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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 />
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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 />
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mmh.com MODERN MATERIALS HANDLING / A PRIL <strong>20</strong>09 5<br />
®
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adaptability to existing buildings make the Dematic Multishuttle an ideal solution for goods-to-person<br />
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 />
aisle in the rack structure traveling horizontally to access loads. Vertical lifts at the end of each aisle deliver<br />
loads to input/output conveyors. Load sequencing occurs as loads are retrieved in the order required.<br />
The modular carrier vehicles in the Dematic Multishuttle allow high uptime, system redundancy, and<br />
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more about Dematic’s Multishuttle, go to www.dematic.us/multishuttle.<br />
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Continuing the Tradition
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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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improve productivity and customer service.”<br />
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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The ‘search & compare’ database<br />
contains more than 175,000 lift<br />
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www.forkliftcompare.com
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 />
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VISIT MMH.COM TO LEARN MORE<br />
SOME OF OUR INDUSTRY LEADERS:<br />
Aigner<br />
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Crown<br />
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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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