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PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING<br />

SPECIAL REPORT<br />

Top <strong>20</strong> systems<br />

suppliers 23<br />

EQUIPMENT BUYING GUIDE<br />

Software basics 26<br />

BEST PRACTICES<br />

Packaging solutions 31<br />

mmh.com<br />

WMS:<br />

Fisher Nuts gets<br />

down to business<br />

page 16<br />

Tom Kirkham, director of<br />

systems implementation<br />

April <strong>20</strong>09<br />

<strong>TOP</strong> <strong>20</strong><br />

WEBCAST<br />

SYSTEMS SUPPLIERS<br />

April 29 at 2 p.m. ET<br />

www.mmh.com/<br />

top<strong>20</strong><br />

( )<br />

®


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Mecalux/Interlake: It’s a done deal<br />

SPANISH STORAGE SYSTEMS<br />

provider Mecalux (www.mecalux.<br />

com) completed its $30 million<br />

purchase of the UFI/Interlake assets<br />

last month, which include plants in<br />

Pontiac, Ill.; Sumter, SC; Mexicali<br />

and Matamoros, Mexico.<br />

The company has changed<br />

its American division name<br />

CEMA to release unit handling<br />

conveyor guide<br />

THE CONVEYOR EQUIPMENT MANUFACTURERS<br />

ASSOCIATION (CEMA, wwwcemanet.org) will<br />

release a new publication on unit handling conveyors<br />

in June. CEMA’s Application Guide for Unit<br />

<strong>Handling</strong> Conveyors is an in-depth guide offering<br />

design details and application guidance for unit<br />

handling conveyors. It contains information on all<br />

unit handling conveyors, including pallets, cartons,<br />

totes, monorail, etc. According to CEMA, the<br />

content is arranged in chapters by product type<br />

first, followed by system<br />

design and component<br />

design. Wherever possible,<br />

each of the product<br />

chapters is subdivided<br />

into sections that provide<br />

comprehensive details<br />

about each product. In<br />

addition, the book will<br />

include graphs, charts<br />

and pictures to enhance<br />

the understanding of topics<br />

discussed.<br />

Blue Giant on the small screen<br />

to Interlake Mecalux, Inc.<br />

Representatives said this is a<br />

market opportunity that means<br />

growing its presence in North<br />

America further enhancing their<br />

global expansion plan. Mecalux<br />

will acquire the UFI/Interlake client<br />

base, which includes some of the<br />

largest companies in the U.S.<br />

BLUE GIANT EQUIPMENT CORP.<br />

(www.bluegiant.com) has been<br />

selected to appear on 21st<br />

Century Business Television Series.<br />

Headquartered in Ontario, Blue Giant<br />

designs, manufactures and distributes<br />

loading dock systems and will highlight<br />

its equipment on the program. “Some of our biggest<br />

orders are coming from areas of the world that are experiencing<br />

rapid industrial growth,” said Steve Greco, director of<br />

marketing and international sales. “Our dock systems are<br />

in the world’s largest shopping mall, the tallest commercial<br />

building and the busiest international airport in Dubai.”<br />

CONVEYABLES<br />

BREAKING NEWS YOU SHOULD KNOW<br />

Economic calculator helps figure<br />

savings<br />

THE REUSABLE<br />

PACKAGING<br />

ASSOCIATION (RPA,<br />

www.choosereusables.<br />

org) has created an economic<br />

calculator to help<br />

you determine if switching<br />

to reusable packaging<br />

will save you money.<br />

“Now more than ever,<br />

businesses are trying to reduce operating expenses,<br />

and reusable transport packaging is a proven and<br />

effective way to reduce costs,” said Bob Klimko,<br />

chairman of the RPA board and director of general<br />

industrial marketing for ORBIS Corporation (www.<br />

orbiscorp.com).<br />

The Reusable Packaging Economic Calculator is<br />

based on a financial model that covers the key concepts<br />

in the comparison of the per container cost of both<br />

reusable and single-use packaging. The tool allows you<br />

to perform basic financial analysis to determine if your<br />

supply chain is financially conducive to reusable packaging.<br />

The calculator was developed in cooperation with<br />

StopWaste.org.<br />

mmh.com MODERN MATERIALS HANDLING / A PRIL <strong>20</strong>09 3


CHE HE HEP –<br />

Pres es eserv r ing th the env nv nviro r nme me m nt<br />

an and yo y ur busin in iness.<br />

One ne pal p al allet<br />

at a a ti time.<br />

Thanks to its customers, CHEP saved 2.5 billion pounds of solid waste from ending up in landfills<br />

in one year alone*. To see just how, and to calculate how CHEP can help grow your company's profits<br />

and environmental profile, visit CHEP.com /onepallet.<br />

© <strong>20</strong>08. CHEPUSA. All Rights Reserved. * Study by Franklin Associates. Based on <strong>20</strong>07 total CHEP network volume versus one-way whitewood.


Tom Kirkham helped Fisher Nuts maximize its WMS.<br />

COVER STORY<br />

SYSTEM REPORT<br />

16 Fisher Nuts: WMS cracks into<br />

manufacturing success<br />

At its new manufacturing plant and corporate headquarters, John B.<br />

Sanfilippo & Son installed a warehouse management system to drive<br />

quality and productivity improvements.<br />

21 WMS in control<br />

At John B. Sanfilippo & Son, a warehouse management system drives<br />

manufacturing and distribution.<br />

FEATURES<br />

PHOTO: PETER WYNN THOMPSON/GETTY<br />

SPECIAL REPORT<br />

23 Top <strong>20</strong> systems suppliers<br />

<strong>Modern</strong>’s 12th-annual survey of top worldwide materials handling<br />

systems suppliers shows that <strong>20</strong>08 was a year of stability for the top<br />

players.<br />

EQUIPMENT BUYING GUIDE<br />

26 Supply chain software basics<br />

From the factory to the warehouse to the shipping department and<br />

beyond, software applications are enabling end-to-end supply chain<br />

management.<br />

BEST PRACTICES<br />

31 Reduce waste and labor and increase<br />

productivity<br />

These objectives are on everyone’s minds. Here are three examples<br />

of best practices in packaging that might make a difference in your<br />

facility.<br />

VOL. 64, NO. 4<br />

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION,<br />

WAREHOUSING AND MANUFACTURING<br />

PRODUCTIVITY SOLUTION<br />

35 Dock shelters increase<br />

comfort, decrease cost<br />

Select Comfort installs dock shelters that keep<br />

temperatures stable inside, weather outside, and<br />

lower energy costs all around.<br />

SPECIAL REPORT<br />

36 DC site selection<br />

In today’s economy, factors such as unpredictable<br />

fuel prices, shifts in global trade, new warehouse<br />

technologies and environmental sustainability<br />

weigh heavily on site selection decisions.<br />

DEPARTMENTS & COLUMNS<br />

3/ Conveyables<br />

7/ This month in <strong>Modern</strong><br />

13/ From the Advisory Board<br />

15/ Lift Truck Tips: Alternative Energy<br />

40/ Product Focus: Conveyors<br />

43/ Product showcase<br />

50/ 60 seconds with...<br />

NEWS<br />

8/ CEMA reports <strong>20</strong>08 shipments flat<br />

9/ Boston Rack and Base Manufacturing<br />

complete merger agreement<br />

9/ Rockwell Automation announces global<br />

agreement with ProLeit<br />

10/ U.S. demand for rigid bulk packaging to<br />

approach $7 billion in <strong>20</strong>13<br />

11/ Material <strong>Handling</strong> Society gives NJIT<br />

$3,000 scholarship<br />

12/ Psion Teklogix teams with Ingram Micro<br />

<strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong>® (ISSN 0026-8038, (GST # 123397457), is<br />

published monthly, except October when published semi-monthly by<br />

Reed Business Information, 8878 Barrons Blvd., Highlands Ranch, CO<br />

80129-2345. Reed Business Information, a division of Reed Elsevier, is<br />

located at 360 Park Avenue South, New York, NY 10014. Tad Smith, CEO.<br />

Circulation records are maintained at Reed Business Information, 8878<br />

Barrons Blvd., Highlands Ranch, CO 80129-2345. Phone (303) 470-4445.<br />

Periodicals Postage Paid at Littleton, CO 80126 and at additional mailing<br />

offi ces. POSTMASTER: Send address changes to <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong>,<br />

P.O. Box 7500, Highlands Ranch, CO 80163-7500. Publications Mail<br />

Agreement No. 406855<strong>20</strong>. Return undeliverable Canadian addresses to:<br />

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<strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong>® is a registered trademark of Reed Elsevier<br />

Properties Inc. used under license.<br />

mmh.com MODERN MATERIALS HANDLING / A PRIL <strong>20</strong>09 5<br />

®


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order fulfi llment, mixed case palletizing, pickface replenishment, and short term buffer staging.<br />

The Multishuttle’s high throughput capability comes from having carrier vehicles on each level of each<br />

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more about Dematic’s Multishuttle, go to www.dematic.us/multishuttle.<br />

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Continuing the Tradition


EDITORIAL OFFICES<br />

225 WYMAN STREET<br />

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(781) 734-8000<br />

Michael Levans<br />

Group Editorial Director<br />

michael.levans@reedbusiness.com<br />

Bob Trebilcock<br />

Executive Editor<br />

robert.trebilcock@myfairpoint.net<br />

Noël P. Bodenburg<br />

Executive Managing Editor<br />

noel.bodenburg@reedbusiness.com<br />

Lorie King Rogers<br />

Associate Editor<br />

lorie.rogers@reedbusiness.com<br />

Sara Pearson Specter<br />

Editor at Large<br />

sara@moxiemarketingllc.com<br />

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Editor at Large<br />

robertomichel@new.rr.com<br />

Tom Andel<br />

Columnist<br />

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Group News Editor<br />

Robert Eckhardt<br />

Senior Art Director<br />

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Senior Art Director/<br />

Illustration<br />

Norman Graf<br />

Director of<br />

Creative Services<br />

Brian Ceraolo<br />

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EDITORIAL ADVISORY BOARD<br />

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eSync<br />

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Dematic<br />

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University of Louisville<br />

Col. Alan B. Will<br />

2d Marine Logistics Group<br />

Brett Wood<br />

Toyota Material <strong>Handling</strong> USA<br />

BOSTON DIVISION<br />

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President - Electronics &<br />

Manufacturing Division<br />

REED BUSINESS INFORMATION<br />

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THIS MONTH IN <strong>Modern</strong><br />

