout to do.” MOptimized case handlingSkechers’ new facility brings together automated storage,cross-belt sortation and conveyor to handle multi-channelorder fulfillment from one system.By Bob Trebilcock, Executive EditorThrough the consolidation of fivefacilities into one, large and highlyautomated facility, Skechers isable to fill orders for its own retail stores,other retail and wholesale customers aswell as direct-to-consumer Web orders.Receiving: Located about 80 milesfrom Long Beach, Calif., the facilitySkechers USARancho Belago, Calif.Size: 1.82 million square feetProducts handled: footwearStock keeping units: 70,000Throughput: 17,000 pairs of shoes perhour through pick and pack operationsEmployees: 300 in operationsShifts/Days: 2 shifts/5 daysInboundqualityassurance4Receiving15Reservestorage2 Inboundconveyorsystem5 ReservestorageShipping10Value addedservices3 Palletizing119 Packing area8 Unit sorter6Mini-loadAS/RSInboundqualityassurance412Pack andhold AS/RS5Reservestorage7 Induction areaReceiving12 Inboundconveyorsystem5 Reservestorage3 Palletizing18 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

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modern system reportreceives an advanced ship notification(ASN) detailing the contents of a shipmentprior to the arrival of a containerat the receiving dock (1). The contentsof the floor-loaded containers are puton a belt conveyor (2) and a licenseplate label on the carton is read by astationary scanner.Inbound product can be handledin several ways. Some items will beautomatically conveyed to a palletizingarea (3) where the cartons are sortedby style, color and size. Preprinted palletlabels are applied to a pallet. Anassociate scans the pallet label and theproduct label to associate the productson the pallet with that license plate inthe warehouse management system(WMS). Other items will go througha preliminary step before they are sentto the palletizing area. For instance,items that are new to the facility arerouted first to a cubing and weighingstation where information about theproduct is gathered for storage andshipping purposes. Other productsmay be routed first to an inboundquality assurance area (4). In eithercase, after that preliminary process iscompleted, the cartons will be conveyedto the palletizing area. Palletsare then staged for pick up by a lifttruck operator.Putaway: Once a pallet is stagedfor pick up, a task is sent to a lift truckoperator. The WMS uses task interleavingto optimize processes, so a lift truckdriver assigned to the task may also bedoing replenishment activities. Palletsare delivered to a drop off location inthe very narrow aisle rack reserve storagearea (5). Turret truck operators aretypically assigned to one, two or threeaisles. The operator scans the palletand is directed to a putaway location.Once there, he scans a location barcode to confirm the putaway and is thenassigned another task by the WMS.Picking: Skechers fills orders fromseveral different retail channels. Tothe automated system, however, theprocess is the same. Depending onthe order, product can be pulled fromreserve storage (5) or from the miniloadAS/RS used to store loose picks(6). A loose pick is a partially full opencarton that has already been used inpart to fill other orders.• Mini-load picks: Loose pickcartons are conveyed from the miniloadto an induction station (7) for thecross-belt sortation system (8). Thelicense plate bar code label on the cartonis scanned by a stationary scannerin route. The SKUs and the numberof shoes to be pulled from that mastercarton are displayed on a monitor.Shoe boxes are placed on an inductionconveyor, where they enter the sortationsystem. The shoes are then sortedto a packing chute and delivered to thepacking area (9). If the order doesn’trequire all of the contents of the mastercarton, it will be conveyed back to themini-load (6) for storage.• Storage area picks: Items thatcan’t be filled from the mini-load areretrieved from the reserve storage (5)area. The WMS assigns the task to anorder picker who will pick the cartonsto a pallet. Once all of the cartons forthat task have been picked, the palletis delivered to a case induction area(7) adjacent to the pallet building area.Once the pallet is scanned, the cartonsare placed on an induction conveyor andare sorted to a packing chute area (9).Packing and shipping: Pairs comingdown a packing chute into thepacking area (9) have already beencubed by the WMS, which determineswhat size shipping case to use for anorder. That information is sent to thehandheld scanner used by packers. Theright size carton is removed from anoverhead conveyor. Once the contentsfor that order are loaded into the shippingcontainer, the associate scans alicense plate bar code label on the container,the bar code label on the chuteSystem suppliersSystems integration: Wynright,wynright.comMini-load automated storage andretrieval systems: Daifuku Webb,daifukuamerica.comConveyor system: Automotion,automotionconveyors.comCross-belt unit sortation system: BeumerGroup, beumer.com/enNarrow belt shipping sorter: TGWSystems, tgw-group.comWMS: Manhattan Associates, manh.comLift trucks: Raymond, raymondcorp.comBar code scanning: Psion, psion.com/usPallet rack: Hannibal Industries, e-hii.comCubing and weighing: Cubiscan, cubiscan.comand then seals the container with tape.The outbound shipping label is automaticallyapplied at a print-and-applystation. At that point, the carton will behandled in one of three ways.• Direct to shipping: Cartons thatare ready to ship as is are conveyeddirectly to the shipping area (10) wherethey will be palletized and stretchwrappedfor Skechers stores or wholesalecustomers that order by the pallet.Everything else will be floor-loaded inan outbound trailer. The order is nowready to ship.• Value-added services: Othercartons will be sent to a value-addedservices area (11) on the mezzaninelevel where special labeling will beapplied. From the value-added servicesarea, the cartons will be conveyed tothe shipping area (10) for palletizing orfloor loading into a trailer.• Buffer storage in the miniloadAS/RS: Remaining cartons willbe stored temporarily in the facility’ssecond mini-load AS/RS, known asa pack and hold AS/RS (12) whichprovides temporary buffer storage fororders that are ready to ship beforethe customer is ready to pick them up.Once those orders have been clearedfor pickup and delivery, they are conveyedto the shipping area (10) andloaded onto a trailer. M20 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

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WHERE SUPPLYCHAIN SOLUTIONSARE MOVINGTo move your business forward, you need to stay on top of the latest technologies and innovations for thesupply chain, logistics and distribution industries. And there’s no better place to do it than at MODEX 2012,the industry’s newest expo designed to help you:• See, firsthand, the latest solutions from over 500 world-class suppliers• Connect and network with industry peers• Learn the latest trends and technologies from leading experts in over 70 educational seminars• Gain valuable insights into manufacturing and distribution solutions for all areas of the supply chainAt MODEX 2012, you will see solutions and find answers. Attending MODEX 2012 is your best opportunityto make connections that will position your company for future success.Now is the time to streamline your operations, improve visibility, maximize efficiency and cut costs.Now is the time for MODEX 2012 – be there!Sponsored by:Find us on:Use your smartphonecode reader to learn more:Collocated education partners:

REGISTER TODAY FOR MODEX 2012Visit www.modexshow.com to learn more and register for free admissionto the MODEX 2012 exhibits and educational conference.Learn From Key Industry PlayersMODEX 2012 attendees can choose from a variety of educational sessions covering the latest manufacturing and supplychain trends, technologies and innovations. The MODEX 2012 Educational Conference will include three Keynotes andover 70 supplier-led seminars. In addition, MODEX 2012 will also be the location for several collocated educationalpartner events that are teaming with MODEX 2012 to provide one-of-a-kind insight into the overall supply chain.MODEX 2012 KeynotesMonday, February 6The State of Logistics andSupply Chain Management8:45 AM-9:45 AMRick Blasgen, Chief ExecutiveOfficer of the Council of SupplyChain Management ProfessionalsTuesday, February 7The Expansion of the Panama Canal and ItsImpact on Supply Chains and Global Trade8:45 AM-9:45 AMAlberto Alemán Zubieta, Chief ExecutiveOfficer of the Panama Canal AuthorityWednesday, February 8How Supply Chain and LogisticsPerformance Impacts Trade8:45 AM-9:45 AMDr. H. Donald Ratliff, Georgia Tech, RegentsProfessor and Executive Director, GeorgiaTech Supply Chain & Logistics Institute

THE BIG PICTUREWhere Business Meets Materials HandlingVoicesVoices of theBy Bob Trebilcock, Executive EditorSeveral years ago, an executive from Dematiccame to Modern’s offices to introduce a newway of thinking about the warehouse anddistribution center. He called it “four wallsand two windows.”The idea was simple. Materials handlingsolutions may happen inside the four wallsof a facility, but they are affected by whathappens outside of a facility. To be trulyefficient, a system needs visibility— thosetwo windows—into what is happeningdownstream and upstream.The concept goes a long way to explainingthe evolution of materials handling solutions.If all that mattered was efficiency inside thefour walls, we would all crossdock full palletsand be done with it. Instead, new customerservice requirements, store operations, justin-timemanufacturing strategies and valueaddedservices are driving distribution strategies.“How do I satisfy my customers and getan edge on my competition?” is the industrymantra. Questions like that have led to thedevelopment of sophisticated order fulfillmentstrategies such as the one featured in thismonth’s cover story on Skechers (see p. 14).Add the upcoming expansion of thePanama Canal to the list of catalysts.Scheduled for completion in 2012, thecanal will allow significantly larger shipsand shipments to serve the East Coast ofthe United States. To get a view throughthe windows of how this might impact whathappens inside the four walls of manufacturingand distribution facilities, Modernspoke to six supply chain experts.24 D E C E M B E R 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com

modern system reportsupply chainMore than ever, what happens outside the four walls determineswhat happens inside the four walls. Six supply chain experts lookat the most important factors shaping the future of the supply chain.“We believe Panama is becoming the most importantdistribution hub in the Americas.”—Alberto Aleman Zubieta, CEO, Panama Canal AuthorityWhen looking at the expansion of the Panama Canal,most logistics experts have focused on the impactbigger ships will have on supply chains centered inthe Gulf of Mexico and the Eastern Seaboard.Aleman agrees with this assessment. “Some are callingthis a game-changer for the maritime industry,” Aleman says.However, Aleman believes the more important change couldbe in where and how companies with global supply chainslocate and distribute their products. “Panama is becomingthe most important distribution hub in the Americas, especiallyif you want access to the growing markets in Centraland South America and the Caribbean,” Aleman says.As proof, he points to a growing number of warehouses inthe Colon Free Trade Zone on the Atlantic coast and PanamaPacifico and to the fact that Panama is the only country withconnectivity to two oceans. As such,he argues that the country is uniquelypositioned to be a value-added distributionplatform for global companies.Aleman also envisions Panamabecoming a hub for redistributing atthe level of the ship load.“You can bring a full container intoa distribution center, break it down and repack the productfor a specific market before shipping it back out to a customer,”he says. “Or, you can offload the containers from alarge vessel onto several smaller vessels headed to differentmarkets. At the end of the day, this is a value-added routeand not just a passage way between the Pacific and Atlanticoceans.”GraphicCaption Featuremmh.com Modern Materials Handling / D e c e m b e r 2 0 1 1 25