Getting more from your WMS MICHAEL LEVANS<br />

IT SHOULDN’T COME as a surprise to<br />

anyone that warehouse and DC managers<br />

are being pinched now more than ever<br />

to make the most of the resources they<br />

already have.<br />

Countless low-cost projects are currently<br />

underway to better optimize fl oor space,<br />

improve pick times, and increase throughput,<br />

while logistics teams are working<br />

diligently to reorganize their distribution<br />

networks to cut shipments and transit times<br />

en route to a greener overall supply chain.<br />

They’re making due with the hand they’ve<br />

been dealt—and, in many cases, with a<br />

quarter of the staff.<br />

Actually, it’s too bad that it takes a failing<br />

economy and a challenging transportation<br />

environment to push many supply<br />

chain operations to work smarter. You can<br />

label the current cost-slashing/emissionscutting<br />

trends any way you like, but a vast<br />

majority of the initiatives that are currently<br />

under way fall under the umbrella of<br />

“smart business.”<br />

In fact, a terrifi c example of a smart<br />

business making the most of its technology<br />

investment is John B. Sanfi lippo & Son,<br />

the maker of Fisher Nuts and this month’s<br />

cover story. As executive editor Bob Trebilcock<br />

points out on page 16, when the<br />

company recently opened its new 1.06<br />

million square foot facility it made conventional<br />

use of materials handling equipment.<br />

However, it unlocked the full breadth of<br />

functionally of its warehouse management<br />

system (WMS)—a move that’s yielding benefi<br />

ts far beyond the warehouse fl oor.<br />

Member of<br />

Winner<br />

Jesse H. Neal<br />

Certificates of Merit<br />

for Journalistic<br />

Excellence<br />

While its WMS<br />

manages inventory<br />

and directs warehouse<br />

activities as you would expect, the Fisher<br />

system also functions like a manufacturing<br />

execution system, synchronizing delivery<br />

of materials to the manufacturing line. This<br />

improved visibility also allows its WMS to<br />

act as the foundation of the company’s<br />

mission-critical allergen and contamination<br />

prevention program by helping to better<br />

keep track of raw materials.<br />

Fisher’s story aligns very well with a<br />

recent call from the analyst community for<br />

logistics professionals to make better use<br />

of their WMS in response to the pull-back<br />

on technology spending over the past<br />

year. In fact, Greg Aimi of AMR Research is<br />

conducting a session on this very subject<br />

(“Making the most of your WMS”) on April<br />

30 as part of the <strong>20</strong>09 Warehouse/DC<br />

Best Practices Virtual Conference (mmh.<br />

com/warehousevc.com), and Trebilcock is<br />

working on a similar piece for <strong>Modern</strong>’s<br />

May issue.<br />

“Many companies have functionality in<br />

their WMS that they’ve never turned on,”<br />

says Trebilcock. And next month he’ll be<br />

running down a list of functions your current<br />

WMS can help you accomplish including improved<br />

supplier collaboration, billing, labor<br />

management and task interleaving, which<br />

eliminates “empty-handed” moves inside<br />

the four walls.<br />

Being pinched to cut costs and work<br />

smarter? A few of the solutions may already<br />

be at your fi ngertips.<br />

Official Publication of<br />

GROUP EDITORIAL<br />

DIRECTOR<br />

mmh.com MODERN MATERIALS HANDLING / A PRIL <strong>20</strong>09 7


ECONOMY<br />

CEMA reports <strong>20</strong>08 shipments flat<br />

AT THE ANNUAL MEETING, CONVEYOR EQUIPMENT MANUFACTURERS WERE HOPEFUL FOR A<br />

MARKET REBOUND IN <strong>20</strong>10.<br />

BY BOB TREBILCOCK, EXECUTIVE EDITOR<br />

THE CONVEYOR EQUIPMENT<br />

MANUFACTURERS ASSOCIATION<br />

(CEMA, www.cemanet.org) recently<br />

reported that <strong>20</strong>08 shipments in<br />

North America were fl at for the<br />

conveyor industry while new orders<br />

declined an estimated 15% last<br />

year.<br />

These results were delivered by<br />

Dan Fannin, CEMA president, at<br />

the association’s 76th annual meeting<br />

in Marco Island, Fla., in March.<br />

According to CEMA, conveyor<br />

shipments totaled $7.82 billion last<br />

How is the economy affecting<br />

spending on conveyor parts<br />

and accessories?<br />

8%<br />

will be spending more on<br />

conveyors in <strong>20</strong>09.<br />

Source: Reed Business Information survey<br />

12%<br />

will be spending the<br />

same on conveyors<br />

as in <strong>20</strong>08.<br />

year, an increase of $1 million over<br />

<strong>20</strong>07 shipments. That modest growth<br />

followed two strong years, with shipment<br />

increases of 4.98% in <strong>20</strong>07 and<br />

5.9% in <strong>20</strong>06.<br />

Orders for new conveyors, however,<br />

decreased by $1.22 billion in<br />

<strong>20</strong>08 to $6.89, a 15% year-over-year<br />

decline from <strong>20</strong>07.<br />

CEMA members who attended<br />

the annual meeting expressed reservations<br />

for <strong>20</strong>09 but were hopeful<br />

for a market rebound in <strong>20</strong>10. Those<br />

same cautious sentiments were<br />

evident in a survey of 437 readers of<br />

<strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> about<br />

17%<br />

will be spending less<br />

on conveyors in<br />

<strong>20</strong>09.<br />

their conveyor purchasing plans<br />

for the next 18 months. The survey<br />

was conducted in February by the<br />

research division of Reed Business<br />

Information, <strong>Modern</strong>’s parent<br />

company, and the results were also<br />

presented at the CEMA meeting.<br />

Asked how the economy is impacting<br />

their spending on conveyor<br />

parts and accessories:<br />

• 30% are taking a wait-and-see<br />

approach with no present plans to<br />

invest.<br />

• 27% reported their overall materials<br />

handling budget has been cut<br />

for <strong>20</strong>09.<br />

27%<br />

reported that their<br />

overall materials<br />

handling budget has<br />

been cut for <strong>20</strong>09.<br />

Di@blog<br />

best of <strong>Modern</strong>’s blogs<br />

Company Briefi ngs | Bob Trebilcock<br />

Supply chain management: Can the<br />

supply chain end global warming?<br />

www.mmh.com/blog/globalwarming<br />

Takeaways | Tom Andel<br />

Forklifts: train-out the pain<br />

www.mmh.com/blog/forklift-training<br />

30%<br />

are taking a wait-andsee<br />

approach with no<br />

present plans to invest.<br />

8 APRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com


• 17% will be spending less on<br />

conveyors in <strong>20</strong>09.<br />

• 12% will be spending the same<br />

on conveyors as in <strong>20</strong>08.<br />

• 8% will be spending more on<br />

conveyors in <strong>20</strong>09, and<br />

• 5% will be allocating more to<br />

maintenance.<br />

ROCKWELL AUTOMATION (www.<br />

rockwellautomation.com) announced<br />

a global agreement with ProLeit AG<br />

that will allow ProLeit (www.proleit.<br />

com) to more tightly integrate its<br />

Plant iT industry solution with the<br />

Rockwell Automation Logix Control<br />

Platform. Specifi cally aimed at applications<br />

in the brewing, dairy and<br />

related industries, the agreement<br />

will provide users with faster startup<br />

and commissioning of applications in<br />

an open architecture development<br />

environment.<br />

And while those companies spending<br />

less expect to spend 38% less<br />

than they did in <strong>20</strong>08, those investing<br />

in new conveyor equipment expect<br />

to spend 43% more in the next 12<br />

months than last year.<br />

How does that translate into dollars<br />

and cents? Respondents spent an<br />

STORAGE<br />

Boston Rack and Base Manufacturing<br />

complete merger agreement<br />

BOSTON RACK INTERNATIONAL<br />

INC. (www.bostonrack.com), a provider<br />

of warehouse storage solutions,<br />

is partnering with Base Manufacturing<br />

(www.basemfg.com), a full-service<br />

manufacturer of roll-form and structural<br />

storage products. The merger<br />

will create a fi rst-of-its-kind, full-service<br />

integrator and warehouse storage<br />

solutions manufacturer to provide<br />

customers with a host of services.<br />

“By merging with Base Manufacturing,<br />

we’ll be able to join forces and<br />

provide our customers the quality, effi<br />

ciency and depth of products that our<br />

competitors are not able to offer,” says<br />

Peter Murphy, Boston Rack’s founder,<br />

president and chief executive offi cer.<br />

Boston Rack and Base will operate<br />

as subsidiaries of a holding company,<br />

SOFTWARE<br />

Rockwell Automation<br />

announces global agreement<br />

with ProLeit<br />

Elite Storage Solutions (www.elitestoragesolutions.co.uk),<br />

to continue<br />

taking advantage of brand identities<br />

within their marketplaces.<br />

The merger comes as the result<br />

of months of collaboration between<br />

Murphy and Base president and chief<br />

executive offi cer Steve South. Murphy<br />

had long believed that combining<br />

Boston Rack with a manufacturer<br />

would be of great strategic value to<br />

customers. In Base Manufacturing,<br />

Murphy found the competitive labor<br />

force, the management team and a<br />

manufacturer that can produce rollform<br />

and structural storage solutions.<br />

In addition, to enhance customer<br />

service, the merger will provide both<br />

companies a larger sales force and<br />

network of resources, and a greater<br />

Field-proven in a large number<br />

of applications worldwide, ProLeit’s<br />

Plant iT software relies on a programmable<br />

logic controller (PLC)-based<br />

platform for production control and<br />

data acquisition. Under the agreement,<br />

ProLeit will develop Plant iT to<br />

more closely integrate with Logixbased<br />

programmable automation<br />

controllers (PACs) from Rockwell<br />

Automation. ProLeit will also use<br />

FactoryTalk VantagePoint software,<br />

formerly known as Incuity, a manufacturing<br />

intelligence product from<br />

Rockwell Automation.<br />

“ProLeit has established a strong<br />

reputation for providing PLC-based,<br />

industry-specifi c solutions, and we<br />

look forward to helping the company<br />

average of $249,000 on conveyors and<br />

$57,000 on conveyor parts and equipment<br />

in <strong>20</strong>08; those same readers<br />

expect to spend $255,000 on conveyors<br />

and $76,000 on parts in the next<br />

12 months. While that represents only<br />

a modest increase in spending on new<br />

equipment, the trend is positive.<br />

Boston Rack and Base<br />

Manufacturing will operate as<br />

subsidiaries of a holding company,<br />

Elite Storage Solutions.<br />

reach into the warehouse materials<br />

handling industry which would otherwise<br />

be harder to attain.<br />

“Timing was very important to us,<br />

due to both our strengths exhibited<br />

in a declining market,” South says.<br />

“We felt the new combination would<br />

offer the industry a value that exceeds<br />

all others. In today’s market, only the<br />

strong survive.”<br />

expand on that effort,” says Steve<br />

Eisenbrown, senior vice president of<br />

architecture and software for Rockwell<br />

Automation.“ This agreement<br />

allows ProLeit users to take advantage<br />

of the fl exibility, scalability and<br />

multi-disciplined attributes of Logix,<br />

the industry’s most versatile PAC<br />

platform.”<br />

The Logix Control Platform is a<br />

fully integrated, multi-disciplined<br />

control system designed to help users<br />

optimize production and improve<br />

the fl exibility of their manufacturing<br />

operations. The platform’s open<br />

architecture design allows users to<br />

integrate data between multiple<br />

systems to help reduce programming<br />

time and ease future migration.<br />

mmh.com MODERN MATERIALS HANDLING / APRIL <strong>20</strong>09 9


PACKAGING<br />

U.S. demand for rigid bulk packaging to<br />

approach $7 billion in <strong>20</strong>13<br />

U.S. rigid bulk packaging demand<br />

(million $)<br />

$4,356<br />

$2,500<br />

$2,000<br />

$1,500<br />

$1,000<br />

$500<br />

0<br />

$6,275<br />

<strong>20</strong>03 <strong>20</strong>08 <strong>20</strong>13<br />

Source: The Freedonia Group<br />

ACCORDING TO Rigid Bulk Packaging,<br />

a new study from The Freedonia<br />

Group (www.freedoniagroup.com),<br />

demand for rigid bulk packaging<br />

is projected to increase 2.1% per<br />

year to $7 billion in <strong>20</strong>13. Although<br />

a moderation in raw material prices<br />

after the sharp increases of the<br />

<strong>20</strong>03–<strong>20</strong>08 period will restrain value<br />

growth, unit growth will improve.<br />

places to go<br />

MAY <strong>20</strong>09<br />

Material <strong>Handling</strong> Equipment<br />

Distributors Association (MHEDA)<br />

54th Annual Convention<br />

May 2–6<br />

Palm Desert, Calif.<br />

www.mheda.org<br />

RedShift: <strong>20</strong>09<br />

May 11–14<br />

San Antonio, Texas<br />

www.redprairie.com/redshift<br />

$6,970<br />

Rigid bulk<br />

packaging<br />

demand<br />

Gains will be bolstered by an improvement<br />

in real manufacturing<br />

activity as well as a shift in the<br />

product mix toward larger, highervalue<br />

containers that offer enhanced<br />

performance and cost effectiveness.<br />

According to the report, the best<br />

opportunities will be found with<br />

containers offering a combination of<br />

total cost benefi ts, greater reusability<br />

and enhanced performance. Rigid<br />

intermediate bulk containers (RIBCs)<br />

will register the fastest gains, with<br />

demand increasing 4.2% annually<br />

through <strong>20</strong>13 as a result of cost and<br />

performance advantages with smaller,<br />

single-use or shorter life packaging.<br />

<strong>Materials</strong> handling containers<br />

will also see above-average growth,<br />

driven by increased use of returnable<br />

and reusable containers.<br />

Drums will continue to be the<br />

leading rigid bulk packaging product<br />

type based on their relatively low<br />

cost, reusability and amenability to<br />

shipping hazardous materials. However,<br />

the report predicts that drum<br />

demand will advance less than 1%<br />

annually as a result of the maturity of<br />

steel and fi ber drums and a moderation<br />

in raw material pricing. In addition,<br />

competition from both rigid and<br />

fl exible intermediate bulk containers<br />

will restrain drum sales.<br />

Nondurable goods markets such<br />

as chemicals, food, plastics, rubber,<br />

fi ber, petroleum, lubricants, and<br />

agricultural and horticultural products<br />

accounted for more than 80%<br />

of demand in <strong>20</strong>08. Chemicals, by<br />

far the leading rigid bulk packaging<br />

market, will advance at a below-average<br />

pace as a result of the maturity<br />

of many chemical product segments,<br />

the increased presence of imports<br />

and the movement of key customers<br />

to developing regions. Plastic is the<br />

leading rigid bulk packaging material,<br />

with steel and paperboard also<br />

signifi cant.<br />

10 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com<br />

Drums<br />

Pails<br />

<strong>Materials</strong> handling<br />

containers<br />

Bulk boxes<br />

RIBCs<br />

Manhattan Momentum <strong>20</strong>09<br />

May 19–22<br />

Las Vegas, Nev.<br />

www.manh-momentum.com<br />

EASTEC <strong>20</strong>09<br />

May 19-21<br />

W. Springfield, Mass.<br />

www.sme.org.eastec<br />

Advanced Manufacturing Expo<br />

May 19–21<br />

Montreal, Quebec<br />

www.sme.org<br />

Plant Maintenance & Design<br />

Engineering<br />

May 19–21<br />

Montreal, Quebec<br />

www.sme.org<br />

JUNE <strong>20</strong>09<br />

U Connect 09: Transforming Your Supply<br />

Chain for Extraordinary Times<br />

June 2–5<br />

Orlando, Fla.<br />

uconnect.gs1us.org


people to know<br />

Agility has appointed Colin Ricardo as<br />

managing director for the Philippines…<br />

The American Society of Transportation<br />

and Logistics has named Mark Holmes,<br />

vice president of global integrated<br />

solutions for OHL, chairman … CEMA<br />

has elected a new president, offi-<br />

Steven W. Strifler<br />

cers and board members. The posts<br />

include Todd Swinderman, director<br />

and chief technology officer for Martin<br />

Engineering, president; Bill Pugh,<br />

president of Ralphs-Pugh Company,<br />

vice president; George Huber III,<br />

vice president of Industrial Kinetics,<br />

secretary; Merle Davis, president of<br />

Kris Achterberg Automotion, treasurer; and board<br />

members Joe Forte, director of sales at<br />

Portec Flomaster; Michael Hoehn, president of Automatic<br />

Systems; Jim McKnight, vice president of system sales at<br />

company news<br />

Bridgestone Americas Tire Operations (BATO) has<br />

opened its largest North American distribution center<br />

in Jacksonville, Fla., which will supply tires and automotive<br />

parts to Florida, Georgia, South Carolina and North<br />

Carolina and supply the U.S. with tires produced in Latin<br />

America, Japan and other Asian countries… Diamond<br />

Phoenix has opened a new office in Sydney that will offer<br />

system design and integration, advanced warehouse<br />

software and a full suite of materials handling equipment<br />

focused on reducing their customers cost of doing business...<br />

Hillsdale Furniture has opened a 300,000-squarefoot<br />

DC in Louisville, Ky., that is geared to ship products<br />

to all 50 states; it’s equipped with 50 dock doors and can<br />

hold $10 to $12 million in inventory… Nestlé has begun<br />

Intelligrated; and Bill Casey, president and chief operating<br />

officer for SI Systems… Cisco-Eagle has named<br />

Steven W. Strifler chief executive officer… Diamond<br />

Phoenix has appointed Sean Ledbury managing director<br />

of its Australian/New Zealand business segment… Diba<br />

has appointed Z. Willie Michaely vice president of operations…<br />

Laminations, part of Great Northern Corporation’s<br />

Specialty Group, has hired Kris Achterberg as manager<br />

of purchasing and supply chain…Lucas Systems has<br />

appointed James Margaria and Chris Sweeney to its<br />

executive management team…NetSuite has announced<br />

the appointment of former New York Stock Exchange<br />

president Catherine Kinney to its board of directors…<br />

Remstar has named Michael Moore district sales manager<br />

for sales in the Los Angeles area… RFID Global Solution<br />

has hired Joe White as chief operating officer… The U.S.<br />

Postal Service has named Pranab Shah vice president and<br />

managing director, global business… W&H Systems has<br />

hired Austin Power as district sales manager.<br />

operations in the first phase of its $359 million, 880,000square-foot<br />

production and DC in Anderson, Ind., that will<br />

produce Nestlé Nesquik Ready-to-Drink and Coffee-mate<br />

liquid. The second phase, which will cost $170 million,<br />

is scheduled to open in <strong>20</strong>11… Vanderlande Industries<br />

opened its new Louisville, Ky., Customer Center, which<br />

will serve the parcel and postal industry throughout North<br />

America… viastore systems has completed a two-phase<br />

project with CafePress.com in Grand Rapids, Mich., which<br />

includes the development of a system to address product<br />

flow paths and underutilized space in the facility and<br />

increased capacity by using the facility’s vertical space<br />

more effectively… W&H Systems has recently opened a<br />

new regional sales office in Chicago…<br />

EDUCATION<br />

Material <strong>Handling</strong> Society gives New Jersey Institute of<br />

Technology $3,000 scholarship<br />

THE NEW JERSEY CHAPTER of<br />

the Society of Material <strong>Handling</strong><br />

has given the New Jersey Institute<br />

of Technology (NJIT) $3,000 to<br />

fund students studying materials<br />

handling or management. NJIT<br />

students who study this discipline<br />

are enrolled in the industrial<br />

engineering discipline offered by<br />

Newark College of Engineering<br />

(NCE). “We’re thrilled to receive<br />

the money because it allows us to<br />

encourage students to study and<br />

look into careers in this area,” says<br />

Layek Abdel-Malek, PhD, associate<br />

dean of engineering for administration<br />

and academic affairs at NCE.<br />

The career opportunities avail-<br />

able to materials handling professionals<br />

are enormous particularly in<br />

today’s global supply chains for both<br />

engineers and managers,” he adds.<br />

These opportunities range from jobs<br />

in the manufacturing sector, airline<br />

industry and retail services to couriers<br />

such as UPS, Fed Ex and DHL, as<br />

well as warehousing and shipping.<br />

mmh.com MODERN MATERIALS HANDLING / APRIL <strong>20</strong>09 11


© <strong>20</strong>09 Simpson Strong-Tie Company Inc. THDSBSETXP09<br />

DATA CAPTURE<br />

Psion Teklogix teams with Ingram Micro to bring more<br />

value and business support to channel partners<br />

MAKING IT EASIER for channel partners to source and sell<br />

its rugged wireless computing solutions, Psion Teklogix, mobile<br />

computing solutions provider, announced a distribution<br />

agreement with technology distributor Ingram Micro.<br />

Under the terms of the new agreement, the Ingram<br />

Micro Data Capture/POS Division will support, market and<br />

resell Psion Teklogix’ full line of rugged computing solutions<br />

that includes a broad range of mobile handheld and<br />

vehicle-mounted computers, RFID readers, scanners, voice<br />

and printer products, to channel partners throughout the<br />

Americas.<br />

“The new distribution alliance promises greater operational<br />

effi ciency, expands the company’s reach and provides<br />

its current channel partners access to Ingram Micro’s valueadded<br />

service and fi nancing programs, as well as its entire<br />

portfolio of IT products, solutions and services,” says Ron<br />

Caines, Psion Teklogix’ president of worldwide sales.<br />

“Working with Ingram Micro, one of the industry’s top<br />

channel partners for POS, AIDC and RFID technology<br />

solutions, accelerates our value proposition to channel<br />

partners and enables them to sell to and service their<br />

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Déjà News<br />

LAST YEAR’S <strong>TOP</strong> <strong>20</strong> SYSTEMS SUPPLIERS<br />

“If revenue fi gures among the industry’s top system suppliers<br />

are any indication, <strong>20</strong>07 was a great year to be in the<br />

materials handling equipment business. Seventeen of the<br />

<strong>20</strong> companies included in <strong>Modern</strong>’s annual ranking of<br />

worldwide materials handling system suppliers reported<br />

revenue gains in fi scal year <strong>20</strong>07. Most of the companies<br />

enjoyed double-digit gains, and a few—including TGW<br />

Transportgerate (No. 12) and Beumer (No. 17)—saw<br />

sales increase more than 30%. The combined revenue<br />

of all <strong>20</strong> suppliers reached nearly $14.4 billion.”<br />

–From April <strong>20</strong>08 issue of <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong>.<br />

www.mmh.com/article/CA6546213<br />

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Some applications will now require anchors that<br />

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or call (800) 999-5099.


FROM THE<br />

ADVISORYBOARD<br />

DISTRIBUTION OPERATIONS that are required to<br />

ship product to the same location on a recurring basis<br />

can increase productivity with an order fulfi llment<br />

strategy referred to as “put.” Put systems offer a greater<br />

range of process control, increased order fulfi llment effi<br />

ciency and improved access to operator metrics.<br />

Retailers and wholesalers are prime candidates for<br />

using a put system in distribution operations since order<br />

fulfi llment is performed on a regular schedule with<br />

many of the same items being sent to all or a majority<br />

of the stores. Typical delivery schedules may range from<br />

daily, to every other day, three times a week or perhaps<br />

once a week.<br />

With put-directed order fulfi llment, operators put<br />

product to a location instead of picking product from a<br />

location. In most operations, the typical practice is to<br />

move through the warehouse and build an order. Instead<br />

of picking items as they are passed, a single product is<br />

allocated (put) to the orders that require this SKU.<br />

A put system is typically considered a “goods to<br />

the person” confi guration. A container of one product<br />

SKU is delivered to an order fulfi llment zone where<br />

an operator is stationed. The operator puts the SKU<br />

into shipping containers that will go to the retail store,<br />

industrial user or consumer. There is no wasted space<br />

in a container since the operators continue to put into<br />

the container until it is full. Specifi c carton contents are<br />

tracked.<br />

Put systems can be expanded to support the pre-pick<br />

of the SKUs and direct the putaway and cycle counting<br />

of residual product.<br />

Put systems have many benefi ts. The over-riding<br />

benefi t of the put confi guration is the elimination of the<br />

dedicated pick face. This means no need for slotting and<br />

re-slotting the warehouse. In most put confi gurations,<br />

all items are brought to the order selection operator;<br />

therefore, the order fulfi llment staff does not need to<br />

move through the warehouse.<br />

Pick rates for put systems are typically higher than<br />

Ken Ruehrdanz,<br />

market development manager,<br />

Dematic<br />

Why does a “put” strategy<br />

optimize order fulfillment?<br />

By bringing the product to a location, you can increase picking rates and accuracy.<br />

conventional “person to the goods” confi gurations<br />

where there is a pick face for every SKU. Systems that<br />

migrated to put order fulfi llment can increase picking<br />

rates from 1.5 to 3 times depending on the system<br />

confi guration.<br />

A general merchandise retailer redesigned its operation<br />

to incorporate put order fulfi llment. With 125<br />

stores, there is one pallet position dedicated to each<br />

store. A pallet of one SKU is moved on a pallet jack to<br />

the store pallet locations. Stores that require this SKU<br />

receive the required number of cases. Put instructions<br />

are provided to the operator with a wearable voice<br />

device. Pick rates in this application improved from 70<br />

cartons per hour per picker to 122, while providing real<br />

time tracking of product.<br />

An Internet retailer uses a high density staging<br />

device to store thousands of SKUs instead of providing<br />

dedicated pick faces. Multiple operator put stations<br />

are connected to the storage system with a conveyor<br />

network. SKUs required to fi ll orders are delivered to<br />

the put stations where operators put the items into a<br />

shipping container. When the single or multi-line orders<br />

are complete, the conveyor network takes the carton<br />

to shipping. In this confi guration, put operators obtain<br />

250 lines per operator per hour, a two-fold increase<br />

when compared to the previous system. Other benefi ts<br />

include reduced warehouse space requirements, controlled<br />

access to product and improved accuracy.<br />

An apparel retailer uses a zone put system. There are<br />

<strong>20</strong> put zones in the system; there are 1,000 stores and<br />

50 store carton positions per zone. One operator works<br />

in a zone. Cartons containing one SKU are removed<br />

from storage and routed to put zones that require the<br />

SKU. A carton of one SKU travels only to the zones<br />

where the store has ordered that SKU. The zone put<br />

system enables 325 puts per operator per hour.<br />

Contact Ken Ruehrdanz at kenneth.ruehrdanz@dematic.com.<br />

mmh.com MODERN MATERIALS HANDLING / APRIL <strong>20</strong>09 13


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Fuel cells are a stimulus<br />

package<br />

Fuel cell powered lift trucks are getting<br />

hot, despite economy’s chill.<br />

COMPANIES SERVING MATERIALS HANDLING<br />

markets must not be reading the papers. Don’t they<br />

know the recession has slammed the brakes on putting<br />

a hybrid car in every garage and either a wind generator<br />

behind that garage or a solar panel array on top of it?<br />

Nope. In fact, the dire economic news is driving materials<br />

handlers to seek out solutions like fuel cells in their<br />

lift trucks. You have to move stuff, even in a struggling<br />

economy. Enough two- and three-shift operations exist<br />

where the time and space wasted on battery changing<br />

is making alternative power sources like fuel cells and<br />

hybrid power systems viable solutions today.<br />

If you’ve been avoiding the news, too, you might not<br />

be aware of another story with direct implications for materials<br />

handlers. Certainly you’ve heard President Obama<br />

talk about the stimulus package? Well, a number of tax<br />

incentives in it benefi t the forklift market and its customers.<br />

They’re related to fuel cells.<br />

First, there’s a new investment tax credit applicable to<br />

hydrogen refi lling stations. According to the American<br />

Recovery and Reinvestment Act of <strong>20</strong>09, the alternative<br />

refueling property credit for hydrogen dispensers is 30%,<br />

capped at $<strong>20</strong>0,000. Bill Mitchell, vice president of Nuvera<br />