the big pictureWhere Business Meets Materials Handling“The most important driver of our warehousing and transportationoperations is the balancing of service and cost.”—Greg Buza, director of supply chain operations, BASF Corp.The expansion of the Panama Canal is one of the catalyststhat has BASF kicking off the first comprehensivereview of its North American distribution networksupply chain since 2004. “The most important driver of ourwarehousing and transportation operations is the balancingof service and cost,” says Buza. “We ask: How close are we toour customers, how quickly can we get product to our customersand what is the cost of getting those materials to ourcustomers?”An expanded canal may create opportunities to reducesupply chain costs by relocating facilities now operatingon the West Coast to the East Coast or the Gulf region.“We are especially looking at Houston and New Orleans toexpand our shipments to Asia,” says Buza. “Freight for Asiais typically railed to the West Coast. If we can save moneyby bringing vessels into the Gulf through the canal, thatcould change how we crossdockand store materials.”While the expansion is first andforemost a network design puzzlefor Buza, he says BASF is rethinkingits order fulfillment processes.“We are looking at automating moreof our warehousing and standardizingour processes across our network to lower our costs,” saysBuza. In North America, for instance, Buza is focusing onintegrating supply chain management systems for greater visibilityand efficiency. Globally, the company has built highlyautomated distribution centers in Asia and South America.“We’re taking what we’ve learned and looking to add automatedhandling and storage in North America in the future,”he says.“The amount of growth and investment within the broaderlogistics universe will be exponential.”—John Carver, executive vice president of port,airport and global infrastructure, Jones Lang LaSalleThe expanded canal will result in new supply chainopportunities, new areas of efficiencies and new strategiesfor transportation and distribution.“There is an imaginary line where things destined for theEast Coast come in east of the line and everything else comesin through Long Beach,” says Carver. “Right now, that line issomewhere around Memphis. We believe it’s going to shift toDallas. That’s going to result in new distribution strategies.”That doesn’t mean that every product destined for theeastern half of the country will automatically be divertedaway from Long Beach. Carver believes that products witha shelf life, including everything from food to trend-sensitivefashions and fast-moving consumer electronics, will stillenter through the West Coast. Raw materials and basic productswith a longer shelf life will find the most economicalway to reach their final destination. “That is likely to be theEast Coast because of the canal,” says Carver.Wherever that cargo lands,Carver is predicting more warehousespace because of slowsteaming, slowing a vessel downfrom 25 knots to 18 knots to savefuel. “Talk to carrier lines, andthey’ll tell you that trend is here tostay,” Carver says. “That suggestsmore inventory and more warehousespace.”Anyone who has watched the development of warehouseand distribution space around the ports in LongBeach, Oakland or Savannah understands that the expansionof the canal will affect more than just the cost ofshipping a container.It will also affect the industrial real estate sector and supplychain logistics. “The amount of growth and investment26 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

within the broader logistics universe will be exponential,impacting everything from shipping and rail line constructionto warehousing and terminal development around the world,”predicts Carver. He adds that there are already discussionsunderway between major shippers and logistics providersabout new facilities even if the expansion is several yearsoff. “Logistics providers realize that shippers drive businessto their ports and warehouses,” Carver says. “They’re goingafter the Wal-marts, Home Depots and Ikeas of the world toaddress their needs.”“Volume growth from the canal is going to dictate that companieslook at where they put their four walls and how they operate.”—Page Siplon, executive director, Georgia Center of Innovation for Logisticsno question. The expansion of the canal isgoing to change the importance of logistics in the“There’sUnited States,” says Siplon. “Volume growth is goingto dictate that companies look at where they put their fourwalls and how they operate to handle that increased volume.”Siplon believes five factors will drive the development ofdistribution centers in the coming years.Site selection: “Proximity to customers remains a keybasic of site selection,” says Siplon. “But they’re also askingquestions like whether there is the right kind of infrastructureand whether there will be enough truck drivers in aradius to serve their customers.”In-house or outsource: Siplon is intrigued by one distributionstat in particular: 51% of companies with more than$2.5 billion in sales have more than 10 distribution centers intheir network. Those networks will have to expand to accommodateincreased growth and volume. “The one commonalityI hear when I talk to end users is whether they should outsourcesome of their network to a 3PL,” Siplon says. “Theywant the flexibility to scale up or down, they want to reducetheir costs and they want to mitigate their risks. With a 3PLmodel, the headaches become someone else’s headache.”Small manufacturers and distributors are especially attractedto the 3PL model as they look to expand internationally,according to Siplon.Add value: Importers and exporters are increasinglylooking at their distribution centers as value-added centers,places to configure a product before it is shipped to its nextdestination. “It’s expensive for cargo to stop,” says Siplon. “Ifit must stop in a warehouse, why not use that pause in thesupply chain to do something thatadds value.” Since value-added serviceschange over time “that fitsperfectly the flexibility you get in a3PL model,” Siplon says.Add technology: Materialshandling automation is still theexception for most of the DCs inand around Savannah, but that ischanging. “We’re talking to companiesthat want to double theirthroughput in Savannah,” Siplonsays. “We’re also talking to companiesthat are trying to get newcustomers in industries like pharma and food that have veryspecific inventory management requirements. Companiesthat want to play in that game need technology to scale andcompete.”Labor matters: Yes, we have 9% unemployment. But distributionoperations continue to struggle to recruit, train andretain qualified labor. “In Georgia, we have about 100 differentlogistics offerings in our high schools, community collegesand universities,” says Siplon. “When we sit down withbusinesses and ask them what they need, the first thing theysays is: How do you train a good work ethic.” As the volumesof freight being stored, processed and moves increases, thatis going to become more of an issue nationally. And, it maydrive the adoption of automation and technology. “If we’regoing to get manufacturing back to the U.S., we have to figureout how to make the workforce compete,” Siplon says.mmh.com Modern Materials Handling / D e c e m b e r 2 0 1 1 27

the big pictureWhere Business Meets Materials Handling“Ultimately, the expansion of the canal is going to result in moreefficient supply chains, and that’s a good thing.”—Donald Ratliff, executive director, Georgia Tech Supply Chain & Logistics InstituteHow will the expansion of the canal impact global trade?Ratliff says the answer is not a simple one. He posesthree key questions that need to be answered:Will bigger ships be cheaper to operate? While Ratliff hasseen estimates that larger ships couldsave anywhere from 10% to 40% percontainer, he asks whether the shipswill be operationally cheaper once ashipper factors in the investment inthese big new ships.Will shipping lines pass onthe savings? “Right now, shippingcompanies are in a world of hurt,”Ratliff contends. “They have additionalcapacity and they’re slowingtheir ships down to save fuel. Ifyou’re currently losing money andcan’t currently fill up your smaller ships, will you be able tofill up the bigger ships? And, if you do, will you pass on thoseoperational savings to your customers?” Ratliff believes thejury is still out.What will be the impact on service levels of bigger ships?Will carriers continue to send one ship a week once they goto bigger ships? Or will they make fewer deliveries? And, if itnow takes one day to unload a smaller ship, will it take threeor four days for a bigger ship? If either of those events occur,shippers will need to carry more inventory to offset the longerdelivery times.Bottom line: “There is a lot of uncertainty in my mind aboutthe canal.” What is certain, he says, is that the expansion isforcing major manufacturers and distributors to take a hardlook at their international supply chains.“Ultimately, that’s going to result in more efficient supplychains, and that’s a good thing,” Ratliff says.“We can move information on a moment’s notice, but there are thingsthat happen to effect the physical movement of goods.”—Rick Blasgen, president and CEO, CSCMPchain management is still a very physical businessdespite technology,” declares Blasgen. “We can“Supplymove information on a moment’s notice, but thereare things that happen to effect the physical movement ofgoods, like oil shooting up from $30 to $140 a barrel.”The biggest impact of the expansion of the canal, Blasgenbelieves, will be the opportunity for companies to assess thestate of their logistics. Looking ahead, he sees several trendsaffecting the very physical business of moving goods throughthe supply chain.Plan for supply chain disruptions: Over the first sixor seven years of the new millennium, low energy prices,steady growth and stable governments led to migratory supplychains. Manufacturers chased the lowest wage areas toproduce their products. The wheels came off that train in2008. Oil spiked to $140 a barrelin the spring and the economycrashed in September. Since then,supply chains have been disruptedby the Arab spring and a volcanoin Iceland. Interest rates may be atzero now, but they could shoot backup. All of these events have turnedrisk into a four letter word. “If I wereto tell you that a plume of smoke inIceland would disrupt global shippingfor two weeks, you might notbelieve me,” Blasgen says. “But, supply chains now have toplan for that.”Supply chain management as a revenue generator:28 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

For years, manufacturing, distributionand transportation were thought of ascosts of doing business. Increasingly,they are the competitive differentiator.“The best companies realize theycan generate revenue if they can managetheir supply chains better than thecompetition,” Blasgen says, who pointsout that Wal-mart’s last two CEOs cameout the retailer’s logistics operations. Ifyou have any doubts, look at how freeshipping from Amazon has upendedthe world of online retailing. The practicecosts Amazon money, like everyoneelse. However, since Amazon does a betterjob at warehousing, distributing andshipping than the competition, it givesup less of its profit margin while takingmarket share. “We were once a necessaryevil,” Blasgen says. “Now we’re cominginto our own.”Who owns the infrastructure: Forall the talk of American competitiveness,one area where we are clearly laggingis in investing in the infrastructurethat supports our supply chains. “We arenot investing in an infrastructure thatcan support increases in population anddemand,” Blasgen says. “That’s becauseno one agency owns the problem. Thereis no central agency to address theseissues.” Blasgen says the infrastructureisn’t just about roads, bridges, rail andports. It’s also about talent. “In transportation,we have a driver shortage,” hesays. “Some of our universities are producingkids who are really well preparedfor supply chain jobs, but they can’tget experience. We have to ask how wecan secure and retain supply chain andlogistics leaders.” Right now, that isn’tclear. IncreasedEfficiencyBy Design.Companies/organizations mentioned in this articleBASF Corp., basf.com/group/corporate/us/en/Council of Supply Chain Management Professionals, cscmp.orgDematic, dematic.comGeorgia Center of Innovation for Logistics, georgialogistics.orgGeorgia Tech University, scl.gatech.eduJones Lang LaSalle, joneslanglasalle.comPanama Canal Authority, pancanal.com/eng/index.htmlMaterials handling solutions may happen insidethe four walls of a facility, but they are affectedby what happens outside of a facility.The next generationof material handling.We’re talking intelligent intralogistics.Experienced engineers, more than200 strong, combine with softwarebasedcontrols, robotics, andvoice-and light-directed technologiesto give our customers a strategicedge in solving material handlingchallenges. We’ve shown some ofthe world’s largest companies howto use their space more efficientlyto deliver enhanced productivity—ensuring an operation that’s better,faster, smarter. See what we can dofor you at wynright.com.Keeping Your Businesson The Move.mmh.com MODERN MATERIALS HANDLING / D E C E M B E R 2 0 1 1 29

modern Equipment 101: Overhead handlingA primer for warehouse/DC managersOverhead handlingequipment basicsOverhead handling equipment likecranes, hoists and monorails can increaseproductivity, enhance safety, improveergonomics and maximize floor space.By Lorie King Rogers, Associate EditorUp, up and safely on its way. Sometimes the bestway to transport product through a warehouse ormanufacturing facility is to lift it up then move italong. Handling materials overhead can increaseproductivity, enhance safety, improve ergonomicsand maximize available floor space.There are many types of overhead materialshandling equipment, but they all share thesame goal of safely lifting product and moving itefficiently and ergonomically from one point toanother without damage to the product or thefacility—or injury to the worker.The right equipment for the job depends on theprocess, the product being moved, the task beingperformed and the desired rate of throughput.“There is a range of solutions in overhead handling,”says Jeff McNeil, marketing manager atGorbel. Different configurations and technologymean there are a lot of choices in overhead handlingequipment, he says, and an operation’s finalequipment selections are usually based on performanceand cost.Overhead handling solutions can range fromsimple, manual hoists to fully automated systemswith movements directed by software. Regardlessof the complexity, the equipment, especially theequipment in the middle where people are workingtogether with technology, should shoulder thebulk of the work. This equipment report looks atthe primary overhead handling equipment: cranes,hoists and monorails.CRANESToday’s overhead cranes enable the movement ofproduct above the floor, especially when handlingmaterials manually or by lift truck isn’t practical,productive or safe. Instead of being limited toavailable aisle space and moving materials by a lifttruck or other floor traveling systems, overheadcranes allow you to cover a broad area of the manufacturingplant and move products through themanufacturing or storage process using all of thefree space overhead, explains John Paxton, presidentof Demag Cranes & Components.30 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

Cranes can be manual or powerdriven, depending on the applicationand the size of the load that’s beingmoved. For example, workstation cranesand jib cranes are used to improve ergonomicsin small areas, while bridge andgantry cranes handle the heavy liftingtasks over longer distances.While there are a variety of cranestyles, all include three basic components:bridge, trolley and hoist.• The bridge, which can be stationaryor mobile, is made of rails and cancarry one or more trolleys.• The trolley is the unit that travelsside to side and carries the hoist.• The hoist is the lifting device thathooks onto and manipulates the load.Cranes are also available in variousload capacities, from workstationcranes that enable operators in a workcell to safely manipulate light loads(typically below 2 tons) to very largeoverhead cranes capable of transportingloads weighing as much as 500 tons.While many cranes are pre-engineeredsolutions, which are produced fromstandard hoist and drive components,Paxton explains that the cranes with liftingcapacities above 50 tons are usuallyengineered solutions with controls specificallydesigned for the manufacturingprocess that the cranes support.Workstation cranesOn a smaller scale, free-standingworkstation cranes enable operatorsin a work cell to safely and accuratelymaneuver light loads. These free-standingunits improve ergonomic handlingof product in a limited area, like productionenvironments.Some of the newest workstationcranes are intelligent devices that combinemanual and servo-driven operations.The manual function allows workersto move at their own pace as theywalk to a bin, select a part, and guide thecrane to a machining center process.The servo-driven function controls thepositioning of the part on the machine,preventing damage to both by slowingdown for part placement and release.Gantry cranes are comprised of twouprights connected by an I-beam thatserves as the bridge for the trolley.Gantry cranes can be manual or powered.In a powered gantry crane, theuprights run on a track at floor level; ina lighter-duty crane, the uprights are onwheels and can be manually positionedand repositioned around a facility. Withload capacities of up to 5 tons andspans of up to 30 feet, gantry cranes aremost commonly used in maintenanceoperations. They are a cost-effectivesolution for applications that requireinfrequent duty.Jib cranes are also used for spot handling.These cranes include a singlebridge that rotates to cover a circulararea. Because the crane rotates, loadsare easy to position. Jib cranes are oftenused in conjunction with an overheadcrane to improve throughput in areaswith more traffic and production thana single crane can handle.Free-standing jib cranes are boltedto the floor and require a strong enoughfoundation to support the load withoutthe crane tipping over. Because theyare free-standing, they offer 360-degreerotation.Articulating-arm jib cranes are simplyjib cranes equipped with a pivoting twopiecearm. This gives the operator moreprecise control in positioning the load.Overhead cranesWhen it comes to muscle, overheadcranes have the most lifting capacity.Bridge and gantry cranes do the heavymmh.com MODERN MATERIALS HANDLING / D E C E M B E R 2 0 1 1 31

MODERN Equipment 101: Overhead handlingA primer for warehouse/DC managerslifting over long distances.Bridge cranes are ceiling-mountedand allow loads to move in six directions:up and down, forward and backward,and side to side. They are typicallypart of a building’s structure andinstalled when the facility is being built.Always powered, bridge cranes consistof a trolley that runs across a bridge(which can have one or two girders). Thebridge moves across a bay along a runway.The largest capacity units—knownas top-running, double-girder cranes—mount the bridge on top of the runwayand have two girders for the bridge. Withcapacities of up to 600 tons, a top runningcrane gives you the maximum headroomof any crane. Alternately, underhungcranes, which are ideal for loads of15 tons or less, have a trolley that runs onthe bottom of the support I-beams.In addition to top-running cranes,there are under-hung cranes where thetrolley runs on the bottom of the supportI-beams and can get loads closer tothe wall. While distance is no impedimentfor this type of crane, an underhungcrane cannot lift a load as highas a top-running crane system and ismeant for loads of 15 tons or less.HOISTSThis is an old industry, says BretLussow, business developmentsales manager for HarringtonHoists. “This is not a high-techindustry such as computers or cellphones. However, this old industryis adapting the latest technology,making hoists more reliableand safer than ever before.”A hoist can be a key part of acrane system. But these mechanicaldevices can also stand alone forvertical lifting jobs, raising and loweringloads, like individual work-inprocess.Hoists can be divided intothree categories based on powersource:• electric (including wire ropeand chain hoists),• air-driven,• and manual (including hand chainand ratchet lever hoists).Lately there have been improvementsin the areas of material, constructionand safety, explains Lussow.ElectricElectric hoists, which are the mostcommon type, are using more efficientmotors that reduce amperage draw.Electric hoists range in lift capacities of250 pounds, which can be purchasedoff-the-shelf, to several hundred tons,A free-standing workstation crane lets the operatoruse his eyes and brain, but uses the machine’s“muscle” to handle the heavy lifting.With straight rails that result in easy installation,under-hung bridge cranes can handle up to 15 tonsand their spanning capabilities can eliminate theneed for additional supporting structures.which are usually custom engineered.All electric hoists are rated by dutycycle. The rating determines how longthe hoist’s electric motor can run beforeit needs to cool. Meaning, an electrichoist with a 25% duty cycle can be usedcontinuously for 25% of an hour, or 15minutes, before it needs to cool.Electric hoists are available withsingle-speed, double-speed or variablespeedelectric motors. While singlespeedmotors are the least expensive,double- and variable-speed motors offersome advantages. For example,an operator can begin lifting aload at a slow speed then easeinto a higher lifting speed.This reduces shock on the systemand extends the life of thehoist. Operators can also slowthe hoist at the end of a lift,allowing for more precise andgentle positioning of the load.Because they are hardwiredto a power source, electrichoists have a dedicatedlocation in a facility. Electrichoists are also available in wirerope and chain designs, which,according to Lussow, have seenimprovements to the strengthof wire rope or chain used asthe lifting medium.Wire rope hoists, which areused to lift very heavy loads, arecontrolled by an operator who32 D E C E M B E R 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com

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modern Equipment 101: Overhead handlingA primer for warehouse/DC managerspresses a button to start themotor. The motor drives a setof gears, which then turns agrooved drum. The wire ropewinds around the drum as itturns and lifts the load. Thesehoists can reach capacitiesof hundred of tons, but themajority are 5-ton and 10-tonmodels and used for suchjobs as assembling automotiveequipment.Chain hoists are alsomanually activated. An operatorstarts the electric motorthat turns a set of gears,which then turns a lift wheel.Pockets in the lift wheelengage the links of the chainthat raise the load as thechain rides over the wheel.The chain coming off thewheel either hangs or is collectedin a container belowthe hoist. Chain hoists rangein capacity from 250 poundsup to about 20 tons. They areslower than their wire ropehoist counterparts, smallerand more maneuverable.Air drivenAir driven, or pneumatic, hoists don’thave electric motors, don’t require electricityand don’t overheat. What theydo have is the ability to facilitate highlyrepetitive assembly line applicationsbecause they can be used continuouslyand don’t need the cooling time thatelectric hoists require.“Speed, speed, speed. It’s all aboutincreased production,” says Lussow. “Thesehoists are ideal for mass production, productionlines and foundries,” he adds.The majority of air-driven hoistsuse chain as the lifting medium. Theyfunction much like electric chainhoists, but they are not hard-wired toan electrical system.Automated overhead handling systems use software tocommunicate the direction and movement of the load.ManualSlower, manual hoists are small andmobile, and usually used for maintenanceand other non-repetitive tasks.Manual lifting devices like hand chainand rachet lever hoists are simple liftingtechnology that are very affordable andvery effective, says Gorbel’s McNeil.Hand chain hoists have two chains:one chain attached to the load and apull chain. As the operator pulls thepull chain, the hoist’s internal gearsraise and lower the lift chain and providethe mechanical advantage for easingthe lifting process. For example,lifting a 1-ton load with a hand chainhoist requires just 54 pounds of effort.While these hoists can lift 70-ton loads,the majority of the market is in the 1- to5-ton range.Rachet lever hoists can use eitherwire rope or chain. They work like handchain hoists, but use a lever rather thana pull chain to rotate the sprocket thatactivates the lifting mechanism.With capacity rangesfrom 500 pounds to 9 tons,rachet lever hoists are bestsuited for low-lift applications,usually less than 5feet. These hoists can liftvertically and pull horizontally,and are commonly usedfor pulling rather than lifting.MONORAILSMonorails consist of a singlerail, or I-beam, fromwhich a hoist or hook hangs.Together, the monorail systemcomponents allow loadsto move both horizontallyand vertically.The basic concept ofthe monorail system hasnot changed much over theyears, but what has changedare its applications. In additionto heavy-duty cycles,monorails are being usedmore and more for mediumandlight-duty cycles inwarehousing and a variety ofmanufacturing applications.With load weight capacitiesof up to 30,000 pounds,electrified monorail is durable and flexible.Each carrier unit has its own driveunit and can run at variable speeds indifferent areas, traveling at up to 600feet per minute. Product transportedby monorail is powered by a bus bar, orpower rail, inside the I-beam.Monorail can be an expensive solution,and should be seen primarily as ahigh-speed, long-distance transportationsystem. “The cost of automationequipment is going down, but it’s stillrelatively expensive compared to moresimple solutions like manual cranesand hoists,” says Gorbel’s McNeil. MFor more information about the CraneManufacturers Association of America(CMAA) and the Hoist ManufacturersInstitute (HMI) go to www.mhia.org/industrygroups/cmaa and www.mhia.org/industrygroups/hmi.34 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

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MODERN special reportTop 203PLwarehousesVacant North American warehouse spacehas been filling up and the overall outlookfor the future of 3PLs remains bright.By Lorie King Rogers, Associate Editor36 D E C E M B E R 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com