(www.nuvera.com), makers of fuel cell systems for lift<br />

trucks, told me that depending on the size of the application<br />

and how the trucks are used, that could take a year or<br />

more off of the payback. On the fuel cell side, each fuel cell<br />

box has a 30% tax credit, capped at $3,000 per kilowatt.<br />

Then, there’s the CO2 benefi t to using fuel cell lift<br />

trucks, especially if the administration’s talk about “cap<br />

and trade” gains traction. The plan would limit greenhouse<br />

gases by capping the emissions a company could<br />

emit and allowing relatively pollution-free fi rms to trade<br />

“credits” with others exceeding the limits.<br />

Data from Argonne Laboratories (www.transportation.<br />

anl.gov/pdfs/TA/537.pdf) show that the CO2 associated<br />

with a lift truck that’s running on a fuel cell using hydrogen<br />

made from natural gas has much less environmental<br />

impact than a lift truck whose battery was charged off the<br />

nation’s electrical grid.<br />

As Warren Brower, product marketing manager for Plug<br />

Power (www.plugpower.com), told me, “Fuel cells are here<br />

today and are a viable, commercial alternative to incum-<br />

LIFT TRUCK TIPS<br />

TOM ANDEL,<br />

COLUMNIST<br />

A number of tax<br />

incentives in the stimulus<br />

package can benefit<br />

the forklift market and<br />

its customers. They’re<br />

related to fuel cells.<br />

bent power technologies.” That’s good news not only for<br />

materials handling, but for U.S. energy consumers in general.<br />

The environmental and productivity gains achieved in<br />

the short term by warehouses and distribution centers will<br />

pave the way for fuel cell applications in power generation<br />

and automotive applications further down the road.<br />

Contact Tom Andel at tandel4315@aol.com.<br />

mmh.com MODERN MATERIALS HANDLING / APRIL <strong>20</strong>09 15


modern SYSTEM REPORT<br />

Fisher Nuts:<br />

WMS cracks<br />

into manufacturing success<br />

At its new manufacturing plant and corporate headquarters,<br />

John B. Sanfilippo & Son installed a warehouse management system to<br />

drive quality and productivity improvements.<br />

WHEN JOHN B. SANFILIPPO & SON Inc.,<br />

manufacturer of the Fisher Nuts and various private<br />

label brands of nut products, reconfigured a 1.06<br />

million square foot complex in Elgin, Ill., for its new<br />

corporate headquarters, it made conventional use of<br />

materials handling technologies and unconventional<br />

use of its warehouse management system (WMS).<br />

Since most of the company’s raw materials<br />

and finished goods are palletized, lift trucks, pallet<br />

racks and a semi-automated stretch wrapper<br />

are the primary materials handling tools. In that<br />

sense, it’s a very conventional facility.<br />

But in addition to managing inventory and<br />

directing the activities of warehouse employees,<br />

the WMS (HighJump Software, 800-328-3271,<br />

www.highjump.com) performs two unconventional<br />

roles.<br />

Much like a manufacturing execution system<br />

(MES), the system synchronizes the delivery of<br />

a bill of materials to the manufacturing line. It<br />

includes the raw nuts, spices and oils, and packaging<br />

materials that go into a particular batch<br />

of product. The WMS also tracks the lot numbers<br />

of all of the ingredients and materials used<br />

to make a batch of product to meet traceability<br />

requirements.<br />

More importantly, the WMS is the foundation<br />

of the company’s allergen and contamination prevention<br />

programs.<br />

There have been several key benefits to this system,<br />

according to Jasper Sanfilippo, Jr., the compa-<br />

By Bob Trebilcock, Executive Editor<br />

ny’s president and chief operating officer, and Tom<br />

Kirkham, the director of systems implementation.<br />

Thanks to the WMS, inventory is 99.7% accurate<br />

in the warehouse and 99% accurate on the<br />

manufacturing floor. “As a result of that accuracy<br />

and the cycle counting functionality in the WMS,<br />

we have been able to eliminate two of four physical<br />

inventories a year,” says Kirkham. “That’s saving<br />

us nearly $2 million a year.”<br />

What’s more, the company believes it has one of<br />

the most comprehensive allergen control programs<br />

in the nut industry. “While it’s harder to quantify a<br />

benefit in dollars and cents, we know that our customers<br />

have developed a heightened awareness of<br />

allergens associated with nuts and the possibility<br />

of food contamination,” says Sanfilippo.<br />

A business built on nuts<br />

With $550 million in sales, John B. Sanfilippo &<br />

Son has a nearly 90-year history in the nut business.<br />

The company was founded in 1922 by Jasper<br />

Sanfilippo’s grandfather. Back then, Chicago was<br />

the center of the nation’s pecan industry, one<br />

built primarily by Italian immigrants. “My grandfather<br />

and his competitors would buy the pecans<br />

down south and truck them to Chicago,” says<br />

Sanfilippo. “Families would pick up a <strong>20</strong>-pound<br />

sack of pecans and shell them at home, bring the<br />

nut meat back to the plant, and take home another<br />

sack to shell.”<br />

That was the standard operating procedure for<br />

the industry for the next 40 years. “The biggest<br />

16 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com<br />

PHOTOGRAPHY BY PETER WYNN THOMPSON/GETTY


Tom Kirkham, director of systems<br />

implementation


modern SYSTEM REPORT<br />

As part of an allergan prevention<br />

program, the WMS system manages<br />

the storage of raw nuts by type.<br />

innovation was mechanical shelling,<br />

which was introduced in the 1960s,”<br />

says Sanfilippo. “That meant that fewer<br />

home-based families were needed to do<br />

the shelling.”<br />

In 1964, Sanfilippo’s father took over<br />

the company and diversified into other<br />

tree nuts, including walnuts, cashews,<br />

almonds and macadamia nuts. In the<br />

late 1960s, the company also shipped<br />

its first private label product, an 8ounce<br />

bag of pecans, to the Chicagobased<br />

grocer Dominick’s Finer Foods.<br />

As the private label business grew, the<br />

company expanded. In the late 1980s,<br />

Sanfilippo & Son built a peanut plant<br />

in Georgia and added walnut, in-shell<br />

peanut and almond processing plants.<br />

In 1991, the company went public, and<br />

in 1995, it purchased the Fisher Nuts<br />

brand from Proctor & Gamble. Today,<br />

the company processes an average of<br />

600,000 pounds of nuts each day, and<br />

ships 375,000 cases of nuts per week<br />

during peak season.<br />

The WMS brings together raw<br />

materials and packaging products<br />

during processing.<br />

By <strong>20</strong>05, the company’s operations<br />

were spread across five different facilities<br />

in a 10-mile square area in suburban<br />

Chicago. “There are logistical<br />

challenges when you’re sending raw<br />

materials from two warehouses to three<br />

different manufacturing facilities,” says<br />

Sanfilippo. “Especially when you’re<br />

trying to control your inventory with a<br />

manual system.”<br />

What’s more, the company was<br />

bumping up against capacity constraints<br />

that would hinder its ability to continue<br />

to grow. “We needed space so we could<br />

increase the capacity of our existing line<br />

without increasing our overhead, and<br />

we needed to standardize processes for<br />

quality control reasons,” adds Kirkham.<br />

“If you’re operating in five buildings, it’s<br />

not hard to end up with five different<br />

processes.”<br />

The company had already purchased<br />

land and was working with consultants<br />

on the design of a new headquarters<br />

when a 1.06 million square foot building,<br />

formerly owned by Panasonic,<br />

came up for sale in Elgin, Ill., including<br />

400,000 square feet of office space and<br />

about 650,000 square feet of manufacturing<br />

space. In the end, reconfiguring<br />

an existing space was faster and more<br />

efficient than building a new space.<br />

Selecting a WMS<br />

From a materials handling standpoint,<br />

designing the new facility was relatively<br />

straight-forward. The manufacturing<br />

area relies on specialized and proprietary<br />

processes and equipment.<br />

When it came to warehousing, raw<br />

materials and finished goods are primarily<br />

handled on pallets with lift trucks<br />

18 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com


and stored in pallet racks. As a<br />

result, determining how to best<br />

use the 450,000 square feet of<br />

raw materials and finished goods<br />

warehouse space was the most<br />

important aspect of the initial<br />

warehouse design. That included<br />

two cooler areas for the storage of<br />

raw materials, separate areas for<br />

spices, cans, jars and corrugated<br />

materials, and the finished goods<br />

warehouse.<br />

Sanfilippo & Son used its own<br />

engineers for the manufacturing<br />

layout and design and a consulting<br />

firm for the warehouse layout.<br />

The company was able to economize<br />

on materials handling equipment<br />

by re-using push-back and<br />

standard pallet rack left behind<br />

by the previous tenant along with<br />

equipment it brought over from its<br />

old facilities. Likewise, a horizontal<br />

carousel system used to store<br />

packaging materials for the production<br />

line was brought over from<br />

one of the other warehouses.<br />

While the materials handling<br />

was relatively simple, Kirkham and<br />

Sanfilippo say that from the start,<br />

they understood that a WMS was critical<br />

to the success of the new facility.<br />

The original goals for the system<br />

were to bring real-time system direction<br />

to the new facility, improve inventory<br />

accuracy, and increase throughput in<br />

the DC with the same or fewer associates<br />

than were presently being used in<br />

the other facilities.<br />

“We were using an inventory control<br />

module in our ERP (enterprise resource<br />

planning) system to run our other warehouses,<br />

but we weren’t real time and<br />

we weren’t as accurate as we needed<br />

to be,” says Kirkham. As a result, the<br />

company was spending $1 million each<br />

quarter just to do physical inventories.<br />

In addition to the traditional inventory<br />

management functionality a WMS<br />

could provide, Sanfilippo & Son wanted<br />

the ability to manage raw materials on a<br />

first-in/first-out (FiFo) basis, to do lot<br />

tracking and to manage the company’s<br />

Once nuts have been processed, the system<br />

tracks all of the ingredients by lot in a batch.<br />

allergen and contamination program.<br />

At any given time, Sanfilippo & Son<br />

is managing two different types of peanuts<br />

and up to eight different types of<br />

tree nuts. Because nut allergies can<br />

be fatal, peanuts must be segregated<br />

from other types of nuts. Since dust<br />

or broken pieces can leak from a container<br />

of raw nuts, only one type of tree<br />

nut can be stored in a bay. Cashews,<br />

for instance, can’t be stored on top of<br />

pecans or almonds.<br />

Likewise, the introduction of raw<br />

materials into the production area has<br />

to be controlled to prevent the spread<br />

of salmonella and other bacteria.<br />

“We needed a system that would<br />

prevent a lift truck driver from putting<br />

a nut in the wrong cooler or the<br />

wrong location within a cooler,” says<br />

Sanfilippo, “or from risking contamination<br />

by going from a raw area into a production<br />

area.”<br />

About a dozen WMS vendors<br />

were invited to tour the facility<br />

and explain how they would manage<br />

the allergen program. From<br />

that original group, six were sent<br />

a very detailed request for proposal<br />

(RFP) and invited to bid on<br />

the project. “We chose the WMS<br />

we ultimately installed because it<br />

could integrate to our ERP system<br />

and was flexible enough to<br />

adapt to our unique processes and<br />

requirements,” says Kirkham.<br />

WMS in operation<br />

In addition to the traditional<br />

receiving, putaway, pick and pack,<br />

and shipping functionality, the<br />

WMS has been customized to<br />

become the system of record that<br />

tracks any material that passes<br />

through the facility from the time<br />

it’s received on the raw materials<br />

side of the house until it’s put on<br />

a truck to be shipped as a finished<br />

good to a customer.<br />

When product is received, for<br />

instance, the system is recording<br />

the weight of the product, when<br />

that product was received, the pallet<br />

it’s loaded on for putaway, and a lot<br />

number associated with that batch of<br />

product.<br />

One of the goals for the new facility<br />

was to inspect all raw materials before<br />

moving them off the receiving dock. If<br />

un-inspected product is put away into<br />

one of the coolers, the system will put a<br />

hold on that product so it can’t be processed<br />

until it’s inspected.<br />

The WMS also manages the segregation<br />

of nuts by type and even lot<br />

number when possible. “If you put an<br />

almond on the first level of an empty<br />

bay, the WMS will prevent you from<br />

putting anything but an almond over<br />

top of that first pallet,” says Kirkham.<br />

Once the manufacturing process<br />

begins, the WMS is the system of<br />

record where all of the manufacturing<br />

transactions take place. It receives a<br />

work order from the ERP system and<br />

a bill of materials that includes all of<br />

mmh.com MODERN MATERIALS HANDLING / A PRIL <strong>20</strong>09 19


modern SYSTEM REPORT<br />

the raw materials, seasonings, oil and<br />

packaging materials required for that<br />

work order. Raw materials are selected<br />

in part on a FiFo basis. The WMS then<br />

directs the delivery of those items to<br />

the right workstations in the manufacturing<br />

and packaging areas. It also<br />

tracks the item level, quantity and lot<br />

numbers of everything associated with<br />

that work order to meet tracking and<br />

tracing requirements.<br />

Once product has been manufactured,<br />

the WMS creates a new stock<br />

keeping unit (SKU) for the finished<br />

good. The system is used to direct palletizing<br />

operations and the delivery of a pallet<br />

to a stretch-wrapping system. Once<br />

it’s been stretch-wrapped, the WMS<br />

receives the new product into the finished<br />

goods warehouse, which is zoned<br />

by customer and then into full pallet and<br />

case picking areas. After that, picking<br />

and shipping functions are handled by<br />

the system similarly to any other system<br />

shipping food and snacks into the grocery<br />

or big box retail supply chains. That<br />

includes the management of any custom<br />

labeling requirements or advanced shipment<br />

notifications (ASNs).<br />

Robotic palletizers build pallets for<br />

storage in the warehouse.<br />

Down the road<br />

Having automated the information<br />

management functions, Sanfilippo &<br />

Son now plans to automate some of its<br />

materials handling processes. While<br />

most of the palletizing is still done<br />

manually, two robotic palletizing stations<br />

have been installed. Once those<br />

units are operating at full speed, the<br />

company plans to install more robotic<br />

palletizers in another area of the building.<br />

There are also plans to cut down on<br />

lift truck traffic by installing conveyor<br />

Palletized goods are stretch wrapped<br />

and stored on pallet racks.<br />

to deliver finished goods to one of the<br />

manual palletizing areas, and to install<br />

automatic guided vehicles to shuttle<br />

pallets from the palletizing area to the<br />

stretch wrapper and then into the finished<br />

goods warehouse.<br />

“We spend an inordinate amount of<br />

time moving pallets from one end of<br />

the building into the warehouse,” says<br />

Kirkham. “We want to use our materials<br />

handling in more productive ways. That<br />

will allow us to scale up the facility as<br />

we grow with our existing workforce.”<br />

Jasper Sanfilippo Jr., the fourth<br />

generation of his family to work in the<br />

business, says the new facility has been<br />

a success. That success can be measured<br />

in hard numbers: Inventory is<br />

now better than 99% accurate, which<br />

has allowed the company to eliminate<br />

two of the four physical inventories it<br />

performed a year, with a goal of getting<br />

down to one physical inventory a year.<br />

While harder to measure, there’s<br />

success as a result of the company’s<br />

allergen program. “Ultimately that will<br />

lead to more business,” says Sanfilippo.<br />

“That’s hard to quantify now from an<br />

ROI perspective, but we could not have<br />

done that without the systems we put<br />

in place.”<br />

<strong>20</strong> A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com


WMS in control<br />

3<br />

At John B. Sanfilippo & Son, a warehouse management system drives<br />

manufacturing and distribution.<br />

Pallet racks<br />

Tree nut<br />

cooler<br />

Horizontal<br />

carousels<br />

6<br />

7<br />

Manufacturing<br />

2<br />

1<br />

Receiving<br />

docks<br />

Receiving<br />

area<br />

Palletizing<br />

8<br />

7<br />

Manufacturing<br />

3<br />

Pallet racks<br />

Peanut<br />

cooler<br />

The John B. Sanfilippo & Son new corporate headquarters<br />

has a conventional materials handling system and<br />

uses its warehouse management system (WMS) in<br />

two unconventional ways—it drives manufacturing and is<br />

the foundation of the company’s allergen and contamination<br />

prevention program.<br />

Receiving: Incoming raw materials 1 are palletized and<br />

staged in a receiving area 2 for inspection. The pallet<br />

receives a license plate bar code label that is tied to a vendor<br />

lot number, the product type, and the weight of the product<br />

for tracking purposes in the WMS.<br />

Raw materials putaway: After receiving 2 , the pallets<br />

are delivered by lift truck to one of two storage areas 3 :<br />

One is designated for tree nuts, including walnuts, pecans,<br />

cashews and macadamia nuts; another is shared between<br />

peanuts and tree nuts. Pallets are stored in three-deep pushback<br />

rack, single-deep pallet rack and in designated areas on<br />

the floor. Putaway is confirmed by scanning a location bar<br />

code.<br />

Stretch<br />

wrapping<br />

9<br />

Shared<br />

cooler<br />

modern SYSTEM REPORT<br />

By Bob Trebilcock, Executive Editor<br />

5<br />

10<br />

Finished goods<br />

warehouse<br />

4<br />

Seasonings<br />

Packaging<br />

Pallet<br />

rack<br />

11<br />

12<br />

Shipping<br />

area<br />

Shipping<br />

docks<br />

John B. Sanfilippo & Son/<br />

Fisher Nuts<br />

Elgin, Ill.<br />

SIZE: 1.06 million square feet, 60% manufacturing/40% warehouse<br />

space, including coolers<br />

SHIFTS: two shifts, five to six days, depending on the season<br />

EMPLOYMENT: 800<br />

PRODUCTS: Nuts, nut products and snack foods<br />

VOLUME: 375,000 cases per week during peak season<br />

Picking for manufacturing: Before nuts are roasted<br />

or processed in the manufacturing area, a work order drops<br />

from the enterprise resource planning (ERP) system into<br />

the WMS.<br />

The work order contains a bill of materials that includes<br />

mmh.com MODERN MATERIALS HANDLING / A PRIL <strong>20</strong>09 21<br />

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the raw materials, salt, seasonings and oils called for in the<br />