Every year, Modern takes anannual roll call of the Top20 third-party logistics (3PL)warehouses to see who’s at thehead of the class in regard to total squarefootage of storage space.This year, we have once again calledupon Dick Armstrong, chair of Armstrong& Associates, who closely follows the 3PLsector of the warehousing industry, for hisinsight. In addition to sorting out the list,Armstrong tells Modern that the NorthAmerican 3PL warehousing industry isheaded in a positive direction. Empty warehousespace is filling up and warehousingindustry insiders are optimistic about continuedgrowth and improved market conditions.“Current vacancy rates are back in thesingle digits and capacities have improvedsubstantially,” Armstrong says.In fact, when we compare the top 203PL warehouse operators of 2010 to 2011,we see that their combined total squarefootage increased 5.6% between 2010 and2011, from 514 million square feet to 543million square feet.While vacancy rates are declining andthe amount of space under managementis on the rise, the industry is not creatingnew warehouse space, Armstrong says.“The warehousing situation is reflective ofwhat’s going on in the general economy,”he says. “We’re passed the downturn andempty space is filling, but there hasn’tbeen significant growth in new facilities.”Looking forward, Armstrong anticipatesstrong single-digit growth for 2012.Biggest to smallestHow then do the 2011 top 3PL warehousesheadquartered in North Americacurrently rank?Like last year, No. 1 DHL Exel SupplyChain tops the list by an immense margin.With hundreds of facilities spread acrossthe country, DHL Exel added 400,000square feet of storage space, bringing itstotal to 95 million square feet.What’s more, DHL Exel is operating58 million square feet more than No. 2ranked Genco ATC, which has a totalof 37 million square feet of warehousespace. Last year, Genco Supply ChainSolutions (as it was known) was rankedNo. 3 with 34.7 million square feet ofwarehouse space. This year, the completionof its acquisition of ATC TechnologyCorp. has helped lift Genco ATC up oneposition.The combination expanded Genco’scapabilities and raised its game. “WhenGenco bought ATC, it got bigger and better,”says Armstrong. “ATC was the mostprofitable value-added warehouse in NorthAmerica. What you have now is a win-winthat put together two Class A operations.”In the No. 3 position, down from2010’s No. 2 spot, is Jacobson Companies.Jacobson and Genco have been tradingpositions on our list for years. This timearound, Jacobson’s total square footageis 35 million square feet, exactly what itreported last year.Rounding out the top five are Americoldand CEVA Logistics. Americold moves uptwo positions from No. 6 to No. 4 with 34.5million square feet, an increase of 27.7%over last year’s 27 million. CEVA is in theNo. 5 position with 33 million square feetof warehouse space.Together, the top five companies have acombined total of 234.5 million square feetof storage space, which is 11.1 million morethan last year’s combined total of 223.4 mil-mmh.com MODERN MATERIALS HANDLING / D E C E M B E R 2 0 1 1 37

modern special reportTop 20 3PL warehouses headquarteredin North AmericaRank Company Web Site HeadquartersSpace(million sq. ft.)1 DHL Exel Supply Chain exel.com Westerville, Ohio 95.02 GENCO ATC genco.com Pittsburgh, Pa. 37.03 Jacobson Companies jacobsonco.com Des Moines, Iowa 35.04 Americold americold.net Atlanta, Ga. 34.55 CEVA Logistics (The Americas) cevalogistics.com Jacksonville, Fla. 33.06 OHL ohl.com Brentwood, Tenn. 30.27 Ryder Supply Chain Solutions ryder.com Miami, Fla. 30.08 Caterpillar Logistics Services catlogistics.com Morton, Ill. 29.09 Kenco Logistic Services kencogroup.com Chattanooga, Tenn. 25.010 APL Logisitcs apllogistics.com Scottsdale, Ariz. 24.711 UTi Worldwide go2uti.com Long Beach, Calif. 23.712 UPS Supply Chain Solutions ups-scs.com Alpharetta, Ga. 20.013 NFI Logistics nfiindustries.com Cherry Hill, N.J. 19.014 Menlo Worldwide Logistics menloworldwide.com San Mateo, Calif. 18.015 DSC Logistics dsclogistics.com Des Plaines, Ill. 17.016 Kuehne + Nagel (TheAmericas)kuehne-nagel.com Jersey City, N.J. 15.117 Penske Logistics penskelogistics.com Reading, Pa. 14.918* WSI wsinc.com Appleton, Wisc. 14.018* Warehouse Services wsionline.com Piedmont, S.C. 14.018* Saddle Creek saddlecrk.com Lakeland, Fla. 14.0Source: Armstrong & Associates, Inc.*tielion, marking an increase of 4.9%.The remaining companies in the top 10include: OHL at No. 6; Ryder Supply ChainSolutions at No. 7; Caterpillar Logistics atNo. 8; Kenco Logistic Services at No. 9; andAPL Logistics at No. 10. This year’s top 10totaled 373.3 million square feet, an 8.9%increase from 342.7 million last year.Regaining positions in the Top 20 areKuehne + Nagel at No. 16 with 15.1 millionsquare feet and Penske Logistics rightbehind at No. 17 with 14.9 million.Not everyone returned to the list thisyear. DB Schenker, ranked No. 20 last yearwith 12.6 million square feet, didn’t makethe cut this year. And, Versacold, which heldthe No. 9 position last year, was acquired byAmericold.Industry trendsIn addition to keeping an eye on how muchspace the leading warehousing operationshave to their credit, Armstrong is following afew industry trends.Fewer privately held, family-ownedcompanies: The public warehousing spacewas once dominated by mom and pop facilities.Today, Armstrong says, there are fewer“The warehousing situation is reflective of what’sgoing on in the general economy.”—Dick Armstrong, chair of Armstrong & Associates38 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

MODERN special reportTop 20 3PL North American warehouses:Tracking the square footageSource: Armstrong & Associates, Inc.(millions of square feet)2011 543 +5.6%2010 514 -2.6%2009 528 +4.6%2008private, family-owned companies.Among the top 10 industry leaders,the only private company is Kenco.Armstrong adds that Jane Kennedy,the chair and CEO of Kenco, tookover the reins from her father, ensuringthat the company stayed in thefamily.Women are joining the leadershipranks: The change in leadershipat Kenco represents another trendArmstrong is watching, which is theincrease in the number of women inmiddle and top management positionsat North American warehousecompanies. While he doesn’t havespecific numbers, Armstrong pointsto Ann Drake, who has been CEOof DSC Logistics and Supply ChainManagement (No. 15) since 1994.3PLs are all getting bigger andbetter: “Value-added warehousing hasramped up to real system transportationmanagement capabilities,” saysArmstrong. “This means you can optimizeall of a company’s traffic and shipmentson a daily basis and determinebest shipments and transportationmodes for that day.”In addition, Armstrong reports thatabout half of the Top 20 3PLs haveinternational supply chain capabilities.For example, he says, No. 3 ranked504.8Jacobson has opened up a number ofoffices in China, developing an Asianlane back to the United States.“It’s a different world,” Armstrongsays. “It’s not mom and pop standalone warehouses anymore becauseit’s global economy, and 3PLs are takingadvantage of ongoing economicglobalization.” Find what you’re looking for.www.MMH.comA true industry resource for materials handling.mmh.com MODERN MATERIALS HANDLING / D E C E M B E R 2 0 1 1 39

MODERN show previewNEW SHOW,NEW CITY,NEW SOLUTIONSBy Sara Pearson Specter, Editor at Large40 D E C E M B E R 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com

Held for the first time ever, Modex 2012—the nation’snewest expo for materials handling, supply chain andlogistics solutions—will open at 10 a.m. in Atlanta onFeb. 6, 2012. The Georgia World Congress Centerwill host more than 20,000 visitors attending theindustry’s premier trade show and educational conference,sponsored by the Material Handling Industryof America (MHIA).Spread over four days, attendees will find morethan 500 exhibitors, three keynotes, 70 show flooreducational seminars, and no fewer than 30 differenteducational sessions and networking events presentedby 17 different co-located partners. Modex isnot only a new show for MHIA, but a new format ina new town.“When I was an MHIA board member, Ichaired our trade show work group, and in 2005we re-examined our show plan,” says GeorgePrest, incoming CEO of MHIA. “We did extensiveresearch, and the bottom line was that there wasan opportunity to eliminate some geographic overlapbetween ProMat in Chicago and our previousshow in Cleveland.”The research also showed that Atlanta would bean ideal location for a new show, adds Prest, not onlybecause of the region’s heavy concentration of supplychain and logistics professionals, but also because ofthe Panama Canal expansion.“Also, we had a lot of feedback requesting a conference-basedformat presenting a broader range of‘big picture’ topics that encompassed supply chain,education and equipment. Attendees told us theywanted us to bring all the voices of the supply chaintogether in a collaborative event,” he says. “Therefore,the Modex 2012 conference features leading-edgetopics in manufacturing, distribution and the supplychain, exploring subjects such as the impact of thePanama Canal expansion on sustainability, securityand visibility.”In addition to learning more about the big picturein supply chain, Modex 2012 attendees will discovernew equipment solutions to streamline operationsand improve visibility, maximize efficiency and flexibility,cut costs and speed time to market. Exhibitsfrom industry, commerce and government will beshowcased throughout the 150,000-square-foot showfloor. Leading manufacturers will display a multitudeof technologies, including:• Materials handling equipment and systems• Packaging, containers and shipping equipment• Inventory management and controllingtechnologies• Dock and warehouse equipment and supplies• Automatic identification equipment and systems• Supply chain managementTo make it easier for attendees to find the solutionsthey need, the Modex 2012 show floor is divided intofour solution-specific sections:• Manufacturing and Assembly SolutionsCenter: Features component parts, attachments,equipment and systems for more efficient manufacturing,distribution, and assembly operations.• Fulfillment and Delivery Solutions Center:Showcases order fulfillment, order assembly, thirdpartylogistics, warehousing, distribution and transportationactivities.How do we optimize your supply-chain throughout your entire organization?We’ll handle it.www.bulkpak.comFrom line of sight entry for forklift operators, ergonomic-friendly workspaces for assemblyline operators and optimized shipping efficiencies for logistics managers to improved filldensity for packaging engineers and improvements in ROI for financial managers, ORBISBulkPak® containers don’t just optimize your supply chain, they optimize your entireorganization. You get more out of BulkPak, because we put more into it.mmh.com 11-ORB-116 Bulk Pak_people ad_MHL_7x2.5_final.indd 1MODERN MATERIALS HANDLING / D 10/12/11E C E M B E R 2 0 14:29 1 PM41