recipe along with the cans, jars, lids or other materials that<br />

will be used to package the final product.<br />

The system then directs associates who pick and transport<br />

the materials to the manufacturing area 7 : Nuts are retrieved<br />

from the coolers 3 ; spices, oils and seasonings from a separate<br />

storage area; some packaging materials are pulled from<br />

storage racks 5 ; while other packaging materials are retrieved<br />

from a horizontal carousel system 6 .<br />

During the various stages in the roasting process, the<br />

nuts are converted to work-in-process (WIP) and tracked by<br />

the WMS. Once all of the manufacturing and packaging is<br />

complete, a new stock keeping unit (SKU) is created in the<br />

WMS, which includes lot information for all of the materials<br />

that went into that batch. Finally, the product is automatically<br />

put in trays, shrink-wrapped and labeled, and palletized<br />

8 . At that point, a finished goods label is applied to<br />

the pallet.<br />

Finished goods putaway: After palletizing, pallets<br />

are delivered to a semi-automatic stretch wrapper 9 . Once<br />

they have been wrapped, the system directs a lift truck<br />

driver to one of 38,000 pallet positions in the pallet rack in<br />

the finished goods warehouse 10 . As with raw materials, the<br />

driver confirms the putaway by scanning a location bar code<br />

on the rack.<br />

Finished goods picking: About 70% of orders are full<br />

pallets; the remainder are mixed pallets. In either case, the<br />

system directs a lift truck driver to a pallet location. Pallets<br />

are then delivered to staging areas 11 designated by customer.<br />

Finally, pallets are loaded onto a trailer 12 at the shipping<br />

docks. Loading is confirmed by scanning a bar code label<br />

next to the dock door. At that point, the order is released in<br />

the WMS.<br />

System suppliers<br />

WAREHOUSE MANAGEMENT SYSTEM: HighJump Software,<br />

800-328-3271, www.highjump.com<br />

ENTERPRISE RESOURCE PLANNING SYSTEM: QAD Inc., 888-641-4141,<br />

www.qad.com<br />

SYSTEM DESIGN: Tom Zosel Associates, Ltd., 800-229-3450,<br />

www.tzaconsulting.com<br />

LIFT TRUCKS: Crown Equipment Corp., 419-629-2311, www.crown.com<br />

ROBOTIC PALLETIZER: Kuka Robotics, 866-873-5852,<br />

www.kukarobotics.com<br />

CAROUSELS: White Systems Inc., 800-275-1442,<br />

www.whitesystems.com<br />

STRETCH WRAPPER: Lantech, 800-866-0322, www.lantech.com<br />

RACKING: Existing rack system from previous tenant<br />

HANDHELD BAR CODE SCANNING: Intermec, 425-348-2600,<br />

www.intermec.com<br />

PRINTERS: Zebra Technologies, 847-634-6700, www.zebra.com<br />

22 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com


WEBCAST • April 29 at 2 p.m. ET<br />

www.mmh.com/top<strong>20</strong><br />

SYSTEMS SUPPLIERS<br />

<strong>Modern</strong>’s 12th-annual survey of top worldwide<br />

materials handling systems suppliers shows that<br />

<strong>20</strong>08 was a year of stability for the top players.<br />

The more things change, the more they stay the<br />

same. At least that’s true with this year’s Top<br />

<strong>20</strong> systems suppliers list, since 19 of this year’s top<br />

suppliers were also on last year’s list. The rankings<br />

are slightly different, but the names remain almost<br />

the same.<br />

The combined revenue of all the Top <strong>20</strong> systems<br />

suppliers was more than $15.3 billion. Companies<br />

had to report at least $219 million in revenue to<br />

make the cut this year.<br />

Once again, Schaefer Systems International<br />

holds the No. 1 position on the list, with $2.51<br />

billion in revenue, up from $2.41 billion in <strong>20</strong>07.<br />

Schaefer attributes its growth in large part to currency<br />

fluctuations. Daifuku Co. Ltd. came in at<br />

No. 2 with $2.41 billion. The most important news<br />

from the leaders was the October acquisition by<br />

Schaefer of systems integrator and software provider<br />

Salomon Automation.<br />

Schaefer and Daifuku were not the only companies<br />

to experience growth in <strong>20</strong>08. In fact, 17 of<br />

the Top <strong>20</strong> companies reported revenue increases<br />

for fiscal year <strong>20</strong>08.<br />

New to the list<br />

Legris Industries bursts onto the Top <strong>20</strong> list in the<br />

No. 3 position this year, with an impressive $1.09<br />

billion in sales revenue in <strong>20</strong>08.<br />

Because the bulk of Legris’ business is located<br />

outside North America, they have not been<br />

included on past lists. But its U.S. business<br />

units include Savoye Inc. in Lawrenceville, N.J.;<br />

Keyria Inc. in Littleton, Colo.; and Clextral Inc.<br />

in Tampa, Fla.<br />

<strong>TOP</strong> <strong>20</strong><br />

By Lorie King Rogers, Associate Editor<br />

modern SPECIAL REPORT<br />

Welcome back<br />

Dematic returns in the No. 4 position holding<br />

steady with $1 billion in sales. The biggest gains<br />

were reported by Vanderlande Industries (No.<br />

5) up 24%; TGW Transportgerate, now known<br />

as TGW Logistics Group, (No. 13) also up 24%;<br />

Murata Machinery (No. 8) up 16%; Kardex AG<br />

(No. 10) up 10%; and FlexLink Systems (No. <strong>20</strong>)<br />

also up 10%.<br />

Vanderlande Industries, which moves up one<br />

notch in the ranking, attributes its steady growth<br />

to a geographical spread of activities including its<br />

fairly new organization in China that is starting to<br />

pay off across the Far East.<br />

Swisslog (No. 9) credits its 9% increase in revenue<br />

in part to the acquisition of Dutch company<br />

Ergotrans. The move expands Swisslog’s core<br />

product line of pneumatic tube systems for the<br />

healthcare market and is in line with its strategy to<br />

expand its presence in European markets through<br />

selected acquisitions.<br />

In the No. 10 position, Kardex AG saw a 10%<br />

increase in revenue. In <strong>20</strong>08, Kardex AG, parent<br />

company of Kardex Remstar International,<br />

acquired the assets of U.S. competitor Kardex<br />

Systems Inc., which posted sales of about $21<br />

million in <strong>20</strong>07. The acquisition accelerates the<br />

company’s pace of growth and expands its position<br />

in the market for automated storage and retrieval<br />

systems.<br />

Columbus McKinnon (No. 11) saw an increase<br />

of 6%, undoubtedly as a result of some give and<br />

take—divesting Univeyor in Denmark and acquiring<br />

Pfaff-Silberblau, European supplier of lifting, mate-


modern SPECIAL REPORT<br />

Top <strong>20</strong> worldwide materials handling systems suppliers<br />

<strong>20</strong>08<br />

Rank Company Web site<br />

rials handling and actuator products.<br />

Holding at No. 18 for the secondconsecutive<br />

year, HK Systems experienced<br />

a strong <strong>20</strong>08, thanks in part to a<br />

number of large projects and the robust<br />

business of HK Production Logistics,<br />

which provides integrated warehousing<br />

and order fulfillment management.<br />

Based in Sweden, FlexLink is No.<br />

<strong>20</strong> this year, with a sales increase of<br />

$<strong>20</strong> million. The growth can be attributed<br />

partly to expansion into new markets<br />

like electronics and solar and the<br />

opening of three new U.S. offices,<br />

which brings the company closer to its<br />

customer, says Michael Hilsey, director<br />

of marketing and indirect sales.<br />

Rounding out the list at No. 7 is FKI<br />

reporting $784 million for <strong>20</strong>08 sales.<br />

Making the list<br />

To be eligible for <strong>Modern</strong>’s Top <strong>20</strong>,<br />

companies must have a presence in<br />

North America to be considered worldwide<br />

suppliers and must be suppliers<br />

of materials handling systems, not just<br />

equipment providers. Companies must<br />

manufacture at least two major handling<br />

system components. These equipment<br />

types include transportation devices,<br />

storage and staging equipment, picking<br />

units, sortation systems, data capture<br />

technologies, software and controls.<br />

In addition, companies must also<br />

employ full-time staff that design,<br />

install, integrate and implement materials<br />

handling systems.<br />

<strong>20</strong>09 outlook<br />

Looking ahead to next year, there are<br />

some companies that may be vying<br />

for a spot on the list. Keep an eye on<br />

Eisenmann GmbH. Its <strong>20</strong>08 revenue<br />

was $<strong>20</strong>0 million. Another one<br />

to watch: Wynright. Last December<br />

Warehouse Equipment Inc. (WEI) consolidated<br />

with six affiliated companies<br />

and changed its name to Wynright. Its<br />

combined revenue in <strong>20</strong>08 was $182<br />

million—not enough to make this list,<br />

but enough to make it a viable contender<br />

for next year’s list.<br />

In March of this year, Mecalux completed<br />

its $30 million purchase of the<br />

UFI/Interlake assets, which includes<br />

plants in Pontiac, Ill., Sumter, S.C.,<br />

Mexicali and Matamoros, Mexico.<br />

The company, which has changed its<br />

American division name to Interlake<br />

Mecalux Inc., says this is a market<br />

opportunity that means growing its<br />

presence in North America further<br />

enhancing their global expansion plan.<br />

Last year’s revenue was up, mostly as<br />

a result of projects already in the works.<br />

Many questions are yet to be answered<br />

about <strong>20</strong>09, not the least of which is<br />

the impact of a challenging economy.<br />

Leading economic indicators for materials<br />

handling equipment manufacturing<br />

(MHEM) point to continued contraction.<br />

Here are a few MHEM predictions<br />

for <strong>20</strong>09:<br />

• New orders will decline about 19%<br />

• Shipments will contract about 15%<br />

• Domestic demand will contract about<br />

15%, exports will decline as demand<br />

in the economy contracts.<br />

But once we get through this year,<br />

we expect some bright spots to appear<br />

in late <strong>20</strong>09.<br />

24 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com<br />

<strong>20</strong>07<br />

Rank<br />

Worldwide <strong>20</strong>08<br />

revenue (US) Headquarters<br />

1 Schaefer Systems International Inc. www.ssi-schaefer.us 1 $2.51 billion Neunkirchen, Germany<br />

2 Daifuku Co. Ltd. www.daifukuamerica.com 2 $2.41 billion Osaka, Japan<br />

3 Legris Industries www.legris.com N/A $1.09 billion Rennes, France<br />

4 Dematic www.dematic.com 4 $1 billion Offenbach, Germany<br />

5 Vanderlande Industries www.vanderlande.us 6 $911 million Veghel, The Netherlands<br />

6 Mecalux, S.A. www.mecalux.com 5 $888 million Barcelona, Spain<br />

7 FKI plc www.fkilogistex.com 3 $784 million Loughborough, UK<br />

8 Murata Machinery Ltd. www.murata-usa.com 8 $778 million Kyoto, Japan<br />

9 Swisslog AG www.swisslog.com 7 $744 million Buchs, Switzerland<br />

10 Kardex AG www.kardex.com 9 $681 million Zurich, Switzerland<br />

11 Columbus McKinnon Corp. www.cmworks.com 10 $635 million Amherst, N.Y.<br />

12 Fives Group www.fivesgroup.com 11 $500 million Paris, France<br />

13 TGW Transportgerate GmbH* www.tgw-group.com 12 $409 million Wels, Austria<br />

14 Beumer Maschinenfabrik GmbH www.beumer.com 17 $380 million Beckum, Germany<br />

15 Knapp Logistik Automation GmbH www.knapp.com 15 $323 million Graz, Austria<br />

16 Witron GmbH www.witron.com 13 $300 million Parkstein, Germany<br />

17 UFI (United Fixtures/Interlake)** www.interlake.com 14 $266 million Naperville, Ill.<br />

18 HK Systems Inc. www.hksystems.com 18 $262 million Milwaukee, Wis.<br />

19 Dearborn Mid-West Conveyor Co. www.dmwcc.com <strong>20</strong> $222 million Taylor, Mich.<br />

<strong>20</strong> FlexLink AB www.flexlink.com 19 $219 million FlexLink Systems (Allentown, Pa.)<br />