MODERN show preview• Information Technology (IT) SolutionsCenter: Offers software solutions or consultingservices that support manufacturing, warehousing,distribution and logistics operations.• The Knowledge Center: Comprised ofsix theaters in the back right of the exhibit hall,this area will host seventy 45-minute free educationalsessions about the productivity solutionsthe materials handling and logistics industry has tooffer. Sessions are first-come, first-served and runthrough the third day of the show.Designed to present attendees with a big pictureview of how changes in the global supply chain aregoing to impact their daily operations, three differentkeynote presentations are being sponsored byMHIA. Held on Monday, Tuesday and Wednesdayof the show, each from 8:45 a.m. to 9:45 a.m., thekeynotes will feature experts in the fields of globalsupply chain management and associated logisticschallenges.On Monday, Rick Blasgen, president and CEOof the Council of Supply Chain ManagementProfessionals (CSCMP) will present “The State ofLogistics and Supply Chain Management.” Blasgenwill examine the importance of supply chain management,global trends CSCMP has observed andhow international supply chains drive change.Attendees will learn how to navigate the currenteconomic confusion and develop innovative supplychain management practices to find successthrough the uncertainty.On Tuesday, Alberto Alemán Zubieta, CEOof the Panama Canal Authority, the autonomousagency that manages the interoceanic waterway,presents the second keynote: “The Expansion ofthe Panama Canal and its Impact on Supply Chainsand Global Trade.” When the expansion projectis completed in 2014, experts predict that it willchange global freight movement and open up newopportunities for trade. Alemán Zubieta will detailhow infrastructure improvements will benefit bothimporters and exporters, and explain how companiescan prepare for the impact of this developmenton their operations.On Wednesday, H. Donald Ratliff, regents professorand executive director of the Georgia TechSupply Chain & Logistics Institute, concludes thekeynote series with “How Supply Chain & LogisticsPerformance Impacts Trade.” Ratliff will help attendeeswhose businesses are seeking to increase exportsto understand how their company’s supply chainand logistics performance impacts trade. He willalso share insights into the areas for improvement insupply chain and logistics performance, and how tomake these improvements to boost exports.42 D E C E M B E R 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com

NEW SHOW, NEW CITY, NEW SOLUTIONSAtlanta, Georgia • Feb. 6-9, 2012 • The Georgia World Congress CenterLearn more about industry points of viewfrom 17 co-located educational partnersIn addition to Modex’s three keynotes and 70 educationalseminars held on the show floor—all sponsoredby the Material Handling Industry of America(MHIA)—no fewer than 17 other materials handling,supply chain and logistics industry-affiliatedgroups have also convened to host their own educationalevents at the show.“Co-locating these events with Modex 2012 willallow manufacturing, distribution and supply chainprofessionals unparalleled education and networkingopportunities,” says George Prest, incomingCEO of MHIA. “These co-located events will complementthe existing conference at Modex 2012,which provides valuable insight into the trends andinnovations impacting supply chains.”“For our members, attendees and exhibitors, theco-locations add even more value to the event; thelargest being the Georgia Logistics Summit, whichlast year hosted 1,300 attendees from 21 statesand expects to draw even more in conjunction withModex 2012,” Prest adds.By partnering with Modex to co-locate their owneducational events, each of the 17 groups will bebringing their unique perspective to the supplychain and materials handling conversation, saysGary Forger, MHIA’s senior vice president of professionaldevelopment.“Modex provides a great opportunity to uniteeach of these aspects of our industry, and eachgroup will share what’s important to their people interms of activities, priorities, skills, trends, issuesand more,” Forger notes. “It’s an important piece ofan ongoing dialog for attendees as they learn moreabout the big picture and where they fit in.”The co-locating groups include:• The American Society of Transportation andLogistics (AST&L)• The Association for Automatic Identificationand Mobility (AIM)• The Atlanta Roundtable of Council of SupplyWe put moreinto it.We’ll handle it.www.bulkpak.comWith industry leading expertise, innovation, high qualityproducts and lowest total cost of ownership, it’s easy tosee why ORBIS BulkPak is the leading choice for bulkcontainers in the industry. You get more out of BulkPak,because we put more into it.To schedule a supply chain analysis today, please visit www.bulkpak.com or call 888-217-0965.mmh.com MODERN MATERIALS HANDLING / D E C E M B E R 2 0 1 1 43

MODERN show previewChain Management Professionals (CSCMP)• The Center for Excellence in Logistics andDistribution (CELDi)• The College-Industry Council on MaterialHandling Education (CICMHE)• The Council of Supply Chain ManagementProfessionals (CSCMP)• Ergonomic Assist Systems and EquipmentCouncil (EASE)• The Georgia Institute of Technology SupplyChain and Logistics Institute• The Georgia Logistics Summit• The Institute of Industrial Engineers (IIE)• Material Handling Equipment DistributorsAssociation (MHEDA)• Metro Atlanta Chamber Supply ChainLeadership Council• National Institute for Occupational Safety andHealth (NIOSH)• The Panama Canal Authority• The Reusable Packaging Association (RPA)• Technical Career Education Program (TCEP)• The U.S. Department of Commerce (DOC)International Trade AdministrationSessions run throughout the four days of the show,with some requiring separate registration and fees.Events included free with Modex 2012 registrationMONDAY, Feb. 610:00 a.m. - 11:30 a.m.Develop your talent andstrengthen your competitivenessin the global marketplace,presented by the AmericanSociety of Transportation andLogistics (AST&L)2:00 p.m. - 3:00 p.m.Supply chain managementcareers: A pipeline of opportunity,presented by the Councilof Supply Chain ManagementProfessionals (CSCMP)4:30 p.m. - 6:00 p.m.Reception for current andprospective members (RSVPrequired), presented by theMaterial Handling EquipmentDistributors Association(MHEDA)TUESDAY, Feb. 710:00 a.m. - 11:30 a.m.Develop your talent andstrengthen your competitivenessin the global marketplace,presented by the AmericanSociety of Transportation andLogistics (AST&L)1:00 p.m. - 2:30 p.m.Sustainability metrics: How leadingcompanies are measuringtheir environmental impact,presented by the College-Industry Council on MaterialHandling Education (CICMHE)2:00 p.m. - 2:45 p.m.A CEO’s vision for operationsexcellence, presented bythe Council of Supply ChainManagement Professionals(CSCMP)2:00 p.m. - 5:00 p.m. Advancingknowledge, exploring technologyand driving efficiency withautomatic identification andmobility solutions, presented bythe Association for AutomaticIdentification and Mobility (AIM)3:00 p.m. - 3:45 p.m.Fueling the fire of kaizenthroughout the lean enterprise,presented by the Council ofSupply Chain ManagementProfessionals (CSCMP)4:00 p.m. - 4:45 p.m.Alignment of functionalsupply chain and IT roadmapfor investment and capabilitybuilding, presented bythe Council of Supply ChainManagement Professionals(CSCMP)WEDNESDAY, Feb. 83:00 p.m. - 4:30 p.m.Distribution center ergonomics:Assessing back injury riskand developing interventions,presented by the Council ofSupply Chain ManagementProfessionals (CSCMP)44 D E C E M B E R 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com

SOLUTION CENTERS:Manufacturing& Assembly SolutionsFulfi llment & DeliverySolutionsInformation Technology (IT)SolutionsThe Knowledge CenterSPECIFICATIONS:FLOOR PLAN:Georgia World Congress Center, Atlanta, GeorgiaFLOOR PLAN DATE:October 24, 2011= shaded booths are soldEXHIBIT HALL SPECIFICATIONS:Booth Dimensions: in feet: columnCeiling Height: 30 feetFloor Load: 350 lbs. per sq. ft.METRIC CONVERSION CHART:2012 SHOW HOURSMonday, February 6 10 AM — 5 PMTuesday, February 7 10 AM — 5 PMWednesday, February 8 10 AM — 5 PMThursday, February 9 10 AM — 3 PMSPONSORED BY:Material Handling Industry of America8720 Red Oak Boulevard, Suite 201Charlotte, NC 28217-3992www.MHIA.org • www.MODEXShow.comFOR MORE INFORMATION:Tom Carbott, Vice President of Sales and EventsE-mail: tcarbott@mhia.orgOn-line: www.MODEXShow.comToll free from the U.S. and Canada:800-345-1815Toll free from Mexico: 9-5-800-345-1815From elsewhere: 704-676-1190= non-shaded booths are availableCBAGFEDModex 2012 show floor plan. For a downloadable pdf go to www.modexshow.com/floorplan.Visit us atMODEX 2012Booth # 3611Automated Storage &Retrieval Systems (AS/RS)Savanna.NET® WarehouseManagement Software (WMS)Need to DOUBLE Storage capacity?Westfalia’s AS/RS can fit intoexisting buildings only 20’ highNeed to PICK Faster?Westfalia’s Savanna.NET® WMSprovides fast, efficient, & accurate orderpicking at an affordable priceWestfalia Technologies, Inc.717-764-1115 • 800-673-2522www.WestfaliaUSA.comOUR INNOVATIONYOUR SOLUTIONmmh.com Modern Materials Handling / D e c e m b e r 2 0 1 1 45

modern productivity solutionAutomated systemcures storage problemDeck 2 linesChildren’s HospitalColorado installs horizontalcarousels to ease growingpain in its stockroom.By Lorie King Rogers, Associate EditorFrom private patient rooms to progressive medicaltechnology to organized material and processflow, every detail of the new Children's HospitalColorado in Denver was designed and built to maximizethe patient experience—helping kids get betterfaster while reducing stress on the whole family.Reducing stress on the stockroom is also missioncriticalto the overall experience.The hospital’s stockroom inventories more than17,000 SKUs and is responsible for three types oforders: automated supply cabinet restock orders,clinician orders and ambulatory cabinet restockorders. With the help of three 52-foot-long horizontalcarousels (Kardex Remstar, www.kardexremstar.com),integrated with pick-to-light technologyand order processing software, inventory isreceived, stored, processed, picked and deliveredon time.The entire horizontal carousel system occupiesjust 1,690 square feet and is operated by oneorderpicker. Traditional shelving would need 4,131more square feet and more orderpickers. “Without thehorizontal carousels we’d have at least eight moreorderpickers running around and searching shelvingfor items and it would take 10 times longer,” saysRichard Hire, director of materials management.As the hospital network grows to meet the needsof its patients, so does its need for storage. The hospitalis building a 10-story patient tower that willincrease the number of beds to nearly 500. And, thestockroom is slated to add new SKUs and increasethe minimum inventory level of some existing SKUs.To accommodate the increased inventory, the hospitalwill install two additional horizontal carousels.“Expansion isn’t a problem for us,” says ChrisHouk, logistics and distribution manager. “One ofthe reasons we bought the horizontal carousel systemis that it’s scalable and easy to expand as thehospital grows.”With the expansion, the stockroom will runthe five horizontal carousels still using one orderpicker.M46 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

Automatedstorage plugsinto productivityOnline electronics retailer upgrades its DC with automatedstorage system to keep up with increase in sales.By Lorie King Rogers, Associate EditorAs the largest online retailer in Scandinaviadelivering PCs, PC components and otherrelated electronic equipment to more than 700,000customers, Komplett’s inventory capacity, accuracyand speed of order fulfillment are critical to maintainingits market position.For more than a decade, Komplett filled itsorders manually. But as sales grew and the productline expanded to more than 10,000 SKUs, its needfor increased inventory capacity, additional pickfaces and a streamlined order fulfillment processsolution reached a critical level. The manual operationcouldn’t keep up with the order volumes andthe market demands for speed and accuracy.After reviewing a number of automation options,Komplett upgraded its DC with an automated storageand fulfillment system (Swisslog, www.swisslog.com) designed for dense storage and efficient pieceand small case picking. The system is made up of athree-dimensional grid of self-supporting bins thatare moved to pick stations by independently operatingrobots. Each robot has two sets of wheels thatenable it to move in multiple directions, making itpossible for each robot to reach any position on thegrid. Each of Komplett’s 55 robots is equipped witha lift for picking up, carrying and putting the system’s34,000 bins stored in the grid.“We like that the system provides the mostcompact storage possible for our inventory andcontinuously reconfigures the position of SKUsbased on those used most,” says Pal AsbjornVindegg, Komplett’s CEO. “This provides for optimumefficiency.”From its newly automated 270,000-square-footcentral distribution center, Komplett prepared andshipped 1.4 million orders in 2010. The result is aDC that provides a streamlined capability for orderprocessing.“Since we completed the DC automation, ourman hours have reduced and our order volumeshave increased,” says Vindegg. “We doubled ourinventory storage capability and increased productivityby 30%, all within the same buildingfootprint.” Mmmh.com Modern Materials Handling / D e c e m b e r 2 0 1 1 47

modern special reportWireleSS Update:Moving at the speed ofSupply chain professionals arecertainly moving toward mobileapplications to improve overalloperations, but just how fast isit happening?BY bridget mccrea, contributing editorWith tablet computers and handheld devicesmaintaining their tight grip on the businessworld, it just makes sense that the supply chainsector would continue its forward momentumtoward a time when wires are a thing of the past.Long talked about in supply chain circles, goals like realtime and visibility are already coming to fruition for techsavvyprofessionals who integrate wireless, RFID and othermobile technologies into their operations.Over the next few pages we’ll take a look at just how muchtraction mobile technologies have gained in today’s supplychain, discuss the benefits of RFID and wireless integrations,and highlight what barriers to adoption still remain.Harnessing the speed of lightWhen Simon Ellis, practice director for analyst firm IDC ManufacturingInsights, talks to supply chain professionals aboutreal-time visibility made possible by wireless technology thesedays, he hears a lot of grumbling about how the rapid advancementsmake it difficult to make good purchase decisions.48 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

light“One supply chain executive told methat by the time he goes through thesix-month purchase approval process athis firm for wireless technology, threegenerations of smart phones have comeand gone,” says Ellis.Credit “speed-of-light” technologyadvancements with creating those andother frustrations as professionals striveto implement the latest wireless andRFID technologies without breakingthe bank, or falling behind. “The clockspeed of innovation for mobility tools,”says Ellis, “tends to be much more rapidthan that of the supply chain itself.”Coming up with a business case forthose speed-of-light technology optionsisn’t always clear cut either, says Ellis.After all, it’s hard to put a price tag onadvantages like “better access to information”and “reductions in errors.”Translating those benefits into tangiblebusiness results “can be extremelytricky,” says Ellis.Despite the roadblocks, professionalsare pushing into the wireless worldon a steady basis. In its June 2011report entitled “Incorporating Mobilityinto Sales and Marketing in the ConsumerPackaged Goods Industry,” forexample, IDC analyzed the potentialopportunities for mobility once integratedinto the sales and marketingfunction of the CPG industry.IDC reports that mobile applicationsand devices are penetrating the salesand marketing organization at a “staggeringpace,” and expects total worldwidesmartphone shipments to reach925.7 million units by 2015 (comparedto 450 million in 2011). Computer tabletslike the iPad, Motorola XOOM andSamsung Galaxy Tab are also growingin popularity, and are on pace to reachshipments of roughly 50 million units in2011 (up 18 million units from 2010).Expect to see at least a portion ofthose mobile devices in the warehouse,where more professionals are gravitatingtoward wireless environments. Inthose environments, Tim Zimmerman,research director of network infrastructure,mobility and RFID at Gartner saysrequirements for specific key sizes—andthe ability to withstand multiple, 6-footdrops to a concrete floor—have givenway to durable devices that share theoperating systems, processors, communications,batteries, and even peripheralizationwith their more ruggedizedbrethren.“While there will continue to be amarket for ruggedized applications,”says Zimmerman, “many day-to-daylogistics tasks will be able to utilizedurable solutions for their data collectionrequirements.”Credit advancements in wireless communicationinfrastructures with helpingto boost those numbers. According toZimmerman, the ratification of 802.11ncombined with advancements in RFIDcapabilities, have made the wirelessworld more inviting. On the wireless localaccess network (LAN) side, for example,Zimmerman says the technology itselfhas stabilized over the last couple ofyears, opening the door for more data collectionopportunities.Not everyone is reaping the rewardsof these wireless advancements,although many are looking to upgradeand begin seeing those benefits. “A lotof [professionals] in the warehouse anddistribution sector still have a lot ofthe old technology installed,” Zimmermansays, “and are looking to integratethe value and cost advantages of an802.11n solution.”That movement is also being driven bythe fact that wireless handset providers likeMotorola are rolling out 802.11n-capabledevices. “That’s sending a signal to theindustry that now is the time to upgradewireless infrastructures to support thosehandhelds,” says Zimmerman, “and tapinto the value that they provide.”Part of the growth in wireless willcome from the handheld market, wheredurable devices are gaining popularityamong managers who increasinglywant to handle their operations withoutthe hassle of wires. “The cost profilesand functionality of handheld devicesis making their adoption more advantageousfor companies,” says Zimmerman,who points out that improvedWi-Fi networks and hot spots and bettercellular capabilities are all playing arole in the evolution.Looking ahead, Zimmerman seeswireless adoption growing by about30% annually among businesses, andsays that number will continue to bedriven by the new spectrum of networkservices. “Eight out of the nine firmswe track in the enterprise LAN spaceare buying wireless companies, and themmh.com Modern Materials Handling / D e c e m b e r 2 0 1 1 49

modern special reportrest have strategic alliances with leadingmanufacturers,” Zimmerman says.“Everyone is getting their foot in thedoor.”Finally, Zimmerman expects an uptickfor wireless in the next 24 to 36 monthsas enterprises convert their 802.11gwireless infrastructure to 802.11n. “Thismove will not be driven by the need foradditional capacity,” says Zimmerman,“but by other factors that include theend of life of the older, 802.11g equipment;announcements from data collectionmobile client suppliers regardingthe launch of new 802.11n devices; andthe introduction of new durable devicesand applications being added the networks.”RFID comes of ageWhen Drew Nathanson, director ofresearch operations for VDC Research,tracks the use of RFID in the supplychain, he sees explosive growth in theretail sector, and respectable adoptionrates among other users.Motorized Storage &Retrieval Solutions“We’ve seen RFID use more thandouble in some markets, with tag volumesreaching well into the billion-plusunits right now,” says Nathanson. “It’sgoing really strong, with Wal-Mart asone of the biggest consumers.” The largeretailer is right now equipping its storeswith RFID technology that tracks men’sapparel and jeans, for example, and willsoon expand that coverage into its women’sapparel and other products. “Eachtime Wal-Mart adds a new SKU to itsRFID program,” says Nathanson, “youwind up with millions more tags beingused annually.”One of RFID’s biggest barriers toadoption—high tag costs—continuesto hold companies back from investingin the technology, although Nathansonsays prices for active tags are trendingdownward. “Depending on the functionality,active tags run $10 to $50 each,”he says. “Passive solutions—such asthose used in retail—are running 10cents to 12 cents a tag.” Even withthe high costs of the tags themselves,Space Saving Vertical Storage• Bar Stock • Spooled Products • Tire Storage• Print Cylinders • Rolled Goods • Parts Storage“Storage & Retrieval Solutions Since 1986”Contact Us Toll Free at 1-800-210-0141or visit us online at www.vidir.comNathanson says the value of the RFIDsolution now more than compensatesfor the cost. “It’s not really the priceof the tag, but the price to tag and thevalue that you get out of it,” he adds.Ellis concurs, and says that the benefitsthat operations glean from RFIDimplementations have been largelypublicized and typically revolve aroundinventory visibility. “It’s about knowingwhere things are at all points in time,”says Ellis, “and the ability to communicatemore clearly to customers aboutwhere items are and when they’re goingto be delivered.”Expect more companies to exploretheir RFID and wireless options in thefuture and more suppliers to come upwith innovative ways for those managersto make visibility gains and otherefficiencies, especially inside the fourwalls. “Right now we’re seeing a lot ofconvergence with other solutions—from bar coding to voice recognition,”says Nathanson, who sees a time whenhands-free, eyes-free technology isintegrated into warehouse RFID systems.“That will be a perfect fit becauseit won’t require scanning technology,wires or hands.”Other up-and-coming wireless appsfor the warehouse and DC includethose that can sense and monitor product,particularly food, produce andhigh-value items. “Most recently,” saysNathanson, “we’ve seen the introductionof passive sensors that use film todetect the build-up of gases producedby rotting fruit. That’s a useful wirelessapplication for any company shippingperishable items.”Expect to see RFID and wirelessplaying a significant role in the supplychain as the technology behind thosesolutions improve—and as more companiesseek out IT-based solutions tohelp them work more efficiently. Withtechnology evolving at the speed oflight, it will ultimately be up to supplychain managers to figure out whichapplications will provide the mostvalue—and which can be overlooked infavor of future options. MBridget McCrea is a contributing editorfor Modern Materials Handling.50 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