*Will be reporting as TGW Logistics Group in the future<br />

**Revenue reported by Mecalux, will be reported as one company (Interlake Mecalux) in the future<br />

<strong>TOP</strong> <strong>20</strong> SYSTEMS SUPPLIERS


modern EQUIPMENT BUYING GUIDE<br />

Supply chain<br />

software basics<br />

From the factory to the warehouse to the shipping<br />

department and beyond, software applications are<br />

enabling end-to-end supply chain management.<br />

By Bob Trebilcock, Executive Editor<br />

An important shift has taken place in materials<br />

handling over the last decade. Once,<br />

the focus was on the physical movement of<br />

goods. Today, the information about the movement<br />

of those same goods is as important, if not more<br />

important, as the physical movement.<br />

It’s not just tracking the movement of goods and<br />

enabling process inside a distribution center or factory.<br />

Across the supply chain, software enables suppliers,<br />

shippers and customers to replace just-incase<br />

inventory with accurate and timely information<br />

about the status of orders, inventory, shipments and<br />

events. That information might include the amount<br />

of inventory on a shelf or the fact that a truckload of<br />

anticipated inventory is stuck on the road.<br />

The aim of these systems is to capture that realtime<br />

information and make it visible to decision<br />

makers across the supply chain. These systems are<br />

the basic building blocks that enable management<br />

of the contemporary supply chain from end to end.<br />

Here’s a rundown of the most common applications<br />

being used by leading supply chain managers today<br />

to solve a variety of operational problems inside and<br />

outside the four walls of a warehouse.<br />

Think of them in three different categories:<br />

• Enterprise-level applications reside at the corporate<br />

level and serve as the information backbone,<br />

or the systems of record, of the supply chain.<br />

• Supply chain planning (SCP) applications also<br />

reside at the corporate level, but may also be<br />

used by plants and warehouses. These look at the<br />

Warehouse management systems (WMS) direct<br />

order fulfillment and replenishment activities.<br />

information about orders collected by systems of<br />

record and create plans to get the work done.<br />

• Supply chain execution (SCE) applications are<br />

assigned the job of executing the plans created<br />

by planning systems.<br />

ENTERPRISE-LEVEL<br />

APPLICATIONS<br />

Enterprise resource planning<br />

If you’re building a house, you start with a foundation.<br />

In the supply chain, an enterprise resource<br />

26 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com<br />

Illustrations by Steve Hussey


planning (ERP) system serves the same purpose. It is a packaged<br />

business software system that allows a company to:<br />

• Automate and integrate the majority of the business<br />

processes,<br />

• Share common data and practices across the entire enterprise,<br />

and<br />

• Produce and access information in a real-time environment.<br />

ERP systems reside at the host or corporate level. Think<br />

of them as the wiring and plumbing of a company: Typically,<br />

the core business processes managed by the ERP involve<br />

the manufacturing, distribution and financial needs of a<br />

company, including cost accounting, inventory, purchasing,<br />

customer orders, invoicing, vendor invoices and payments,<br />

customer receipt processing, general ledger and shop floor<br />

control features.<br />

The data created by those processes is maintained in a<br />

common file and in a common language understood by all<br />

the other systems in an enterprise, whether those systems<br />

are part of an integrated supply chain suite or linked together<br />

through interfaces.<br />

Order management<br />

Filling an order begins with an order management system<br />

(OMS). These systems capture order information from customers<br />

by phone, fax, EDI (electronic data interchange) or<br />

the Web. OMS systems were once a function of an ERP system:<br />

They checked credit, passed an order on to a supply<br />

chain execution system, and tracked the status of an order in<br />

batch mode. A company with multiple divisions—and multiple<br />

ERP systems—might have multiple order management<br />

systems.<br />

Contemporary systems, also known as multi-enterprise<br />

OMS, sit above the ERP and present one face to the customer:<br />

Place an order and the OMS will parse out the different<br />

line items of an order to the right division, the right<br />

manufacturing plant, the right third-party distributor or the<br />

right warehouse. The OMS then passes that information on<br />

to the other systems and partners in the supply chain to fill<br />

the order.<br />

SUPPLY CHAIN PLANNING<br />

Supply chain planning<br />

Supply chain planning (SCP) software is an umbrella technology<br />

that enables you to do advanced supply chain planning<br />

and scheduling including decision support, optimization<br />

and cross-functional decision making.<br />

An SCP system usually resides at a corporate level, where<br />

it looks at the orders to be manufactured, picked and shipped<br />

as well as the constraints, or limitations, on the availability of<br />

capacity, materials, equipment and human resources. With<br />

that information, the system determines the best way to<br />

Manufacturing execution systems (MES) synchronize<br />

manufacturing processes across a facility or supply chain.<br />

schedule an order and plan for the future. Planning software<br />

may even determine that an order can’t be profitably filled<br />

under any circumstances and shouldn’t be scheduled. While<br />

there are many planning components, most attack a problem<br />

from one of three angles:<br />

• Strategic planning looks at capital asset allocation as well<br />

as market and sourcing decisions, like where to locate a<br />

warehouse or DC to serve a particular market.<br />

• Tactical planning asks the questions: Given my customers’<br />

demand and my resources, what can I make that will<br />

produce the most profit for my company?<br />

• Operational planning takes the supply chain plan developed<br />

by the strategic and tactical planning programs and<br />

develops an operational path to execute those plans.<br />

First, it may develop weekly production and stocking<br />

schedules. Then, it might break the weekly plans into<br />

smaller units of time, right down to the day, hour, minute<br />

and even second.<br />

Multi-echelon planning<br />

This is an emerging application used to optimize the amount<br />

and positioning of inventory across the supply chain.<br />

Traditional inventory optimization is a little like playing<br />

checkers: These systems look at inventory in one dimension,<br />

such the inventory levels at a specific warehouse or<br />

parts depot.<br />

A multi-echelon solution is like playing Chinese checkers:<br />

It looks beyond the inventory levels at a single location<br />

and optimizes inventory positions in the equivalent of three<br />

mmh.com MODERN MATERIALS HANDLING / A PRIL <strong>20</strong>09 27


modern EQUIPMENT BUYING GUIDE<br />

dimensions throughout a network of trading partners.<br />

For instance, it can take into consideration the inventory<br />

at multiple distribution centers as well as supplier warehouses.<br />

It can also consider inventory that’s already in-transit<br />

from a manufacturer or a distributor and product that’s about<br />

to be manufactured.<br />

Supply chain optimization and network design<br />

Another emerging application, these are planning tools that<br />

model and simulate complex supply chains. Using these programs,<br />

decision makers can decide the optimal way to source<br />

materials, locate manufacturing plants and distribution centers<br />

and set up transportation lanes.<br />

Once the network design is in place, the system can run<br />

a series of what-if scenarios to determine how the supply<br />

chain performs when changes are made. What happens if<br />

inventory is shifted from one DC to another? What happens<br />

if there is an increase in orders in Florida and a decrease<br />

in the Northeast? By simulating real world situations, the<br />

system can predict how the supply chain will perform and<br />

can look for potential opportunities to optimize the current<br />

network.<br />

SUPPLY CHAIN EXECUTION<br />

Supply chain event management and visibility<br />

These systems monitor the supply chain for events that are<br />

out of tolerance for the plan, like a shortage of parts at a<br />

manufacturing location or the breakdown of a truck delivering<br />

an important order. When those occur, the system notifies<br />

a decision maker by e-mail, pager or fax who can then<br />

Labor management systems (LMS) work with a WMS<br />

to manage activities in a DC.<br />

While warehouse management<br />

systems have evolved over the<br />

last decade, at heart they are a<br />

software execution tool used to<br />

manage people, inventory, time,<br />

orders and equipment inside a<br />

distribution center.<br />

take an action to correct the problem.<br />

By building in work flow rules, the system can supply<br />

suggested responses that allow a manager to re-plan, like<br />

the best alternative in terms of cost and customer service<br />

requirements. Once stand-alone applications, event management<br />

and visibility solutions are increasingly integrated into<br />

other applications.<br />

Supply chain collaboration<br />

Supply chain collaboration systems go hand-in-hand with<br />

planning. In a global supply chain, where every participant<br />

has its own planning and execution systems, a collaboration<br />

platform enables the players outside of the enterprise to<br />

communicate, regardless of the systems they have, as if they<br />

were part of the enterprise.<br />

Once a plan has been created to fill an order, and the<br />

resources and parts required to execute that plan have been<br />

identified, the requirements are made available to all of the<br />

players across the supply chain through the collaboration<br />

platform.<br />

Each supplier will be asked to commit to whether they<br />

can provide all of the parts required in the time frame<br />

required. If a supplier can’t meet a deadline, that information<br />

can be fed back into a planning system to come up<br />

with an alternative.<br />

Once the plan begins to unfold, the collaboration system<br />

can monitor the progress using event management, which<br />

alerts a decision maker when something important hasn’t<br />

occurred. Finally, the system can serve as a repository of<br />

performance information from across the supply chain for<br />

historical analysis.<br />

Warehouse management<br />

Inside the four walls of a distribution center, a warehouse<br />

management system (WMS) is still the starting point for<br />

inventory management. While these systems have evolved<br />

over the last decade, at heart they are a software execution<br />

tool used to manage people, inventory, time, orders and<br />

equipment inside a distribution center.<br />

A basic WMS package supports the everyday functions<br />

that are central to warehousing: receiving, directed putaway,<br />

28 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com


order fulfillment planning, picking and packing, and shipping<br />

the order. A more advanced WMS system may also<br />

support other important warehouse activities, like:<br />

• Replenishment: The WMS will constantly update<br />

inventory and call for the movement of material from<br />

reserved storage to the active pick area so order pickers<br />

are never out of inventory, or will notify when it’s<br />

time to place a re-order.<br />

• Cycle counting: Typically this is a process to systematically<br />

count inventory according to a plan, say once a<br />

year on fast-moving items. It is a support, or check, for<br />

the usual inventory accounting process.<br />

• Productivity: WMS systems communicate with workers<br />

through the use of hand-held radio frequency<br />

devices and voice recognition systems. The data from<br />

those communications also provides a way to monitor<br />

and report productivity.<br />

The most advanced systems will also support compliance<br />

labeling, and interface with other automatic handling<br />

equipment like automatic guided vehicles, automatic storage<br />

and retrieval systems, conveyors and carousels.<br />

Warehouse control<br />

A warehouse control system (WCS) is a layer of software<br />

that sits between a host system—an ERP or WMS<br />

—and automated materials handling equipment. While<br />

a WMS manages conventional activities performed by<br />

pickers and lift truck operators, a WCS synchronizes the<br />

activities of automated storage, picking and transportation<br />

solutions.<br />

A WCS not only determines the best way to route material<br />

through a facility’s automated systems, it also provides<br />

real-time control to re-optimize orders as business conditions<br />

change and communicates updates back to the host system<br />

to provide real-time visibility into warehouse activities.<br />

Labor management<br />

While a WMS directs the activities of operators on the floor,<br />

it doesn’t determine how many employees will be needed<br />

or where they should be deployed. That’s the role of a labor<br />

management system (LMS).<br />

These applications plan, manage, measure and report on<br />

the performance levels of warehouse personnel. They do that<br />

by comparing the work that has to be done in a warehouse<br />

against a set of engineered labor standards. That data is used<br />

to determine the number of employees needed for a shift.<br />

In addition, these systems monitor work throughout a shift<br />

and provide feedback in real-time to supervisors and associates.<br />

They also include business intelligence tools that provide<br />

upper management with the labor information it needs<br />

to proactively address problems before they become customer<br />

service issues and to accurately plan for the future.<br />

Supply chain management software providers<br />

Supplier Web site Telephone<br />

Aldata www.aldata-solution.com 404-355-32<strong>20</strong><br />

Applied <strong>Materials</strong> www.appliedmaterials.com 408-727-5555<br />

CDC Software www.cdcsupplychain.com 770-351-9600<br />

ClickCommerce www.clickcommerce.com 312-482-9006<br />

Dematic www.dematic.us 877-725-7500<br />

Epicor www.epicor.com 949-585-4000<br />

HighJump www.highjumpsoftware.com 800-328-3271<br />

IBS www.ibsus.com 800-886-3900<br />

IFS www.ifsworld.com/us 888-437-4968<br />

ILOG www.ilog.com 800-367-4564<br />

Infor www.infor.com 800-260-2640<br />

i2 Technologies www.i2.com 800-800-3288<br />

JDA Software www.jda.com 800-438-5301<br />

Manhattan Associates www.manh.com 770-955-7070<br />

Microsoft www.microsoft.com 888-477-7989<br />

Oracle www.oracle.com 800-633-0738<br />

QAD www.qad.com 888-641-4141<br />

RedPrairie www.redprairie.com 877-773-7724<br />

SAP www.SAP.com 800-872-1727<br />

Sterling Commerce www.sterlingcommerce.com 800-876-9772<br />

Swisslog www.swisslog.com 757-8<strong>20</strong>-3400<br />

Slotting<br />

Slotting is the science behind determining where to store<br />

individual products in a facility to enable the most efficient<br />

picking. The general rule is that the fastest movers<br />

should be located closest to the shipping area and in the<br />

golden zone that is easiest to pick from within that picking<br />

locale. Slow movers, meanwhile, are located further away,<br />

in reserve storage.<br />

Slotting software tools, which are available in most<br />

WMS packages and as stand-alone applications, look at a<br />

map of the warehouse along with the velocity of orders and<br />

order mixes to calculate which items will be picked most<br />

frequently and should be in the most advantageous position<br />

in the warehouse. In addition, the tool makes recommendations<br />

like putting the heaviest items at chest height to avoid<br />

back injuries or to separate similar parts to avoid picking<br />

errors.<br />

Manufacturing execution<br />

A manufacturing execution system (MES) manages the process<br />

on a shop floor much like a WMS executes orders in<br />

the warehouse. At least three characteristics are unique to<br />

an MES system:<br />

mmh.com MODERN MATERIALS HANDLING / A PRIL <strong>20</strong>09 29


modern<br />

EQUIPMENT BUYING GUIDE<br />

• It tracks products and orders on the plant floor, managing<br />

the workload and collecting transactions for reporting to<br />

ERP systems.<br />

• It electronically dispatches the orders or product requirements<br />

to shop floor personnel, allowing the schedule to<br />

change quickly in response to unexpected demand or to<br />

recover from equipment or material problems.<br />

• Finally, MES uses its tracking capabilities to provide other<br />

data services to the shop floor such as quality tracking,<br />

electronic work instructions and lot traceability, among<br />

others.<br />

Yard management<br />

Yard management systems (YMS) are the bridge between<br />

warehouse and transportation management systems. A YMS<br />

controls all the activities at the facility’s dock and yard and<br />

schedules dock appointments to reduce bottlenecks. In that<br />

sense, it extends a transportation management system.<br />

But if you think of a trailer as a warehouse on wheels,<br />

a YMS extends the view of the WMS. As soon as a truck<br />

checks in at the gate and scans the shipping documentation,<br />

the contents on that truck are considered available to promise.<br />

On the outbound side, a YMS allows you to coordinate<br />

your picking activities and wave planning around trailers that<br />

are going to be on hand to be loaded. As an analytical tool,<br />

a YMS provides information about the performance of your<br />

carriers because you know when they arrived at your location,<br />

not just when they were supposed to arrive.<br />

Transportation management<br />

Like a WMS, a transportation management system (TMS)<br />

receives a group of orders from an OMS, confirms the shipping<br />

dates required to meet delivery promises, checks rates,<br />

assigns carriers and establishes pick-up and delivery schedules<br />

before releasing the orders to the WMS for processing.<br />

Once the orders have been picked, packed and shipped, the<br />

TMS manages shipment tracking, consignee updates, freight<br />

payment and carrier performance measurement.<br />

The basic functions of a TMS system today involve mode<br />

selection, whether that’s truck, LTL, parcel carrier, intermodal<br />

or rail; route selection; and carrier selection. A TMS<br />

can also do load building, that is, look at ways to optimize a<br />

group of known orders by combining LTL shipments into full<br />

truck loads or multi-stop truck loads. It also aggregates parcel<br />

shipments to a specific geographic area, like a regional distribution<br />

center. TMS systems are offered as both licensed<br />

software that sits on a server and as a hosted, software-as-aservice<br />

(SaaS) solution accessed over the Web.


PACKAGING<br />

modern BEST PRACTICES<br />

Reduce waste and labor<br />

and increase productivity<br />

These objectives are on everyone’s minds. Here are three examples of<br />

best practices in packaging that might make a difference in your facility.<br />

Page 32<br />

Do it Best uses plastic containers to<br />

move products from its eight DCs to<br />

4,100 hardware and lumber stores in<br />

its network.<br />

Page 33<br />

Original Philadelphia Cheesesteak<br />

Co. saves on ink and labor by<br />

consolidating functions.<br />

Page 34<br />

Video Professor uses new shrink wrap<br />

to increase stick rate and improve<br />

product.<br />

mmh.com MODERN MATERIALS HANDLING / A PRIL <strong>20</strong>09 31


PACKAGING<br />

Do it Best<br />

relies on reusables<br />

Retailer uses plastic containers to move products from its eight DCs<br />

to 4,100 hardware and lumber stores in its network.<br />

By Sara Pearson Specter, Editor at Large<br />

Do it Best Corp. has used plastic reusable<br />

containers long before being green was<br />

trendy. The company uses them to safely<br />

and securely transport products from its eight distribution<br />

centers to the co-op’s 4,100 member-owned<br />

hardware and lumber retailers.<br />

On an average day, the Do it Best uses approximately<br />

1,000 detached lid containers (Buckhorn,<br />

800-543-4454, www.buckhorninc.com) at each DC<br />

to transport items ranging from light bulbs and tape<br />

to batteries and tools, says Brian Etzler, logistics<br />

operations manager at Do it Best. Etzler estimates<br />

the co-op now has 40,000 containers throughout its<br />

supply chain.<br />

“We’ve relied on the plastic containers for decades<br />

and have found no reason to use any other product<br />

to do the job,” said Etzler, who notes that strength,<br />

stackability and consistent size are the containers’<br />

primary benefits.<br />

To transport larger hardware products—such<br />

as long garden tools—to its member stores, Do it<br />

Best still uses corrugated containers. But due to<br />

their short lifespan and the fact that they cannot<br />

be secured for transit, cardboard boxes have long<br />

since disappeared as a viable option for transporting<br />

everything else.<br />

Higher wall containers are used to accommodate<br />

the variety of products shipped. Once the plastic<br />

container is filled, a lid is attached with a specially<br />

colored packing slip and secured with a cable tie at<br />

each end. To ensure efficiency at the stores, the containers<br />

are filled with related products that end up in<br />

the same department or aisle.<br />

Containers are filled with heavier items in the<br />

bottom and lighter, more fragile items toward the<br />

top. However, no more than 50 pounds of product<br />

can be loaded in any one container so workers can<br />

easily lift the containers onto pallets or stack them<br />

in truck trailers. The same ergonomic consideration<br />

holds true for member store employees who handle<br />

Containers are filled with heavier items in the bottom<br />

and lighter, more fragile items toward the top.<br />

the containers in their own receiving departments.<br />

“A combination of the maximum weight allowed<br />

and the ergonomic handles built into the containers<br />

makes them easy to move when full,” says Etzler, who<br />

adds that some containers weigh out before cubing<br />

out. The co-op’s order picking system analyzes the<br />

shape of thousands of products and determines the<br />

right combination of products to maximize the space<br />

used in a container.<br />

The company prefers containers with detached<br />

lids versus attached lids, notes Etzler: “If a container<br />

lid becomes damaged, we simply replace the lid and<br />

send the damaged one to be recycled rather than the<br />

whole container.”<br />

He also notes that the plastic containers, which<br />

can be stacked up to six layers high, provide consistent<br />

product protection. “If damage should occur,<br />

it’s typically caused by the product packaging or the<br />

wrong mix of product in the container,” Etzler says.<br />

The company is currently looking into converting<br />

from corrugated boxes to larger, reusable plastic<br />

bulk containers for the larger products in the near<br />

future.<br />

32 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com


PACKAGING<br />

Case printing<br />

Original Philadelphia Cheesesteak Co. saves on ink and labor by<br />

consolidating functions.<br />

By Sara Pearson Specter, Editor at Large<br />

The Original Philadelphia Cheesesteak Co., a<br />

niche manufacturer of Philly-style sandwich<br />

steak product, used to use a two-step process<br />

to code corrugated containers to ship its products.<br />

First, printing date and lot codes directly on<br />

the box with a dot-matrix ink jet printer, then using<br />

a print-and-apply labeler to place a UPC bar code on<br />

the corner of the box.<br />

The company consolidated those functions by<br />

switching to four large-character continuous ink jet<br />

printers (Videojet, 800-843-3610, www.videojet.com)<br />

in <strong>20</strong>07. The change yielded tasty results, dramatically<br />

cutting coding-related downtime and eliminating<br />

the cost of labels. Further, the printers’ self-maintenance<br />

system continuously keeps printheads free<br />

of dust and debris for consistently clear codes, which<br />

the previous two-step process could not produce.<br />

“Crisp, clear codes are important to both our<br />

company and our distributors for tracking and tracing,<br />

warehousing and inventory, reordering, billing<br />

and order fulfillment,” says Jim Trivelis, president of<br />

Original Philadelphia Cheesesteak Co. “Clear codes<br />

set the tone for the entire supply chain process.”<br />

Orders are prepared and shipped from two processing<br />

facilities in Philadelphia: a 40,000-squarefoot<br />

facility that manufactures fully cooked product<br />

and an 80,000-square-foot counterpart for raw processing.<br />

According to Trivelis, the company’s old<br />

dot-matrix ink jet printers tended to print codes that<br />

would blur or bleed, and the print-and-apply labelers<br />

experienced extensive downtime, which required<br />

workers to hand-apply labels.<br />

Upon implementing the new printers the company<br />

saw results immediately. The printers provided<br />

consistently clear variable data such as date, lot code,<br />

product code and UPC bar code on up to 30 boxes<br />

per minute, translating to 12,000 boxes per eighthour<br />

shift and 60,000 boxes per week.<br />

“The print-and-apply labelers and dot-matrix printers<br />

just couldn’t keep up with those speed require-<br />

modern BEST PRACTICES<br />

delivers tasty results<br />

ments,” Trivelis says. “The print-and-apply labelers<br />

required time for setup and would take several minutes<br />

to execute a code change.”<br />

With nearly <strong>20</strong>0 product SKUs, Trivelis says it’s possible<br />

for a line operator to change codes up to 10 times<br />

per day. A laptop computer maintains the database of the<br />

company’s product SKUs, all of which have been loaded<br />

onto the four printers. When a new SKU is added, it is<br />

The company consolidated printing and labeling<br />

with large-character continuous ink jet printers.<br />

created on the laptop and then transferred with a USB<br />

memory drive to the printers. From there, choosing the<br />

desired code takes less than a minute.<br />

Further, the printers’ self-cleaning and maintenance<br />

system eliminates wasted ink and downtime because<br />

line operators don’t have to stop a line to prime, purge<br />

and clean the printhead. Low-ink warnings allow<br />

operators to add new ink without stopping production.<br />

Trivelis expects the new printers to pay for themselves<br />

in about one year, due to savings on ink, labels and<br />

labor.<br />

mmh.com MODERN MATERIALS HANDLING / A PRIL <strong>20</strong>09 33


PACKAGING<br />

Shrink wrap<br />

By Sara Pearson Specter, Editor at Large<br />

Nearly 11,000 people per day heed the<br />

call of “try my product?” from the Video<br />

Professor John Scherer during television<br />

commercials touting computer software tutorials for<br />

everything from Excel to eBay. Callers initiate a free,<br />

10-day trial period to review the programs and decide<br />

whether to keep them, what the company calls its<br />

“stick rate.”<br />

“About two years ago we made the decision to<br />

change our shipping package and go with a more<br />

branded, retail box,” says Chris Carpenter, warehouse<br />

and distribution manager for Video Professor.<br />

The company selected a shrink wrapper and shrink<br />

tunnel (Lantech, 800-866-0322, www.lantech.com)<br />

to provide a high-quality shrink wrap for its boxed<br />

CD-ROM sets.<br />

Prior to the change Video Professor inserted the<br />

discs into a long, thin book with pockets, labeled it,<br />

placed it in a sealable bag and mailed it. With the new<br />

packaging, not only did the sales volume increase by<br />

2,000 to 3,000 pieces per day, but Video Professor<br />

also saw a 4% increase in the stick rate, with a net<br />

effect on the company’s bottom line of more than<br />

$50,000 per day.<br />

“It’s amazing how the appearance of the package<br />

can affect program sales,” notes Carpenter. “It truly<br />

influences consumer perceptions about the package<br />

contents.”<br />

Video Professor’s order fulfillment takes place<br />

at its distribution warehouse. Program requests are<br />

received through a call center or online, and order<br />

information is input into a database which produces<br />

an order with mailing label.<br />

Orders are picked up at the main office each<br />

morning and taken to a distribution center where<br />

they are separated. Product is picked and mailing<br />

labels affixed. The boxes are then sent down a manual<br />

conveyor for shrink wrapping. On an average day,<br />

Video Professor shrink wraps 22 packages per minute—about<br />

half the 40-package-per-minute capabil-<br />

modern BEST PRACTICES<br />

system makes the grade<br />

Video Professor uses new shrink wrap to increase stick rate and<br />

improve product.<br />

A shrink wrapper and shrink tunnel provide a highquality<br />

shrink wrap for boxed CD-ROM sets.<br />

ity of the shrink wrapper.<br />

The 11,000 orders per day are fulfilled in an 8.5<br />

hour shift, so efficient operation with little to no<br />

rework or downtime is critical. Most of the program<br />

boxes measure 5 x 8 x 1.5 inches, but there are a<br />

total of four different box sizes, making the shrink<br />

wrap system’s versatility an important factor.<br />

“At one point we were wrapping ‘The Peter Costas<br />

Putting Professor’ program on this machine. And, the<br />

box for that product was 4 feet long,” Carpenter recalls.<br />

To accommodate its various packaging sizes, the<br />

company uses 60 gauge film on 12-, 13- and 18-inch<br />

wide rolls. The film also protects the box throughout<br />

shipping and allows pre-printed box graphics to reenforce<br />

the Video Professor brand.<br />

The shrink tunnel uses soft convection to ensure<br />

uniform distribution of heat and eliminate hot or cold<br />

spots, producing attractive, consistent shrink packages<br />

with no bubbles or burn-outs. Equipped with an<br />

18-inch wide conveyor moving at a top speed of 70<br />

feet per minute, the tunnel’s chamber measures 51 x<br />

22 x 10 inches.<br />

34 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com


DOCK SHELTERS INCREASE<br />

COMFORT, DECREASE COST<br />

Focused on employee comfort, national<br />

bed retailer Select Comfort installs<br />

dock shelters that keep temperatures<br />

stable inside, weather outside and<br />

lower energy costs all around.<br />

By Lorie King Rogers, Associate Editor<br />

WHEN IS A door not a door? When it’s ajar…<br />

and an energy hog. Even the smallest gaps<br />

at your dock doors can cost you big in energy bills<br />

and employee comfort, not to mention the cost to<br />

your DC’s appearance and company image.<br />

As an operator of a fully air-conditioned production<br />

and distribution facility in the Columbia,<br />

S.C., area, Select Comfort Corp. places a high<br />

value on employee comfort. They also understand<br />

the need to control the 110,000-square-foot<br />

facility’s energy costs, especially during hot, sticky<br />

southern summers.<br />

To achieve the best of both worlds, Select<br />

Comfort installed energy-efficient loading dock<br />

shelters (Rite-Hite, 800-456-0600, www.ritehite.<br />

com) in 12 of the facility’s 18 dock positions. The<br />

result is a cooler, more comfortable working environment<br />

for its <strong>20</strong>0 workers and annual energy<br />

savings of $12,000—with the potential for additional<br />

savings as more docks are upgraded. What’s<br />

more, payback of the new dock shelters is estimated<br />

at about two years.<br />

The Select Comfort shipping department is<br />

busy seven days a week, with employees working<br />

10- to 12-hour shifts. According to Darin Swiger,<br />

facility order fulfillment manager, the air conditioning<br />

system wasn’t keeping the loading dock<br />

environment at an even temperature throughout<br />

the day and was also suspected for high energy<br />

costs.<br />

“We took a look at the temperature fluctuation<br />

to see why it was happening, and more important-<br />

modern<br />

PRODUCTIVITY SOLUTION<br />

ly, what we could do to fix it,” said Swiger.<br />

Prior to installation, an analysis showed the<br />

old loading dock shelters were contributing to a<br />

potential energy loss of $40,000 a year.<br />

The solution called for installing new dock<br />

shelters that could seal off the exposed trailer<br />

door hinge gaps while providing full, unobstructed<br />

access to trailer loads and stopping the identified<br />

energy loss.<br />

The replacement dock shelters can also stand<br />

up to repeated impact from semi-trailers being<br />

backed in too quickly or arriving off-center. “A little<br />

bump here and there shouldn’t cost you $5,000<br />

worth of damage,” Swiger says. “However, the<br />

shelters we were using could be easily destroyed if<br />

a trailer backed into them.”<br />

mmh.com MODERN MATERIALS HANDLING / April <strong>20</strong>09 35


modern<br />

SPECIAL REPORT<br />

DC site selection:<br />

Time to scrutinize<br />

the details<br />

By Karen E. Thuermer, Contributing Editor<br />

In today’s economy, factors such as unpredictable fuel<br />

prices, shifts in global trade, new warehouse technologies<br />

and environmental sustainability weigh heavily on site<br />

selection decisions.<br />

Mirroring today’s retracting economy,<br />

logistics and supply chain professionals<br />

charged with site selection for warehouse<br />

and distribution center locations are being increasingly<br />

challenged. With all aspects of today’s economy<br />

off, companies involved in purchasing and locating<br />

warehousing and transportations services must take<br />

a hard look at their physical assets—and dig deeper<br />

into the details of their network.<br />

In fact Dan Albright, vice president for supply<br />

chain management consulting at Capgemini, urges<br />

companies to spend less time adding capacity to solve<br />

immediate needs and more time upfront on network<br />

planning for near- and long-term requirements.<br />

“Firms should have a continually updated five<br />

to seven year horizon for distribution networks,”<br />

Albright advises. “In addition, firms should always<br />

include two elements in their site selection program:<br />

flexibility and resiliency.”<br />

Flexibility and resiliency are, without a doubt, two<br />

vital survival skills for today’s DC site selectors. In<br />

today’s weak economy, all spending or expansion decisions<br />

are being scrutinized more heavily than ever.<br />

“Shippers or suppliers may choose to hold off<br />

and operate from an existing facility, but outsource<br />

another facility as a means of reducing their fixed<br />

costs,” says Bill Butler, president and chief executive<br />

officer of Los Angeles-based Weber Distribution, a<br />

nationwide provider of logistics solutions.<br />

Although historic trends driving DC site selection<br />

have not really changed, those regarding DC development<br />

have. “Industry-wide, speculative development<br />

has all but halted,” says Mike Peters, first vice<br />

president at ProLogis in Denver, Colo. “Build-to-suit<br />

development, albeit at a much slower pace, is likely<br />

to be the status quo among the development community<br />

for the foreseeable future.”<br />

This means companies will have access to fewer<br />

readily available DCs and need to be more involved<br />

in the development of new DC space. And while<br />

most site selection decisions focus on minimizing<br />

transportation costs and proximity to customers,<br />

factors such as unpredictable fuel prices, shifts in<br />

global trade, new warehouse technologies, and environmental<br />

sustainability now also influence site<br />

selection.<br />

“Companies are planning for a different future<br />

than six months ago,” states Albright. “When com-<br />

36 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com


panies consolidate to reduce costs, they use these factors to<br />

decide which sites to consolidate, then how to move inventory<br />

to satellite sites and remain nimble<br />

in their distribution.”<br />

These decisions can be challenging,<br />

particularly since it is unclear how much<br />

further the economy will drop, whether<br />

or not fuel prices will spike again, and<br />

how many and what companies will not<br />

survive this recession.<br />

Fuel effect<br />

Instability of fuel prices is of particular<br />

concern for companies that spend a<br />

considerable amount of their budgets on<br />

transporting goods. Although fuel costs<br />

have eased since last summer, most<br />

executives expect them to spike again in<br />

<strong>20</strong>09. “Firms now consider this compo-<br />

nent over others such as labor and real estate costs in making<br />

DC site selection decisions,” says Albright.<br />

Although most companies have already adopted the strategy<br />

of locating DCs close to transportation hubs and gateways,<br />

such fuel spikes still have a huge impact on transportation<br />

and distribution costs. Consequently, more firms are analyzing<br />

their network optimization strategies, which include proximity<br />

to key interstates, vehicle traffic patterns, state and federal<br />

infrastructure improvement plans, proximity to alternative<br />

transportation modes such as rail, and the potential impact of<br />

environmental legislation.<br />

Long haul shipping costs are not the only concern. Short<br />

haul transportation can also be masked with costs. “If you<br />

are going to locate a facility outside of congested cities like<br />

Atlanta or Washington, D.C., you are going to pay a lot for<br />

trucks to sit in traffic,” Albright warns.<br />

Another issue to consider is whether a location is primarily<br />

served as an outbound or inbound market. “For example,<br />

Memphis has more outbound than inbound trucking service,”<br />

states Jeffrey Brashares, president of the logistics services<br />

group at Pacer Distribution Services. “If you put a DC there<br />

then you’ll need truck services that are going in.”<br />

Of course, one of the best ways to optimize distribution<br />

costs is to make sure trucks are leaving DCs as full loads to<br />

single locations rather than less-than-truckload (LTL) to multiple<br />

distribution points, Peters suggests.<br />

Yet another concern these industry voices suggest is that<br />

the bad economy could result in increasing numbers of trucking<br />

company failures, which could cause capacity issues. “This<br />

could sway site selectors into considering locations close to<br />

intermodal options,” Brashares says.<br />

Already, many large companies that ship high volumes over<br />

distances longer than 500 miles are employing intermodal, a<br />

The ProLogis Kaiser Commerce<br />

Center, which comprises about 5.9<br />

million square feet in nine buildings, is<br />

now fully occupied with a recent lease<br />

agreement of 484,000 square feet to<br />

a leading 3PL.<br />

mode that combines trucking with the more economical service<br />

of rail. “Companies are looking at what railroads have to<br />

offer and co-locating near or on their<br />

property,” Brashares adds.<br />

Impact of global trade<br />

Shifts in global trade are also influencing<br />

site selection, particularly<br />

as more steamship lines from Asia<br />

call on U.S. East Coast seaports.<br />

Consequently, increasing numbers<br />

of companies find benefits in locating<br />

DCs or import centers at or near<br />

these ports to create increased distribution<br />

network efficiencies.<br />

On the West Coast, distribution facilities<br />

are locating inland from the heavily<br />

congested areas surrounding the Ports<br />

of Los Angeles/Long Beach. As a result,<br />

developers like AMB Property Corp. are continuing to see<br />

demand for infill-located, Class A facilities at core hub and gateway<br />

markets that have strong ties to trade flows.<br />

The benefits of going green<br />

Public opinion against companies that outsource and<br />

contribute to global warming can also influence DC and<br />

warehousing site selection. And it’s becoming readily<br />

apparent that organizations that make conscientious<br />

efforts to reduce C02 emissions will win favor.<br />

Simple efforts can improve your DC’s “green” footprint.<br />

These include considering traffic patterns and<br />

access to key roads and rail; locating a DC in temperate<br />

climate locations; and leasing space in a LEED certified<br />

DC versus a standard facility.<br />

“Green” construction products have also become<br />

available. These include white roofing to reduce heat<br />

island effects and indoor heat build-up, occupancy sensors<br />

on light fixtures to turn lights off when rack aisles<br />

aren’t being used; and solar hot water systems that use<br />

the sun to heat water for building use.<br />

“Location is one of the most overlooked factors in<br />

reducing carbon emissions,” says Timothy Nolan, vice<br />

president, customer development for AMB Property<br />

Corp. “If an energy efficient DC is 100 miles from the<br />

urban center it services, the benefits of its operational<br />

efficiencies are negated multiple times over by the<br />

transportation distances required for goods delivery,”<br />

says Nolan. “Selecting sites in close proximity to the<br />

distribution network reduces fuel cost and carbon emissions.<br />

Overall, the biggest impact on carbon emissions<br />

is to select locations in infill locations,” he adds.<br />

mmh.com MODERN MATERIALS HANDLING / A PRIL <strong>20</strong>09 37


modern<br />

SPECIAL REPORT<br />

The cost of shipping from China, however, is causing<br />

some companies to move production closer to the United<br />

States to countries like Mexico and those in Central America.<br />

Consequently, Albright suggests that some West Coast DCs<br />

may be displaced to other regions of the country closer to customer<br />

regions. That’s because products made in Mexico can<br />

be directly transloaded to the DC. “This, of course, depends<br />

on the nature of the product and required transportation<br />

modes,” he says.<br />

Albright adds that consolidations among steamship companies,<br />

fewer volumes, and the trend toward mega-container<br />

vessels are all issues leading carrier operators to call on only<br />

seaports capable of handing these large ships.<br />

It’s the economy<br />

Despite the fact that many retail products are imported and<br />

therefore redistributed from import centers or DCs, retail<br />

store closings are not affecting DCs unless they are dedicated<br />

to a particular area that has been hit hard by store closings.<br />

In those cases, closures will add to the downward pressure<br />

on real estate prices and create opportunities for companies<br />

needing space in those specific areas.<br />

“If a supplier’s warehouse lease is soon expiring, they<br />

will have good leverage in renegotiating rates or have better<br />

opportunities in securing more desirable properties that<br />

have come on the market that were not available before,”<br />

says Butler.<br />

Depending upon the length of the recession, companies<br />

may choose to consolidate multi-facilities to help reduce their<br />

overall footprint and operating expenses. Reduced consumer<br />

demand could alter how retailers order shipments from large<br />

quantity purchase orders to fewer, smaller ones. “Retailers<br />

may choose to hold fewer inventories and replenish orders in<br />

shorter cycles,” Butler says. “Other sectors may decide to follow<br />

suit and hold less inventory in their own warehouses, thus<br />

adjusting their production volumes.”<br />

To save costs, many companies are already converting<br />

fixed costs into variable costs by outsourcing distribution and<br />

warehouse functions to third party logistics (3PLs) providers,<br />

a practice that has been ongoing for <strong>20</strong> years. “Right now the<br />

market is seeing a lot of pursuits, but it remains to be seen<br />

how this will play out,” says Peters.<br />

Meanwhile, as more and more domestic manufacturers<br />

consolidate their production/manufacturing sites, they, too,<br />

are outsourcing their overflow to 3PLs. This has resulted in<br />

increased demand by 3PLs for DC and warehouse space. “In<br />

fact, contract logistics providers are one of the strongest growing<br />

segments of industrial space demand at the moment,”<br />

says Timothy Nolan, vice president of customer development<br />

for AMB Property Corp.<br />

Companies are still considering either large and small<br />

DCs or a combination of both. “I’ve watched customers go<br />

AMB Tres Rios in Mexico City is located near a major highway<br />

network to facilitate effi cient transfer and transport of goods<br />

through the distribution channel.<br />

to where they now have smaller DCs or actual crossdocks<br />

to get closer to their ultimate customer,” says Brashares. “If<br />

you’re trying to get as close to your customer as possible,<br />

you probably are going to want more DCs rather than less.”<br />

Technology’s new role<br />

Warehouse technology especially plays into today’s DC mix.<br />

“Companies must be able to predict and react to demand<br />

more quickly, otherwise they will find themselves in a poor<br />

position very rapidly,” Capgemini’s Albright says.<br />

For the auto industry, for example, Albright imagines the<br />

day where giant lots full of cars will be obsolete. “We’ll go to<br />

the European model with only a handful of cars in a showroom,”<br />

he states. This, however, requires better demand<br />

planning, and product lifecycle and inventory management.<br />

“Companies have to get serious about inventory control technology,”<br />

he says. “Their risk is too great.”<br />

Some firms are already consolidating large facilities while<br />

“forward deploying” quick turning inventory in satellite locations<br />

to handle heavy customer geographies. “Technology<br />

plays a major part in demand planning, inventory, transportation<br />

and labor management,” Albright says. “Firms operating<br />

advanced systems can do more with less space.”<br />

While you can’t predict how long this economic down<br />

turn will last and the final impact it will have on warehouse<br />

and DC site selection trends, one thing is for certain: Those<br />

firms that remain flexible and resilient in determining their<br />

DC needs will be more capable of addressing company needs<br />

once confidence is restored to the economy.<br />

Karen E. Thuermer covers air cargo and site selection for<br />

<strong>Modern</strong>’s sister magazine Logistics Management.<br />

38 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com


Industry<br />

leaders<br />

GET RELATED<br />

INFORMATION FROM<br />

INDUSTRY LEADERS<br />

MODERN’S INDUSTRY LEADERS<br />

<strong>Modern</strong> has recently partnered with many Industry Leaders to offer an added<br />