FOCUS ON Casters/tuggers/cartsSilent ball bearing forhand trucks fully sealedIdeal for use in quiet and clean environments,the hand truck ball bearing issealed for ease of use and silent rolling.It can be integratedinto the supplier’s lineof Performa hand truckwheels. The bearingsfeature durable carbonsteel constructionand are completelyenclosed to keep grease in and debrisout, eliminating maintenance and lubrication.Currently offered in a 0.625-inchinner diameter and 1.375-inch outerdiameter size, a second, 0.75-inch innerdiameter model will be offered by 2012.Colson Caster, 800-643-5515, www.colsoncaster.com.Tray cart with doors securelytransports small partsA cart for transport of compartmentedtrays of product to an assembly areacan be custom-built using plastic coatedsteel pipe, joints and accessories. Eachcart holds up to 300 pounds and featuresswing-out, latch-closable doors that openon one side for easy loading/unloading.Cantilevered open shelves holdthe trays and are made with 2.375-inchplastic L-channels. Flexible and easy toreconfigure tosupport otherapplications,the cart’s shelfsize, spacingand capacitiescan be changedto hold boxesor trays of differentheightsfor sequenced or kitted parts delivery.The footprint is 36 x 60 inches. For safe,stable movement, the carts are outfittedwith four, 5-inch diameter urethane wheelcasters—two with brakes. They can betowed by tuggers or AGVs by an integratedhitch. Creform, 800-839-8823,www.creform.com.Mobile carts provideoptimal storage, transportFor heavy-duty, lightweight tool storageand transport, the Technician series ofmobile carts are flexible and maneuverable.The shelf version has 2-inch deeppan shelves at the top and bottom,covered with a ribbed rubber mat.Drawer units include a core lock and twokeys, with mesh drawer liner. Capableof holding up to 400 pounds, the cartshave two fixed and two swivel-withwheel-lockcasters. They are offered intwo styles: 17.5-inch wide NS carts in 14different configurations or 31.75-inchwide ST carts in nine different configurations.Both styles may be specified withshelves only or shelves with drawers.Lista International, 888-273-6930,www.listabox.com.Move 32,000-poundloads on reinforced steel,kingpinless castersOffered in six standard models, or customizablefor unique applications, thesuper compact caster requires only 6.5inches of vertical clearance. The castersmove loads up to 32,000 pounds.Integrating heavy-duty, 0.5-inch thickreinforced steel construction andkingpinless raceway, they are ideal fortransporting heavy machinery equipment,tooling,die molds, andhome manufacturinglines.RWM Casters,800-634-7704,www.rwmcasters.com.AutomatedVerticalStorage SystemsIt All Adds UpTo VALUESmall parts are expensive. Traditionalshelving eats up valuable ß oor spaceand exposes parts. WhatÕs more, partscan be tough to Þ nd and reach; keepingaccurate inventories a challenge.The Lauyans Small Parts StorageSystem (SPSS) is a USA manufacturedsolution offering high density storageutilizing vertical space for greaterfootprint capacity, worker safety,security, labor savings and the mostcompetitive pricing available.Before you decide to buy anyAutomated Storage System, go onlineand check out our pricing.www.SPSSonline.comIt All Adds Up To VALUELauyans & Company, Inc.1-866-LAUYANS (528-9267)USA Manufacturedmmh.com Modern Materials Handling / D e c e m b e r 2 0 1 1 51

FOCUS ON Casters/tuggers/cartsPortable cart includesrechargeable batteryIdeal for inventory management, the PCseries mobile powered cart has on-boardpower to run a computer, a printer andother devices simultaneously. The cartoffers shelf space for products and otheritems. Portable, with 6-inch rubber swivelcasters and no cord trailing behind, thecart is easily rolled into place and securedwith locking casters. All models have aload capacity of 500 pounds, and featurea rechargeable battery with capacity forup to 12 hours of normal use. Carts comein dimensions up to 24 x 48 x 37 inchesand may be customized with one of fivedifferent battery/inverter/charger packages.Newcastle Systems, 781-935-3450,www.newcastlesys.com.Move 150,000-pound loadswith rechargeable, batterypoweredpusherThe pedestrian-operated, batterypoweredPower Pusher comes with abuilt-in battery charger that plugs intoa standardoutlet. With afootprint lessthan 2 squareyards, the unitcan be easilystored at a jobsite and ortransportedfrom siteto site. One person can use the deviceto efficiently and safely push, pull andmaneuver wheeled loads up to 150,000pounds, or loads with high rolling resistance,reducing the risk of back injuries.Features include a soft touch controlfor smooth and accurate maneuvering,permitting the pusher to move breakableloads safely. NuStar, 800-800-9274,www.powerpusher.com.Platform truckredesigned to lowerrolling resistance, priceThe re-configured PB1108 2,000-poundclass platform truck has been reworkedfollowing the principles of design formanufacture and assembly (DFMA).Features include a sturdy all-steel frameand kiln-dried hardwood deck thatmuffles noise and protects the loadfrom damage. The cycle time to buildthe cart has been reduced, allowing fora reduction inprice and factoryshippingin 24 hours. Toimprove rollabilityand ergonomics,runninggear hasbeen enhancedwith 8 x 2 inchmold-on rubbertired wheels and ball bearings thatreduce required starting forces by 20%.Hamilton Caster & Mfg., 800-733-7655,www.hamiltoncaster.com.Work-in-process bench truckOffering up to 2,000 pounds totalcapacity depending on the casterspecified (5-inch polyurethane, 8-inchmold-on rubber, or 8-inch full pneumatic),Eurocraft bench trucks featureall-welded construction for enhancedstrength and durability. The trucksfeature single-point, individual lockingdrawers and a 16-gauge steel top. Eachdrawer can hold up to 100 pounds andaccepts optional dividers for organizationof contents. Measuring 24 x 20 x25 inches, the cabinets include threemounting positions for optional shelvesand are outfitted with two swivel andtwo rigid casters. A tough, powdercoatedfinish comes in four colors: red,green, blue or gray. C&H Distributors,888-316-2223, www.chdist.com.Preventcargotheft withportablesecurity cartA line of securitycarts help preventcargo theft enroute from distributioncenter tostore. The cartsfeature four or five foldable sides ofheavy wire, integrated shelving, zincplatedmesh grid and solid panels thatare easily locked to provide secure storageand handling. Ideal for protectionof high-value items, high-theft items orother items that cannot be transportedsecurely with another method, the cartsare used in the automotive, pharmaceuticaland electronics industries. Measuring30 x 45 x 72 inches, they hold up to1,000 pounds and roll on phenolic casters,two swivel and two fixed. CannonEquipment, 800-252-0944, www.cannonequipment.com.Lockable security cartprevents theft, tamperingThe RC-81 security cart sports doubledoor fronts and a locking mechanismto secure displays and products safely,quickly and easily. With side mesh openingsthat measure 2.25 inches squareand base mesh of 1 x 4 inches, the cart52 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

provides product protection, visual inventoryand tamper resistance. It can becompletely disassembled without tools.Each shelf holds 225 pounds for a totalcart capacity of 1,800 pounds. For ease ofmovement, 5 x 2 inch polyurethane casters(two rigid, two swivel) are included.Cowin Global, 800-466-6738, www.cowinglobal.com/usa.fabric structuresSustainableDesign-Build SolutionsTugger maneuvers 1,500-poundloads through tight spacesThe CartCaddyLite Shorty power puller is abattery-powered tugger that maneuvers heavycarts though confined environments. Ideal forapplications where tight maneuverability andergonomics are of concern, the compactunit measures 26 inches wide and 27inches long. The affordabletug pulls loadsweighing up to 1,500pounds. DJProducts,800-686-2651, www.djproducts.com.FLEXIBLE FINANCE SOLUTIONSON FABRIC STRUCTURES *TERMS UP TO 10 YEARS RATES AS LOW AS 4.99%AS LITTLE AS 10% DOWN *Subject to credit approval.Buildingsavailable up to300' wide.Low in cost persquare foot.Natural daytimelighting.Easy to relocate.Expandable.Little or noproperty taxes.Call one of our ClearSpan specialists at 1.866.643.1010or visit us at www.ClearSpan.com/ADMMH.Cart features tip-able, counterbalancedshelves for ergonomic accessFor increased storage and enhanced flexibility in parts handling,the Tip-Up shelf cart integrates shelves that tip up with minimaleffort for movement and maneuvering within the unit. An offsetpivot on the shelves is enhanced with added weight for effortlesslifting and counterbalancingas needed. When lifted,the shelves lock in placeautomatically. Ideally loadedbottom to top, when eachshelf is tipped up and lockedthe operator has full accessto the contents beneathwithout physical exertion.Topper Industrial, 800-529-0909, www.topperindustrial.com.mmh.com Modern Materials Handling / D e c e m b e r 2 0 1 1 53

FOCUS ON Casters/tuggers/cartsHandle heavy rolls, reels and coilswith special pallet jackThe Pallet Mule roll and reel pallet jack can move any roll,reel or coil of paper, sheet metal, aluminum, wire, cable, fabric,carpet or plastic easily and safely. It handles capacitiesup to 4,000 pounds and can be custom-built for optimumtransport. To prevent damage to the materials, the vehiclecradles the entire length of the load while moving it onpolyurethane wheels with an aluminum core for smooth,easy rolling. An optional turn-buckle can be used for heavierloads and/or longer fork lengths to prevent fork ends fromspreading. Heavy, 7-gauge steel and solid steel, rectangularpush rods are used in construction for durability and longlifespan. Wesley International, 888-283-3535, www.packmule.com.Hand truck fully supports load by itselfThe Rotatruck hand truck fully supports a load by itself whilereducing the effort, time and repetitiveness of its use. Whenpulling back a load, the 5-inch front wheel provides a closer andlower pivot point to the load center, reducing both the effortrequired and the need to bend or over reach to support theload. In negotiating a curb with a load, the operator approachesin a forward direction, raises the frontwheels by pushing down on the handle,levers the load up using bentknees and a straight back, thencontinues on in the forwarddirection. The hand truckhandles loads up to 605pounds. Rotacaster,714-771-2630,www.rotacaster.com.au.Leveling caster accommodatesuneven floorsOffered in 2- and 3-inch wheel models, the LevelMaster adjustableleveling caster moves loads weighing up to 400 and 1,000pounds per caster respectively, depending on the tread materialspecified. Both casters feature leveling functions to stabilizetheir load, ensuring a solid foundation on uneven floor surfaces.The casters may be mounted with either plate or stem options,and incorporate a shock absorbing non-slip rubber leveling padfor stability when engaged with floor surfaces. Hardened steelload ball bearings and secondary thrust ball bearings touch theswivel raceway on all four sides to protect a heavy-duty, 1-inchdiameter central king pin for free swiveling under heavy loads.All moving parts are heat-treated to extend caster life. Darnell-Rose, 626-912-1688, www.casters.com.Float 6,000-pound loads with air bearingsConstructed of durable, lightweight cast aluminum, a new airskid for precise, omni-directional movement and positioningof heavy loads or machinery incorporates a rugged one-pieceframe that has no welds. Standing at 2.5 inches tall for easyloading, the device uses high-performance air bearings tocreate a continuous flowing film of air between a flexible diaphragmand the floor for friction free movement that reduceswear on floors. The unit’s slide-out, tray-mounted air bearingallows it to be pulled out from the side without removing theload or turning the skid over. Features include tapped mountingholes on the top and sides of the frame for multiple mountingoptions, and four air inlet choices for simple air hose management.The unit weighs 35 pounds (including air bearing and tray)and handles loads up to 6,000 pounds. Airfloat, 800-888-0018,www.airfloat.com.54 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