value to each and every article on MMH.COM. Get related information and<br />

details on equipment, systems and software with this new experience.<br />

VISIT MMH.COM TO LEARN MORE<br />

SOME OF OUR INDUSTRY LEADERS:<br />

Aigner<br />

AML<br />

C&H Distributors<br />

Crown<br />

Cubic Designs<br />

DEMATIC<br />

Diamond Phoenix<br />

Gorbel<br />

HK Systems<br />

Holjeron<br />

Hyster<br />

Intelligrated<br />

Intermec<br />

Interroll<br />

Jacobs Carter Burgess<br />

Jungheinrich<br />

Lightning Pick<br />

LXE, Inc.<br />

MHIA<br />

MTC Worldwide<br />

RedPrairie<br />

Rehrig Pacifi c<br />

SATO<br />

Schneider Electric<br />

SJF<br />

Southworth Products<br />

Toyota Indus. Equipment<br />

UNEX<br />

Wildeck<br />

Witron<br />

Zebra Technologies


Conveyors<br />

Modular, expandable<br />

conveyor system<br />

Offering improved carton control,<br />

quiet operation and low energy consumption,<br />

the modular conveyor system<br />

increases operational flexibility<br />

due to scalability and easy configuration<br />

changes. Conveyor modules are<br />

built on a universal side channel and<br />

include roller or belted straight sections,<br />

curves, inclines/declines, right<br />

angle transfers and steerable wheel<br />

diverters. The modules use common<br />

components so unique parts<br />

are minimized for easy maintenance.<br />

The system can also be retrofitted<br />

into an existing conveyor system.<br />

Configuration options include motorized<br />

rollers, standard AC drives or<br />

variable frequency drives. Dematic,<br />

877-725-7500, www.dematic.us.<br />

Motorized roller conveyor<br />

The MR<strong>20</strong>0 motorized roller conveyor<br />

provides 24-volt motorized<br />

rollers, zero-contact accumulation<br />

and a control module for straight-<br />

forward programming without additional<br />

tools. The system includes<br />

pre-programmed zone control<br />

options with an on-conveyor zerocontact<br />

and zero-pressure accumulation<br />

logic control that can be<br />

changed using simple switch settings.<br />

For additional customization,<br />

a zone director performs higherlevel<br />

control actions with a built-in<br />

zone control. The conveyor features<br />

run-on-demand logic and all-electric<br />

configuration to increase energy<br />

savings. Integral wiring and hardware<br />

LED status indicators simplify<br />

diagnostics and troubleshooting.<br />

FKI Logistex, 877-935-4564,<br />

www.fkilogistex.com.<br />

Dual zone accumulation<br />

To control product flow and optimize<br />

throughput while reducing product<br />

damage, the IntelliQ dual-zone,<br />

minimal pressure accumulation conveyor<br />

sends signals to preceding<br />

zones when a product is stopped to<br />

prevent items from touching. The<br />

conveyor requires only two sensors<br />

and one control module in a 12-foot<br />

intermediate section for a reduction<br />

in energy usage, installation<br />

costs and maintenance. The unit is<br />

DIP-switch configurable, and line<br />

pressure accumulation density and<br />

throughput rate can be controlled.<br />

Intelligrated, 513-701-7300, www.<br />

intelligrated.com.<br />

Powered rollers run quietly<br />

Offering non-contact, zero-pressure<br />

accumulation, the 24-volt powered roller<br />

conveyor is quiet, safe and requires<br />

little maintenance. Configurable with a<br />

variety of components, curves, merges,<br />

transfers, inclines and declines, the<br />

system is modular and flexible. The<br />

conveyor operates at 65 decibels or<br />

lower—comparable to ambient office<br />

noise. Other features include run-ondemand<br />

functionality, enabling products<br />

to advance through a zone when<br />

sensed. Once the zone is cleared, the<br />

conveyor deactivates the zones not in<br />

use to generate energy savings of <strong>20</strong>%<br />

to 40% over conventional conveyors.<br />

Precision zone control eliminates accumulation<br />

back pressures that cause<br />

product misalignment leading to jams<br />

and product or equipment damage.<br />

HK Systems, 800-424-7365, www.<br />

hksystems.com.<br />

3D unstacking, singulation<br />

The three-dimensional Accord<br />

unstacker singulator arranges polybags,<br />

flats, packets and cartons into a<br />

single-file stream. Capable of singulating<br />

more than 100 items per minute,<br />

the unit is ideal for applications that<br />

require products to be single-file and<br />

gapped prior to the downstream<br />

automated induction line systems. The<br />

system is 50 feet long and has a builtin<br />

recirculation line to maximize item<br />

singulation. Completely automated,<br />

the unit requires no manual intervention.<br />

Cinetic Sorting, 502-636-1414,<br />

www.sorting.com.<br />

40 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com


Pop-up roller transfer<br />

conveyor<br />

Generating seamless, 90-degree<br />

sortation, the ProSort MRT medium<br />

roller transfer conveyor incorporates<br />

multiple narrow belts to transport<br />

items. Right-angle pop-up rollers<br />

between the belts transfer items off<br />

the unit. Ideal for handling and transferring<br />

medium-sized objects, the<br />

conveyor handles packages as small<br />

as 8 x 6 inches wide and as long as<br />

28 inches. It can move packages<br />

weighing up to 75 pounds. Useful for<br />

two-sided transfer of items, products<br />

can be transferred off either side of<br />

the conveyor to other right angle<br />

conveyors, workstations, packing<br />

operations, ticketing stations or shipping<br />

departments. Hytrol Conveyor<br />

Company, 870-935-3700, www.<br />

hytrol.com.<br />

Belt-driven conveyor<br />

offers 3 on-the-fly<br />

configurations<br />

The belt-driven live-roller narrow<br />

belt conveyor is configurable<br />

with push button controls that<br />

set logic modules in the field for<br />

zero-pressure contact accumulation,<br />

non-contact accumulation and<br />

transportation conveyor using the<br />

same frame and drive components.<br />

This versatility reduces the cost<br />

of equipment, installation as well<br />

as ownership. A single drive powers<br />

up to four curves and spurs off<br />

either end of the conveyor. Other<br />

features include curves that accumulate<br />

product, true-taper rollers<br />

with close-pack roller centers and<br />

direct drive belts with 97% efficient<br />

gear motors. The standard frame<br />

includes a built-in guardrail configuration.<br />

TGW-Ermanco, 231-798-<br />

4547, www.tgw-ermanco.com.<br />

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Conveyors<br />

Belt curve system<br />

For complex applications with continuous,<br />

high-speed operations and<br />

limited space, the CurveTrack belt<br />

curve system is ideal for loading<br />

and unloading loose cargo. Features<br />

include a guidance system for precise<br />

belt movement. Belt changeover can<br />

be accomplished quickly and efficiently<br />

with minimal tools to reduce<br />

downtime. A lightweight extruded<br />

aluminum profile ensures low noise<br />

levels. Mounting options include<br />

side guards and flow control sensors.<br />

Caljan Rite-Hite US, 800-338-1751,<br />

www.caljanritehiteus.com.<br />

Handle 100 cases per minute<br />

With the ability to reach conveyor<br />

speeds of 350 feet per minute and<br />

sortation rates of 100 cases per minute<br />

and higher, the multi-belt sorter<br />

is fast and accurate. Offered in three<br />

widths—18, 25 and 32 inches—the<br />

conveyor sorts cartons weighing up<br />

to 75 pounds each. Employing multiple<br />

small belts, the sorter efficiently<br />

transports products over their surface.<br />

Each belt includes an individual<br />

spring take-up, creating proper<br />

tensioning across all the belts. Roll<br />

formed belt tracks use ABEC-1 precision<br />

bearings to reduce belt pull for<br />

longer belt life, quieter operation<br />

and a reduction in necessary horsepower.<br />

Automotion, 708-229-3700,<br />

www.automotionconveyors.com.<br />

Continuous vertical lift<br />

conveys in a Z-pattern<br />

The Model<br />

180 continuous<br />

vertical<br />

lift accepts<br />

loads<br />

horizontally,<br />

conveys<br />

them vertically,<br />

and<br />

discharges<br />

them horizontally<br />

in a Z pattern. The unit runs<br />

in a single vertical direction—up or<br />

down—or can be configured to be<br />

reversible on-demand. The chaindriven<br />

system offers 6,000 pound<br />

unit load capacity and with chain<br />

speeds up to 1<strong>20</strong> feet per minute<br />

it can deliver up to 35 loads per<br />

minute. Fully automatic, the unit<br />

lifts loads to heights over 100 feet<br />

with a lift platform using a synchronized<br />

powered conveyor that loads<br />

and unloads items to any compatible<br />

conveyor system. No operator<br />

intervention is required, except for<br />

routine maintenance. TKF, 513-241-<br />

5910, www.tkf.com.<br />

Motor controller with fault<br />

indicator light<br />

For easier fault recognition and a<br />

shorter commissioning phase, a new<br />

motor controller with fault indicator<br />

light is now included on each of<br />

the supplier’s conveyor systems. By<br />

placing an indicator light on each<br />

conveyor, operators can quickly<br />

and easily locate a problem area in<br />

the conveyor line. Each conveyor<br />

can be reset at the motor controller<br />

once the fault has been cleared.<br />

With this new configuration, motor<br />

controllers located on each conveyor<br />

are linked in a chain to each other,<br />

instead of linking each one to a centralized<br />

controls box. This reduces<br />

the cabling needed and the time<br />

required for installation. Westfalia<br />

Technologies, 800-673-2522, www.<br />

WestfaliaUSA.com.<br />

Powered drive curve<br />

component<br />

Featuring<br />

power<br />

transmission<br />

over<br />

the total<br />

width of<br />

the unit<br />

and powered<br />

by a<br />

non-skid<br />

drive drum,<br />

the belt<br />

curve conveyor component has a<br />

high load capability and very low<br />

noise levels, even at high speeds<br />

up to 13 feet per second. The curve<br />

offers low height, as well as low<br />

maintenance and service costs. Belts<br />

can be quickly replaced, while t-slots<br />

in the aluminum profiles allow for<br />

easy attachment of leg supports,<br />

ceiling hangers and sensors. The<br />

technology may be incorporated in<br />

either incline or decline versions, up<br />

to multi-level spiral curves. Axmann<br />

Conveying Systems, 812-284-9285,<br />

www.axmannusa.com.<br />

42 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com


High-volume industrial bar<br />

code imager<br />

Ideal for<br />

high-volume<br />

mobile<br />

industrial<br />

applications<br />

at short and<br />

long range<br />

reading distances,<br />

the<br />

PowerScan<br />

PBT1700<br />

handheld<br />

linear imager features an ergonomic,<br />

robust IP65-rated enclosure. The<br />

scanner provides visual confirmation<br />

of a good read for use in noisy environments.<br />

An over-molded case covers<br />

likely drop points, prevents the<br />

scanner from slipping off counters<br />

and resists multiple drops, strong<br />

shocks and repetitive tumbles. The<br />

decoder reads up to 390 scans per<br />

second and decodes hard-to-read,<br />

poorly printed and damaged bar<br />

codes. For complete coverage of at<br />

least two 8-hour shifts, a replaceable<br />

Li-ION battery scans more than<br />

22,000 transactions in 16 hours.<br />

Datalogic Scanning, 800-695-5700,<br />

www.scanning.datalogic.com.<br />

Industrial fan with<br />

heavy-duty gearbox<br />

The Powerfoil X industrial fan features<br />

a heavy-duty NitroSeal Drive<br />

gearbox to accommodate load<br />

requirements. Precision gearing<br />

provides low friction between gear<br />

teeth for reduced heat and 50% less<br />

backlash than a standard gearbox.<br />

The drive is filled with nitrogen<br />

and hermetically sealed to ensure<br />

zero moisture, contamination and<br />

maintenance. Onboard controls in<br />

a weather-resistant enclosure are<br />

pre-wired to the motor, eliminating<br />

special wiring and reducing installation<br />

costs. For floor-level control<br />

of multiple fans, a lightweight, wallmounted<br />

keypad connected to a<br />

standard junction box is included.<br />

Big Ass Fans, 877-244-3267, www.<br />

bigassfans.com.<br />

mmh.com MODERN MATERIALS HANDLING / A PRIL <strong>20</strong>09 43


Portable safety barrier stops<br />

<strong>20</strong>0 pounds of force<br />

To separate and define large work<br />

areas, long walkways and interior<br />

loading docks, or to protect openings<br />

in the floor, the SpanGuard<br />

safety barrier stops <strong>20</strong>0 pounds of<br />

force with minimal deflection. It<br />

provides a 48-inch high visual barrier<br />

and is offered in 30- or 60-foot<br />

spans connected between two steel<br />

mounting posts. Easy to operate,<br />

one person can position or remove<br />

the barrier in less than 2 minutes.<br />

For opening widths less than the<br />

available spans, excess curtain can<br />

be stored in the storage cylinder.<br />

Constructed of black PVC-coated<br />

vinyl mesh, the barrier has two 4inch<br />

high black and yellow polyester<br />

straps and fiberglass rods on 10<br />

foot centerlines. Rite-Hite, 800-<br />

456-0600, www.ritehitedg.com.<br />

High-capacity lift truck offers<br />

two engine choices<br />

Offered in 8,000 to 11,000 pound<br />

capacities, the Platinum GO4 lift truck<br />

series may be specified with one of<br />

two engine choices: a TB45 LP/dual<br />

fuel or TD42 diesel-powered model.<br />

Both six-cylinder, in-line engines<br />

deliver high torque while maintaining<br />

fuel economy and cleaner exhaust<br />

emissions. Features include engine<br />

and transmission protection systems<br />

that reduce truck speed if excess heat<br />

or low oil pressure are detected, and<br />

PIN access to prevent unauthorized<br />

use. To protect employees in surrounding<br />

areas, an adjustable maximum<br />

travel speed setting is included.<br />

Nissan Forklift, 815-568-0061, www.<br />

nissanforklift.com.<br />

Drum motor saves energy,<br />

reduces carbon footprint<br />

The high-performance, 8.5-inch<br />

diameter 2<strong>20</strong> series drum motor for<br />

belt conveyors is offered in two versions<br />

to handle medium and heavy<br />

unit load applications. An internal<br />

gearing system operates at 97%<br />

efficiency and uses less power than<br />

conventional drives. When fully loaded,<br />

the motor uses 32% less power<br />

than equivalent gear motor drives,<br />

reducing energy costs and carbon<br />

footprint. Motor, gearbox and bearings<br />

are enclosed in a steel shell for<br />

use in harsh environments. The unit<br />

is IP66/67 food grade approved.<br />

Interroll, 800-830-9680,<br />

www.interroll.us.<br />

Split pallet rack beam<br />

permits easy order picking<br />

For easy access of hard-to-reach<br />

cartons on lower shelf levels, the<br />

Ergo Beam structural steel pallet<br />

rack creates an opening between<br />

pallet locations through which an<br />

order-picker can enter and comfortably<br />

reach rear cartons. The racking<br />

reduces product damage and<br />

worker injuries by splitting the front<br />

shelf beam into two separate curved<br />

beams that attach to the rear horizontal<br />

beam. Intended for use with<br />

48 x 40 inch pallets, the structure<br />

is offered in three options: curved<br />

beam with the channel flange<br />

facing inward or outward, and a<br />

model that protects bar code labels<br />

and anchor bolts from damage.<br />

Standard pallet supports accommodate<br />

the system. Frazier Industrial,<br />

800-614-4162, www.frazier.com.<br />

Platform vehicle for<br />

overhead maintenance<br />

The MPV maintenance platform<br />

vehicle provides flexible operation,<br />

comfort and<br />

stability for<br />

overhead maintenance<br />

and<br />

repair at elevations<br />

up to 371<br />

inches. Features<br />

include an<br />

enclosed operator<br />

platform<br />

that allows<br />

travel at its fully elevated height. An<br />

embedded system regulates speed<br />

relative to elevated height at a speed<br />

of 1 to 6.5 miles per hour when fully<br />

elevated. Ideal for very narrow aisles,<br />

the truck is perfect for maintaining<br />

light fixtures. It includes a 750-pound<br />

capacity platform with ample room<br />

for the operator, tools and supplies. A<br />

lock on the entrance gate ensures the<br />

gate is closed before the vehicle will<br />

operate. Raymond, 800-235-7<strong>20</strong>0,<br />

www.raymondcorp.com.<br />

44 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com


LED lamps save energy at<br />

the loading dock<br />

To save energy and costs without<br />

sacrificing light output at the loading<br />

dock, E-Saver LED lamps provide<br />

maximum illumination throughout<br />

the truck trailer with an extra long<br />

life expectancy for a rapid return<br />

on investment. The lamps include<br />

a PAR38 base that fits into most<br />

existing dock light housings. Using<br />

only 27 watts, the LED bulbs reduce<br />

energy costs by 80% compared to<br />

traditional 150 watt incandescent<br />

bulbs. They also have a 50,000 hour<br />

lamp life for utility, maintenance and<br />

replacement cost savings. Durable,<br />

the lamps withstand impacts at the<br />

dock and remain cool to the touch.<br />

APS Resource, 262-518-1000,<br />

www.apsresource.com.<br />

Mobile device offers<br />

real-time access to voice, data<br />

For mobile workers, the MC55<br />

enterprise digital assistant combines<br />

a cell phone, two-way radio, bar<br />

code scanner, digital camera and<br />

mobile computer into one compact<br />

and lightweight unit. The device<br />

improves productivity, response<br />

times and customer service by bringing<br />

business-critical voice, data and<br />

applications to the point of activity.<br />

Featuring a 3.5-inch display, it supports<br />

the GSM/GPRS/EDGE standard<br />

for wireless wide-area networks and<br />

has an integrated GPS. It is offered<br />

in two models and multiple configurations.<br />

Motorola, 866-416-8545,<br />

www.motorola.com/mc55.<br />

High capacity storage and<br />

retrieval<br />

The<br />

MaxTriever<br />

mini-load<br />

storage and<br />

retrieval<br />

machine<br />

efficiently<br />

handles totes,<br />

cartons,<br />

boxes and<br />

other items.<br />

Generating<br />

high capacity<br />

and high speed throughput, the<br />

single mast crane operates in cold<br />

storage, coolers and ambient warehouse<br />

temperatures. A hoist carriage<br />

and guidance system allow for<br />

tight positioning tolerances, while<br />

fast performance is achieved with<br />

both horizontal and vertical drives.<br />

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Offered in single and double deep<br />

configurations, the system may be<br />

built up to 60 feet high. For easy<br />

maintenance and reliability, the system<br />

is constructed of standardized<br />

subsystems. Diamond Phoenix, 888-<br />

233-6796, www.diamondphoenix.<br />

com.<br />

Economic lift tables<br />

Featuring a robust design that<br />

complies with ANSI codes, E-Series<br />

economy lift tables include a platform-centering<br />

device that triples<br />

the life. Wide, large diameter<br />

wheels and roller pins add to the<br />

increased usable life. It plugs into<br />

any 110V, 15-amp outlet for easy<br />

installation. To reduce noise, the<br />

table includes a four-pole, 1,725<br />

rpm motor. A safety leg is built into<br />

the unit for stabilizing during maintenance.<br />

Advance Lifts, 800-843-<br />

3625, www.advancelifts.com.<br />

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mmh.com MODERN MATERIALS HANDLING / A PRIL <strong>20</strong>09 45


Biodegradable void fill<br />

air cushions<br />

Made of 100% recyclable material,<br />

CELL-O void fill air cushions<br />

can be reused indefinitely and will<br />

biodegrade completely within 9<br />

to 60 months when thrown away.<br />

The bags eliminate humidity and<br />

rodent problems that are associated<br />

with starch-based packing options.<br />

Incorporating a special additive that<br />

promotes decomposition, biodegradation<br />

only occurs in the presence<br />

of microorganisms present in landfills<br />

and composting. The bags will<br />

biodegrade in aerobic (with air) and<br />

anaerobic (without air) conditions.<br />

No special handling is required to<br />

load, use or store the cushions. FP<br />

International, 800-888-3725, www.<br />

fpintl.com.<br />

Carts contribute to<br />

green workspace<br />

For handling medium to light loads<br />

with human power rather than<br />

motorized equipment, the ProFlow<br />

Lite series of industrial carts generate<br />

less noise, lower overall emissions<br />

and reduced energy usage.<br />

Standard carts offer formed and<br />

welded steel panel design and feature<br />

low deck heights, ultra-light<br />

tare weights and quiet operation.<br />

Additional standard features include<br />

a four-bend ergonomic handle, floor<br />

lock, simple hook-and-eye coupling<br />

system and green powder paint finish.<br />

Offered in 1,000 pound capacities,<br />

the cart may be specified in<br />

two different deck sizes and include<br />

four-wheel caster steering. Kinetic<br />

Technologies, 440-943-4111, www.<br />

ktecinc.com.<br />

Adjustable performance<br />

saves energy<br />

Incorporating application-matched<br />

functionality and operator comfort<br />

features, the ERC-VG electric rider lift<br />

truck generates internal combustion<br />

engine performance without emissions.<br />

Powered by battery technolo-<br />

gy, the truck cuts energy consumption<br />

with adjustable performance parameters,<br />

extended shift functionality<br />

and increased productivity. Industrial<br />

grade critical components used in the<br />

vehicle’s construction increase overall<br />

productivity and life of a truck. Yale<br />

<strong>Materials</strong> <strong>Handling</strong>, 800-233-9253,<br />

www.yale.com.<br />

Attachment handles<br />

rolls and coils<br />

For printing and packaging applications—including<br />

lifting and hauling<br />

rolls of film, foil, label stock and<br />

other coiled materials—the arbor<br />

attachment for the Mule all-in-one<br />

lift, stacker, transporter and work<br />

bench is offered as a factory-installed<br />

option. The arbor is 14.75 inches long<br />

to match the length of typical rolls<br />

and coils. Lifting a maximum of 350<br />

pounds of material up to 48 inches<br />

high, the Mule’s 22-inch footprint and<br />

36-inch turning radius make it ideal<br />

for use in narrow aisles. It may also<br />

be used as a work positioner and<br />

customizable workbench. Beyond<br />

Products, 866-813-3751, www.<br />

beyond-products.com.<br />

Vertical lift tray dividers<br />

Durable vertical lift tray dividers fit<br />

any pan dimensions and are offered<br />

in heights from 2 to <strong>20</strong> inches. With<br />

dividers spaced on 2-inch centers,<br />

the trays can be configured into cells<br />

measuring from 2 x 2 inches to 12 x<br />

12 inches to accommodate a variety<br />

of product sizes. Weighing less than<br />

comparable metal dividers, the dividers<br />

allow for more products to be<br />

stored. Corner clips lock the dividers<br />

together, while an optional lock bolts<br />

the dividers to the tray to prevent<br />

small part migration. Accessories<br />

include bottom pads, foam pads, cup<br />

inserts and a height-extending perimeter<br />

collar. Flexcon Container, 908-<br />

871-7000, www.flexcontainer.com.<br />

Behind-the-head headset<br />

for mobile workers<br />

Ideal for employees performing<br />

fast-paced mobile tasks who cannot<br />

wear typical over-the-head headset<br />

models due to hair style, religious<br />

headwear or comfort issues, the SR-<br />

15 behind-the-head headset offers a<br />

less obtrusive form. Unlike over-thehead<br />

models which require a strong<br />

clamping force, the set gently positions<br />

itself on the ears with very little<br />

force and is adjustable for either<br />

right or left ear. The headset offers<br />

high-quality voice recognition and<br />

operates with the supplier’s voice<br />

devices and handheld mobile computing<br />

devices from affiliated manufacturers.<br />

Vocollect, 412-829-8145,<br />

www.vocollect.com.<br />

46 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com


Heavy-duty capacity in mid-size truck<br />

The Fortis H170-190FT line<br />

of heavy duty lift trucks<br />

accommodates larger loads<br />

without a dramatic increase<br />

in truck size or expense.<br />

Models offer a longer<br />

wheelbase, more powerful<br />

drive train, and a mast that<br />

handles loads up to 19,000<br />

pounds. The truck features<br />

a heavier VISTA mast for load support during lifting and<br />

lowering. A turbocharged, intercooled Cummins QSB3.3<br />

turbo diesel engine provides 110HP at 2,400 rpm and<br />

305 foot-pounds of torque. The series is outfitted with<br />

an upgraded drive axle and an oil-cooled brake design,<br />

plus larger hubs to increase stability. Hyster, 252-931-<br />

5679, www.hyster.com.<br />

Turnkey fast charge battery<br />

management service<br />

The Total Power Solution program for PosiCharge fastcharge<br />

batteries includes a selection of services including<br />

customized charger and battery configurations, asset leasing,<br />

guaranteed service and maintenance, and asset disposal.<br />

The service provides a single point of contact to help<br />

companies optimize the energy component of fleet management.<br />

As a turnkey program, the details of the batteries<br />

and chargers are left to the supplier, helping users manage<br />

costs and resources more efficiently. AeroVironment, 626-<br />

357-9983, www.avinc.com, www.posicharge.com.<br />

Case erector for over-size corrugated blanks<br />

The Model<br />

340 case<br />

erector for<br />

large and<br />

over-sized<br />

corrugated<br />

cases erects<br />

and bottom<br />

seals blanks up to 45 x 42 inches at speeds to 30 cases<br />

per minute. Offered in both tape and adhesive-sealing<br />

models, the erector has an ergonomic, low-level case<br />

magazine for easy loading. The case feed accommodates<br />

warped or band-marked cases, while a mechanical, walking<br />

beam case transfer squares the cases. Simple, colorcoded<br />

commands for setup and operation are integrated<br />

into the line-side controls. All operating data is captured<br />

for production reports, analysis and trending, with complete<br />

production history available to pinpoint operational<br />

or maintenance issues. A-B-C Packaging Machine, 800-<br />

237-5975, www.abcpackaging.com<br />

Ergonomic pallet handling<br />

For pallet handling, UniLift enables transport and ergonomic<br />

positioning of a standard 40 x 48 inch pallet without<br />

straddling it. A worker can pick up a pallet or skid,<br />

transport it to the work area, and ergonomically position<br />

the load. An electronically deployable outrigger gives<br />

the lift handling and steering characteristics similar to a<br />

pallet jack. The pallet can be raised up to 34 inches off<br />

the ground. Bishamon Industries, 800-358-8833, www.<br />

bishamon.com.<br />

System restores motive batteries<br />

A one-hour process of sulfation elimination restores leadacid<br />

motive batteries to like-new condition. Restoring<br />

previously unserviceable batteries eliminates waste and<br />

replacement cost while reducing recharging expenses by<br />

10% to 25%. The portable system may be used without<br />

requiring the battery to be sent off-site. The process creates<br />

a voltage spike by switching on and off a DC current.<br />

Using an instrument panel, the operator matches the<br />

signal’s peak amplitude to the characteristics of each battery,<br />

making it useful for individual motive battery cells of<br />

2-volts, or an entire battery bank of up to 80-volts.<br />

Batt-Recon, 951-928-0595, www.battrecon.com.<br />

SAM<br />

Shown with Optional Pedestal Mount<br />

Transfer Arm<br />

Your Complete Lifting<br />

Solution<br />

ReactionArm<br />

Shown with Optional Pedestal Mount<br />

LodeArm<br />

Shown with Optional Trolley Mount<br />

Taurus<br />

Shown with Optional Pedestal Mount<br />

Visit www.positech.com<br />

mmh.com MODERN MATERIALS HANDLING / A PRIL <strong>20</strong>09 47


AC reach trucks in 3 models<br />

The 8-Series AC<br />

reach lift trucks<br />

include a single<br />

reach version<br />

in 3,500- and<br />

4,500- pound<br />

lifting capacities<br />

and a 3,000pound<br />

capacity<br />

double reach<br />

model. Features<br />

include an AC-powered drive system,<br />

AC power hydraulic system on 36volt<br />

models, and maintenance-free<br />

electric disc brakes for faster travel<br />

speeds, reduced maintenance costs<br />

and extended life cycle. For operator<br />

comfort, the truck integrates an<br />

11.25-inch diameter steering wheel<br />

with adjustable steering. An adjustable<br />

battery-side, gate-retaining<br />

system minimizes battery side-toside<br />

movement. To maintain the<br />

truck’s position for maximum control<br />

in push-back rack applications, the<br />

truck includes a standard auto-position<br />

hold feature. Toyota Material<br />

<strong>Handling</strong>, U.S.A., 800-226-0009,<br />

www.toyotaforklift.com.<br />

Bottle infeed handles<br />

lightweight bottles<br />

To handle the decreased weight and<br />

compression sensitivity of environmentally<br />

friendly lightweight PET<br />

bottles traveling through packaging<br />

equipment, the Zero-Gap II infeed<br />

creates smooth bottle laning, ensuring<br />

balanced lines and jam-resistant<br />

operation. Installed between the<br />

upstream product conveyor and<br />

the original infeed of the packaging<br />

machine, the system distributes<br />

product from a nested pattern into<br />

multiple lanes. As lanes fill and<br />

product accumulates in the low<br />

pressure area, electronic population<br />

sensors signal the conveyor<br />

to increase its speed, maintaining<br />

balance. By monitoring the product<br />

lanes and controlling the conveyor<br />

speeds accordingly, the unit allows<br />

product to enter these lanes with<br />

very low pressure and no gaps.<br />

Standard-Knapp, 860-342-1100,<br />

www.standard-knapp.com.<br />

Rotate, lift and dump<br />

55 gallon drums<br />

Accepting 55 gallon drums containing<br />

non-free flowing powders, the<br />

drum dumper discharges contents<br />

into a hopper at 122 inches above<br />

floor level. The dumper features a<br />

lift-and-seal system for dust-tight<br />

operation, and a patented controllink<br />

rotation system for carriage<br />

rotation. For hygienic operation,<br />

product contact surfaces are made<br />

of stainless steel. The unit is offered<br />

with discharge heights up to 40<br />

feet and rotation to 180º for any<br />

size drum or container. Material<br />

Transfer & Storage, 800-836-7068,<br />

www.materialtransfer.com.<br />

Casual, steel-toed footwear<br />

Ideal for workers in warehouses, light<br />

manufacturing and industrial occupations,<br />

the Bridge series work shoe<br />

marries younger consumers’ lifestyle<br />

choices with protective footwear<br />

requirements. The shoes take design<br />

cues from popular casual styles,<br />

including skate and on-the-court profiles,<br />

allowing them to also be worn<br />

outside of work. Features include<br />

steel toe protection, rubber toe overlays<br />

in two patterns for durability and<br />

a padded tongue and heel. Low profile<br />

soles offer high surface contact<br />

while being slip-, oil- and abrasionresistant.<br />

The Timberland Co., 888-<br />

802-9947, www.timberland.com.<br />

Executive Offices<br />

225 Wyman Street<br />

Waltham, MA 02451<br />

781-734-8000 Fax 781-734-8076<br />

Mark Finkelstein, President - Electronics &<br />

Manufacturing Division<br />

Brian Ceraolo, Group Publisher<br />

Dorothy Buchholz, Group Production Director<br />

Geri Patti, Production Manager<br />

Sales Offices<br />

AL, CT, DC, DE, FL, GA, KY, MA, MD, ME, MI,<br />

NC, NH, NJ, NY, OH, PA, RI, SC, TN, VA, VT, WV,<br />

Eastern CAN<br />

Steve McCoy, National Sales Director<br />

508-261-11<strong>20</strong> Fax: 508-261-1121<br />

smccoy@reedbusiness.com<br />

IA, IL, IN, KS, MN, MO, ND, NE, SD, WI,<br />

Central CAN<br />

Bob Casey, District Sales Director<br />

847-223-5225 Fax: 847-223-5281<br />

bobc@caseyreps.com<br />

AR, AZ, CA, CO, ID, LA, MS, MT, NV, OK, OR, TX,<br />

UT, VA, WA, WY, Western CAN<br />

Jay Gerson, District Sales Director<br />

972-393-5462 Fax: 972-393-5492<br />

jay.gerson@reedbusiness.com<br />

EUROPE<br />

Mike Hancock, VP International Sales<br />

Reed Business Information<br />

Quadrant House<br />

The Quadrant, Sutton<br />

Surrey SM2 5AS UK<br />

Tel: 44-181-652-8248 Fax: 44-181-652-8249<br />

Web Operations<br />

Clive Purchase<br />

Director, Web Operations<br />

781-734-8273<br />

clive.purchase@reedbusiness.com<br />

Director of Online Sales<br />

Paul Zampitella<br />

781-734-8541<br />

paul.zampitella@reedbusiness.com<br />

Custom Article Reprints<br />

Reprint Management Services<br />

The YGS Group<br />

(800)290-5460, ext. 100<br />

modernmaterials@theygsgroup.com<br />

Magazine subscriptions<br />

FREE magazine subscriptions<br />

available at www.getFREEmag/com/MMH<br />

Direct all magazine subscription<br />

inquiries to:<br />

8878 Barrons Blvd<br />

Highlands Ranch, CO 80129-2345<br />

Phone: 303-470-4445<br />

Fax: 303-470-4280<br />

E-mail: subsmail@reedbusiness.com<br />

eNewsletter subscriptions<br />

Keep up with the latest industry news and resources.<br />

Sign-up for our FREE eNewsletters at<br />

www.mmh.com/subscribe.asp<br />

48 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com


advertiser index<br />

Page # Phone<br />

BuyerZone C-3 866-623-5565<br />

www.buyerzoneindustrial.com<br />

CHEP USA<br />

www.chep.com<br />

4<br />

Dehnco Equipment Co.<br />

www.mmh.dehnco.com<br />

25 847-382-1579<br />

Dematic<br />

www.dematic.us<br />

6 877-725-7500<br />

Diamond Phoenix<br />

www.diamondphoenix.com<br />

41 888-233-6796<br />

Industrial Netting<br />

www.industrialnetting.com<br />

22 800-328-8456<br />

LXE Inc.<br />

www.lxe.com<br />

45 877-710-8919<br />

Matthews Intl Holjeron<br />

www.holjeron.com<br />

30 503-582-08<strong>20</strong><br />

Page # Phone<br />

Positech Corp.<br />

www.positech.com<br />

47 800-831-6026<br />

PowerPusher<br />

Div.of Nustar, Inc.<br />

www.powerpusher.com<br />

22 800-800-9274<br />

Remstar International<br />

www.remstar.com<br />

C-4 800-639-5805<br />

Simpson Strong-Tie<br />

Company<br />

www.simpsonanchors.com<br />

12 800-999-5099<br />

SpanTech<br />

www.spantechllc.com<br />

43 270-651-9166<br />

Toyota Industrial<br />

Equipment<br />

www.toyotaforklift.com<br />

C-2 800-226-0009<br />

This index is an additional service. The publisher does not assume any liability for errors or omissions.<br />

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MODERN 60 SECONDS WITH…<br />

Greg Cronin<br />

Seegrid<br />

LOCATION: Pittsburgh, Pa.<br />

TITLE: Executive vice president<br />

EXPERIENCE: Nearly 40 years in<br />

warehousing, logistics and supply<br />

chain technology.<br />

PRIMARY FOCUS: Customer support.<br />

From WMS systems to supply chain<br />

visibility to RFID, during his 40-year<br />

career, Greg Cronin has been one of<br />

the early proponents of many of the<br />

supply chain technologies the industry<br />

takes for granted today. Now,<br />

he’s interested in robots.<br />

FEEDBACK: gcronin@seegrid.com<br />

What do warehouse<br />

management systems (WMS),<br />

supply chain visibility, RFID<br />

and robotics share in common?<br />

They’re all real time. When I first got<br />

into the business, it was not possible<br />

to track product because cargo<br />

moved faster than the paper associated<br />

with it. Most warehouses in<br />

those days had huge staging areas<br />

for goods while they waited for the<br />

paper. So, when I saw a WMS with a<br />

bar code scanner for the first time,<br />

I was just amazed. I could see the<br />

vision of how accurate you could be if<br />

you could capture information in real<br />

time. Everything I’ve done since then<br />

is related to capturing data and connecting<br />

that information to the realtime<br />

movement of goods.<br />

How has the role of technology<br />

in warehousing and logistics<br />

evolved over the last 40 years?<br />

The first important evolution was<br />

from batch mode to real-time data<br />

collection. I remember the big issue<br />

in the 1980s was that there were<br />

batch WMS and real-time WMS. If<br />

you had a real-time WMS, you were<br />

ahead of the game because the system<br />

could direct what happened on<br />

the floor rather than Murphy’s Law.<br />

The next change was the move to visibility,<br />

event management and exception<br />

handling. Now, you can manage<br />

as things are happening.<br />

Why are you so excited by<br />

robots?<br />

Again, it goes back to being able to<br />

react in real time. A robot is locally<br />

intelligent. It can take direction from a<br />

central computer, but thanks to artificial<br />

intelligence, it can handle exceptions<br />

without a human running in and<br />

getting involved. That’s exciting.<br />

50 A PRIL <strong>20</strong>09 / MODERN MATERIALS HANDLING mmh.com


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