Product ShowcaseScanners handlemultiple bar code formatsTwo new imaging units are offered: the DS457 fixed mountimager and MK3000 micro kiosk, both with 1D and 2D scanningcapabilities and the ability to read bar codes from mobilephones. Compact and ideal for zero footprint point-of-sale usewith mounting off the workspace, the DS457 comes in fourmodels and enables high-volume scanning of traditional andmobile bar codes, as well as high-density bar codes and directpart marks. It is also ideal for confirmation of correct part useand to meet track-and-trace regulations. The MK3000 microkiosk functions as aworkforce managementtool for employees.Applications includeitem look-up, itemlocation, how-to tutorials,and employeetime clock. MotorolaSolutions,847-576-5000, www.motorolasolutions.com.Motorized cart carries upto 1,000 pounds of cargoThe Bounder motorized cart transports heavy loads in tightquarters with precision control, while traversing open spaces atspeeds up to 5.4 miles per hour. One person can safely moveup to 1,000 pounds of cargo while walking behind the cart orriding on its integrated, fold-down platform. Power is applied ina smooth, controllable manner to the motors with proportionaljoystick control to reduce the risk of back injuries. Standardfeatures include four wheels for stability, 16.5-inch deck height,a removable deck pan that flips up for battery and systemcomponent access, and 26 x 48 inch deck size. 21st CenturyScientific, 800-448-3680, www.21stcenturyscientific.com.SAFE • NESTABLE • ECONOMICALWORRY FREE PALLETSNo bag damage from wooden deckboards and nails+ EXPORT EASYIPPC-ISPM 15. No Mold and Bugs. Meets New Canadian Rules+ ECO-EFFICIENTCradle to Cradle Certified CM Silver+ BUDGET SOOTHINGNestability saves 60% of touches and travel time= PEACE OF MINDpresswoodBAG pAlletsCommitted to excellence since 1962LITCO INTERNATIONAL INC.877-687-4975 • info@litco.comwww.litco.com/BagPalletP Series Ad Fall 2011_MMH 11/15/11 2:46 PM Page 1THE ADVANCE “P” SERIES ADVANTAGES4250,000 CyCLe Lift WArrAnty:Our standard warranty exceeds the cyclewarranty that many of our competitors’ offeron their high cycle lifts.41.750” Wide mAin AxLe beArings:Bearing life increases exponentially withincreases in width. Our “E” lifts and 90% of ourcompetitors’, lifts only have .75” wide main axlebearings. The “P” series is 233% wider.4PAtented PLAtform Centering deviCe:Our tests have shown this exclusive feature candouble or triple the life of a lift by eliminatingsteel friction between platforms and legs.4UL Listed ControLLer AssembLies:Only Advance Lifts has a UL listed panelshop on premises. This insures reliabilityand safety for our customers.INCA presswoodBAG pAlletWood waste problems?CONTACT US!we offer THe MoST LIfe Per $ SPeNT1-800-843-3625 www.advancelifts.commmh.com Modern Materials Handling / D e c e m b e r 2 0 1 1 55

Product ShowcaseHandheld areaimagingscannersports colorimaging capabilitiesCapture color images andscan high-contrast color barcodes that have not previouslybeen readable with theXenon 1900 handheld colorscanner. The unit also scansblack and white bar codes.Also offered in a cordlessmodel, the scanner uses Adaptus 6.0 imaging technology andthe supplier’s ColorFusion technology to enable reading of hardto-readbar codes, including those on mobile device screens.The system enables improved identification processes, as thecolored portions of identification cards can now be captured intheir original form. The full family of Xenon scanners has beenupgraded with extended depth of field, improved data matrixand mobile phone reading, adjustable illumination, BluetoothHID keyboard interface and optional laser aimers. HoneywellInternational, 877-841-2840, www.honeywell.com.Electric lift trucks with power, speedOffered in four models ranging from 4,000- to 6,000-poundcapacities, the QX Series of 80-volt electric trucks runs on 100%AC power for fast travel and lift speeds with lower operatingcosts than comparably sized internal combustion forklifts. Thetruck features a tight turning radius for enhanced maneuverabilityand low center of gravity for greater capacity retention.Standard regenerative braking reduces power consumption forlonger operating hours andincreased efficiency. The vehiclesemploy programmablePIN access to help preventunauthorized use; an automaticmast-lock system thatprevents mast or fork movementwhen an operator is notin the seat; and controlledrollback, ideal for ramp use.Nissan, 815-568-0061, www.nissanforklift.com. Business StaffExecutive Offices111 Speen StreetFramingham, MA 01701508-663-1500Brian CeraoloPublisherbceraolo@ehpub.comKelly JonesProduction Managerkjones@ehpub.comCharles TannerDirector of AudienceMarketingctanner@ehpub.comSales OfficesAR, AZ, CA, CO, CT, ID, LA, MA, ME,MI, MS, MT, NH, NJ, NY, NV, OH,OK, OR, RI, TX, UT, VA, VT, WA, WY,Eastern and Western CanadaSteve McCoy,National Sales Director508-261-1120Fax: 508-261-1121smccoy@ehpub.comIA, IL, IN, KS, MN, MO, ND, NE, SD,WI, Central CanadaBob CaseyDistrict Sales Director847-223-5225Fax: 847-223-5281bobc@caseyreps.comAL, DC, DE, FL, KY, GA, MD, NC, PA,SC, TN, VA, WVGreg BolenDistrict Sales Director704-875-7977Fax: 866-680-5930gregbolen@thebolengroup.netWeb OperationsClive PurchaseDirector, Web Operationscpurchase@ehpub.comCustom ArticleReprintsReprint Management ServicesThe YGS Group(800)290-5460, x100modernmaterials@theygsgroup.comMagazinesubscriptionsStart, renew or update your FREEmagazine subscriptionat www.mmh;.com/subscribe.Contact customer service at:Web: www.mmh.com/subscribeEmail: mmhsubs@ehpub.comPhone: 1-800-598-6067Mail: Peerless MediapO Box 1496Framingham MA01701eNewslettersubscriptionsSign up or manage your FREEeNewsletter subscriptions atwww.mmh.com/enewsletters.56 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

Product ShowcaseWireless controlfor fork-mounteddrum rackersFor flexible drum racking,a wireless drum tilt controlfunction is offered forthe supplier’s line of forkmounted drum rackers. Toenhance overall control,precision, efficiency andtilting control, functionalitycan be easily alternatedbetween the wirelessoption and a direct wire pendant option. A strong, 300-footwireless range delivers brisk response without interference fromother radio frequency sources. The rackers slide quickly ontoforks to move drums on and off racks, pallets and trucks withvirtually zero clearance between drums. Drums may be handledwith faucets in place so that drum racks can also be used as dispensingstations. Morse Manufacturing, 315-437-8475, www.morsedrum.com.Access, monitoring and weighingdevices for forkliftsAccess and monitoring systems for lift trucks are offered.The supplier also offers a line of weighing systems, automaticidentification devices, computer hardware/software,control devices, hydraulic and electrical components, radiofrequency identification equipment, data communicationsequipment and safety devices. Keytroller, 813-877-4500,www.keytroller.com.Poweredstackershandle 2,200poundsWith lift heights of62, 101, 125 and150 inches, thePowerStak line offully powered stackershandles capacitiesup to 2,200 pounds. Models include a fork-over configurationfor use with open-bottom pallets, or adjustable straddlesetup for use with closed-bottom pallets. A narrow mast andoffset control handle give operators a clear view of what’s infront of them, while the ergonomic handle puts all controls withineasy reach, with forward- and reverse-drive thumb switcheson both sides for left- or right-handed operation. To protectoperators from injury when walking the unit backwards, an autoreversingbelly switch must be pressed and an automatic brakehalts travel when reversed. Presto Lifts, 800-343-9322, www.prestolifts.com.Reusable, durable totes protect productsCombining molded product protection with exterior strengthand durability, TransGuard stand-alone totes do not need tobe used with a separate exterior tote. Made of expanded polypropyleneengineered plastic foam material for durability andresistance to impacts and chemicals, the packaging optimizesfreight space through customized height and a form-fitted interior.They fit standard, 45 x 48 inch Automotive Industry ActionGroup (AIAG) pallets. To protect sensitive electronic circuits andequipment, the totes can be manufactured with different levelsof electrostatic dissipation. Protexic Brands, 800-289-9966,www.protexic.com.classified To advertise, or for more information please contact:Jennifer Drevline, 847-223-5225, ext. 11, jenniferd@caseyreps.comLABEL HOLDERSSmall InvestmentBIG RETURN!800.242.3919www.aignerindex.cominfo@aignerindex.comCHA, an ENR Top-85 Engineering Firm, hasneed for BD Executive in Atlanta, GA to helplead our growth with a focus on private sectorclients nationally and regionally primarily inthe following areas: manufacturing facilities,warehousing, and distribution facilities.Bachelor’s degree, 10+ years of A/E salesexperience within the A/E industry workingwith national and regional clients in themanufacturing, warehousing or distributionindustries is required. Particular experiencewithin the food and beverage industry ispreferred.CHA provides excellent compensation &benefits package. To learn more about CHA,additional exciting career opportunities,and to apply, please visit our website: www.chacompanies.com referencing job #2003.AA/EOE, M/F/V/D Women and Minorities areencouraged to apply.The best low-cost alternativeto building permanent walls.Folding Guard’s Saf-T-Fence The best low-cost partitions. Theydeliver security and analternative to buildingunobstructed view ofyour permanent property – with walls.no change to yourFolding Guard’s Saf-T-Fence partitions.lighting They deliver or heating security and an unobstructedsystems. view of your Modular property – with no change tosystem your lighting can be or easily heating systems. Modularinstalled, system can expanded be easily installed, or expandedrelocated or in in any any space. In Stock.Download FREE guide at FoldingGuard.com/kitmmh.com Modern Materials Handling / D e c e m b e r 2 0 1 1 57

modern 60 Seconds with...Matthew GambillGACTETitle: Executive director, Georgia Association for Career andTechnical Education (GACTE),www.gacte.orgLocation: Kennesaw, Ga.Experience: seven years asexecutive directorPrimary Focus: Founded in the 1920s, GACTE promotesvocational education throughout the state of GeorgiaModern: Matt, tell us a little aboutGACTE.Gambill: We have about 2,700members, most of whom are middleschool and high school teachers whoare involved in training students forcareers in industries as diverse asthe graphic arts to the automotiveindustry to agriculture. On behalfof the organization, I travel thestate and meet with industryrepresentatives as well as communityorganizations and local governmentsto stress the importance of technicaleducation.Modern: Why is technicaleducation important?Gambill: We want parents, officialsand educators to realize thattechnical education is not a dirtyword. In recent years, preparingstudents for careers has taken a backseat to preparing studentsfor college. We think thatadvanced placement classesare great for college boundstudents. But not everystudent is going to go on tomedical school.Consider this: There’s a 10.3%unemployment rate in Georgia, yet wehave a huge demand for skilled laborthat we are not able to fill. For thosestudents who are not college-bound,we think it’s important for them to startthinking earlier about a career.We also think that studentsinterested in medicine would benefitfrom a health tech class. We’re seeinga resurgence in technical education,so we think that message is breakingthrough and it’s exciting.Modern: Does warehousing anddistribution fit into your plans?Gambill: I see a great opportunity topartner with your industry. I recentlyvisited a materials handling programat a technical high school in Rock Hill,S.C. It was amazing. The deepeningof the port in Savannah is going tocreate new opportunities for viablejobs in Georgia.Our plan is to have some of oureducators meet with representativesfrom the Material Handling Industryof America (MHIA) and then get someprograms up and running.When Modex (www.modexshow.com) returns in two years, we want tobe able to show them some programshere in Atlanta. M58 D e c e m b e r 2 0 1 1 / Modern Materials Handling mmh.com

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

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